Glossary
Understanding the jargon around credit cards and credit card banking can help you make the most of your credit card. We’ve compiled a glossary of the most commonly used credit card terms
If you know the term you're looking for, jump to it using these quick links below.
0-9
128-Bit Encryption
The highest level of encryption provided by major browsers today. 128-bit encryption is more than 300 x 1024 times more secure than 40-bit encryption.
3D Secure
3D Secure is a free service that protects your online credit and debit card payments. By registering and creating a personal password it ensures that only you can use your cards online. To find out more and register for this service go to the 'Manage Account' tab within our secure Online Card Services and click on the 3D Secure link. Once registered you will have access to a history of your payments that have been authenticated with 3D Secure.
A
Annual Fee
The amount that some companies charge once per year for using their card. Not all cards have this charge. Cards with an annual fee often have better benefits than those without.
Anti-virus software
Software installed on your computer that protects it against online viruses.
APR (Annual Percentage Rate)
This is the percentage rate of interest calculated on an annual basis. It is the rate that will be applied after an introductory offer period has ended. It is normally the rate applicable for card purchases.
Attachment
A document or program that is attached to an email.
Authorised User
A person who is issued with a credit card and who has full charging privileges on the main cardholder's account, but is not responsible for the repayment of the balance on the account.
Authorisations
Approved transactions for which funds have been set aside. Once a transaction is transmitted through the credit card system, the pending amount will be replaced by an actual charge. If the charge is cancelled and not processed through the credit card system, the pending transaction will be removed from your account approximately 14 days after it was authorised.
Available Credit
Your current credit limit less your current outstanding balance and any authorised but pending transactions (including Temporary Authorisations).
B
Balance Transfer
Credit card companies like MBNA offer balance transfers, so you can move outstanding balances to another card and take advantage of 0% (or very low) introductory offers. Note: a fee is normally charged for this service, usually as a percentage of the amount you want to transfer—refer to the terms and conditions of your credit card.
Browser
A program that lets the user browse internet pages such as Internet Explorer or Firefox.
Bookmarks
A method by which frequently used or useful Web pages can be remembered so that you can return to them at a later date without having to remember the actual Web address.
Business Days
Monday to Friday, excluding bank holidays in the UK and Ireland (where applicable).
C
Card Purchase
A purchase you make using your credit card. Also known as a retail transaction.
Credit Card Issuer
The bank, building society or company that issues your credit card. The issuer may have an arrangement with another organisation to put that organisation's logo onto the card. E.g. football credit cards with the club’s logo.
Credit Card Verification Code (CVC)
The CVC code is a unique feature of Visa and MasterCard cards and an added layer of security. It includes a three digit number on the back of your card (usually the last three digits on the signature strip).
Credit Card Cash Back
Some cards offer a reward programme where you can earn back anything from 0.1% - 2% of the amount of all card purchases you make. However, interest rate and the terms and conditions for cash back schemes vary significantly between card companies.
Cash Advances
The process for obtaining cash through your credit card. As a Bank of America Customer, you can receive cash advances against your available credit in one of four ways:
- High Street Withdrawal Present your credit card and identification at any bank that accepts MasterCard® or Visa® Credit Cards.
- ATM Cash Withdrawal Use your Bank of America Credit Card and your 4-digit personal identification number (PIN) at hundreds of thousands of ATMs in most countries that display the MasterCard®, Visa® or American Express® logos.
- Balance Transfer To submit a Balance Transfer request online, click on the 'Transfer Balances' tab within Online Card Services or call us on 0800 456 1234 (UK) or 1800 719 828 (Ireland) .
- Money Transfer To submit a Money Transfer request online, click on the 'Transfer Balances' tab within Online Card Services or call us on 0800 456 1234 (UK) or 1800 719 828 (Ireland) .
Fees are charged for credit card cheque transactions, high street and ATM withdrawals and may be charged for Balance Transfers. See your Terms and Conditions for details.
Cash Advance Rate
The rate of interest charged for using the card to withdraw cash - across the counter in a bank, or from a cash dispensing machine (ATM) etc. There is usually a fee charged to withdraw cash, and interest is charged from the date of withdrawal.
