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Monday, May 22, 2006

Credit Card Terms - Review 2

Account Number
- Unique number assigned by a financial institution to a customer
- This number is embossed and encoded on the credit card

Bank Identification Number (Bin)
- The first six digits of account number
- This number is used to identify the card issuing institution

Expired Card
- A card on which the printed expiration date has passed
- This type of card is not valid

MO/TO
- Mail Order / Telephone Order

Visa
- Visa International Service Association
- Also include all of its subsidiaries and affiliates

Friday, May 05, 2006

Credit Card Terms - Review 1

Annual Fee
- A charge paid once a year for the right to use a credit card

Annual Percentage Rate (APR)
- Annual interest rate that the card issuer charges on the unpaid balance of the credit card

Grace Period
- The length of time to pay for the bill before interest is charged on the purchases
- Most companies offer about 20 - 25 day grace periods

Minimum Finance Charge
- The minimum amount that need to be paid if there is any balance on a credit card

Transaction Fees
- The fees that need to be paid for cash advances, late payments or charging over credit limit