Glossary

Card Base

A card base refers to all of the individuals linked to a particular credit card account. It is important for the merchant account to be aware of this common practice with credit card accounts. Many credit card providers allow there to be multiple cardholders under the same account but may also limit the total amount of users authorized. The purpose of allowing a card base can vary from convenience to tracking expenses more efficiently.

Cardholders who are associated with an account typically come from a single family unit. For example, the father of a family may be the primary account holder, but, if the mother and the children are also cardholders, they all are considered a part of the card base. Recent decades have seen an increasing number of families sharing a credit line. This could be because parents are trying to help their young adult children build a credit profile or to monitor spending within the family.

It is also possible that the cardholders are business associates using one account. An executive may be approved to be a cardholder for a business credit line, for instance. Although a consumer credit and a business credit have many differences, it is important for the merchant account to note that both have the potential to allow multiple users. In most cases, each authorized individual receives a personalized card stating that person’s name and linking the card back to the original credit account.

During credit card processing, the merchant may come in contact with account holders other than the primary account holder. Anyone authorized to use the account will have an authorized card available for credit card processing and should be prepared to show proof of authorization, if necessary. The cardholder making the payment to the merchant account is responsible for ensuring that there are sufficient funds for the transaction. An authorization will take place to ensure the necessary funds, as it does with any credit card processing.

Authorizing multiple card users under one credit account is a regular practice today. Understanding this information can make the transaction easier and faster for both the merchant and the cardholder.