Financial Terms Starting With C

Ending a financial product, service or insurance policy before its scheduled expiry or maturity. Fees, notice periods, refund rules and consequences depend on the contract and applicable regulation.

The process in which a card issuer checks an attempted transaction and decides whether to approve or decline it. An authorisation can temporarily reduce available credit or funds before the transaction is finally posted.

The bank, finance company or other authorised institution that issues a payment or credit card, maintains the card account and decides whether transactions are authorised under the account terms.

A fee that an issuer may charge to replace a card, for example after loss, damage or a replacement requested by the cardholder. The amount and circumstances should appear in the issuer's fee schedule.

A payment network and rule framework that connects issuers, acquirers and merchants so card transactions can be processed. The card scheme is separate from the bank that issues the card.

A card transaction completed without the physical card being presented to the merchant, such as many online or telephone purchases. Extra authentication controls may apply because of the different fraud risk.

Also known as

CNP

The person to whom a payment or credit card is issued. For a credit card, the primary cardholder is responsible for the account in line with the issuer's terms, including eligible supplementary-card spending.

Cash or a cash-equivalent transaction taken against a credit card limit. Cash advances commonly carry a separate fee and may start attracting finance charges immediately, so they can cost more than ordinary card purchases.

A fee charged when a credit card is used for a cash advance or specified cash-equivalent transaction. Finance charges can also apply separately under the card's terms.

The maximum amount of a credit card limit that can be used for cash advances. It can be lower than the card's overall credit limit and may be subject to ATM or daily limits as well.

The movement of money into and out of a household or business over a period. Positive cash flow means inflows exceed outflows; lenders may review cash flow when assessing affordability or business financing.

The amount, if any, accumulated within certain long-term insurance products that may be available under the policy's withdrawal, surrender or maturity rules. It should not be assumed to equal total premiums paid.

A card reward that returns a portion of eligible spending as a statement credit, wallet credit, points conversion or other stated form. Rates, merchant categories, caps, minimum spend and exclusions vary by card.

The maximum cashback that can be earned during a stated period or within a particular spending category. Spending above the cap may earn a lower rate or no additional cashback.

A bank-issued payment instrument where the bank is the drawer and the beneficiary is named on the instrument. In UAE banking usage, related terms can include banker's cheque, manager's cheque or cashier order.

A card-network process through which an eligible disputed card transaction may be reversed to the merchant's acquiring side after the required dispute and evidence process. A chargeback is not guaranteed simply because a transaction is disputed.

A formal request made under an insurance or takaful policy for payment, reimbursement, repair or another covered benefit after an insured event. The insurer assesses the claim against the policy terms, evidence, limits and exclusions.

The insurer's resolution of an accepted claim, such as paying an amount, reimbursing eligible costs, arranging repairs or providing another policy benefit. The settlement is subject to the policy wording, limits, excess and claim assessment.

A person who applies for borrowing together with another applicant and may share responsibility for the debt. The lender can assess the income, liabilities, credit history and eligibility of each applicant.

An asset or right pledged to support repayment of a loan or financing facility. If the customer defaults, the lender may have rights over the collateral in accordance with the contract and applicable law.

The process used by a lender or authorised service provider to recover overdue amounts. UAE consumer-protection requirements apply to how regulated financial institutions communicate with and treat customers during collections.

A formal expression of dissatisfaction about a financial product, service or provider that requires review and response. Consumers should first use the institution's official complaint process before escalating an eligible unresolved matter to Sanadak.

Motor insurance that can cover eligible loss or damage to the insured vehicle in addition to third-party liabilities, subject to the policy wording, excess, exclusions and optional benefits. It provides broader protection than third-party liability cover alone.

A payment made by tapping a compatible card, phone or wearable near a contactless terminal. Transaction limits and additional authentication requirements can vary by issuer, merchant and payment system.

The amount paid by a participant under a takaful arrangement. Under UAE takaful terminology, some or all of the amount may be allocated to the takaful fund on a Tabarru' basis, depending on the product structure.

Also known as

Takaful

A period in which a consumer can reconsider an eligible financial product after signing. Under CBUAE Consumer Protection Standards, a five complete business-day cooling-off period applies to covered products unless a longer period is required; permitted waivers must follow the prescribed process.

A bank that provides payment, clearing or other banking services to another financial institution, often to facilitate international transfers in locations or currencies where the sending bank does not have a direct presence.

The risks, events, persons or property protected by an insurance or takaful policy. Coverage is always subject to the policy's scope, limits, conditions, exclusions and applicable excess.

An organisation authorised to collect and provide credit information. In the UAE, Etihad Credit Bureau is the federal credit information entity used for individual and business credit reporting.

A revolving credit product that allows a cardholder to make eligible purchases, payments or cash transactions up to an approved limit and repay the amount according to the issuer's terms. Unpaid balances can attract finance charges and fees.

An arrangement under which a lender makes credit or financing available, such as a loan, overdraft, credit card or business facility. Each facility has its own limit, pricing, repayment terms and conditions.

A record of a person's or business's past and current credit obligations and payment behaviour. Lenders may use credit history together with income, affordability and other factors when assessing an application.

The maximum amount of credit approved on a credit card or revolving facility. The issuer can set or change the limit under applicable rules and the account terms, and available credit will move as transactions and repayments are posted.

Related terms

Available Credit

A report from Etihad Credit Bureau summarising reported personal information, financial obligations and payment behaviour. The individual report currently includes a Credit Score, Income Utilisation Ratio, payment history, credit contracts and certain court obligations.

A three-digit indicator produced by Etihad Credit Bureau to represent creditworthiness using reported credit information. It is one input in a lender's decision and does not itself guarantee approval, pricing or a particular credit limit.

An optional protection feature associated with some credit cards that may pay specified benefits if defined events occur, such as death, disability or involuntary job loss. Coverage, eligibility, exclusions and charges depend on the policy or programme terms.

The percentage of available revolving credit that is currently being used. For example, AED 5,000 outstanding against AED 20,000 of total card limits equals 25% utilisation. It is one of several indicators that can form part of a credit profile.

An assessment of how likely a person or business is to meet financial obligations. It can reflect credit history, payment behaviour, income, existing liabilities, affordability and other lender-specific risk factors.

A bank account designed for regular transactions such as salary credits, transfers, payments and, where offered, cheque-book access. Minimum-balance requirements, fees and eligibility vary by bank and account type.

The process a financial institution uses to identify and understand a customer, verify relevant information, assess financial-crime risk and monitor the relationship as required. It forms part of Know Your Customer and AML/CFT controls.

Also known as

CDD

A security code printed on or associated with a payment card and commonly requested for card-not-present transactions. It should be protected like other card security information and not shared unnecessarily.

Also known as

CVV2, CVC2