CFS (Common Financial Statement)
A document which captures the customer's income, asset and expenditure (IA&E) detail in a consistent manner across the industry.
Chip And Pin
A unique four-figure number which is provided for your use only, and must use when you spend with your card.
Cookie
A 'cookie' is a set of information sent to your browser by a Web server. Cookies enable information to be stored in and retrieved from your browser. This can make surfing easier, faster, more personal, and more efficient. You can set your browser to warn you before you accept cookies or not accept them at all. Check your (advanced) browser settings. Keep in mind that some secure sites, including Online Card Services, won't work if you don't accept their cookies.
Credit Card Cheques
Credit card cheques are another way of accessing the credit under your credit card account. They are used in a similar way to normal bank cheques, but any money you spend using them is added to the amount you owe on your credit card rather than as a withdrawal from a current account. This usually means you will be charged interest on the amount of the cheque from the day the cheque transaction is posted to the account. However these terms will vary depending on the credit card you apply for. Credit card cheques are usually not accepted by retailers but may be accepted by tradespeople who do not accept cards. A credit card cheque is not the same as a cheque card. You can ask your credit card issuer not to send you credit card cheques. If you use credit card cheques to make purchases you will not have the same degree of protection under the Consumer Credit Act. MBNA stopped providing new credit card cheques in April 2010, but any customers to whom we have already sent cheques before can continue to use them.
Credit Scoring
A system which is used to decide whether to provide you with a card, and what your credit limit should be. Credit scoring works by awarding points to the information you provide on your application form and to the information recorded on your credit report (held by a credit reference agency). For more information on managing your credit effectively browse our Credit Card Guides pages.
Credit Limit
The maximum amount you may borrow through spending on the card, and is set by the lender. If you go over this limit, your card may be refused and you will normally have to pay default charges.
Credits
Refunds and payments that are applied to your account. One example of a refund is a merchant credit for returned merchandise.
Current Pending Transactions
Transactions that have been approved, for which funds have been set aside. Once a transaction is transmitted through the credit card system, the pending amount will be replaced by an actual charge. If the charge is cancelled and not processed through the credit card system, the pending transaction will be removed from your account.
D
Debit Card Payment
A payment made online to your Credit Card, with your Debit Card. Remember to allow time for your payment to credit your account:
| If your Payment is submitted: | It will show on your account on: | With a payment transaction day of: |
| Friday after 5pm to Monday before 5pm* | Thursday | Wednesday |
| Monday after 5pm* | Friday | Thursday |
| Tuesday before 5pm* | Friday | Thursday |
| Tuesday after 5pm* | Saturday | Friday |
| Wednesday before 5pm* | Saturday | Friday |
| Wednesday after 5pm* | Tuesday | Monday |
| Thursday before 5pm* | Tuesday | Monday |
| Thursday after 5pm* | Wednesday | Tuesday |
| Friday before 5pm* | Wednesday | Tuesday |
* Payments made after 2.30pm on the last day of each month will take an extra day to credit your account.
Default Notice
A notice that must be sent to any customer who has breached their credit agreement before certain action can be taken. It sets out the nature of the breach, what must be done or paid to correct the breach, the date by which this must be done, and the consequences of failing to comply with the notice (what steps the creditor can take).
Download
To transfer a copy of a file that resides on another computer to your computer.
E
E-Form
An electronic form that can be used to request additional services or changes to your account. The contents of an e-form are encrypted to protect your information, thus providing more security than email.
Email
Electronic mail carried on the Web. An email programme may be provided by your Internet Service Provider.
Encryption
A method for ensuring the privacy and security of a Customer's personal information when transmitted across the Internet. Encryption is the process of transferring information from one system to another without anyone but the intended recipient being able to view that information. Consumers should make sure it is being used when sending sensitive information. In Internet Explorer and Netscape Navigator, you can tell if pages are secure when a closed padlock appears at the bottom of the window.
F
FAQs
An online document that answers the most frequently asked questions on a certain subject. View our FAQs.
Firewall
A network security system used to prevent unauthorised access attempts.
