Glossary of financial terms

The following are habitual financial terms that you can find in banking documents, loans and contracts of titling of card.

Debit: Deduction of money of the existing amount in a banking account or of card.

ATM: Automatic teller.

To authenticate: To confirm the data of security like a password, number of personal identification (PIN) or signs to verify the identity and to allow that an operation takes place or to allow the access to an account.

To authorize: To confirm an action, normally a payment from or to an account.

Endorsement: Guarantee of a credit. Normally it takes the form of a building, action or values, or insurance policies.

Beneficiary: Receiver of the bottoms.

Commission of advance payment in cash: Position to retire money with a credit card.

Qualification of credit/credit score: Qualification, applied to an individual or company, that indicates the credit risk that individual or company represents.

Dynamic currency change: Currency change in real time, since the types vary throughout the day.

Commission of change: Commission acquired when buying foreign currency or changing a currency on the other.

Commission of delay: Amount acquired by the delay in the payment of a quota of any type of credit.

Commission of maintenance: A commission by administrative served by an organization like a bank or the emitting organization of a credit card.

Commission by balance transference: Position by the transfer of a balance or credit to another supplier.

Compensation:
i) Calculation of whom it must what to whom, normally between financial organizations
II) Payment of the amount indicated in a check.

Conditions: The details by which a financial contract is in force.

Contract of titling of card: Conditions decided by the holder of the card and the emitting organization of the card.

Renewable credit: A credit that allows to amortize and to return to take to loan variable amounts of money. The maximum amount that can be taken to loan denominates credit limit. This type of credit usually is not united to a purchase in particular. The credit cards allow to accede on a renewable credit.

Current account: The most basic type of banking account. The deposits normally do not happen interests, or happen a minimum interest. The bottoms can be retired by means of a check, card of debit or electronic transference.

Account of saving: An account in which the deposited money happens interests.

Check: Written order of payment with the money of an account.

Shortage: Line of credit that can be offered to the holders of an account to allow them to spend until an amount determined over the balance of its account. That line of credit is used, can be acquired interests.

Disposition: Retired of money of an account in a teller or a banking branch.

Extract of invoicing: Extract that shows to the installments and debits of an account during a fixed period, normally of a month.

Date of operation: The date in which an operation has a place, as an installment or debit in an account.

File of credit: Documentation of the financial file of an individual or company that includes the income, the pending debts or financial commitments and the judicial failures by debts. For more information, it is seen How administer the credit.

Non-payment: Deliberate omission of the amortization of one or several quotas.

Interests: Amount that is received by a loan, normally in the form of percentage of the total amount. The type of interest is the amount that is applied by a concrete period. For example, a type of annual interest of 15% means that by each 100 Euros taken in loan to the year, the interests are of 15 Euros (without including commissions). Rate of Annual Percentage is also seen. Compound interest: Interest devengado by another interest. For example, if you invest 100 Euros that happen an interest composed of the ten annual percent, gains a ten percent the first year (= 10 Euros), which throws a total of 110 Euros. The second year, you obtain the ten percent of 100 Euros (= 11 Euros), which throws a total of 121 Euros, and so on.

Limit of credit: Total amount that a client can spend at the same time with a credit card.

Liquidation:
i) Payment of the balance that must between financial organizations after the compensation.
II) Payment of the owed total amount; for example, when a check is compensated.

Currency: Name given to the units of monetary value. The currency of most of continental Europe is the Euro.

Secret number (PIN): Used number to authenticate the holder of a card with the purpose of to avoid the fraudulent use of this card. Whenever a holder retires money of a teller, he uses a PIN. The PIN every time is more being used to authenticate the holders when they buy goods or they contract services.

Office of credit: An organization that conserves credit files and calculates the qualifications or scores of credit of particular consumers and companies.

Payer: Person who gives or sends the bottoms.

Minimum payment: The minimum part of the credit of a credit card that can be paid in a term. Normally one is a fixed amount or, if is superior, a percentage of the pending debt.

Period of grace: Period of time during which the payment of the interests or the capital of a pending loan is exempted of.

Main: Original amount of a credit, without including interests. The amount of the main one can be reduced in particular amortizing an amount superior to the one of the amortizable interests in a date.

Point of sale (POS): Place in which a card is used to buy goods or to contract services. It can be a store, a Web, a company of sale by mail or a business of telephone sale.

Balance:
i) The amount of money of an account after to have reduced or to have added all the installments and debits.
II) The remaining debt of a loan.

Previous balance: The balance of an account before the last operation.

Surely of credit: Certainly the pending indebted balance in case of difficulties like the loss of the work, disease, incapacity or death pay. The amount paid normally is the minimum quota plus the monthly interests, or the pending complete amount.

Rate of Annual Percentage (APR): Real annual cost of a loan like, for example, the invoice of a expenses, credit card that includes commissions, and I interest. It can be superior to the type of interest.

Card of position: A payment card in which the balance must be eliminated when finalizing the decided period, normally a month.

Credit card: A card account that allows to take money to loan until a concrete limit. The taken amount on credit does not bear certain relation to one or several purchases.

Card of debit: Used card to retire bottoms of a current account directly, either in commerce or other establishments, or an automatic teller.

Initial type: Type of special interest applied during a determined time when abrir an account of credit or saving. It can be a higher type, to foment the saving accounts, either a low type the more, if one is a credit.

Variable type: A low type of interest that raises or based on the type of interest bases fixed by a central bank or national.

Transference of balance: To move all the bottoms from an account to another one; frequently one talks about to the transfer of the pending amount of a credit card of a card account another one.

Telegraphic transference:
i) Transference of money realized from an electronic terminal, automatic teller, computer, telephone or Internet
II) Transference of money by means of automated payment or credit card of effects
III) Essentially American term that one talks about to the shipment of money the foreigner.