Financial glossary

A B C D E F G H I J К L М N О P Q R S T U V W X Y Z

 

A

Accepting BankThe bank which accepts payments through cards at ATM, POS terminal, imprinter or other devices.

Active CardA status of the card allowing execution of transactions with it.

Additional Debit CardWith this card type, the card holder is a person other than the account title holder.

The card can be issued by request of the title holder in the name of another person. Transaction limits for the additional card can also be set. The necessary condition for issuing an additional card on this account is the presence of a basic card. All transactions with the additional card as well as the fees and commissions related to them are accounted for in the title holder's account.

Amount Available for Card OperationsThe amount available for card operations indicates the maximum amount of the funds in the card account available for your debit card. The amount can be "real available funds in the account" or any other positive digit. If you choose "real available funds in the account" you will have access to all the funds available in the account to be used only through your debit card at an ATM, POS terminal, or a virtual POS terminal but you will not be able to execute cash transactions and transfers of funds from the account. If you indicate a specific value and the funds in the account exceed the amount available for card transactions, then the remainder of the funds can be withdrawn at a cash desk to be used for transfers and other bank operations.

АТМAutomated Teller Machine (ATM) or a cash machine,as it is widely known in Bulgaria,is an electronic terminal from which you can draw money in cash. Depending on the technological adjustments most cash machines offer the following services: changing the PIN code; reference regarding the last 5 transactions; checking the card balance; transferring funds and other functions /like payment of periodic bills, liabilities to merchants etc./. some terminals also offer the service "depositing money".

Authorisation CenterBasically, the authorisation center either approves or rejects a transaction or replies to inquiries regarding non financial operations with it /such as an availability of funds check, last-five-transactions check etc./. After each transaction the authorisation center sends a reply to the terminal device /ATM or POS/ whether the card:

• has sufficient funds to execute the transaction

• is valid

• is active or frozen

• should be retained or not

In Bulgaria, some banks use their own authorisation systems or authorisation center BORICA /Borica - Bankservice JSC/.

Authorisation of TransactionThe authorization is an on-the-spot process which verifies the likelihood for a transaction through a bank card to be approved by the issuing bank. The authorisation request is approved or rejected after a verification of a set of data involving the card: availability of sufficient funds in cases of debit cards or availability of credit limit in cases of credit cards; amount of the daily and weekly transaction limits authorised for the card ; validity of card, validity of PIN code - if inserting a PIN code is required.

If an authorisation is successful (approved) the funds in the card shall only be blocked, which reduces the remaining funds available in it. However, this does not mean direct accounting of the funds in the card. Very often the accounting is done on the next day or within the following 4-5 days.

 

B

Bank CardIn general, it is a plastic card containing electronic information which allows multiple withdrawals of cash and payment for merchandise and services. The card allows the client remote access to his/her bank account or to the financial resources granted by the bank in the form of overdraft or credit limit /for credit cards/.

BIN of a CardBIN stands for Bank Identification Number. The BIN is the first 6 digits of the card number. Each bank has a unique BIN for each card type.

Blocked by Authorisations Funds Tansaction entries thatr have beenuthorised but not yet recorded as real card account Their sum decreases the disposable funds in the account until their accounting or releasing after the expiration of the period determined by the issuer.

Blocked CardStatus which disallows any transactions with the card. A card can be blocked for a number of diffferent reasons: Wrong PIN entered three consecutive times, card withheld by the ATM, blocking resulting from a theft or a loss of the card.

BORICABORICA is a national card operator. It is an acronym of "Bank Organization for Payments Initialised by Cards". BORICA services a number of Bulgarian banks which issue bank cards and accept payments made through them, for example:
• authorises payments through local and international debit and credit cards issued by Bulgarian banks
• personalises cards issued by Bulgarian banks
• settles interbank payments initiated by cards and sends the settlement results to the Bulgarian National Bank
• serves as a connection between the Bulgarian banks and international card organizations - MasterCard, Visa, American Express
• tests and certifies ATMs and POS terminals.

 

C

Card Account StatementInformation in an electronic or paper version, listing the transactions executed through a card account for a fixed period of time. Includes information regarding the transactions /date of transaction and date of accounting/ initial and end card balance for the specific period.

Card Activating MethodThe specific steps leading to the activation of a card. These can be: at an ATM, at a POS terminal, over the telephone, personally, upon filling etc. Each bank determines its own activation method for any specific card, which can be different for the different card products offered by the bank.

Card FeesThe expenses related to the usage of the card or the card account. The fees can be set depending on the specific event (ATM cash withdrawal fee) or be collected for a set period of time.