G
H
Hacker
Accomplished technical computer operator who breaks into computers or networks for illegal purposes.
Handling Fee
A fee charged for certain transactions for example balance transfers and money transfers—usually a percentage of the amount transferred.
Hide or Show Inactive Accounts
When you have multiple accounts registered with the same User ID, and one or more are inactive, this application gives you the opportunity to view them. For example, when you report a lost card, we will close that account and open a new account to replace it. Your new credit card will automatically be shown within your Online Card Services 'My Accounts' screen. Please use the same user name and password to access your Online Card Services account. This feature allows you to access historical information about the old account. You may choose to hide or show these accounts upon entering Online Card Services.
I
I&E (Income & Expenditure) Form
A form used to assess a customer's financial situation.
Identity Protection Insurance
Identity theft is when your personal details are taken without your knowledge or consent and then used to make purchases. The most common form is account takeover, where criminals get access to credit cards and/or accounts that you already have and spend on those accounts.
Identity Theft
The crime of impersonating someone for a financial or criminal gain.
Interest
The amount you'll pay on any money you still owe after the interest-free period each month.
Interest-Free Period
The time between when you buy something on the card and the payment due date on the statement on which the purchase first appears. This can be 50 days or more and is interest-free for that purchase if you settle your bill in full and on time every month, so it's free borrowing.
Introductory Rate
Many providers offer special introductory rates to gain your business. For example, an introductory rate of 0% on balance transfers, which then reverts back to a higher standard rate after a certain time usually at the end of the promotion period.
IP Address
A unique numbered address that is used to identify a computer on the internet. E.g. IP 123.345.456.
J
Joint Account Holder (certain accounts only)
A Joint Account Holder is jointly and severally liable for the account. Both the Joint and Main Account Holders have equal authority to maintain the account, e.g. change the address or request a credit limit increase.
K
Keyword
A word you might use to search for a Website. For example, searching the Web for the keywords "Internet Banking" will help you find this site.
L
Last Payment Date
The date that the last payment was received on your account.
Links
A link will take you from one Internet site to another with just a click of your mouse. Links can be textual or graphical and will usually be underlined and often a different colour from the rest of the text on your screen. A graphic link usually has a frame around it.
Log On/Log Off
The act of connecting to or disconnecting from the Internet or a specific Website.
M
Macro Virus
A virus attached to common computer application such as Microsoft Word.
Main Cardholder
The person responsible for the repayment of the account balance. This person is listed first on the account.
Manage Account
A secure method for you to request specific services and changes to your account. Make your selection from the available choices. Note: The number of available choices may change depending on the status of your account.
Microsoft® Money
A popular commercial software package for home and small-business accounting and money management. Find out more about Microsoft Money.
Minimum Payment
This is the contractual minimum amount you must pay off each month. Generally, this is a percentage of the credit card statement balance. If you only pay the minimum it could take you a long time to pay off your balance. We recommend you pay more than the minimum payment.
Money Transfer
Transferring money from your credit card to your current account. Note: a fee will be charged for this service—refer to the terms and conditions of your credit card.
N
No Statement Generated
An indication that there was no activity and a zero balance on your account for a specific month. No statement is generated in this circumstance.
Notice of Sum in Arrears
A notice sent to a customer when they have failed to make 2 consecutive minimum payments.
O
Outstanding Balance
The total amount you owe on your card.
Overdue Amount
The total amount of scheduled monthly payments that has not been received by the required due dates, in accordance with your Bank of America Credit Card Agreement.
Overseas Transactions
An amount that some companies charge when you use the card abroad, due to the cost of converting the currency into sterling.
P
Password
A word or code known only to a particular user that serves as a means of access to protected data on a secure Website (usually requested along with a user name).
Payment Due Date
The date on which your next payment is due. At least your minimum payment must be cleared onto your account before this date to remain in compliance with your Bank of America Credit Card Agreement. Accounts with payments received after the due date are subject to late fees.
Payment Holiday
A month in which a minimum payment is not required. Interest will continue to accrue on the balance of your account.
