Glossary

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A
AKPK
AKPK stands for Agensi Kaunseling dan Pengurusan Kredit (also known as the Credit Counselling and Debt Management Agency). AKPK is an agency set up by Bank Negara Malaysia to provide financial counselling and debt management to individuals as well as financial education to help individuals take control of their financial situation and gain peace of mind that comes from the wise use of credit.
Annual Fee (see also Fee)
Different credit card companies charge an annual membership fee which helps to defray the costs incurred by users in handling accounts.
Annual Percentage Rate (APR)
Also known as interest rate. The rate or annual percentage paid on credit balances in the form of interest.
Automated Teller Machine (ATM) (See also Cash Advance)
This allows customers to make banking transactions anywhere, anytime. By using a debit or ATM card at an ATM, individuals can withdraw funds from their checking or savings accounts, make a deposit or transfer money from one account to another. Cash advances using a credit card at an ATM can also be obtained. Keep in mind that many credit companies charge transaction fees, which generally range from RM1 or more per transaction, for using another bank's ATM. Another method is to charge fees based on the amount of cash advanced.

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B
Balance Transfers
A balance transfer allows you to transfer your balance from one credit card to another. If you have a credit card balance that you don't expect to pay off in a month and you have another credit card with a lower interest rate, transferring your balance to the lower rate can save you money.

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C
CCRIS
Central Credit Reference Information System, which is a computerized database system developed and maintained by the Credit Bureau to collect, process, store and generate credit information.
Cash Advance
A user can get "on the spot" cash with his/her credit card at a bank or ATM. The amount of the cash advance is deducted from his/her available line of credit. A fee is normally incurred when obtaining cash advances. In addition, the interest rate is usually higher than on purchases and typically there is no grace period.
Charge Cards (See also Payment Cards)
Charges to these cards must be paid in full each month that a statement is issued.
Co-signer
A co-signer is an individual who promises to pay another person's debt arising out of contract if that person fails to do so. For example, a friend or family member with an established credit history may be eligible to serve as a co-signer.
Concierge Services
Concierge Services* provides eligible premium MasterCard® cardholders access to comprehensive personal assistance via telephone or Internet—including restaurant reservations, tickets to popular cultural and sporting events, personal shopping, tee times, business services, travel destination support, a free special occasion reminder service, and a host of other services. In the United States, Concierge Services is a mandated privilege for the World Elite™ MasterCard® Card, MasterCard Executive BusinessCard Card®, and MasterCard Corporate Executive Card®. Other premium programs can participate, at the issuer's discretion and expense. Conditions and restrictions apply.
Credit
An arrangement between lender and borrower whereby the lender lends money to the borrower who agrees to pay the debt — with a finance charge.
Credit Bureau
The “credit bureau” established by Bank Negara Malaysia pursuant to Section 30(1)(mmm) of the Central Bank of Malaysia Act 1958.
Credit Cards (See also Payment Cards)
These are a type of payment card involving a revolving line of credit granted to the cardholder. It provides flexibility, allowing you to pay your bill in full or in increments during a period of time. Should you choose not to pay your bill in full each month, you will be required to make at least a minimum payment and pay finance charges on the remaining balance. Credit cards are issued by banks, credit unions and some stores such as department stores and gasoline companies.
Credit Company/Issuer
Institutions providing a line of credit to the consumer through a credit card are called credit companies. These may include banks, credit unions or savings and loan associations as well as stores such as department stores or gasoline companies. MasterCard Worldwide is not a credit company.
Credit History
A record of an individual's or a company's past borrowing and repaying, including information about late payments and bankruptcy.
Credit Limit (See also Credit Line/Line of Credit)
The maximum amount of credit that a bank or other lender will extend to a debtor, or the maximum that a credit card company will allow a card holder to borrow on a single card.
Credit Line/Line of Credit (See also Credit Limit)
A type of credit in which a bank undertakes to provide credit to a client during a predefined period. The client may either withdraw the credit amount all at once, or make a certain number of withdrawals during the specified period.
Credit Report
A report generated by the CCRIS. This report is stored online and contains detailed information of your credit history and helps lenders to make judgments about granting you a loan or a credit card. Negative information on your credit report can harm your ability to get future loans, or rent an apartment.
Current Balance
This is the amount that is currently outstanding on your credit card.

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D
Debit Cards/Automated Teller Machine (ATM) Cards (See also Payment Cards)
Debit and ATM cards are types of payment cards that offer a safe, convenient alternative to cash and checks. They allow you to access your bank accounts anywhere by using an ATM. The basic ATM card allows you to withdraw money directly from your checking or savings account. Access to the account is restricted by a Personal Identification Number (PIN). A debit card is similar to an ATM card, but it also can be used for purchases at merchants. The purchase amount is deducted directly from your bank account, so there are no interest charges. Fees for exceeding your balance can be charged. If your bank card has a MasterCard logo, you can use it anywhere MasterCard is accepted.

