Various card issuers
charge an annual fee, which can help offset costs that
issuers incur in maintaining accounts.
Annual Percentage Rate (APR)
Sometimes called the
Annual Interest Rate. The yearly interest rate or percentage
that you pay on an outstanding balance in the form of
interest.
Automated Teller Machine (ATM)
Lets you perform banking
transactions anywhere and at anytime. By using a debit
or ATM card at an ATM, you can withdraw cash from checking
or savings accounts, make a deposit or transfer money
from one account to another or perform other functions.
You can also get cash advances using a credit card at
an ATM. You should also be aware that many banks charge
transaction fees - for using another bank's ATM.
C
Cash Advance
You can obtain cash
on the spot by using your card at a bank or an ATM.
The amount of the cash advance is deducted from your
available credit line or funds on deposits. A fee is
often charged when obtaining cash advances. In addition,
the interest rate is usually higher than on purchases
and there is typically no grace period. (A cash advance
is different from a withdrawal you make with your ATM
card.)
Credit History
A record of how you
have paid accounts in the past; used as a guide to determine
whether you're likely to pay accounts on time in the
future.
Credit Line/ Line of Credit
Also referred to as
your credit limit. This is the maximum amount you can
borrow using your card.
F
Finance Charges
The price paid to a lender for the use of borrowed money.
Interest is charged as a percentage of your outstanding
balance (purchases and charges reduced by payments or
credits posted). This percentage, or interest rate,
can vary from card to card.
Fixed Rate
A set APR that does
not change in response to interest rate changes and
conditions. A Variable Rate periodically goes up or
down based on fluctuations in market interest rates
as reflected in a published index (e.g., the prime rate
published in the Wall Street Journal).
G
Grace Period
The time - usually
20-25 days - when you're not charged interest for purchases
you've made. For example, if the billing date on your
credit card bill is May 1 and you have paid your prior
balance in full, you may have until May 20 to pay your
new balance in full. If you do, you will not be charged
interest. If your payment arrives after May 20 - or
if you don't pay the entire balance - you may be charged
interest from the date of purchase as posted. Some accounts
have no grace period, which means interest is charged
on purchases from the date they are posted.
I
Introductory Period
The period during
which the Introductory Rate applies to balances outstanding
on your account.
Introductory Rate
A special APR that
applies for only a limited time.
M
Merchant
Location or store where purchases are made.
O
Online Banking
Online systems enable
you to plug into a host of banking services from a personal
computer by connecting with the bank's computers over
the Internet. P
PIN
Personal Identification
Number: Secret code you choose for your card that enables
you to access your money or perform banking transactions
through the ATM as well as make purchases without signing
a sales receipt at merchants that have PIN pads. Don't
share your PIN with anyone.
R
Rewards Programme:
A point accumulating programme based on purchases
or transactions made on your card. These points can
be redeemed for the particular programme you enrolled
in (e.g. airline, hotels and so on). Banks may charge
annual fees to participate in a rewards programme.
T
Travel Assistance Services
Access helpful information on travel requirements
including documentation (visas, passports), immunizations
or currency exchange rates. Enrollment is automatic
for eligible cardholders and the assistance service
is free to cardholders.
W
Worldwide Acceptance
With more than 22 million acceptance locations.
