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Credit Card Risk Management Terminology

21 Aug 2017

Credit Card Risk Management Terminology


FICO, Credit bureau,  Consumer bureau, Commercial bureau, Experian, Equifax, Transunion, CIBIL, Acquisition, Existing customer management, Collection, Recovery, Fraud, Delinquency

Branded card, Co-branded card, Affinity card, Charge card, Smart card, Business card, Commercial card, Prepaid card, Customer, Merchant, Acquirer bank, Issuer bank, Association, Revolvers, Transactors

Inactive, Active, Open, Closed, Revoked, VISA, Master Card, Rupay, Private Label, Charge-off, Write-off, Account number, Magnetic stripe, Synthetic IDs, Minimum due amount, Month-on-book, Ability to pay, Willingness to pay

Annual fee, Balance transfers, Credit limit, Cash limit, Floor limit, Over limit, Shadow limit, Grace period, Interchange, Interest income, Authorization, Referral, Credit line increase/decrease,  Proactive credit line increase, Reactive credit line increase, Payment float, Auth pad, Balcons, Lost and stolen, Counterfeit

Authentication, Authorization amount, Authorization code, Cycle date, Month-end date, Cardholder, Credit score, Sub-prime, Super-prime, Web/Point-of-sale transactions, Settlement, Statement, Transaction, Voice Authorization, Void transaction

Approval rate, Default rate, Bad rate, First-occurrence bad rate, Ever bad rate, Reject inferences, Utilization rate, Skimming, Phishing, Pharming, Social engineering, Bankruptcy, Forbearance, Reage, Ageing, Rewards

Early stage, Late stage, Bad, Good, Indeterminate, Risk appetite framework, Internal score, External score, Vintage analysis, Roll rate analysis, False positive, False negative,  Buckets, Performance window, Early warning, Scoring, CHAID, Segmentation, Decision Tree, Dependent variable, Independent variable, Logit, Performance Metrics, KS, SAS

Model developer, Model validator, Loss forecasting model, Model inputs, Model outputs, Model assumptions, Model stability, Model accuracy, Swap sets, Trigger, Loan loss reserve


ALM – Asset liability management

AMEX – American Express

APR – Annual percentage rate

BIN – Bank identification number

CRM – Customer relationship management

CVV – Card verification value

DRT – Debt recovery tribunal

EFT – Electronic funds transfer

EMV – Europay, MasterCard, Visa

IVR – Interactive voice response

MCNF – MasterCard negative file

MSF – Merchant service fee

MO/TO – Mail order/Telephone order

NPA – Non performing asset

NCL – Net credit loss

GCL – Gross credit loss

ANR – Average net receivables

ENR – End net receivables

OTB – Open to buy

PIN – Personal identification number

MIP – MasterCard international payment

VIP – Visa international payment

DPD – Days-past-due

KPI – Key performance indicators

CRO – Chief Risk Officer

CARD Act- The credit card accountability responsibility and disclosure act

OCC – Office of the comptroller of the currency

CFPB – Consumer financial protection bureau

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