Credit Card Glossary: Australian Terms Explained

By the Aussie Credit Guide editorial team · Reviewed 5 October 2026

Credit card product pages use a small set of terms over and over. These are the ones worth knowing, in plain English.

Annual fee

A yearly charge for having the card, whether or not you use it.

Balance transfer

Moving debt from one credit card to another, usually to get a low or 0% rate for a set period.

Cash advance

Withdrawing cash or making a cash-like transaction with a credit card. A fee and a higher rate apply, with no interest-free days.

Chargeback

A reversal of a card transaction through the card scheme, requested through your card provider.

Closing balance

The total owing at the end of a statement period. Paying it in full by the due date keeps purchases interest free.

Comprehensive credit reporting

The system under which credit reports include positive information, such as accounts held and on-time repayments, as well as defaults.

Credit limit

The maximum you can owe on the card.

Credit report

A record of your credit history held by a credit reporting body.

Credit score

A number calculated from your credit report estimating how likely you are to repay credit.

Default

An overdue debt of $150 or more, at least 60 days late, listed on your credit report after written notice.

Due date

The date by which at least the minimum repayment must be received.

Foreign transaction fee

A percentage charged on purchases in a foreign currency or processed overseas.

Hardship arrangement

A change to your repayments agreed with the provider because you can’t meet them.

Interchange fee

A fee paid by the merchant’s bank to the cardholder’s bank on each card transaction. Capped by the Reserve Bank.

Interest-free days

The period during which purchases don’t attract interest, provided the full closing balance is paid by the due date.

Key facts sheet

A standard one-page summary of a card’s rates, fees and interest-free period that providers must publish.

Minimum repayment

The smallest amount you must pay each month to keep the account in good standing.

Purchase rate

The annual interest rate applied to purchases.

Revert rate

The rate that applies to a transferred balance once the promotional period ends.

Statement period

The cycle, usually about a month, covered by each statement.

Surcharge

An extra amount a business adds for paying by card. Being removed on eftpos, Mastercard and Visa from 1 October 2026.

Target Market Determination

A document from the provider describing who a product is designed for.

Where to read more

Each term is covered in more detail in our guides. For independent information, the Australian Government’s Moneysmart website has calculators and guides on credit cards and managing debt.

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