Glossary
The following terms, organised alphabetically, are used within the cards industry. Here you will find simple explanations to help you navigate the jargon and specialist terminology.
| Balance Transfer |
Where the credit from one credit card account is used to pay off part or all of another debt. The total transfer amount cannot exceed the credit limit of the account that the payment is transferred to. Often credit cardholders will request a balance transfer to take advantage of a promotional or preferential rate on a new or existing account. |
| Bank Statement |
A record prepared by a financial institution, usually posted to a customer once a month, that lists all transactions for an account, including deposits, withdrawals, electronic transfers, fees and other charges, and interest incurred or earned. The statement is usually posted to the customer and/or is available online. |
| Banking Code |
The voluntary code that sets standards of good practice for financial institutions, including credit card companies, to follow when they are dealing with customers. |
| Banking Window |
This is an agreed period (for example, 2200 - 2300) in the business day between an acquiring bank and its merchant when a merchant performs its end-of-day action. |
| Base Rate |
The underlying interest rate that is used as an index for pricing variable rate loans on products such as credit cards. It is set by the Bank of England and reviewed every month - the results of this review are announced publicly. |
| Billing Cycle |
The length of time between credit card statements. Credit card billing cycles are typically around one month in length. |
| Business Card |
A payment card issued, typically to smaller businesses, for staff to undertake general business-related spending (see also Corporate Card). |
