Credit Card Glossary

Credit card terms and small print can be confusing so here is our glossary of terms, explained in plain english with as little jargon as possible.

Annual Fee
- a fee which is charged every year by the credit card issuer for the right to posses and use the card.

Application
- the form used to apply for a credit card which contains information about the applicant.

APR
- the cost of credit that consumers pay, expressed as a simple annual percentage rate.

Balance Transfer
- the process of moving an outstanding credit card debt from one issuer to another, usually at a lower rate.

Cashback
- a type of credit card where the holder is given back a sum of money, usually a percentage of the amount spent on the card.

Chip and PIN
- the new, more secure way to pay with a credit card using a PIN number rather than a signature.

Credit Card
- a small plastic card which can be used as a method of payment, the money being taken from you at a later date.

Credit Card Fraud
- the unauthorized and illegal use of a credit card to purchase goods or services.

Fees
- fixed charge or payment for services associated with a credit card transaction.

Interest
- interest is an amount charged to the borrower for the privilege of using the lender's money.

MasterCard
- an association of banks that governs the issuing and acquiring of MasterCard transactions

Statement
- a written record prepared by a financial institution, usually once a month, listing all transactions for an account.

Visa
- an association of banks that governs the issuing and acquiring of Visa credit card transactions