Do you know all credit card information and acronyms? Here is a list of the common ones used.
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If you are a regular credit card user, you might have noticed that there are some terms you don’t understand. This can be risky because some of them are too important and could have a massive impact on how you transact using the card. It is for that reason that we have done a guide on the most common credit card acronyms and what they mean. Most of these acronyms are words and initials we encounter daily. Read on to find out!
Common acronyms used
AML stands for Anti-Money Laundering. This is an acronym used in the financial and legal industries to explain regulations, procedures, or legal guidelines to prevent, detect, and report the act of making money by illegal undertakings – money laundering.
In full, ACH is the Automated Clearing House. This is a web used and capable of processing and handling payments electronically in large volumes. Commonly, countries have one ACH which offers automated ways of settling and collecting payments. This is done in a very effective manner, with ACH providing a clean network to allow financial institutions and banks to access information.
Alternative Payment Method relates to any form of electronic payment that is not made by debit or credit card. This includes digital wallets, e-vouchers, and prepaid cards, mobile payments, P2P solutions, as well as for cryptocurrencies. Bacs is an alternative payment method that provides the system with automated payment methods, direct debit, and other information. Through this service, payments take 3 working days to clear.
BIC is also one of the most common credit card acronyms. It stands for bank identifier code. BIC is commonly reffed to as Swift address or Swift code; this is because Swift administers and owns the BIC system.
It stands for Clearing House Automated Payment System. This is a term that typically refers to high-value transactions where same-day payment is needed. With CHAPS, payments are assured to be processed the same day, providing a guarantee of safe delivery. If you want to use this service with your bank, you may be charged $45 for transfers.
It stands for Continuous Linked Settlement. This is a term that refers to settling foreign exchange trades. With your credit card, you can be able to access these services in most states. It is important to note that CLS services are dependent on the bank you are working with. Experts advise that when using this service, you should be physically present to avoid fraud. There have been cases of fraud with this service.
In full, it means Card Not Present. A CNP is a remote purchase where the card bearer and the payment card are not present to physically prove ownership. Examples of such transactions include purchases made over telephone, internet, mail-order or fax. You need to be very careful when using CNP transactions. This is because they are a major target for frauds given the challenge merchants face in verifying ownership.