Posts in Category: glossary

Merchant agreement

A merchant agreement is the written agreement between a merchant and a bank that contains their respective rights, duties and warranties, with respect to acceptance of the bank card and matters related to the bank card activity.

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MasterCard Zero Liability Policy

If your prepaid debit card is a MasterCard prepaid debit card, you may enjoy some protections against unauthorized purchases made using your debit card (which is a good thing!).

Visa offers a similar Zero Liability Policy for Visa prepaid debit cards.

Not all transactions are protected, however.

Under MasterCard’s  Zero Liability policy, you

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Network Branded Prepaid Cards

Network branded prepaid debit cards are one type of prepaid debit card. Network branded cards carry the logo of a payment card network such as Visa, MasterCard, Discover or American Express.
These payment cards allow you to spend up to the total amount of money you

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Fair Credit Reporting Act

The U.S. Fair Credit Reporting Act is a Federal Law that seeks to achieve fair, timely and accurate reporting of credit information by regulating the activities of credit bureaus, limiting access to credit bureau information, and requiring that creditors disclose certain information regarding their use of credit bureau or third

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Bank Holding Company

A “bank holding company” is a company that owns, or has a controlling interest in, one or more banks. In the United States, the U.S. Federal Reserve Board of Governors is responsible for regulating and supervising bank holding companies, even if the bank owned by the holding company is under

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Secured Credit Card

A “secured credit card” is a credit card used to build a good credit record for people with a damaged or poor credit score or for people with little or no credit history. A secured credit card requires a security deposit in order to be able to establish a

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Smart Card

A smart card is a plastic card with an embedded computer chip that looks like a credit card. Smart cards may be used as stored value cards. Depending on the capacity of the integrated circuit, the smart card may hold limited information, or may have the

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PIN Debit Transactions

When you read the cardholder terms and conditions for different prepaid debit card products (you do read them, don’t you?), you’ll see that there are two kinds of point of sale transactions you can use a prepaid debit card for: “signature debit” transactions, and “PIN debit” transactions.

Here’s what a “PIN

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Posted Transactions

A term that frequently is used when reviewing the terms of a prepaid debit card is: “Posted Transactions”. Here’s what a “posted transaction” is (and why you should understand the term).

A posted transaction is a transaction that has not yet been processed or posted, and include credits, debits,

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Automated Clearing House (ACH)

The term “automated clearing house” (or ACH) refers to an electronic clearing and settlement system for exchanging electronic credit and debit transactions among participating depository institutions; such electronic transactions are substitutes for paper checks and are typically used to make recurring payments such as payroll or loan payments. The Federal

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