Glossary

A

Account holder

The person in whose name the credit card is issued and is responsible for charges to the account. Also called the Cardmember.

Account Number

A unique number assigned by a financial institution to a customer. On a credit card, this number is embossed and encoded on the plastic card.

Account Password

The secure password you use to access your account online.

American Express

Also known as AMEX, is one of the main international credit card issuing companies.

Annual Fee

A yearly fee associated with having a credit card.

APR

Annual Percentage Rate: It is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest as a yearly rate.

ATM

An Automated Teller Machine allows you to access cash with a credit card or other card associated with your bank account. You need to enter your personal identification number (PIN) into the machine to access cash.

Authorization Amount

The amount of a credit card transaction approved by the issuer.

Authorized Card User

An additional user on the credit card account authorized to make transactions on that account. The account holder is responsible for payment of the Authorized Card User transactions.

Automated Telephone payment

This is a payment that was scheduled using our voice response system available via the Customer Service number provided on the back of your card.

Available Credit Limit

The amount of credit available for your use. It is calculated by subtracting your Current Balance and any pending charges from your Credit Limit.

B

Balance

The amount of money currently owed on a credit card.

Balance Transfer

A transfer of a balance from a creditor account (loan, utilities, Chase, American Express) to your credit card account.

Billing Cycle

The period of time between your last statement and next statement. A typical billing cycle is 28-31 days.

Billing Statement

The statement or bill you receive every month that shows your balance and the transactional details of your account.

C

Cardmember

The person in whose name the credit card is issued and who is responsible for the account. Also called the account holder.

Cardmember Agreement and Disclosure Statement

A document that provides the terms and conditions for use with your credit card account. APRs, Fees, and other important information is included in this document.

Card Activation

New cards must be activated before they can be used. Cardmembers need to call the number provided in the mailing containing the new card.

Card Security

Credit cards have certain security measures built in. For example, the Signature Panel code on the back helps ensure that the person who is using a card is the person who owns the card. To protect yourself and your good credit, always report a lost or stolen card right away. And look carefully at your billing statements in case there are any fraudulent charges.

Cash Advance

May be obtained from your credit card at over 1 million banks and ATMs worldwide.

Cash Available

The amount available for cash advances. It is calculated by subtracting current and pending cash transactions from your total cash limit.

Cash Back Rewards Program

A program that may be available on some accounts. Earned points are redeemable for cash based on a percentage of qualified net transactions.

Charge-off

A situation in which a credit balance is not paid in a timely manner. A charge-off may damage a credit report or make it difficult to obtain credit but may be avoided by making regular payments.

Co-Branded Card

A co-branded credit card is sponsored by both the issuing bank and a retail organization such as a department store or an airline. Cardmembers may get benefits such as discounts or free merchandise from the sponsoring merchant based on account usage and terms.

Cookie

A small amount of information stored on a client computer by a website that is sent back to the site each time the user visits it.

Credit Bureau

Companies that collect credit information on individuals in order to facilitate credit decisions. The three major credit reporting agencies in the United States are Equifax, Experian and TransUnion.

Credit History

The record of how you use the credit you have. Credit card issuers and other lenders may use this information to decide whether to provide customers with credit cards.

Credit Limit

The maximum total amount - for purchases, cash advances, balance transfers, fees, and finance charges that you may charge on your credit card.

Credit Limit Increase

An increase in the total available credit on your credit card.

Creditor

Any company, store or individual who provides credit or lends money to consumers.

Current Payment Due

The amount due in each Billing Cycle so your account remains current and your balance remains under the credit limit.

Current Statement

Your most recent credit card bill. It is also available online.

Customer Service Assisted Payment

This is a payment that is scheduled with a Customer Service Representative.

Cycle Date

The date your billing cycle ends.

D

Default Rate

Typically, a higher APR that may be charged to an account as the result of a default occurrence, such as a missed payment, a late payment, or going over your total credit limit.

Disputed Transaction

Cardmembers who believe there is an error on their statement can dispute the transaction in question by calling the customer service number on the back of their card or by logging into their account online.

E

Electronic Disclosure Consent

An agreement between the Bank and the consumer that allows account information to be received electronically by the consumer.

Email Alert

Cardmembers can take advantage of email alerts that announce important account information such as payment due and payment received. Sign up for Email Alerts by logging into your account online.

Encryption

Encryption is the process of disguising a message (using mathematical formulas called algorithms) in such a way as to hide its substance, a process of creating secret writing.

Enrollment

Cardmembers must enroll, or sign up for, various features or offers on a website. For example, a Cardmember must enroll for Online Bill Pay to make payments online.

Expired Card

A card on which the embossed, encoded, or printed expiration date has passed. An expired card is not valid for use.

F

Fraudulent Transaction

A transaction unauthorized by the Cardmember or Account holder.

G

Grace Period

A period of time over which no interest accrues on a credit account. You can avoid paying interest by paying the balance in full on each billing statement.

