Optima® Credit Card Agreement

Charges & Financial Obligations · Company practice

The purchase APR is variable: the Prime Rate plus 14.99%, never above 29.99%

The Rates and Fees Table sets the Annual Percentage Rate for purchases at the Prime Rate plus 14.99% and says it is a variable APR. The table states the margin, not a finished percentage. If the Prime Rate increases, variable APRs (and the corresponding daily periodic rates) increase, so you may pay more interest and may have a higher Minimum Payment Due. A change in the Prime Rate changes the variable APRs starting on the first day of the billing period during which the Prime Rate changed. The agreement says variable APRs will not exceed 29.99%.

Supporting quotations

Annual Percentage Rate (APR) for Purchases | Prime Rate + 14.99% This is a variable APR.

If the Prime Rate increases, variable APRs (and corresponding DPRs) will increase. In that case, you may pay more interest and may have a higher Minimum Payment Due.

When the Prime Rate changes, the resulting changes to variable APRs take effect as of the first day of the billing period during which the Prime Rate has changed. Variable APRs will not exceed 29.99%.

Qualifications & exceptions

• The 29.99% ceiling is written for 'variable APRs' in general; the Penalty APR is also described in the table as a variable APR, but this paragraph does not name it separately.
• Only an increase in the Prime Rate is described; the paragraph does not say what happens to the APR when the Prime Rate falls.

Not stated here

• The agreement does not state the Prime Rate level or a finished numeric APR; it gives only the margin over the Prime Rate.
• The paragraph refers to 'corresponding DPRs' but this published agreement lists no Daily Periodic Rate values (see the interest calculation card).

Charges & Financial Obligations · Context

The Prime Rate is the highest U.S. Prime Rate published in The Wall Street Journal on the Closing Date

For these rates, Prime Rate means the highest U.S. Prime Rate published in the rates section of The Wall Street Journal on the Closing Date of the billing period. If the Journal does not publish a Prime Rate that day, the issuer uses the Prime Rate from the previous day it was published. If the Journal stops being published or stops publishing the Prime Rate, the issuer may use the Prime Rate published in another newspaper of general circulation.

Supporting quotations

Prime Rate means the highest U.S. Prime Rate published in the rates section of The Wall Street Journal on the Closing Date of the billing period.

If The Wall Street Journal does not publish the Prime Rate on that day, we will use the Prime Rate from the previous day it was published.

we may use the Prime Rate published in another newspaper of general circulation

Qualifications & exceptions

• The replacement newspaper is at the issuer's choice ('may use'); the agreement does not name it.

Charges & Financial Obligations · Company practice

A Penalty APR of Prime Rate plus 26.74% can apply after a missed minimum payment or returned payment

The issuer reserves the right to apply a variable Penalty APR of the Prime Rate plus 26.74% to new Transactions if you do not pay at least the Minimum Payment Due by the Payment Due Date, or if your payment is returned by your bank. If it is applied, it applies for at least 6 months. The issuer reviews the Account every 6 months after the Penalty APR is applied, and the Penalty APR continues until you have made timely payments with no returned payments during the 6 months being reviewed.

Supporting quotations

Penalty APR and When it Applies | Prime Rate + 26.74% This is a variable APR.

We have the right to apply the Penalty APR to new Transactions if: • you do not pay at least the Minimum Payment Due by the Payment Due Date; or • your payment is returned by your bank and we will notify you if we do.

If the penalty APR is applied, it will apply for at least 6 months. We will review your Account every 6 months after the penalty APR is applied. The penalty APR will continue to apply until you have made timely payments with no returned payments during the 6 months being reviewed.

Qualifications & exceptions

• The text says 'We have the right to apply'; applying it is the issuer's choice, and it is described as applying to new Transactions.
• 'we will notify you if we do' follows the returned-payment trigger in the source text; the wording does not make clear whether it covers both triggers.

Not stated here

• The agreement does not say how far in advance or in what form a notice will be given.

Charges & Financial Obligations · User right or choice

No interest on purchases if you pay in full by the due date, at least 25 days after the period closes

The table says the Due Date is at least 25 days after the close of each billing period, and that the issuer will not charge interest on purchases if you pay your entire balance each month by the due date. If you have a plan outstanding, the balance that has to be paid is the balance adjusted for plans. The grace-period section states the same idea as an Interest Free Period, and says someone with an active Plan It plan can enter an Interest Free Period by paying at least the Balance Adjusted for Plans (or Adjusted Balance) by the Payment Due Date.

Supporting quotations

Your Due Date is at least 25 days after the close of each billing period.

We will not charge you interest on purchases if you pay each month your entire balance (or, if you have a plan outstanding, your balance adjusted for plans) by the due date.

you can enter an Interest Free Period by paying at least the Balance Adjusted for Plans (or Adjusted Balance) by the Payment Due Date

Qualifications & exceptions

• The table statement is about interest on purchases; the agreement's grace-period section says balance transfers and cash advances are charged interest from the transaction date and have no Interest Free Period.
• The table says 'entire balance' and the grace-period section says 'New Balance'; the agreement does not define the difference.

