banter

from The American Heritage® Dictionary of the English Language, 5th Edition.

• noun Good-humored, playful, or teasing conversation.
• intransitive verb To engage in banter.
• intransitive verb To speak to in a playful or teasing way.

from The Century Dictionary.

• To address good-humored raillery to; attack with jokes or jests; make fun of; rally.
• To impose upon or cheat, originally in a jesting or bantering way; bamboozle.
• To challenge; invite to a contest.
• noun A joking or jesting; good-humored ridicule or raillery; wit or humor; pleasantry.
• noun A challenge to a match or contest; the match or contest itself.

from the GNU version of the Collaborative International Dictionary of English.

• transitive verb To address playful good-natured ridicule to, -- the person addressed, or something pertaining to him, being the subject of the jesting; to rally.
• transitive verb Archaic To jest about; to ridicule in speaking of, as some trait, habit, characteristic, and the like.
• transitive verb obsolete To delude or trick, -- esp. by way of jest.
• transitive verb Colloq. Southern and Western U. S. To challenge or defy to a match.
• noun The act of bantering; joking or jesting; humorous or good-humored raillery; pleasantry.

from Wiktionary, Creative Commons Attribution/Share-Alike License.

• noun Good humoured, playful, typically spontaneous conversation.
• verb intransitive To engage in banter or playful conversation.
• verb intransitive To play or do something amusing.
• verb transitive To tease mildly.

from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.

• verb be silly or tease one another
• noun light teasing repartee