Credit Card Glossary: Terms and Definitions
A security interest is a claim on property. Lenders, including credit card issuers, may claim a security interest on collateral for a debt. Secured cards typically include a security interest on funds in an account linked to the card. A “purchase money security interest” is a type of security interest that applies to merchandise that is purchased with credit. The lender must get court permission before enforcing the claim by repossessing property.