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Credit Cards


Credit Card Glossary

Annual Fee
A yearly fee charged for use of the card.

Balance Transfer
Moving an unpaid balance from one open credit account to another. You will save money if you transfer balances to a credit account with a lower interest rate.

The person to whom the credit card is issued, that is to say, the authorized holder of the account represented by the card that was issued by the financial institution.

Cash Advance
Using your credit card to get cash from a bank, ABM, or by writing a convenience cheque. RBC charges a cash advance fee for the transaction and begins charging interest immediately.

Credit Limit
The maximum amount that you can charge on your credit card.

Interest Rate
A periodic percentage rate that determines the finance charges you pay on your account.

Late Payment Fee
A fee charged when a payment has not been received by the specified due date.

Minimum Payment
The smallest payment a customer can make each statement period to keep the account in good standing.

Over-Limit Fee
A fee charged after the customer has exceeded their agreed credit limit.

PIN (Personal Identification Number)
A security code that the customer uses with debit and credit cards to authorize transactions such as cash advances. This PIN is different from the user ID and password customers’ use to access account information online.

Statement Cycle
The length of time between your statements.