Credit Card Glossary

Letter R

Radio Frequency Identification

RFID technology is a radio frequency that that transmits a signal from your credit card to a reader. This technology is also used in security passes used for elevators and office buildings.

Rate Tart

One who consistently jumps from 0% balance transfer to 0% balance transfer without ever accruing interest on any of their balances. It's a term primarily used in England but is beginning to gain some popularity in the US as well.

Re-Aging

A process where a consumer makes a payment, any payment on an unpaid debt that has almost reached the statute of limitations. When a payment is made, the clock then starts anew and reactivates the debt. There are very few advantages of re-aging debt as more than likely the damage has already been done to your credit score.

Reaffirmation

The procedure where a consumer who has filed bankruptcy agrees to and continues to pay an outstanding loan.

Receipt

The document in its hard copy formed used to record the time stamp and location at the point of sale. It includes the description, location, account number used, reference number, and amount of the sale, and typically the time. Note that the account number is usually truncated for security measures.

Recurring Billing

When a cardholder gives a particular merchant the authority or authorization to bill his or her account on a periodic basis. This typically takes place in the event that the consumer is paying for recurring services such as utilities, SAAS, or in an installment scenario.

Redlining

Illegal racial profiling that has a negative impact on treatment for lending or other services that is based strictly on race and nothing more.

Reference Number

The number used to annotate a particular transaction made on a cardholder's account that may be used as a reference down the road to obtain more information in the event of a dispute or accounting question.

Refund

A correction or credit to a cardholder used commonly for returns or in the event of an unauthorized purchase/error.

Regulation DD

The Truth in Savings Act which requires banks and other lenders to disclose any and all fees and other charges assessed to deposit accounts.

Regulation E

The foundation of the Electronic Fund Transfer Act which outlines consumer rights when it comes to EFT's (electronic fund transfers) which most commonly occur with debit card transactions.

Regulation X

Guidelines for limitations on the amount of credit granted to purchasers of securities as outlined by the Federal Reserve Board.

Regulation Z

The information required by law from credit card issuers that discloses all applicable fees, interest rates and terms and conditions for credit card offers and solicitations for new accounts. In addition to initial disclosures, lenders are required to periodically notify current cardholders of any key and all changes made to their accounts including interest rate changes and other fees.

Reloadable Card

Either a prepaid debit card or other form of plastic that allows people to add funds to an account for use at merchants or retailers. With these cards a consumer may spend what they load.

Residual Interest

Simply put, the amount of interest that is charged or accrued in the window between when a credit card bill is sent, and the time a payment is posted to the account.

Retail Merchant

A merchant who typically sell tangible goods that are facilitated in a physical location, meaning not by phone or mail order.

Returned Payment Fee

If you pay your credit card bill with a rubber check, one that is returned, a lender will assess this type of fee.

Revolver

A term used to describe cardholders who do not pay their balance in full at the end of each billing cycle, the ones who carry balances that accrue interest.

Revolving Balance

The amount of debt less a payment on a credit card account at the end of each billing cycle.

Revolving Line of Credit

An open credit line that can be borrowed against, such as a home equity line of credit or most commonly, the way a credit card functions.

Rewards Card

A credit card that allows you to earn points, cash back, gas, travel or any other type of incentive based program for its use. There are general rewards cards and merchant or organization specific rewards cards.

RFID

See radio frequency identification, the first term defined at the top of this page.

Risk Based Pricing

When interest rates are determined based on an analysis of a consumer's credit report and score.

Roll Rate

The data for how many 30 day delinquent accounts become 60 day delinquencies and then to 90 or more day delinquencies within a credit card issuer's portfolio or industry-wide.