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A
B C
D E
F G
H I
J K L
M N
O P
Q R S
T U V
W
X Y Z |
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| A
Adjusted balance: A balance computation method
where all payments made during the billing cycle are subtracted from the
outstanding balance at the beginning of the billing cycle, prior to the
calculation and accrual of finance charges to the account.
Annual fee: A fee charged (on a yearly basis) for
the customer's continued participation in a credit plan.
Annual Percentage Rate (APR): The total yearly cost of
the interest on a loan, expressed as a percentage rate.
Annual Percentage Rate Imposed: Your annualized cost of
borrowing money from a financial institution for this billing period. It
is sometimes different than your APR because of one or more of the
following reasons:
- The card holder's finance charges are compounded daily;
- The card holder may have fees assessed on his account;
- The rounding of the daily periodic rate to five decimal places
Authorized user: A person who has been given
authority by a primary cardholder to make charges to that primary
cardholder's account, but who does not have legal responsibility for
repaying the account.
Average daily balance: A balance computation method for
calculating finance charges. It is calculated by adding each day's
outstanding balance (in a billing cycle), and then dividing that total by
the number of days in the billing cycle. |
| B
Billing cycle: The period between billing statements.
Billing statement: The periodic statement sent by a
credit card issuer to the customer that summarizes all transactions and
other activity applicable to a credit card account, including balance,
purchases, payments, credits and finance charges. |
| C
Cash advance fee: A charge for using a credit card to
obtain cash (generally at an ATM or bank window). This fee can be stated
in terms of a flat, per-transaction fee or a percentage of the amount of
the cash advance.
Charge card: A card that requires a full payment of the
accrued balance by the set due date. Charge cards generally do not allow a
cardholder to carry a balance and do not charge interest.
Credit: The right granted by a creditor to pay in the
future in order to buy or borrow in the present; also, a sum of money owed
to a person or business.
Creditor: Lender of money.
Credit Balance: The surplus in a cash account with a
broker after purchases have been paid for.
Credit card: A plastic card with a coded magnetic stripe
used from time to time to borrow money or buy goods or services on credit.
Such as: National Commercial Bank Credit Card (SA), National Bank of Dubai
Credit Card (UAE), National Bank of Kuwait Credit Card (KWT).
Credit insurance: Insurance that pays or pays off credit
card debt should the borrower be unable to pay the debt as a result of the
loss of employment, death or disability.
Credit limit: The maximum amount of available credit a
cardholder may access. |
| D
Debit card: A bank-issued plastic card that provides
direct access to a cardholder's checking or savings account. Any
withdrawal of funds is immediate.
Default: The failure of a cardholder to perform all of
the duties and obligations set forth in the cardholder agreement. |
| F
Finance charge: The charge for consumer credit, including
interest and certain fees.
Fixed Rate: An interest rate that does not vary based on
an index but is fixed at a previously disclosed level.
Foreign currency surcharge: A charge to cover the cost of
converting purchases made in a foreign currency to card chosen currency. |
| G
Grace period: The period of time you have without a
finance charge on new purchases if the total new balance is paid in full
each month by the payment due date noted on your periodic billing
statement. |
| I
Interest rate: The factor used to calculate the finance
charge applied to your account. |
| L
Late payment fee: A charge to a customer whose monthly
payment has not been received as of the due date for payment as shown on
the billing statement. |
| M
Minimum payment: The minimum amount a cardholder can pay
to keep the account from going into default.
Monthly periodic rate: The interest rate factor used to
calculate interest charges on a monthly basis. The factor equals the
yearly rate divided by 12. |
| N
New balance: Outstanding amount calculated as of the
statement closing date. The new balance may include purchases, cash
advances, and special transfers. |
| O
Over-the-limit fee: A fee charged for exceeding the
credit limit on the card. |
| P
Penalty rate: An increase in a card's annual percentage
rate, which may go into effect in the event an account holder defaults on
a payment or other obligation.
Personal Identification Number (PIN): A number required
to be punched into a keypad before a transaction can be completed. The
number is used as a security measure.
Point of sale (POS): The location where the transaction
takes place is the point of sale.
Posting date: The date that a credit is recorded on your
account. This date may differ from the transaction date.
Previous balance: The outstanding balance on the account
at the end of the previous billing cycle.
Primary cardholder: A person listed on an account that
shares financial responsibility with the secondary cardholder. |
| S
Secondary user: A person who has jointly applied for a
credit card and has financial responsibility for the repayment of the
account balance.
Service Charge: A component of some finance charges, such
as the fee for triggering an overdraft checking account into use. |
| T
Transaction date: The date that goods or services were
purchased or the date the cash advance was made. |
| V
Variable Rate: An interest rate that varies based on the
combination of a published index rate and a previously disclosed margin. |
| W
Wire transfer: The electronic transfer of funds from one
financial institution to another. |
| Z
Zero balance: The amount shown on a credit card
customer's bill when the outstanding balance has been repaid in full. |
