MasterCard
Merchant Glossary of Terms

The Internet is truly reshaping the
way we do business. Boundaries disappear. Size no longer determines
success. And opportunities are virtually limitless.

Recognizing the potential for both cardholders and merchants,
MasterCard has taken a leadership role, working to ensure that
shopping on the Internet will be as convenient and as safe as shopping
at the local market or corner store.

Here are some definitions of terms
which you may find helpful when reviewing your relationship with
MasterCard.

Browse By Letter:

A

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

Annual Percentage Rate (APR):
Sometimes also called the interest rate. The yearly interest rate
or percentage 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, individuals can
withdraw cash from checking or savings accounts, make a deposit or
transfer money from one account to another or perform other
functions. You can also get cash advances using a credit card at
an ATM. Individuals should also be aware that many banks charge
transaction fees — generally ranging from 50 cents to $3 per
transaction – for using another bank’s ATM.

B

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

C

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.)

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 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

* Concierge Services is a feature provided to you by your card
issuer. MasterCard’s role in Concierge Services is to provide
access to these services on behalf of your card issuer. Your
participation in Concierge Services, 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 Concierge
Services, and such third parties will only use any information
about you as necessary to provide you the services you request.

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.

E

Extended Warranty:
Extend the life of your purchase. With this program you can double
the U.S. manufacturer’s or store brand warranty’s period
protection. This is an insurance program, certain restrictions and
exclusions apply. Please refer to the Guide to Benefits for a full
program description.

F

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 (e.g.,
the prime rate published in the Wall Street Journal).

G

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.

Guide to Benefits:
Detailed information (.pdf) on card benefits.

Click here to view card type downloads.

I

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.

M

MasterRental® Insurance Coverage: MasterRental
Insurance may help you avoid the additional cost that rental
agencies charge you for theft and collision damage coverage on the
rental car. When you pay for the entire rental transaction with
your eligible MasterCard card, you may be covered for up to
$50,000 without the additional expense that the rental agency
charges. This is an insurance program, certain restrictions and
exclusions apply. Please refer to the Guide to Benefits for a full
program description.

Master RoadAssist® Roadside Service:
Protect yourself on the road. If your car breaks down, just call
1-800-MC-ASSIST for emergency roadside assistance (U.S. travel
only). Emergency services or repairs will be automatically billed
to your Platinum or Gold MasterCard account. MasterRoad Assist
benefits do not include emergency towing service fees. Other
conditions and restrictions apply.

MasterCard Global Service®:
For 24-hour customer service, just call 1-800-307-7309 for
assistance. You can report a lost or stolen card, request a cash
advance or simply find out information. Outside the U.S.country,
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 purchases are made.

N

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.

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.

Overdraft: When the amount of a
paid check or other withdrawal exceeds the available balance in a
checking account (can result in fees).

P

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.

Purchase Assurance®:
Many new purchases are covered against theft or damage for a full
90 days from the date of purchase. This is an insurance program,
certain restrictions and exclusions apply. Please refer to the
Guide to Benefits for a full program description.

R

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, gasoline, etc.) Banks may charge
annual fees to participate in a a rewards program.

S

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.

T

Travel Assistance Services:
Access helpful information on travel requirements including
documentation (visas, passports), immunizations or currency
exchange rates. Enrollment is automatic for eligible cardholders
and the assistance service is free to cardholders.

Travel Rewards*: The
MasterCard Travel Rewards program is designed for people on the
go. Earn points toward free travel on any airline, without
blackout periods. The rewards grow with every dollar you spend.

*Rewards
program with no black-out dates: Certain conditions and
restrictions apply. Member programs may contain single airline
only.

W

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

Z

Zero Liability: Pay only
for purchases which you have authorized 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 unauthorized events in the past twelve
months, unauthorized purchases are not your responsibility.

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