Commonly used terms associated with a credit card are:
Cash rate, Most credit card institutions charge a higher interest rate and a cash advance fee (ranging from 1 to 5%) on cash or cash-like transactions. These transactions are usually the ones for which the institution receives no transaction fee from the payee, such as cash from a bank or ATM.
Default rate, Many banks since 2000 have a contractual default rate which is typically much higher than the regular APR. The rate takes effect automatically if any of the listed conditions occur; one or two late payments, returned payments (such as an NSF check), exceeding the credit limit and in some cases any reduction of credit rating or default with another lender.
Variable rate, Many credit card issuers give a rate that is based on economic indicators published by a respected journal. For example, institutions in the U.S. offer credit card interest rates may be based on the lowest U.S. Prime Rate as published in the Wall Street Journal. For example, a rate given as 5.99% plus prime will be 10.99% when the prime rate is 5.00%. These rates usually also have contractual minimums and maximums to protect the consumer and the institution from wild fluctuations of the prime rate. A fixed rate is more suitable for consumers who have fixed incomes with strict budgets.
Grace period, With most credit card issuers no interest is charged on an ending statement balance that is paid in full by the due date. This allows card holders to use credit cards for the convenience of having one payment, one invoice payable with one check per month rather than many separate cash or check transactions.
Promotional interest rate, Many credit card issuers offer low interest rates for a certain number of statement cycles to attract new customers and or entice the card holder to transfer their balances from other credit card issuers.
Minimum Payment, The minimum credit card payment due every month.