Charges & Financial Obligations · Company practice

Plan It charges a monthly plan fee of up to 1.33% instead of the purchase APR

A Plan Fee (a fixed finance charge) is a monthly fee of up to 1.33% of each purchase or amount placed into a plan. It depends on the plan duration, the APR that would otherwise apply, and other factors. It is charged each month that a plan is active, and the dollar amount is disclosed before you set up a plan. When you set up a plan, the purchases or amount are added to a plan balance and are subject to a plan fee instead of the APR for purchases. Part 2 of the agreement explains the Plan It feature.

Supporting quotations

A monthly fee of up to 1.33% of each purchase or amount moved into a plan based on the plan duration, the APR that would otherwise apply to the purchase, and other factors.

This fee is a fixed finance charge that will be charged each month that a plan is active. The dollar amount of your plan fee will be disclosed before you set up a plan.

will be subject to a plan fee instead of the APR for purchases

Qualifications & exceptions

• The figure is a ceiling ('up to 1.33%'); the actual percentage depends on 'other factors' that the agreement does not list.
• Plan It is offered at the issuer's discretion ('We may offer you Plan It').

Not stated here

• The factors beyond plan duration and the otherwise-applicable APR are not specified.

Charges & Financial Obligations · Company practice

The annual fee is $49, and additional cards carry no annual fee

The Rates and Fees Table lists an Annual Fee of $49. The 'How Rates and Fees Work' section points back to the table for the Annual Fee and says the Annual Fee for Additional Cards is None. Part 3 describes when an annual fee is refunded if you close the Account.

Supporting quotations

Annual Fee | $49

Annual Fee: This fee is on the Rates and Fees Table on page 1 of Part 1.

Annual Fee for Additional Cards: None.

Qualifications & exceptions

• The text does not say how often the $49 is charged beyond calling it an 'Annual Fee'.

Charges & Financial Obligations · Company practice

A 2.7% foreign transaction fee applies on the U.S. dollar amount after conversion

The table and the fee section both set the foreign transaction fee at 2.7% of each transaction after conversion to U.S. dollars. The fee section refers readers to 'Converting charges made in a foreign currency in Part 2'. In this stored text the conversion paragraph appears under the Part 3 heading, not Part 2.

Supporting quotations

Transaction Fees • Foreign Transaction | 2.7% of each transaction after conversion to US dollars.

Foreign Transaction: 2.7% of the converted U.S. dollar amount. See Converting charges made in a foreign currency in Part 2.

Qualifications & exceptions

• Source ambiguity: the cross-reference names Part 2, while the conversion paragraph is placed in Part 3 of this document. Both are quoted as written.

Cross-references

• refers to (model-proposed): AEEML converts foreign-currency charges to U.S. dollars at a rate the issuer finds acceptable, within stated limits — The foreign transaction fee card points readers to the conversion paragraph. The cross-reference names Part 2 while the paragraph appears under the Part 3 heading in this document.

Charges & Financial Obligations · Company practice

Late payment fee: $29, then $40 on a repeat within 6 billing periods, capped at the prior minimum payment

If the issuer does not receive the Minimum Payment Due by its Payment Due Date, the late fee is $29. If this happens again within the next 6 billing periods, the fee is $40. The table summarizes the late payment fee as 'Up to $40'. A late fee on a billing statement will not exceed the Minimum Payment Due on your prior billing statement.

Supporting quotations

Penalty Fees • Late Payment • Returned Payment • Overlimit | Up to $40. Up to $40. None

Late Payment: Up to $40. If we do not receive the Minimum Payment Due by its Payment Due Date, the fee is $29. If this happens again within the next 6 billing periods, the fee is $40. However, the late fee on a billing statement will not exceed the Minimum Payment Due on your prior billing statement.

Qualifications & exceptions

• In the table the three penalty fees share one cell and their amounts follow in the same order (Late Payment up to $40, Returned Payment up to $40, Overlimit None); the later fee paragraphs repeat each amount by name.

Charges & Financial Obligations · Company practice

Returned payment fee: $29, then $40 on a repeat within the period or next 6, capped at the minimum payment

If a payment you make is returned unpaid the first time the issuer presents it to your bank, the fee is $29. If this happens again within the same billing period or the next 6 billing periods, the fee is $40. The table summarizes the fee as 'Up to $40'. The returned payment fee on a billing statement will not exceed the applicable Minimum Payment Due on your prior billing statement.

Supporting quotations

Returned Payment: Up to $40. If you make a payment that is returned unpaid the first time we present it to your bank, the fee is $29. If you do this again within the same billing period or the next 6 billing periods, the fee is $40. However, the returned payment fee on a billing statement will not exceed the applicable Minimum Payment Due on your prior billing statement.

Charges & Financial Obligations · Company practice

A $38 fee plus the unpaid amount applies if a check you cash with your card is returned

The returned check fee is $38 if you use your card to cash a check at one of the issuer's approved locations and the check is returned unpaid. The issuer will also charge you the unpaid amount. This fee is separate from the returned payment fee for payments you make to the account.

Supporting quotations

Returned Check: $38 if you use your card to cash a check at one of our approved locations and the check is returned unpaid. We will also charge you the unpaid amount.

Not stated here

• The agreement does not identify the approved locations.

Charges & Financial Obligations · Company commitment

There is no overlimit fee

The Rates and Fees Table and the fee section both say the Overlimit fee is None, and the fee section refers to the Credit Limit and Cash Advance Limit part of Part 1. That later section also says the issuer may approve charges above your Credit Limit without charging an overlimit fee.