CardholderThe individual to whom the bank has issued the bank card. The name of the cardholder is imprinted on the face of the card.

Cash MachinesAlso known as АТМ (Automated Teller Machine). It is an electronic terminal from which you can draw money in cash. Depending on the technological adjustments most cash machines offer the following services: changing the PIN code; checking the card balance; reference regarding the last 5 transactions; transferring funds and other functions /like payment of periodic bills, liabilities to merchants etc./. some terminals also offer the service "depositing money".

CASH - BACK AT POS TERMINAL IN MERCHANT LOCATIONS

CashBack is a service that gives to the cardholder opportunity to withdraw a small amount of money with his card when he is shopping in a certain merchant outlets in Bulgaria. This is a comfortable way to withdraw small amount of cash without searching for an ATM terminal. In order to use the service it is necessary this kind of transactions to be allowed from the card issuing bank and from the acquiring bank. The maximum cash amount is limited up to 50 BGN. The purchase and the withdrawal are performed with one transaction.  

Charge Cards

A type of credit cards in which the card balance must be fully offset each month within a few days after the issuance of the monthly statements.

Chip Bank CardA bank card with a built in electronic chip, functioning as a magnetic stripe. Very often, chip cards have magnetic stripes as well, however there are exceptions to this rule. The chip provides an opportunity to have more information recorded on it /for example about possible promotions, in which the client can participate with the transactions executed/ and possibilities for the implantation of more offers /for example: the same plastic can simultaneously serve as a debit or credit card or the bank information can contain non-banking information like the medical card of the person as well/.

CONTACTLESS DEBIT CARD

• The contactless method of payment is provided by an additionally built-in antenna and microchip in the card. This technology allows the payment to be performed by simply approaching your card to the contactless reader of the POS terminal. It is possible that certain payments for small amounts (for example Fast-food) to be performed without entering PIN code. Contactless payment could be also performed for larger amount, but in that case a PIN code will be required.  

• Transactions with PayPass card could be performed only on POS terminals that are capable to accept these type of transactions. Usually terminals are bearing one of the following symbols  or  .

• The only thing that you have to do when performing a contactless transaction is to approach the card to the contactless reader. Long beep signal will inform you for the successful transaction.

• If the terminal is not equipped with contactless reader you can still preform payment. In that case the payment will be done by reading the chip or magnetic stripe of your card.

Company Card

A card servicing a company bank account. The name of the cardholder /employee of owner of the company/ and the name of the company.

Credit CardA card which the cardholder uses for payments within a credit limit granted by the bank up to which transactions can be made.

The credit cards are related to the absorption of a revolving credit, granted to the cardholder. They provide flexibility by allowing offsetting of the liabilities in full, partially or by instalments spread over a specific period of time. If you wish not to offset your liabilities in full every month, you will be asked to deposit at least the minimum monthly amount and you will owe interest on the outstanding amount of the credit card.

Credit Limit of CardUsed with credit cards and represents the maximum amount of the granted credit, which can be used by the specific card.

 

D

Debit CardsDebit cards are a reliable and convenient alternative to cash. They provide access to your bank account at any place and at any time by using ATMs for cash withdrawals or POS terminals for purchases from commercial outlets. The use of the card is protected by a Personal Identification Number (PIN). The expended funds are directly deducted from the funds available in your account, i.e. you use your own funds and do not pay interest Debit cards are issued only by banks.

Disposable FundsThe funds available to be used by the cardholder through the bank card. These are funds in the account, reduced by the amounts blocked authorisations and the minimum account balance, if one has been set by the bank.

Disputed Payment /Chargeback/A process in which a transaction made with the bank card, is disputed and which has its financial expression. In general, a disputed payment shall be initiated by request of the title holder before the bank issuing the card, by giving a well-justified reason. The issuing bank disputes the transaction before the accepting bank that services the respective terminal and/or merchant.

 

E

Embossed DataThe data on the card written in relief letters.

F

G

 

H

 

I

ImprinterAn imprinter is a device which takes a mechanic imprint of the personalised data embossed on the bank card. This method of accepting card data is used when there is no an electronic channel to connect the merchant and the servicing bank.

The transfer of funds between the cardholder and the merchant is effected by filling in of the so called Sales Slip by the merchant and sending it together with the imprint of the card to be processed by the bank servicing the client.

At present, payment through imprinters is used by some big hotel chains and rent-a-car companies as a alternate solution in cases when the POS terminal is out of order due to technical or communication failures. Payment through an imprinter is an outdated method and is no longer recommended.

