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Banking Terminology

This document defines basic banking and credit card terminology used commonly. It provides definitions for terms like activation, credit card, card number, date of birth, social security number, zip code, home phone number, maiden name, billing address, credit line, credit limit, balance, available credit, APR, CLIP, past due, past due fee, swipe, declined, annual membership, due date, statement, billing cycle, minimum payment, solicitation, offer, rewards, ATM, cash advance, primary card holder, authorized user, co-applicant, third party, charge, authorization, payment, fraud, identity theft, hold, credit score, and credit bureau.

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Jorge Ocalagan
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21 views3 pages

Banking Terminology

This document defines basic banking and credit card terminology used commonly. It provides definitions for terms like activation, credit card, card number, date of birth, social security number, zip code, home phone number, maiden name, billing address, credit line, credit limit, balance, available credit, APR, CLIP, past due, past due fee, swipe, declined, annual membership, due date, statement, billing cycle, minimum payment, solicitation, offer, rewards, ATM, cash advance, primary card holder, authorized user, co-applicant, third party, charge, authorization, payment, fraud, identity theft, hold, credit score, and credit bureau.

Uploaded by

Jorge Ocalagan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BASIC BANKING TERMINOLOGY

Activation: The process of activating a card to make it ready and available for
usage.
Credit Card: A credit account intended for purchases using a plastic card at points
of sale.
Plastic: The physical credit card.
Card Number: The 16-digit number on the front of a credit card.
Date of Birth: The day, month, and year when a person was born.
Social Security Number: A number that identifies people within the US Social
Security System.
Zip Code: A US Postal code that allows the US Postal Service to find addresses.
Home Phone Number: A person’s phone number at their place of residence.
Maiden Name: A woman’s family name before marriage.
Billing Address: The address where the person receives bills.
Credit Line: A person’s credit account, such as a credit card or loan.
Credit Limit: The maximum amount of credit that a person can get.
Balance: The amount of money that a person can spend.
Available Credit: The amount of money that a person has borrowed.
APR: Annual Percentage Rate. The interest charged on a credit line.
CLIP: Credit Line Increase Process. A Customer’s request to get a bigger credit
line.
Past Due: Late. Not paid on time.
Past Due Fee: A penalty that must be paid after missing a payment on its due
date.
Swipe: Using plastic as the payment method at a Point Of Sale.
Declined: The status of a credit card that did not work at a Point Of Sale.
Annual Membership: A fee charged one a year for the right of using a service.
Due Date: A date when a payment is supposed to be made.
Statement: A document showing an account’s transactions during a specific time
period.
Billing Cycle: A time period used in order to bill a person for the ise of a credit
line.
Minimum Payment: The smallest amount of money paid towards a credit line that
would prevent a fee.
Solicitation: A letter or phone call from a bank, offering a loan or credit card.
Offer: The details of a line of credit being offered.
Rewards: Redeemable points or miles that a person earns whenever they use
their card.
ATM: Automatic Teller Machine. A machine connected to a card provider’s
network.
Cash Advanced: Money borrowed from a credit card account, actually at an ATM.
Primary Card Holder: The person who owns a credit card, and is financially
responsible for it.
Authorized User: Someone who uses a credit line, but is nor financially
responsible for it.
Co-Applicant: A person who partners with a Primary Card Holder to own a credit
line.
Third Party: A person or business who is not related to an account.
Charge: An expense or purchase.
Authorization: A credit’s card approval of a charge prior to receiving a sales draft
from the merchant.
Payment: Money given to a card provider to reduce debt and increase credit
availability.
Fraud: The crime of cheating somebody to get money, goods or services illegally.
Identity Theft: Using somebody else’s personal information to obtain credit cards.
Hold: A temporary restriction placer on an account’s money after an authorization.
Credit Score: A number resulting from a mathematical model that calculates
lending risk.
Credit Bureau: A company that records and sales credit information to people and
lenders.

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