Supporting quotations

Overlimit: None. See Credit Limit and Cash Advance Limit in Part 1.

Up to $40. Up to $40. None

Qualifications & exceptions

• The minimum payment section still refers to an 'overlimit amount' that can be added to the Minimum Payment Due; no fee is charged for it.

Charges & Financial Obligations · Company practice

Reopening a cancelled account costs $25

Account Re-opening costs $25 if your Account is cancelled, you ask the issuer to re-open it, and it does so.

Supporting quotations

Account Re-opening: $25 if your Account is cancelled, you ask us to re-open it, and we do so.

Qualifications & exceptions

• Part 3 repeats this fee with 'may charge you a $25 fee'; the fee section states it without 'may'.

Charges & Financial Obligations · Company practice

Fees are added to the purchase balance unless the issuer says otherwise

The issuer adds fees to a purchase balance, unless it tells you otherwise.

Details not recorded for this card

Supporting quotations

We add fees to a purchase balance, unless we tell you otherwise.

Not stated here

• The agreement does not say which fees, if any, the issuer would treat differently.

Charges & Financial Obligations · Company practice

Interest is figured with the average daily balance method, including new purchases

The table states that interest is calculated with the average daily balance method, including new purchases, and points to the 'How we calculate interest' section in Part 2 for the details.

Details not recorded for this card

Supporting quotations

How we calculate interest: We use a method called average daily balance method (including new purchases). See the How we calculate interest section in Part 2.

Charges & Financial Obligations · Company practice

The issuer assigns a Credit Limit and may set a Cash Advance Limit and an ATM withdrawal limit

The issuer assigns a Credit Limit to the Account and may make part of it available for cash advances (the Cash Advance Limit). There may also be a limit on how much you can withdraw from ATMs in a given period. The issuer's right to change the limits follows in the next paragraph, which is analysed separately.

Supporting quotations

We assign a Credit Limit to your Account. We may make part of your Credit Limit available for cash advances (Cash Advance Limit). There may also be a limit on the amount you can withdraw from ATMs in a given period.

Not stated here

• The dollar amounts of your Credit Limit, Cash Advance Limit and any ATM limit are not stated in this public agreement.

Charges & Financial Obligations · Restriction or exception

The issuer can raise or lower your limits at any time, and you agree to keep balances within them

The issuer may increase or reduce your Credit Limit and Cash Advance Limit, even if you pay on time and your Account is not in default. The limits are shown on page 1 of Part 1 and on each billing statement. You agree to manage your Account so that your Account balance (including fees and interest) is not more than your Credit Limit and your cash advance balance (including fees and interest) is not more than your Cash Advance Limit.

Supporting quotations

We assign a Credit Limit to your Account. We may make part of your Credit Limit available for cash advances (Cash Advance Limit).

We may increase or reduce your Credit Limit and Cash Advance Limit. We may do so even if you pay on time and your Account is not in default.

your Account balance (including fees and interest) is not more than your Credit Limit

your cash advance balance (including fees and interest) is not more than your Cash Advance Limit

Qualifications & exceptions

• The sentence 'You agree to manage your Account so that:' leads into the two list items; the agreement does not say what follows if the balances exceed the limits other than what the next paragraph says about approved over-limit charges.

Not stated here

• The agreement does not say how much notice, if any, the issuer gives before it changes a limit.

Cross-references

• contrast (model-proposed): The issuer may approve charges over your Credit Limit with no overlimit fee, and may ask you to pay the excess — One paragraph has you agree to keep your Account balance within your Credit Limit; the next says the issuer may approve charges that take the balance over the limit, with no overlimit fee, and may ask you to pay the excess promptly. Both are stated side by side and pull in different directions about what staying within the limit means in practice.

Charges & Financial Obligations · Company practice

The issuer may approve charges over your Credit Limit with no overlimit fee, and may ask you to pay the excess

The issuer may approve charges that push your Account balance over your Credit Limit. If it does, it will not charge an overlimit fee. If the issuer asks you to promptly pay the part of your balance above your Credit Limit, you agree to do so.

Supporting quotations

We may approve charges that cause your Account balance to go over your Credit Limit. If we do this, we will not charge an overlimit fee. If we ask you to promptly pay the amount of your Account balance above your Credit Limit, you agree to do so.

Qualifications & exceptions

• Approval of over-limit charges is at the issuer's choice ('may').

Not stated here

• The agreement does not say how quickly 'promptly' is.

Cross-references

• contrast (model-proposed): The issuer can raise or lower your limits at any time, and you agree to keep balances within them — One paragraph has you agree to keep your Account balance within your Credit Limit; the next says the issuer may approve charges that take the balance over the limit, with no overlimit fee, and may ask you to pay the excess promptly. Both are stated side by side and pull in different directions about what staying within the limit means in practice.

Charges & Financial Obligations · Restriction or exception

Person-to-person transactions are limited to $2,000 in any 30-day period

Your person-to-person transactions may not exceed $2,000 within any 30-day period, and you agree to manage your Account so the total stays within that limit. A person-to-person transaction is defined as a charge for funds sent to another person or a charge to add funds to your Amex Send Account. The issuer may decline a person-to-person transaction that would cause your Account to exceed the applicable person-to-person limit or your Credit Limit.