Pending Payment
A payment that is made but is not complete until it is cleared through the paying institution (usually about 3 business days).
Phishing
An attempt at identity theft using a fake website that looks identical or similar to the genuine website you are used to using.
PIN
This acronym stands for Personal Identification Number. You must have your PIN when making purchases or when you withdraw cash from an ATM machine.
Promotional Rate
An advertised interest rate usually linked to an introductory offer on new accounts e.g. 0% on balance transfers for 12 months or 0% on card purchases for 12 months. Some issuers offer promotional rates to existing customers from time to time, not just for new accounts.
Points Available
The total number of points currently available for redemption. This total does not include points earned since your last billing statement and may not reflect points recently redeemed for rewards.
Pop Up
A small window which appears above a website in the form of an advertisement.
Posting Date
The date that a transaction is posted to your account. This date may be later than the Transaction Date.
Q
R
Rate Code
This is the code of the rate applied to your transaction.
Reduced Payment Programme
A reduced payment programme is offered when a customer has demonstrated they are in financial difficulties through an income, asset and expenditure (IA&E) form. The payment is always less than the minimum payments due on the account.
Retail Transaction
A payment you make using your credit card in a high street shop or online (also known as a card purchase).
S
Secure Website
A Website where preventative measures are in place to protect data from unauthorised access. You may access protected data on Online Card Services only by typing in your user name and password.
Server
A computer system that manages and delivers information for client computers.
Settlements
Any agreement with a customer to accept a payment of less than the outstanding balance, resulting in registering the account as 'partially settled' with the Credit Reference Agencies.
Spam
Junk email that you have not requested from the distributor.
Spoofing
Forging emails to acquire a valid password to gain unauthorised access to a computer.
SSL
The leading security protocol on the Internet today. SSL was developed by Netscape™ and is used with their Navigator browser. This protocol allows for the secure transmission of information submitted by a user from a desktop computer to a Website and vice versa.
Statement
Your monthly credit card bill that shows what you've spent, what you owe, the minimum you must pay and the latest date you can pay it. As it only shows transactions made up until the date the statement was printed, it will not show any transactions you have made after this.
Statement Date
The date that your credit card issuer compiles, totals and produces the statement of that month's transactions (if any) and outstanding debt. It is not the date that you actually receive the statement nor your payment due date.
Status Codes
One of the five account classifications defined below:
Active This account is open and you are able to use your charging privileges.
Inactive This account is not currently available for charging privileges. For additional information, please call us at the number listed on the Contact Us page.
Closed This account has been closed and is no longer available for charging privileges. For additional information, please call us at the number listed on the Contact Us page.
Lost/Stolen This account has been reported as lost or stolen and is no longer available for charging privileges.
Suspended The charging privileges for this account have been temporarily suspended. For additional information, please call us at the number listed on the Contact Us page.
T
Temporary Authorisation
A temporary authorisation is a transaction that has been approved but has not yet been officially posted to your account. The value of the transaction has been deducted from your available credit limit and is included within your current balance. Normally, a temporary authorisation converts into a posted transaction. However, a temporary authorisation may expire if the merchant does not complete the transaction, this will then be removed from your balance and available credit limit.
Total Minimum Payment Due
The minimum amount due for that month plus any amounts that are overdue from previous months' minimum payments.
Transaction Date
Usually the date that you authorise a merchant or bank to process a transaction on your credit card account.
Trojan
A computer program or email attachment that appears to be useful but is actually harmful and may include a virus.
U
Uniform Resource Locator (URL)
The URL is the 'address' of a Website, such as www.mbna.co.uk
User Name
An unique name that identifies and authenticates a user in order to permit access to a secure Website (usually requested along with a password).
V
Virus
A code written to spread from one computer to the next, damaging hardware or used to access your computer for criminal purposes.
W
Web Browser
A software program that allows you to surf the World Wide Web and access other Internet features. Popular browsers include Netscape™ Navigator and Microsoft® Internet Explorer.
Withdrawal Limit
This is the maximum amount of cash advance that you will be allowed to withdraw at a cash machine or over the counter in a bank, on any one day. For example, the limit might be £250.