Kort terminologi

Nedenfor er gengivet en række af de mest anvendte begreber indenfor kortbranchen, og de er gengivet på engelsk for at være så tæt på den internationale begrebsverden som muligt. I den forbindelse henledes opmærksomheden på, at nogle produkter har en anden sammensætning internationalt end de har i Danmark, samt at der kan være betydelig forskel på det engelske og det amerikanske indhold i produkterne/begreberne.

 Alle er velkomne til at anvende og referere fra disse definitioner med kildeangivelse, og alle forslag til udvidelse af definitionerne eller tydeliggørelser modtages meget gerne.

Affinity card

Usually a credit card where the card issuer makes a donation to an organisation (typically a charity or other non-profit making organisation) every time the card is used.

APR (Annualised Percentage Rate)

Also called annual equivalent rate (AER). The APR is the percentage rate at which the balance on a credit card account that remains unpaid at the end of a specified period will attract interest on an annual basis, including charges. In Danish often called ÅOP.

ATM (Automated Teller Machine) card

Also called a cash card, cash dispenser card or cash machine card. ATM cards can only be used to withdraw cash and to request bank services via an automated teller machine.

Cardholder not present (CNP)

This refers to card transactions that are requested by mail, telephone or over the Internet, when the cardholder is not present at the point of sale.

Card issuer

The bank, building society or other financial institution which issued the card and which has a contractual relationship with the cardholder. The card operator, on the other hand, would be MasterCard, VISA, American Express, JCB and Diners Club International, ect.

Card schemes

Organisations that manage and control the operation and clearing of transactions within their own rules and regulations. Banks and other financial institutions must be members of the appropriate schemes in order to issue cards and acquire card transactions. Examples of card schemes are MasterCard, VISA, American Express, JCB and Diners Club International.

Cash advance fee

A charge by the card issuer for cardholders who use their debit or credit card to get cash. This fee can be a flat per-transaction fee or a percentage of the amount of the cash advance. The card issuer may limit the amount that can be charged to a specific dollar, Euro or DKK amount. Depending on the bank issuing the card, the cash advance fee may be deducted directly from the cash advance at the time the money is received or it may be posted to the card holders account as of the day the advance was received. In most instances there is no grace period - so interest is paid from the moment the cash is received, even if the card balance is paid off every month.

Charge card (or Deferred debit card)

Also called travel and entertainment card. A charge card is similar to a credit card but is a short-term loan that normally is paid off within 30 - 45 days from the date the purchase was made, and does not attract interest charges. There is usually an upper spending limit, and the customers normally have to pay an annual fee.

Cheque guarantee card

Also known as cheque cards, these are issued by banks or other financial institutions to guarantee payment of cheques to third parties, or to support the cashing of cheques up to a specified value at a financial institution. Now a day the cheque guarantee function is normally integrated into a debit card, whilst some credit cards may also be used to guarantee cheques. Such cards are known as multi-function cards.

Chip cards

A plastic card containing a microchip which has highly secure memory and processing capabilities, which can be recognised by gold or silver coloured contact plate on the front of the card. Chip cards are also known as integrated circuit cards (ICCs) or smart cards.

Co-branded card

Traditionally in Europe co-branding is understood as:

The card issuer might want to co-branded with both for instance a supermarket chain and an international credit card company which makes the card triple co-branded.

Sometimes co-branding is also used in this context: 

Both independent financial institutions and major credit card companies can issue all type of cards in their own right. Some institutions choose to issue co-branded cards which involve a relationship between the card issuer and the credit card company, similar to a joint venture. For example, a local bank may wish to offer customers a credit card which can be used globally, and would therefore co-brand with VISA or MasterCard.

Consumer credit

Money loaned to individuals, usually on an unsecured basis, requiring monthly repayment. Bank loans, credit card and instalment are examples of consumer credit.