Supporting quotations

Person-to-Person Limit: Your person-to-person transactions may not exceed $2,000 within any 30-day period. You agree to manage your Account so that the total of your person-to-person transactions in any 30-day period do not exceed the Person-to-Person Limit.

We may not approve a person-to-person transaction if it would cause your Account to exceed the applicable person-to-person transaction limit or your Credit Limit.

A person-to-person transaction is a charge for funds sent to another person or a charge to add funds to your Amex SendTM Account.

Qualifications & exceptions

• The text says 'applicable person-to-person transaction limit', and only one limit, $2,000 per 30 days, is stated here.

Charges & Financial Obligations · Procedure

The Minimum Payment Due starts from the highest of three amounts, then adds fees and other amounts

For each billing statement the issuer starts with the highest of: (1) interest charged on the statement plus 1% of the New Balance (excluding any interest, penalty fees, overlimit amount, and plan balances); (2) 2% of the New Balance (excluding any penalty fees, overlimit amount, and plan balances); or (3) $40. It then adds any penalty fees shown on the statement, up to 1/24th of any overlimit amount, any plan payment due, and any amount past due. The Minimum Payment Due will not exceed your New Balance. You may pay more than the Minimum Payment Due, up to your New Balance, at any time.

Supporting quotations

To calculate the Minimum Payment Due for each billing statement, we start with the highest of:

Interest charged on the billing statement plus 1% of the New Balance (excluding any interest, penalty fees, overlimit amount, and plan balances); or

2% of the New Balance (excluding any penalty fees, overlimit amount, and plan balances); or

$40.

Then we add any penalty fees shown on the billing statement, up to 1/24th of any overlimit amount, any plan payment due, and any amount past due.

Your Minimum Payment Due will not exceed your New Balance. You may pay more than the Minimum Payment Due, up to your New Balance, at any time.

Qualifications & exceptions

• The exclusions in the first two measures are written separately: the 1%-plus-interest measure excludes interest as well as penalty fees, overlimit amount and plan balances; the 2% measure does not list interest among its exclusions.

Not stated here

• 'New Balance' is not defined in the text of this agreement; it is the figure shown on the billing statement.

Charges & Financial Obligations · Context

Worked example: a $2,900 New Balance with $29.57 interest gives a $58.27 minimum payment

The agreement's example assumes a New Balance of $2,900, interest of $29.57, and no active plans, overlimit amount, penalty fees or amounts past due. The three measures are $58.27 (interest plus 1% of the balance after interest), $58 (2% of $2,900) and $40. The highest is $58.27. The agreement adds that if the account has any active plans, overlimit amount, penalty fees or amounts past due, the Minimum Payment Due will be higher.

Supporting quotations

EXAMPLE: Assume that your New Balance is $2,900, interest is $29.57, and you have no active plans, overlimit amount, penalty fees, or amounts past due.

$29.57 plus 1% multiplied by ($2,900 minus $29.57) equals $58.27

$58 (2% of $2,900)

$40

The highest of 1., 2., or 3. is $58.27. If your account has any active plans, overlimit amount, penalty fees, or amounts past due, your Minimum Payment Due will be higher.

Qualifications & exceptions

• This is an illustration under stated assumptions, not a statement of what any cardholder will owe.

Charges & Financial Obligations · User right or choice

No interest on purchases during an Interest Free Period, which you reach by paying your New Balance by the due date

You are not charged interest on purchases while in an Interest Free Period. Your account enters an Interest Free Period when you pay your New Balance as shown on your statement by the Payment Due Date, or if your account had no previous balance. If you have an active Plan It plan, you can enter an Interest Free Period by paying at least the Balance Adjusted for Plans (or Adjusted Balance) by the Payment Due Date.

Supporting quotations

You are not charged interest on purchases when you are in an Interest Free Period.

Your account enters an Interest Free Period when you pay your New Balance as shown on your statement by the Payment Due Date or your account had no previous balance.

If you have an active plan created through Plan It, you can enter an Interest Free Period by paying at least the Balance Adjusted for Plans (or Adjusted Balance) by the Payment Due Date.

Qualifications & exceptions

• The protection is stated for purchases only.

Not stated here

• The terms 'Balance Adjusted for Plans' and 'Adjusted Balance' are used without a definition in this text.

Charges & Financial Obligations · Company practice

Outside an Interest Free Period, purchases are charged interest from the transaction date

When your account is not in an Interest Free Period, the issuer charges interest on purchases from the date of the transaction. After you enter an Interest Free Period again, interest may still appear on your next billing statement, reflecting interest charged from the beginning of that billing cycle through the date the payment was received. For more detail the section points to the 'How we calculate interest' section.

Supporting quotations

When your account is not in an Interest Free Period, we charge interest on purchases from the date of the transaction.

After you enter an Interest Free Period again, interest may appear on your next billing statement. This reflects interest charged from the beginning of that billing cycle through the date the payment was received.

For more details about how we calculate your interest charges, see the How we calculate interest section of this agreement.

