Terms and definitions

Credit Card

It is used to pay for purchases and obtain a cash advance as a debt to be paid in accordance with a contract entered into with the card issuer.

Charge Card

A card similar to a credit card but it requires its holder to repay the full due amount upon receipt of the account statement or on the due date as per the account statement.

Business Credit Card

It is a credit or charge card issued under the name of a company to use it to pay for its bills, goods or services. Therefore, the company is fully liable for the amounts due on the card.

Corporate Card

It is a credit or charge card issued for a user or an employee with a company which is a legal entity. This card has 3 types of financial liabilities as follows:
  • The company is liable for any amount due on the card.
  • The user or the employee is liable for the amount due on the card.
  • The company is liable for any amount due on the card used for the company’s purposes.

Credit Card Limit

It is the available balance of the credit or charge card as per the contract agreed upon.

Annual Percentage Rate (APR)

It is the total amount payable by the cardholder in accordance with the contract agreed upon with the card issuer, which is represented by the annual interest rate charged on the principle amount or the total amount of credit granted.

Cards of Companies in Bank Card Association

It refers to the international payment network, such as VISA, MaterCard, American Express, UnionPay, Diners Club, and other similar institutions.

Credit Bureau

It is the Saudi Credit Bureau (SIMAH), which is a licensed company offering consumer and commercial credit information services to respective members in the Kingdom of Saudi Arabia.

Card Issuer

It is a licensed financial institution that issues credit or charge cards.

Card Billing Statement Cycle

It is the period between the issuance dates of account periodic statements. These periods must be equal (i.e. the number of days in the cycle must not differ from the agreed date for more than four days.)

Default

It is the failure of a cardholder to repay his/her monthly installments for 90 calendar days from its due date.

Cash Withdrawal

It is a cash withdrawal transaction made through an ATM or money transfer made by the card.

Cash Advance

It is a cash withdrawal transaction made through an ATM or money transfer made by the credit or charge card.

Negative Information

It is the information disclosed by the member, negatively affected by the consumer’s credit record, and thus against his/her interest.

Negative Decision

It is a decision made by the member and based on the consumer’s credit record, which is against the consumer’s interest.