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F
Fee (See also Annual Fee)
Sometimes you may find extra charges or fees on your monthly credit card statement if you use special services, such as cash advance or balance transfers. You may also be charged fees when you make late payments or when you charge amounts over your card's credit limit. Fees for late payments and exceeding your credit limit can be avoided with smart management of your account. Be careful—these fees can add up quickly.
Final Legal Disclosure
Receipt and/or possession of the Guide to Benefits does not guarantee coverage or coverage availability. These benefits are provided exclusively with MasterCard [Gold/Platinum] cards that have a credit line of RM2000 or more, or otherwise with cards expressly offered with such benefits by the issuer.
Finance Charges (See also Interest Charges)
A finance charge is the total cost of a loan in dollars and cents. It includes interest, service and transaction fees and other fees charged on the loan.
Fixed Rates
These interest rates charged for your credit card typically won't change from month to month, or even year to year. However, this depends on your agreement with the card issuer — be sure to read it carefully. For instance, if you go over your limit or pay late, your interest rate may change.
Full Payment (See also Payment Options)

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G
Grace Period
A period of time, usually 25 days long, during which no interest charges are assessed for purchases made. For example, if the cut-off date on your credit card is May 1, you have until May 25 to pay off the balance in full. If you do so, you will not be charged any interest. If your payment arrives after May 25, or if you don't pay the balance in full, you could be assessed interest charges from the date of purchase as it was recorded. Some accounts do not have a grace period, which means that interest is charged on purchases from the day they are made as they are entered.
Guide to Benefits
The Guide to Benefits document has detailed information about benefits and services available to MasterCard cardholders.

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I
Interest Charges (See also Finance Charges)
The price paid to a lender for the use of the money loaned. Interest is charged as a percentage of your remaining balance. This percentage, or interest rate, may vary from card to card.
Introductory Period
The time period during which the Introductory Rate applies to balances outstanding on your account.
Introductory Rates
A lower introductory interest rate offered by some credit card companies. This introductory rate typically expires within the first six to 12 months after the account is opened, after which the interest rate usually increases to the card's standard rate. In some cases, the introductory rate may only apply to balance transfers from another credit card. Make sure you read your application and terms of agreement to understand whether the rate is an introductory interest rate and when you can expect to see increases.
Issuer
Institutions that provide a credit line to a consumer through a payment card are called issuers. Issuers can include banks, credit unions or savings and loan associations, and retailers such as department stores or gasoline companies. MasterCard Worldwide is not an issuer.

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M
Merchant
Location or store where purchases are made.

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N
No Pre-set Spending Limit
No Pre-set 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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O
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.
Outstanding Balance
The total amount of money owed to a financial institution after a payment is made. For example, if you have a RM500 balance on your card and pay RM100 when you receive your account statement, your remaining balance is RM400.
Over the Limit
Over the limit is when the borrower has accessed a greater amount of money than what is available in his/her line of credit. Depending on the credit company, the user will be charged an "Over the Limit" fee.
Overdraft
When withdrawals from a bank account exceed the available balance, giving the account a negative balance.
Overdrawing an Account
Withdrawing more money from a checking or savings account than what is available. This results in a fee and/or your transaction may be declined.

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P
Payment Cards
The most familiar types of payment cards are credit, charge and debit cards. These financial tools allow consumers to make purchases online, over the phone or in person at merchants across the world.
Payment Options
With most credit cards, you have a choice between paying some or all of your monthly balance.

  • Partial payment - Partial payment allows you to make a "minimum payment" of your total balance due. The rest is "revolved," or added, to the next month's statement. Revolving a balance almost always means that you will be charged interest on the remaining amount. You should always pay at least the minimum amount due by the due date to avoid late payment charges. Paying more than the minimum due will also shorten the amount of time it takes to pay off your credit card balance.
  • Full payment - Full payment means you have repaid your total balance. Doing so usually means that no additional finance charges are applied. Certain cards such as "charge" cards require full payment each month.
Personal Identification Number (PIN)
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.

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R
Rewards Program
A program that allows you to accumulate reward points based on purchases or transactions made on your card. These points can be redeemed for the particular program you enrolled in (e.g. airline, gasoline, etc.) Banks may charge annual fees to participate in rewards program.

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S
Secured Cards (See also Credit Cards)
Secured cards are a great "first step" to building a good credit record for those with damaged, little or no credit history. This type of credit card requires a security deposit in order to be able to establish a line of credit. Typically, your line of credit will be equal to the amount deposited with the bank or financial institution that issued the card.

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W
Worldwide Acceptance
With acceptance at millions of locations worldwide, no payment card is more widely accepted globally than MasterCard.

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