Charges & Financial Obligations · Company practice

Balance transfers and cash advances are charged interest from the transaction date and have no Interest Free Period

Balance Transfers and Cash Advances are charged interest from the date of the transaction and do not have an Interest Free Period. The agreement defines a cash advance as a charge to get cash or cash equivalents (including travelers cheques, gift cheques, foreign currency, money orders, digital currency, casino gaming chips, race track wagers, and other offline and online betting transactions) and a balance transfer as a charge to pay an amount you owe on another credit card account.

Supporting quotations

Balance Transfers and Cash Advances will be charged interest from the date of the transaction and do not have an Interest Free Period.

A cash advance is a charge to get cash or cash equivalents, including travelers cheques, gift cheques, foreign currency, money orders, digital currency, casino gaming chips, race track wagers, and other offline and online betting transactions.

A balance transfer is a charge to pay an amount you owe on another credit card account.

Qualifications & exceptions

• Part 2 says the issuer may permit cash advances and balance transfers 'at our discretion' and that balances cannot be transferred from other accounts issued by the issuer or its affiliates.

Charges & Financial Obligations · Permission or license

Plan It: payment plans for qualifying purchases, with a monthly plan fee in place of the purchase APR

The issuer may offer Plan It, a payment plan for qualifying purchases or a qualifying amount, subject to a plan fee that is a fixed finance charge charged each month a plan is active. You select qualifying purchases or a qualifying amount and a plan duration, and can view the monthly plan payments, including the plan fee, for your selection. Each plan fee is disclosed before you create the plan and is based on the plan duration, the APR that would otherwise apply, and other factors. The purchases or amount are added to a plan balance and are subject to a plan fee instead of the APR for purchases. A qualifying purchase is a purchase of at least a specified dollar amount, and a qualifying amount is a specified portion of your balance. Qualifying purchases (or a qualifying amount, if your Card has a Credit Limit) do not include purchases of cash or cash equivalents, balance transfers (if offered), purchases subject to Foreign Transaction Fees, or any fee owed to the issuer, such as Annual Fees.

Supporting quotations

We may offer you Plan It, which allows you to create a payment plan for qualifying purchases or a qualifying amount, subject to a plan fee. This fee is a fixed finance charge that will be charged each month that a plan is active.

You will be able to view the monthly plan payments, including the plan fee, for your selection. Each plan fee will be disclosed before you create the applicable plan and will be based on the plan duration, the APR that would otherwise apply to the purchase amount(s), and other factors.

When you set up a plan, the purchases or amount will be added to a plan balance and will be subject to a plan fee instead of the APR for purchases.

A qualifying purchase for Plan It is a purchase of at least a specified dollar amount. A qualifying amount for Plan It is a specified portion of your balance.

do not include purchases of cash or cash equivalents, balance transfers (if offered), purchases subject to Foreign Transaction Fees, or any fee owed to us, such as Annual Fees

Qualifications & exceptions

• Plan It is offered at the issuer's choice ('may offer'); eligibility conditions and limits on the number of plans are in the next section.

Not stated here

• The specified dollar amount for a qualifying purchase and the specified portion for a qualifying amount are not stated in this agreement.

Charges & Financial Obligations · Restriction or exception

Creating Plan It plans depends on creditworthiness, limits and account status, and the issuer can change the rules

Whether you can create plans is based on factors such as your creditworthiness and Credit Limit. You cannot create plans if your Account is cancelled, or if one or more of your American Express accounts is enrolled in a payment program, has a payment returned unpaid, or is past due. The issuer tells you how many active plans you may have and may change that number at any time. The plan durations offered and your ability to include several qualifying purchases or a qualifying amount in one plan are at the issuer's discretion. You agree to manage your Account so the total of your plan balances (including plan fees) is not more than your Credit Limit.

Supporting quotations

Your ability to create plans will be based on a variety of factors such as your creditworthiness and your Credit Limit.

You will not be able to create plans if your Account is cancelled. You will also not be able to create plans if one or more of your American Express accounts is enrolled in a payment program, or has a payment that is returned unpaid, or is past due.

We will tell you the number of active plans you may have and we may change this number at any time. The plan durations offered to you, and your ability to include multiple qualifying purchases or a qualifying amount in a single plan, will be at our discretion

You agree to manage your Account so that the total of your plan balances (including plan fees) is not more than your Credit Limit.

Qualifications & exceptions

• The creditworthiness and Credit Limit factors are introduced as examples ('such as').

Not stated here

• The agreement does not define 'payment program' or state the number of active plans permitted.

Charges & Financial Obligations · User right or choice

Plans cannot be cancelled, but paying the New Balance in full pays a plan off early with no further plan fees

Plans cannot be cancelled after they have been created. You can choose to pay a plan early by paying in full the New Balance shown on your most recent billing statement. If you pay a plan off early, you will not incur any future plan fees on that plan.

Supporting quotations

Plans cannot be cancelled after they have been created but you can choose to pay them early by paying the New Balance shown on your most recent billing statement in full. If you pay a plan off early, you will not incur any future plan fees on that plan.

Charges & Financial Obligations · Company commitment

You promise to pay all charges, including those others make or are permitted to make, and the minimum by the due date

You promise to pay all charges added to your Account, including charges that you or your Additional Card Members make, or permit others to make, even if the Card is not presented or the transaction is not signed for. You must pay at least the Minimum Payment Due on or before the Payment Due Date, in the time and manner shown on each billing statement. Part 2 also says you are responsible for all use of your Account by Additional Card Members and anyone they allow to use it.

