Glossary

Here are some definitions of terms that you may find helpful when reading this site.

Annual Fee:

Various card issuers charge an annual fee, which can help offset costs that issuers incur in maintaining accounts.

Annual Interest Rate (AIR):

The yearly interest rate or percentage rate that one pays on an outstanding balance in the form of interest.

Automated Teller Machine (ATM):

Allows customers to perform banking transactions anywhere and at anytime. By using a debit or ATM card at an ATM, you can withdraw cash from cheque or savings accounts, make a deposit, transfer money from one account to another or perform other functions. You can also get cash advances using a credit card at an ATM. You should be aware that many banks charge transaction fees for using another bank’s ATM.

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Balance Transfer:

The process of moving an unpaid credit card balance from one issuer to another.

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Cash Advance:

A borrower may obtain cash on the spot by using their card at a bank or an ATM. The amount of the cash advance is deducted from your available credit line or funds on deposits. A fee is often charged when obtaining cash advances. In addition, the interest rate is usually higher than on purchases and there is typically no grace period. (A cash advance is different from a withdrawal you make with your ATM card.)

Credit History:

Record of how a consumer has paid accounts in the past, used as a guide to determine whether the consumer is likely to pay accounts on time in the future.

Credit Line/ Line of Credit:

Also referred to as your credit limit. This is the maximum amount you can borrow using your card.

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Finance Charges:

The price paid to a lender for the use of borrowed money. Interest is charged as a percentage of your outstanding balance (purchases and charges reduced by payments or credits posted). This percentage, or interest rate, can vary from card to card.

Fixed Rate:

A set APR that does not change in response to interest rate changes and conditions. A Variable Rate periodically goes up or down based on fluctuations in market interest rates as reflected in a published index.

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Grace Period:

A period of time – usually 20-25 days – when you're not charged interest for purchases you've made. For example, if the billing date on your credit card bill is May 1 and you have paid your prior balance in full, you may have until May 20 to pay your new balance in full. If you do, you will not be charged interest. If your payment arrives after May 20 – or if you don't pay the entire balance – you may be charged interest from the date of purchase as posted. Some accounts have no grace period, which means interest is charged on purchases from the date they are posted.

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Introductory Period:

The time period during which the Introductory Rate applies to balances outstanding on your account.

Introductory Rate:

A special APR that applies for only a limited period of time. Sometimes also called a teaser rate.

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MasterCard Global Service^®:

For 24-hour customer service, just call 1800-120-113 for assistance. You can report a lost or stolen card, request a cash advance or simply find out information. Outside Australia, please call directory assistance for the MasterCard Global Service number. With this service, you can call toll-free from over 75 countries worldwide.

Merchant:

Location or store where MasterCard is accepted and purchases are made.

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No Preset Spending Limit:

No Preset Spending Limit rewards consumers who have established a good credit history. The card's spending limit is not predetermined. Instead, it is set by the card's issuer, based on account history, spending patterns, payment history and other personal variables.

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Online Banking:

Online systems allow customers to plug into a host of banking services from a personal computer by connecting with the bank's computers over the Internet.

Overdraft:

When the amount of a paid cheque or other withdrawal exceeds the available balance in a chequing account (can result in fees).

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PIN:

Personal Identification Number. Secret code you choose for your card that enables you to access your money or perform banking transactions through the ATM as well as make purchases without signing a sales receipt at merchants that have PIN pads. Your PIN should not be shared with anyone.

Platinum Concierge Service:

Provides eligible Platinum MasterCard® cardholders with access to comprehensive personal assistance via telephone or Internet – including restaurant reservations, tickets to popular cultural and sporting events, personal shopping, business services, travel destination support, and other services.

Conditions and restrictions apply.

• Platinum Concierge Service is a feature provided to you by your card issuer. MasterCard's role in Platinum Concierge Service is to provide access to these services on behalf of your card issuer. Your participation in Platinum Concierge Service, and information collected in connection with your participation, is governed by your cardholder agreement with your issuer and your issuer's applicable privacy policy. MasterCard may also use third parties to provide Platinum Concierge Service, and such third parties will only use any information about you as necessary to provide you the services you request.

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Rewards Program:

A point accumulating program based on purchases or transactions made on your card. These points can be redeemed for the particular program you enrolled in (e.g. airline, petrol, etc.) Banks may charge annual fees to participate in a rewards program.

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Secured Cards:

Secured cards are a great first step for those with little or no credit history. This type of card requires that a security deposit be made in order to establish a credit line. Your credit line will typically be equal to the amount of your deposit.

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Worldwide Acceptance:

With more than 21 million acceptance locations, no card is accepted in more places and by more merchants.

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Zero Liability:

Pay only for purchases that you have authorised on your MasterCard card. So long as your account is in good standing, you have exercised reasonable care in safeguarding your card, and you have not reported two or more unauthorised events in the past twelve months, unauthorised purchases are not your responsibility.

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