Card Dictionary
| Payment cap | A contractual limit on the size of the monthly payment of an adjustable-rate mortgage or other variable rate loan. |
| Penalty rate | Several percentage points higher than a card's current annual percentage rate, which goes into effect after at least one late payment. |
| Periodic rate | The interest rate described in relation to a specific amount of time. The monthly periodic rate, for example, is the cost of credit per month; the daily periodic rate is the cost of credit per day. |
| Personal Identification Number | A confidential personal identification code, usually consisting of four to six digits, used by bank customers to access their account balances when using a self-service automated teller machine (ATM). Also known as a PIN. |
| PIN | Personal Identification Number. A confidential personal identification code, usually consisting of four to six digits, used by bank customers to access their account balances when using a self-service automated teller machine (ATM). |
| Point-of-Sale | An electronic payment system for retail goods and services, through the use of credit cards or debit cards that directly access and deduct funds from a customer?s checking account. Also known as POS. |
| POS | Point of Sale. An electronic payment system for retail goods and services, through the use of credit cards or debit cards that directly access and deduct funds from a customer?s checking account. |
| Power of attorney | A document in which the signer authorizes someone to conduct business in his or her name -- signing title documents and checks, for example. |
| Pre-approved | A credit card offer with "pre-approved" only means that a potential customer has passed a preliminary credit-information screening. A credit card company can spurn the customers it invited with "pre-approved" junk mail if it doesn't like the applicant's credit rating. |
| Previous balance | A method used by some card issuers where they base their finance charges on the amount owed at the end of the previous billing cycle. |
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