Universal default is a policy implemented by some credit card companies whereby the issuer will increase the interest rate on a cardholder’s account if the cardholder defaults on any loan or credit agreement. This policy is also sometimes referred to as the universal default clause. Under a universal default policy, if a cardholder is late … Read more
Mastercard is a credit card company that offers a wide range of credit cards, each with its own set of benefits and features. Mastercard offers cards for both personal and business use, and provides a variety of perks and rewards for cardholders. Some of the most popular Mastercard products include the Mastercard World Elite, Mastercard … Read more
A “Knuckle-Buster” is a term used to describe a credit card which is difficult to use because it is very thin and has a lot of small print. This type of credit card is often used by businesses and is not very user-friendly. Who invented swiping machine? The first charge card was introduced by Diner’s … Read more
An affinity card is a type of credit card that is offered in partnership with a specific organization or group. Affinity cards typically offer perks and rewards to cardholders, such as cash back, points, or discounts. Some affinity cards also support a cause or charity, and a portion of the proceeds from purchases made with … Read more
Batch credit card processing is the process of submitting credit card transactions in batches to the card issuer for processing. This is typically done at the end of the day, although some businesses may process batches more frequently. Batch processing can be done manually or electronically. When batch processing is done manually, businesses typically submit … Read more
The Previous Balance Method is the most common method used by credit card issuers to calculate interest charges. Under this method, your interest charge is based on the balance on your statement from the previous month. This balance is often referred to as the “average daily balance.” What is the average daily balance method? The … Read more
A late fee is a charge that is assessed by a credit card issuer when a credit card holder fails to make a minimum payment on their account by the due date. Late fees are typically assessed on a monthly basis, and the amount of the fee varies depending on the card issuer and the … Read more
A minimum finance charge is the minimum amount that a credit card issuer can charge a cardholder for finance charges in a billing period. This minimum finance charge may be imposed if the cardholder doesn’t make a payment or only makes a partial payment during the billing period. The minimum finance charge may also be … Read more
A chip card is a credit or debit card that has a small chip embedded in it. The chip stores information about the cardholder and the card itself, and allows the card to be used in a chip-enabled terminal. Chip cards are also sometimes called EMV cards, after the EMV standards that govern their use. … Read more
Floor limit definition: The floor limit is the maximum amount of credit that can be extended to a cardholder on a single purchase. The floor limit is set by the card issuer and is typically based on the cardholder’s creditworthiness. What are the 5 C’s of credit? The 5 C’s of credit are: 1. Capacity … Read more