Contactless cards/ Contact free cards

These are smart cards which transfer data using radio frequency technology via a transmitter receiver. For example, in some highway, bridge and city ring toll systems it is possible to drive straight through the toll and the card is charged automatically.

Credit card

A payment card that allows the cardholder to make purchases and withdraw cash up to a pre-agreed maximum. The credit granted may either be settled in full by the end of a specified period without incurring any interest, or may be settled in instalments, with the balance taken as extended credit.

Debit card

This is an instant payment card attached to a current or savings account, which can be used for paying for goods and services. Depending on the merchant’s system, payment may be withdrawn instantaneously from the customer’s account, or it may take a few days. No interest is charged on payments. Debit cards usually combine other functions, such as cash withdrawals from ATMs and cheque guarantee.

Deferred debit

See charge card

E-purse (Electronic purse)

The e-purse is also known as a pre-payment card. The cardholder either purchases the card in a fixed denomination, similar to a pre-paid telephone card, or has it loaded with a certain amount of value. Purchases made with the card are then deducted or debited against the pre-paid amount. The card is specifically aimed at eliminating the need for cash when used in accepting retail outlets.

Disposable cards are loaded with a predetermined value. These cards typically come in denominations of local currency, such as US$ 10, € 10 or DKK 100.

Reloadable cards come without a predefined value. Cash value is loaded onto the card at specialised terminals and ATMs. When the value is used up, the user can load the card again.

Sometime disposable cards are called “pre-paid” cards and reloadable cards are called “Electronic purses” or “E-purses” to distinguish the two products from each other.

Electronic wallet

Electronic wallets are virtual wallets that can be set up to hold a person’s personal and credit card information, either directly onto a PC or as a smart card application. When the user makes a purchase on the Internet, the wallet is activated and will automatically complete the order form with credit card and shipping information. It will also protect the user’s actual credit card information by using special code to access the wallet. It can therefore be more convenient and secure than using a credit card on-line.

Intelligent detection systems

Computer systems used by the banking industry to help identify fraudulent card use before the loss is reported.

M-commerce (Mobile commerce)

M-commerce means being able to pay for goods, services or information with a mobile phone. The payment is either made over the phone bill or through a link to a credit or debit card.

PIN code (Personal Identification Number)

For use in all types of on-line payment environments (ATMs, EFT/POS and banks). The cardholder of any type of card can be issued with a Personal Identification Number which is to be used as personal identification when an on-line payment transaction is preformed.

Point of Sale (POS)

Where the payment for goods and services take place.

PSAM (Purchase Secure Application Module)

A PSAM is a module installed in a POS terminal acting as a security agent on behalf of the acquirer. PSAMs are often implemented in a chip card. The PSAM secures the payment transaction from the terminal to the acquirer

Revolving credit card

Is a credit card where a certain percentage of the outstanding balance, for example 3% - often with a minimum of US$ 20, € 20 or DKK 150 – is to be paid monthly. There is also a credit maximum allocated to credit cards.

Reward card

Also called loyalty card, a reward card is typically issued by a retailer and offers the cardholder a rebate or a reward based on the amount spent by the cardholder. That is, the value of the spend is converted into points, which are then given a monetary value (at different rates of reward depending on the card) which can either be redeemed at point of sale or at a later date (sometimes in form of vouchers). Many other types of cards also include a reward function.

Smart card

Also known as an integrated circuit or chip card. Smart cards contain one or more semiconductor chips and have a much larger data capacity and can execute many more tasks than other cards. For example, smart cards can have an e-purse, debit or credit function, as well as being programmable to perform a multitude of other tasks, such as programmable electronic key or holding personal medical data.

Store cards

Also known as retailer card, a store card is a credit card issued by a retailer which can only be used to pay for purchases at specific stores, usually those within a retail group. They usually have a higher rate of interest than normal credit cards. These should not be confused with debit/credit cards issued by retailers acting as financial institutions, and which can be used to pay anywhere, like ordinary cards.