The Collaborative International Dictionary of English v.0.48:

Banter \Ban"ter\, n.
   The act of bantering; joking or jesting; humorous or
   good-humored raillery; pleasantry.
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         Part banter, part affection.             --Tennyson.
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The Collaborative International Dictionary of English v.0.48:

Banter \Ban"ter\ (b[a^]n"t[~e]r), v. t. [imp. & p. p. Bantered
   (b[a^]n"t[~e]rd); p. pr. & vb. n. Bantering.] [Prob.
   corrupted fr. F. badiner to joke, or perh. fr. E. bandy to
   beat to and fro. See Badinage, and cf. Barter fr. OF.
   barater.]
   [1913 Webster]
   1. To address playful good-natured ridicule to, -- the person
      addressed, or something pertaining to him, being the
      subject of the jesting; to rally; as, he bantered me about
      my credulity.
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            Hag-ridden by my own fancy all night, and then
            bantered on my haggard looks the next day. --W.
                                                  Irving.
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   2. To jest about; to ridicule in speaking of, as some trait,
      habit, characteristic, and the like. [Archaic]
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            If they banter your regularity, order, and love of
            study, banter in return their neglect of them.
                                                  --Chatham.
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   3. To delude or trick, -- esp. by way of jest. [Obs.]
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            We diverted ourselves with bantering several poor
            scholars with hopes of being at least his lordship's
            chaplain.                             --De Foe.
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   4. To challenge or defy to a match. [Colloq. Southern and
      Western U. S.]
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WordNet (r) 3.0 (2006):

banter
    n 1: light teasing repartee [syn: banter, raillery, give-
         and-take, backchat]
    v 1: be silly or tease one another; "After we relaxed, we just
         kidded around" [syn: kid, chaff, jolly, josh,
         banter]