Supporting quotations

You promise to pay all charges added to your Account, including charges that you or your Additional Card Members make, or permit others to make, even if you or they do not present the Card or sign for the transaction.

You must pay at least the Minimum Payment Due on or before the Payment Due Date in the time and manner shown on each billing statement.

You are responsible for all use of your Account by Additional Card Members and anyone they allow to use your Account and you must pay for all charges made.

Qualifications & exceptions

• The promise applies to charges 'added to your Account'; Part 2's security paragraph separately asks you to report unauthorized use.

Charges & Financial Obligations · Procedure

Payments must be in U.S. dollars by check, negotiable instrument or electronic payment, with steps for mailed payments

Payments must be made in U.S. dollars with a single check drawn on a U.S. bank, a single negotiable instrument clearable through the U.S. banking system (for example a money order), or an electronic payment that can be cleared through the U.S. banking system. For payments by mail you must make a separate payment for each Account, mail it to the address on the payment coupon on your billing statement, and write your Account number on the check or negotiable instrument and include the payment coupon.

Supporting quotations

Make payments to us in U.S. dollars with:

a single check drawn on a U.S. bank, or

a single negotiable instrument clearable through the U.S. banking system, for example a money order, or

an electronic payment that can be cleared through the U.S. banking system.

make a separate payment for each Account,

mail your payment to the address shown on the payment coupon on your billing statement, and

write your Account number on your check or negotiable instrument and include the payment coupon.

When making a payment by mail:

Charges & Financial Obligations · Company practice

A conforming payment received by the cutoff is credited that day, otherwise the next; delays can add fees and interest

If your payment meets the requirements, the issuer credits it to your Account as of the day it is received, as long as it is received by the time and in the manner disclosed in your billing statement. If it is received after that time, it is credited on the day after it is received. If the payment does not meet the requirements, there may be a delay in crediting your Account, which may result in late payment fees and additional interest charges. 'To pay by a certain date' means to send your payment so that the issuer receives it and credits it to your Account by that date.

Supporting quotations

If your payment meets the above requirements, we will credit it to your Account as of the day we receive it, as long as we receive it by the time and in the manner disclosed in your billing statement. If we receive it after that time, we will credit the payment on the day after we receive it.

If your payment does not meet the above requirements, there may be a delay in crediting your Account. This may result in late payment fees and additional interest charges (see the How Rates and Fees Work in Part 1).

To pay by a certain date means to send your payment so that we receive it and credit it to your Account by that date.

Not stated here

• The cutoff time is not stated here; it is 'disclosed in your billing statement'.

Charges & Financial Obligations · Restriction or exception

Foreign-currency and non-U.S. bank payments are refused; processing a late or restricted payment waives no rights

The issuer will not accept a payment made in a foreign currency or a payment drawn on an account at a bank located outside the U.S. If the issuer processes a late payment, a partial payment, or a payment marked with any restrictive language, that has no effect on its rights and does not change the Agreement.

Supporting quotations

We will not accept a payment made in a foreign currency or a payment drawn on an account at a bank located outside of the U.S.

If we process a late payment, a partial payment, or a payment marked with any restrictive language, that will have no effect on our rights and will not change this Agreement.

Charges & Financial Obligations · Procedure

Payments go first to plan amounts, then the lowest-rate balance; amounts above the minimum go to the highest-rate one

Because an Account may have balances at different interest rates and plan balances with plan fees, the issuer generally applies payments in a billing period this way. Payments up to the Minimum Payment Due go first to any plan amounts included in the Minimum Payment Due, then to the balance subject to the lowest interest rate, then to balances at higher rates. After the Minimum Payment Due has been paid, payments go to the balance subject to the highest interest rate, then to balances at lower rates, and then to any plan balances.

Supporting quotations

here is how we generally apply payments in a billing period:

We apply your payments, up to the Minimum Payment Due, first to any Plan amounts included in your Minimum Payment Due, then to the balance subject to the lowest interest rate, and then to balances subject to higher interest rates.

After the Minimum Payment Due has been paid, we apply your payments to the balance subject to the highest interest rate, then to balances subject to lower interest rates, and then to any Plan balances.

Qualifications & exceptions

• The order is described as how payments are 'generally' applied.

Charges & Financial Obligations · Procedure

Credits generally go to the same balance as the charge, and payments within balances may be applied in any order

In most cases a credit is applied to the same balance as the related charge, for example a purchase credit goes to the purchase balance. The issuer may apply payments and credits within balances, and among balances with the same interest rate, in any order it chooses. If any balance is negative at the end of a billing period, the excess credit is redistributed to other balances under the payment application rules, so in some circumstances plan balances may get paid before they otherwise would. If you receive a credit for a purchase placed into a plan, you must call the issuer at the number on the back of your Card to have the credit applied to the plan balance.

Supporting quotations

In most cases, we apply a credit to the same balance as the related charge.

We may apply payments and credits within balances, and among balances with the same interest rate, in any order we choose.

If there is a negative balance in any balance on the account at the end of a billing period, that excess credit will be redistributed to other balances in accordance with how we apply payments described above.

