Credit & Debit Card Glossary in 2026

The Federal Reserve / CFPB rule implementing the Truth in Lending Act (TILA) that governs credit card billing disputes and fraud liability.

The CFPB rule implementing the Electronic Fund Transfer Act (EFTA) that governs debit card fraud liability and EFT error disputes.

An issuer-mediated dispute process that reverses a charge back to the merchant, funded through the card network's dispute resolution system.

Any transfer of funds initiated through an electronic terminal, telephone, computer, or magnetic tape, including debit card transactions and ACH transfers.

Two routing paths for debit card transactions: signature debit goes through Visa/MC network (higher merchant fee, more protections); PIN debit goes through regional networks (lower fee, different protections).

A recurring or follow-on charge that a merchant initiates without the cardholder actively participating, such as subscription billing or stored-credential charges.

A temporary hold placed on card funds before the final transaction amount is known, used by gas pumps, hotels, and rental car companies.

The final transfer of funds from the issuing bank to the merchant's acquiring bank after a card transaction is completed.

The fee paid by the merchant's bank to the cardholder's bank for processing a card transaction; the primary reason merchants charge different prices for card types.

Section 1075 of the Dodd-Frank Act (2010) that capped debit interchange at $0.21 + 0.05% per transaction for large bank issuers and required multi-network routing on debit cards.

The pre-authorisation hold of up to $175 placed by gas pump terminals before the actual fuel amount is known, governed by Visa and Mastercard network rules.

A four-digit code assigned by card networks to every merchant that classifies the type of business, affecting interchange rates, rewards earning, and sometimes card acceptance restrictions.

The standardised disclosure table required on all credit card solicitations and agreements by Regulation Z, summarising APR, fees, and key terms in a uniform format.

A consumer's formal claim against a charge on a credit or debit card, triggering the issuer's investigation and potential reversal under Regulation Z (credit) or Regulation E (debit).

The replacement of a real card number with a unique digital token for mobile payments (Apple Pay, Google Pay, Samsung Pay), reducing fraud liability and preventing skimmer compromise.