Glossary of Financial Terms

P

PAC

Pre Authorized Credit

PAD

Pre-Authorized Debit

Passbook

The record or log specific to an account which lists all credits, debits and other transactions specific to that account.

Pay Order

A document issued by an account or asset holder to a bank ordering that bank to pay a specific amount to a third party.

Payee

The person who is named as the receiver of the funds specified on a cheque or other note.

Phising

This is a technique used by professional and amateur criminals to lure customers into giving away their user names and passwords to various accounts. Typically this type of lure involves "an official looking notice" like "Important Information about your Bank Account" or "Security Notification about your PayPal Account" sent via email. The hyperlinks within the email will typically draw a user into an account that looks like an official website for a reputable firm. Once the user types their account identifier and password into this official looking website the criminal then can use it for fraudulent purposes.

PIN

A "Personal Identification Number" assigned to a card holder which acts as a password to allow the card holder to access accounts and features controlled by that card.

Point Of Sale

The location at which a sale or other transaction takes place.

Portfolio

The total stocks, securities and other assets held by an investor.

Posting Date

The date on which a transaction is recorded to an account, which may be different from the date on which the transaction actually took place.

Power of Attorney

A legal document whereby an individual specifies another individuals who will act on their behalf in monetary and other legal matters.

· See Also · Limited Power of Attorney

Pre-Approved

The condition of having already had ones credit-worthiness evaluated and receiving approval in advance for credit up to that approval amount.

Prepaid Card

A card with a specific monetary value assigned to it that contains that value information stored on a magnetic stripe or computer chip integrated into the card.

· See Also · Stored Value Card

Prime Rate

The rate of interest charged to a bank or financial institution's most credit-worthy customers.

Principal

The original amount, (or remaining amount), excluding interest of a loan or investment.

· See Also · Interest

Private Placement

Shares or stocks offered to select investors and not the general public.

Proof of Funds

A document issued by a bank or other financial institution that specifies ownership of money or other assets.

Proprietary Credit Card

A credit card issued by a company to extend credit to its customers for their goods and services only.

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