International Debit or Credit CardA card which can be used within the country as well as abroad.

J

 

K

 

L

Limits on Transactions/Transaction Limits/Imposed as a restriction on the maximum values of amount and number of transactions effected through the bank card for a specific period of time. These limits can be set per transaction, per 24 hours and per 7 days. These limits can be defined for cash withdrawals or for payments to merchants as well as for others such.

Local Bank Card /National/A card which can be used only within the country where it was issued.

 

М

Magnetic StripeA stripe attached to the back of the credit or debit card containing electronically recorded information about the card, the cardholder and the validity date of card.

Main Debit CardThe card, issued in the name of a person who is the titleholder (owner) of the card account i.e. the holder of the card and the titleholder are one and the same person.

MerchantThe place (most often a commercial outlet including on-line shops), where card purchases can be executed.

Minimum Account BalanceThe minimum account balance is the amount on the card account which is blocked throughout the life of the card. The minimum account balance is not a fee but only a blocked amount. Upon expiration of validity of the card this sum is deblocked. The minimum account balance is added to the balance of the account but is deducted from the funds available through the card. Banks normally set the minimum account balance with the aim to have the accounting expenses on previous day's transactions covered by this balance.

 

N

 

O

Off-line TerminalA terminal in which upon execution of a transaction it is not authorised at the time of execution of the transaction. The terminal normally reads and preserves the information about the card and the transaction, which later on is sent to the bank issuing the card.

On-line TerminalA terminal working in a real-time mode. It sends the information about the card transaction at the moment of its execution and requests authorisation for each transaction.

Overdraft on Card AccountThe granted revolving credit limit on the card. The overdraft does not have any offsetting plan or fixed monthly instalments. The client can deposit or withdraw funds unrestrictedly whenever he wishes within the limit of the overdraft granted. Unlike other consumer credits, interest is charged only on the absorbed part of the overdraft.

In Bulgaria it is common practice for the overdraft to be granted against the guarantee of labour remuneration.

 

P

PIN code - Personal Identification NumberA secret code related to a bank card, which is checked upon each withdrawal of money from an ATM or some commercial terminals.

The PIN code contains at least four digits and identifies the cardholder when using the card. The code is known only by the cardholder and must not be revealed to anybody. The issuing bank and BORICA do not have information about the PIN code of the card. In cases of forgotten PIN code, the client must contact the bank branch issuing the card and crequest a new PIN code or a new card and PIN code.

POS Terminal /Terminal POS Device/A device through which , payments to merchants for goods and services as well as cash withdrawals can be effected by using a bank card. The information contained in the magnetic strip or the card chip is read by the POS terminal and a confirmation /authorisation/ for the execution of the transaction is requested from the authorisation center.

Prepaid CardA pay card which has been loaded with a certain amount of money designated to execution of payments. Examples of prepaid cards are gift cards and travel cards.

PresentmentThe accounting operation operation which is sent by the accepting bank to the bank issuing the card and on the grounds of which the the sum will be accounted, is called "PRESENTEMENT". Through the presentment, the bank accepting card payments (the accepting bank), claims the money for the transaction from the bank issuing the card. Upon receipt of a presentment, the issuing bank debits the funds in the client's account, and deblocks the sum that has been blocked through the authorisation /in the cases when there was such a thing/.

 

Q

 

R

Reissuing of CardThe process of personalisation of a new bank card for a cardholder, whose card has been stolen, lost, physically damaged or the PIN of the card has been forgotten. The new card has the same characteristics as the old card, but has a new validity date.

Renewal of CardPersonalisation of a new plastic for a specific cardholder owning a card with an expired or approaching expiration validity date. The new card has the characteristics of the old card, but has a new validity date.

 

SSmart CardWith bank cards this is a popular name for a chipped bank card.

 

T

Transaction /Card Transaction/Execution of an operation through a bank card, for example: cash withdrawals from an ATM or a POS terminal, payments for goods in commercial outlets or on-line, payments for goods and services over the telephone, payments for goods and services from an ATM, transfer of funds from and to accounts and cards.


U

 

V

Validity of CardSee Validity Term of the Card

Validity Term of the CardThe time period set by the issuing bank in which the bank card can be used. The validity term is indicated on each bank card and expires at 24:00 on the last day of the month and year written on the card. Usually cards have a validity term of 1 to 3 years depending on their type and this is be set at the issuing bank's discretion.

Virtual POS terminalSoftware defined bank terminal granted to an internet merchant for the acceptance of payments by debit and / or credit cards through an electronic shop.

W

 

X

 

Y

 

Z