KEYTERMS TOPIC 6

1. A type of card that gives back to the cardholder a percentage of the value of transactions made with the card, in the form of cash. (8, 4)
4. The amount, expressed as a percentage, that a financial services provider or pays to a saver, or charges a borrower when it lends money. (8, 4)
5. A card that can be used to withdraw cash, to make face-to-face transactions in, for example, shops, and to make payments online or over the phone. (5, 4)
8. Equivalent annual rate – the cost of borrowing using an overdraft. The EAR includes only the interest rate, as fees are listed separately. (3)

1. A written instruction to the provider (e.g. the bank or building society) to pay a specified amount to a specified person or organisation. (6)
2. Also called ‘cost of credit’. This is the total amount that the borrower will be charged including interest and any fees. For personal loans and credit card borrowing the cost over a 12- month period must be quoted – the annual percentage rate. (4, 2, 9)
3. A mutual organisation (that is, owned by its members) that provides a range of financial products to members, eg savings accounts and personal loans. Members of a credit union must share a common bond. (6, 5)
7. Money either paid to an account holder by the provider, or charged to the account holder by the provider. Interest is paid on savings accounts and some current accounts and charged on borrowing, eg an overdraft. (8)
9. A card that allows the holder to make purchases face to face, online or over the phone, and to withdraw cash from an ATM. Unlike a debit card, where the money is taken from the holder’s own account, transactions are paid by the card provider. (6, 4)
10. A facility that allows an account holder to withdraw more money than they actually have in their account. (9)

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