Credit Card Terminology: Credit Card Interest, Interchange Fee, Bank Card Number, Card Security Code, Universal Default

Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. Pages: 24. Chapters: Credit card interest, Interchange fee, Bank card number, Card security code, Universal default, Dynamic currency conversion, Friendly fraud, Secure POS Vendor Alliance, Credit card balance transfer, Secure Electronic Transaction, Seasoned trade line, Credit card cashback, Maxed Out, Grace period, Certified Payment-Card Industry Security Manager, Certified Payment-Card Industry Security Auditor, Introductory rate, Credit card terminal, Corporate travel management, Affinity credit card, Controlled payment number, Credit limit, Cash advance, Qualified Security Assessor, Interchange Plus, CCVS, Online authorisation, Merchant Category Code, Card enclosure, Acceptance mark, MCVE, Revolving account. Excerpt: Credit card interest is the principal way in which card issuers generate revenue. A card issuer is a bank or credit union that gives a consumer (the cardholder) a card or account number that can be used with various payees to make payments and borrow money from the bank simultaneously. The bank pays the payee and then charges the cardholder interest over the time the money remains borrowed. Banks suffer losses when cardholders do not pay back the borrowed money as agreed. As a result, optimal calculation of interest based on any information they have about the cardholder's credit risk is key to a card issuer's profitability. Banks check national, and international if applicable, credit bureau reports that identify the borrowing history of the card holder applicant with other banks, or take detailed interviews and documentation of the applicant's finances, before determining what interest rate to offer. Interest rates vary widely. Some credit card loans are secured by real estate, and can be as low as 6 to 12% in the U.S. (2005). Typical credit cards have interest rates between 7 and 36% in the U.S., depending largely u...