If you receive a credit for a purchase placed into a plan, you must call us at the number on the back of your Card to have the credit applied to the Plan balance.

Charges & Financial Obligations · Company practice

Interest on a balance equals its Average Daily Balance times its Daily Periodic Rate times the days in the period

The issuer calculates interest for a billing period by figuring the interest on each balance and adding the results. Different categories of transactions, such as purchases and cash advances, may have different interest rates, and balances within a category may also have different rates. It uses the Average Daily Balance method (including new transactions). Apart from rounding, the interest on a balance is the Average Daily Balance multiplied by the Daily Periodic Rate multiplied by the number of days in the billing period. The Daily Periodic Rate (DPR) is defined as 1/365th of an APR, rounded to one ten-thousandth of a percentage point.

Supporting quotations

Different categories of transactions--such as purchases and cash advances--may have different interest rates. Balances within each category may also have different interest rates.

We use the Average Daily Balance method (including new transactions) to figure interest charges for each balance. The total interest charged for a billing period is the sum of the interest charged on each balance.

The interest charged for a balance in a billing period, except for variations caused by rounding, equals:

Average Daily Balance (ADB) multiplied by

Daily Periodic Rate (DPR) multiplied by

number of days in the billing period.

DPR: A DPR is 1/365th of an APR, rounded to one ten-thousandth of a percentage point.

Qualifications & exceptions

• The rest of the calculation (daily balances, compounding, and the DPR reference) is in the next section.

Not stated here

• The agreement does not list the DPR figures for this card (see the next section).

Charges & Financial Obligations · Context

The Average Daily Balance averages the daily balances over the period, and the DPR is 1/365th of an APR

To get the Average Daily Balance for a balance, the issuer adds up its daily balances and divides the result by the number of days in the billing period. A Daily Periodic Rate (DPR) is 1/365th of an APR, rounded to one ten-thousandth of a percentage point.

Supporting quotations

ADB: To get the ADB for a balance, we add up its daily balances. Then we divide the result by the number of days in the billing period.

DPR: A DPR is 1/365th of an APR, rounded to one ten-thousandth of a percentage point.

Charges & Financial Obligations · Context

This agreement says your DPRs are shown in Part 1, but the published text lists no DPR values

The interest section says 'Your DPRs are shown in How Rates and Fees Work in Part 1.' The How Rates and Fees Work section in Part 1 of this published agreement holds the Explanation of Variable Rates, the Determining the Prime Rate paragraph, the fee descriptions and the limits, and the Rates and Fees Table gives the APRs as the Prime Rate plus a margin. None of these lists a Daily Periodic Rate value. The agreement elsewhere says that variable APRs and 'corresponding DPRs' change together. This analysis does not calculate DPR values from the APRs and does not take them from another document; it records that the published agreement does not show them.

Supporting quotations

Your DPRs are shown in How Rates and Fees Work in Part 1.

How Rates and Fees Work

If the Prime Rate increases, variable APRs (and corresponding DPRs) will increase.

Determining the Prime Rate: Prime Rate means the highest U.S. Prime Rate

Qualifications & exceptions

• Source gap, not a reading uncertainty: the reference is quoted as written and the promised values are not present in the published agreement. The DPR is defined in the same paragraph as 1/365th of an APR, but the Prime Rate is not stated in the agreement, so no DPR can be derived from it.

Not stated here

• The DPR values the sentence refers to; they would appear in a cardholder's personal Part 1, which is not part of this public document.

Charges & Financial Obligations · Context

Worked example: a 15.99% rate, a $2,250 average daily balance and 30 days produce $29.57 in interest

The agreement's example assumes a single interest rate of 15.99%, an Average Daily Balance of $2,250 and 30 days in the billing period. The DPR is 15.99% divided by 365 days, which it gives as 0.0438%. The interest is $2,250 multiplied by 0.0438% multiplied by 30 days, which equals $29.57.

Supporting quotations

Assume that you have a single interest rate of 15.99%, your ADB is $2,250 and there are 30 days in the billing period. The DPR is 15.99% divided by 365 days equals 0.0438%

The Interest is $2,250 multiplied by 0.0438% multiplied by 30 days equals $29.57

Qualifications & exceptions

• The example uses an assumed 15.99% rate for illustration; it is not a rate stated for this Card.

Charges & Financial Obligations · Company practice

Daily balances are built up from new charges, payments and credits, and interest compounds daily

The issuer figures the daily balance for each balance by taking the beginning balance for the day, adding any new charges, subtracting any payments or credits, and making any appropriate adjustments. A new charge is added to a daily balance as of its transaction date, and a negative daily balance is treated as zero. For the first day of a billing period, the beginning balance is the ending balance for the prior billing period, including unpaid interest. For the rest of the period, the beginning balance is the previous day's daily balance plus interest equal to the previous day's daily balance multiplied by the DPR for that balance. The agreement says this method results in daily compounding of interest.

Supporting quotations

Daily Balance: We figure the daily balance for each balance by:

taking the beginning balance for the day,

adding any new charges,

subtracting any payments or credits; and

making any appropriate adjustments.

We add a new charge to a daily balance as of its transaction date. If the daily balance is negative, we treat it as zero.

