A booklet given by the financial institution to the depositor to record deposits, withdrawals, and interest earned on a savings account.
Payee
An individual or company to whom a check is written; one who receives money as payment.
Payer
An individual or company who writes a check; one who gives money as payment.
Payment Schedule
Credit cards often have a choice between partial payment with a minimum due, or full payment, where the full balance is expected.
Periodic Rate
A variable interest rate that may increase or decrease during each calendar quarter and affect both the finance charges and the minimum payment due on a credit card.
Personal Identification Number (PIN)
An exclusive number given by the bank to its ATM or credit cardholders that is keyed into an ATM to withdraw cash or entered into a merchant’s terminal for point-of-sale purchases.
Point-of-Sale Transactions
Acceptance of ATM/debit or credit cards at retail stores and restaurants for payment of goods and services.
Prepaid Card
A card that stores a dollar value. The card can be used for purchases or make cash withdrawals at ATMs up to the dollar amount stored before it is disposed or reloaded.
Principal
The original amount of money borrowed, deposited, or invested before interest accrues.
Purchasing Card
A credit card used by companies to make medium to low value purchases. It eliminates the need for purchase orders. Orders are placed directly with a participating supplier and charged to the purchasing card.
Refinance
To revise a loan agreement to make the terms of payment more suitable to a borrower's present income and ability to repay. Refinancing usually provides a lower interest rate and lower monthly payments.
Rewards
Some credit cards offer air miles, free petrol, or other rewards as they are used. They are also called loyalty programs.
Savings Account
An account that accrues interest in exchange for its use of the money on deposit. The depositor is usually allowed an unlimited number of deposits and withdrawals.
Service Charge
A monthly fee a financial institution charges for handling a current or checking account.
Stop Payment
A request made to a financial institution not to pay a specific check. If requested soon enough, the check will not be debited from the payer's account. Normally there is a charge for this service.
Terms
The period of time and the interest rate arranged between creditor and debtor to repay a loan.
Variable Rate
An interest rate that can change periodically.
Withdrawal
An amount of money taken out of an account.
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