What Is Credit Card Authentication? Credit card authentication is the process of confirming the validity of a customer’s credit card by checking with the company that issued the card. Authentication is roughly the first half of the transaction process when using a credit card. Once the card is authenticated, the purchase is approved or denied
What Is a Credit Card Authorized User? A credit card authorized user is a person who has permission to use another person’s credit card but isn’t legally responsible for paying the bill. For personal cards, authorized users are usually family members, such as a child or a spouse. Depending on the credit card issuer, some
What Is a Credit Card Block? A credit card block is the reservation of a portion of a credit or debit card balance for the cost of services not yet rendered. Credit card blocking is most common in the hospitality industry. However, it is also used by rental car companies. In general, credit card blocking
What Is a Credit Card Dump? A credit card dump is a type of crime in which the criminal makes an unauthorized digital copy of a credit card. This type of crime has existed for decades, but it has seen wider public awareness in recent years due to the rising prevalence of credit card forgeries
What is Credit Card Encryption? Credit card encryption is a security measure used to reduce the likelihood of credit or debit card information being stolen. Credit card encryption involves both the security of the card, the security of the terminal where a card is scanned, and the security of the transmission of the card’s information between the
What Is Credit Card Funding? Credit card funding is the ability to electronically fund a new account, business, or other venture by using a credit card. Credit card funding allows an individual or business to use a readily available source of funds, though the funds are being borrowed and, thus, carry an interest rate. Key
What Is Credit Card Posting? Credit card posting occurs when a cardholder transaction has been settled and recorded with a post date, which is created for all types of credit card transactions including purchases, payments, refunds, and chargebacks. Understanding Credit Card Posting Credit card posting is part of the clearing and settlement process that occurs
What Is Credit Control? Credit control, also called credit policy, includes the strategies employed by businesses to accelerate sales of products or services through the extension of credit to potential customers or clients. At its most basic level, businesses prefer to extend credit to those with “good” credit and limit credit to those with “weak”
What Are Credit Criteria? Credit criteria are the factors used by lenders to determine whether or not to approve a new loan. Although the specific criteria for individual lenders may vary, many weigh your credit score and income as key factors. A lender will approve or deny a loan based largely on how much you
What Is a Credit Default Swap (CDS)? A credit default swap (CDS) is a financial derivative that allows an investor to swap or offset their credit risk with that of another investor. To swap the risk of default, the lender buys a CDS from another investor who agrees to reimburse them if the borrower defaults.
