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.
| Liability |
The obligation to pay an amount owing. In the case of card fraud liability is used to refer to the party that is responsible for covering or absorbing the amount defrauded in respect of a cardholder dispute. |
| Liability Shift |
This is where chargeback liability shifts from the party that has the capability to authenticate a cardholder or there card to the one that does not. For example, if a merchant does not have a chip and PIN compliant terminal to process a card present chip and PIN transaction, they would be liable if the cardholder denied the transaction or the card was found to have been counterfeited. |
| Line of Credit |
The total amount of credit available to a borrower. Purchases and withdrawals will not be possible beyond this limit |