H

HSBC

HSBC is one of the world's largest financial institutions with 9,500 offices in 79 countries and territories. HSBC is one of the largest credit card issuers in the country with over 50 million customers nationwide.

Hyperlink

An active cross-reference from one resource to another. The cross-reference is called active because it is presented in a medium which allows the reader to follow it, for example by mouse-clicking it. A reader can follow hyperlinks in an HTML document using a Web browser, or navigate through online help, or follow hyperlinks between terms defined in a glossary.

I

Introductory Rate

Credit card issuers sometimes offer a low introductory or promotional rate that changes to a higher rate after a period of time, usually defined in months.

ISP

Internet Service Provider

Issuer

Any financial institution, bank, credit union, or company that issues credit cards to consumers.

J

K

L

Last Payment Received

The amount of the last payment posted to your Account.

Last Statement Balance

The balance from your most recent billing statement.

M

Magnetic Stripe

A stripe of magnetic information affixed to the back of a credit or debit card. It contains customer and account information required to complete electronic financial transactions.

Merchant

A business that contracts with Banks or other Service organizations to process credit card transactions.

N

No Pre-Set Spending Limit

No pre-set spending limit does not mean unlimited spending. Purchases will be evaluated based on cardmember's spending behavior and credit history. Refer to your Cardmember Agreement for payment due information.

O

Online Preferences

Cardmembers who access their accounts online are asked to provide online preferences. These include your email address and how you wish to be contacted and whether or not you wish to receive special offers and Email Alerts.

Open to Buy Amount

The amount of credit remaining for Cardmember use.

Overlimit

This is the amount on a Cardmember's account that is over the assigned credit limit.

P

Paid in Full

When a credit card balance is completely paid off it is considered paid in full.

Password

Your password is the code word you use to access your Account online. It is not the same as your Personal Identification Number (PIN).

Payment Due Date

The date by which your payment must be received. Please note that the due date shown online does not change until we issue your next statement.

Pay My Card Bill

This service allows you to pay your credit card bill conveniently online. Standard, Rush and Recurring payment option are available. You must enroll to participate.

Pay Other Bills Service

This service allows you to use this credit card to pay other bills, such as your cable, wireless or other utilities. You must enroll to participate.

Pending Charges

New credit card transactions that have been authorized but have not yet posted to your Account. These transactions have been subtracted from your Available Credit but have not yet been added to your Current Balance.

Phishing

An attempt to fraudulently acquire sensitive information such as passwords and credit card details by masquerading as a trustworthy person or business in an apparently official electronic communication such as an email or instant message.

PIN

Your PIN is your Personal Identification Number. It is the code number you use to withdraw cash using your credit card from a bank or ATM. Never give your PIN to anyone. Your PIN and your password are not the same thing. Your password is the code word you use to access your account online.

Privacy Statement

A detailed, legal statement that describes how a credit card company protects its customers' private information.

Q

R

Recent Transactions

The most recent activity on your credit card account.

Replacement Card

When a Cardmember reports a lost or stolen card, a replacement card is issued right away. It will have a new account number on it.

Registration

The selection of a login id, password, and email preferences to access account information online.

Revolving Line of Credit

An account the customer can repeatedly use and pay back without having to reapply ever time credit is used, provided the outstanding balance does not exceed a pre-determined limit.

Routing Number

A number located in the lower left-hand corner of a check. Also known as a bank's ABA number.

Rush Payment Service

Cardmembers can avoid late charges by using our Rush Payment Service. By using this service, your payment will be posted to your account by the end of the day. A fee for this service may apply.

S

Secured Card

A credit card that's attached to a savings account. You deposit a sum of money in the account, and you can borrow up to that amount. If you don't repay what you borrowed, the lender can access your account to cover your debt.

Service Charge

A charge or fee imposed by a credit card issuer to provide a service related to your account, such as a check by phone or a copy of a statement.

Signature Panel Code

There is a multi-digit number stamped on the strip on the back of your card where you sign your name. You may be asked to supply this number during a transaction as an extra security precaution.

Spoof

To make a transmission appear to come from a user other than the user who performed the action.

Spoofing

For example, forging email messages or scanning internet data transmissions to aquire a valid password, with which to hack into a computer.

SSL

Secure Sockets Layer protocol is a method of passing sensitive information, such as credit card details, over the Internet. All communication is encrypted to ensure privacy. An SSL URL is preceded by https:// instead of http://.

T

Transaction

Any type of activity on your account is called a transaction. For example, when a Cardmember makes a purchase using the card. Or when you receive a credit for an item you have returned. These are both transactions.

U

Unbilled Activity

Transactions on your account that have not been processed and do not yet appear on your credit card statement.

Upgrade

An account upgrade may provide customers with a new card product and/or additional card benefits based on good credit behavior and regular payment history. The account number may change with a card upgrade.

V

Variable Interest Rate

A variable rate is an annual percentage rate that is subject to change. The variable APR is usually tied to an index that may change monthly.

W

X

Y

Z