7.2 + 7.3 Flashcards

1
Q

credit statement

A

A periodic report that credit card companies issue to credit card holders showing their recent transactions, balance due and other key information.

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2
Q

billing cycle

A

The time period between when credit statements are sent to borrowers, which is usually about one month.

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3
Q

statement date

A

The last day of the month for which any transactions are reported on a credit card statement.

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4
Q

payment due date

A

The specific day by which the credit card company should receive payment from the cardholder.

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5
Q

transaction date

A

The date on which a credit cardholder makes a purchase or receives a credit

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6
Q

posting date

A

The month, day, and year when a credit card issuer processes a credit card transaction and adds it to the cardholder’s account balance.

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7
Q

minimum payment

A

The amount due monthly on a credit card statement that is no smaller than the amount required by the creditor.

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8
Q

transaction fees

A

Whenever a credit card is used for a balance transfer or cash advance such fees are charged to the account.

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9
Q

credit receipt

A

Written evidence of any items returned that notes on a credit card statement the specific amount of the transaction, which will be charged back to the credit card company and eventually to the merchant.

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10
Q

penalty rate

A

The very high interest rate charged by the credit card issuer when a borrower violates the card’s terms and conditions.

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11
Q

rewards credit cards

A

One that pays the cardholder cash back or airlines miles for future use.

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12
Q

periodic rate

A

is the APR for a charge account divided by the number of billing cycles per year (usually 12)

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13
Q

average daily balance

A

This is the sum of the outstanding balances owed on a credit card each day during the billing period divided by the number of days in the period.

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14
Q

credit card liability

A

if you notify the card issuer within two days of a loss or theft, you are not legally responsible for any fraudulent usage of the card.

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15
Q

teaser rate

A

is the annual percentage rate charged by the credit card issuer during an initial period.

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16
Q

Chip and pin technology (or EMV)

A

has reduced identity theft for lost and stolen credit cards because each transaction generates a unique code used in approval making them harder to counterfeit.

17
Q

card registration service

A

Firm that will notify all companies with which you have debit and credit cards if your cards are lost or stolen.

18
Q

chargeback

A

The law provides that customers may dispute charges to their credit card when goods or services are not delivered within the specified time frame, goods received are damaged, or the purchase was not authorized by the credit card holder.

19
Q

Take these actions when disputing an error on a billing statement:

A

Notify the merchant
Write to the creditor
Send your letter
Withhold payment for disputed items

20
Q

sales finance company

A

A finance company that buys at a discount the installment sales contracts of merchants or that directly finances retail sales.