For the first day of a billing period, the beginning balance is the ending balance for the prior billing period, including unpaid interest.

the beginning balance is the previous day's daily balance plus an amount of interest equal to the previous day's daily balance multiplied by the DPR for that balance. This method of figuring the beginning balance results in daily compounding of interest.

Qualifications & exceptions

• 'Appropriate adjustments' is not defined.

Charges & Financial Obligations · Permission or license

The issuer may use other formulas that produce equivalent results, and may choose not to charge interest on some charges

To figure the Average Daily Balance and interest charges, the issuer may use other formulas or methods that produce equivalent results. It may also choose not to charge interest on certain types of charges.

Details not recorded for this card

Supporting quotations

To figure the ADB and interest charges, we may use other formulas or methods that produce equivalent results. Also, we may choose not to charge interest on certain types of charges.

Not stated here

• The agreement does not say which types of charges the issuer may choose not to charge interest on.

Charges & Financial Obligations · Company practice

You agree to pay the issuer's reasonable costs of collecting what you owe, including attorneys' fees

You agree to pay all reasonable costs, including attorneys' fees, that the issuer incurs to collect amounts you owe.

Supporting quotations

You agree to pay all reasonable costs, including attorneys' fees, that we incur to collect amounts you owe.

Not stated here

• The agreement does not set a cap or describe how these costs are shown on the Account.

Charges & Financial Obligations · Company practice

AEEML converts foreign-currency charges to U.S. dollars at a rate the issuer finds acceptable, within stated limits

If you make a charge in a foreign currency, AE Exposure Management Ltd. (AEEML) converts it into U.S. dollars on the date the issuer or its agents process it, and the issuer bills you in U.S. dollars on that conversion. Unless a particular rate is required by law, AEEML chooses a conversion rate that is acceptable to the issuer for that date. The rate is no more than the highest official rate published by a government agency or the highest interbank rate AEEML identifies from customary banking sources on the conversion date or the prior business day. The rate may differ from rates in effect on the date of your charge. Charges converted by establishments (such as airlines) are billed at the rates they use. The 2.7% foreign transaction fee applies to the converted U.S. dollar amount.

Supporting quotations

If you make a charge in a foreign currency, AE Exposure Management Ltd. ("AEEML") will convert it into U.S. dollars on the date we or our agents process it, so that we bill you for the charge in U.S. dollars based upon this conversion.

Unless a particular rate is required by law, AEEML will choose a conversion rate that is acceptable to us for that date. The rate AEEML uses is no more than the highest official rate published by a government agency or the highest interbank rate AEEML identifies from customary banking sources on the conversion date or the prior business day. This rate may differ from rates that are in effect on the date of your charge.

We will bill charges converted by establishments (such as airlines) at the rates they use.

Qualifications & exceptions

• The rate is described as 'no more than' the highest official or interbank rate; the paragraph does not state a minimum or a margin.
• In Part 1 this paragraph is referred to as 'Converting charges made in a foreign currency in Part 2', but it appears under the Part 3 heading in this document.

Not stated here

• The actual rate used, and any markup, are not stated in the agreement.

Cross-references

• referred to by (model-proposed): A 2.7% foreign transaction fee applies on the U.S. dollar amount after conversion — The foreign transaction fee card points readers to the conversion paragraph. The cross-reference names Part 2 while the paragraph appears under the Part 3 heading in this document.

Charges & Financial Obligations · User right or choice

Oregon residents: service charges are limited to those permitted by law, and you may pay more than the minimum

The Oregon notice says service charges not in excess of those permitted by law will be charged on the outstanding balances from month to month. It also says you may pay more than the Minimum Payment Due, up to your entire outstanding balance, at any time.

Supporting quotations

Notice to Oregon Residents: Service charges not in excess of those permitted by law will be charged on the outstanding balances from month to month. You may pay more than the Minimum Payment Due, up to your entire outstanding balance, at any time.

Qualifications & exceptions

• The paragraph is addressed to Oregon residents; Part 1 states the same right to pay more than the minimum without limiting it to Oregon.

Charges & Financial Obligations · User right or choice

Washington residents owe no interest caused solely by a delay in posting a return credit

The Washington notice says that, under the Revised Code of Washington Section 63.14.167, you are not responsible for payment of interest charges that result solely from a merchant's failure to transmit to the issuer within seven working days a credit for goods or services accepted for return or forgiven, if you have notified the issuer of the merchant's delay in posting the credit, or from the issuer's failure to post such credit to your Account within three working days of receiving the credit.

Supporting quotations

Notice for residents of Washington State: In accordance with the Revised Code of Washington Statutes, Section 63.14.167, you are not responsible for payment of interest charges that result solely from a merchant's failure to transmit to us within seven working days a credit for goods or services accepted for return or forgiven if you have notified us of the merchant's delay in posting such credit, or our failure to post such credit to your Account within three working days of our receipt of the credit.

Qualifications & exceptions

• The merchant-delay protection applies if you have notified the issuer of the merchant's delay; the sentence's grammar leaves it unclear whether that notice condition also applies to the issuer's own three-working-day failure. The text is quoted as written.
• The protection covers only interest charges that result solely from the delay.

Not stated here

• The statute (Section 63.14.167) is cited by name and number only; its text is not supplied here, so this card cannot say more about its scope.