Hilton Honors American Express Surpass® Card Agreement

Charges & Financial Obligations · Company practice

Purchase APR is Prime Rate plus 12.74% to 21.74% and cash advance APR is Prime Rate plus 21.99%, both variable

The Rates and Fees Table gives the Annual Percentage Rate for Purchases as a range, from Prime Rate + 12.74% to Prime Rate + 21.74%, and the APR for Cash Advances as Prime Rate + 21.99%. Both are variable APRs and the table refers the reader to the Explanation of Variable Rates below it.

Supporting quotations

Annual Percentage Rate (APR) for Purchases | Prime Rate + 12.74% to Prime Rate + 21.74% This is a variable APR. See Explanation of Variable Rates below.

APR for Cash Advances | Prime Rate + 21.99% This is a variable APR. See Explanation of Variable Rates below.

Qualifications & exceptions

• Both APRs are stated as a margin over the Prime Rate, not as a fixed percentage, so the actual percentage depends on the Prime Rate in effect.
• Variable APRs will not exceed 29.99% according to the Explanation of Variable Rates (see the variable-rate card).

Not stated here

• The document does not say how it decides where within the Purchase APR range a particular Card Member falls.
• The Rates and Fees Table lists no Daily Periodic Rate values; it gives only the margins over the Prime Rate. This published agreement does not show DPR values, and none are computed here.

Cross-references

• qualified by (model-proposed): Variable APRs move with the Prime Rate from the first day of the billing period and are capped at 29.99% — The table states the Purchase and Cash Advance APRs as margins over the Prime Rate and refers to the Explanation of Variable Rates, which sets how and when changes take effect, the 29.99% cap and what the Prime Rate is.

Charges & Financial Obligations · Company practice

Variable APRs move with the Prime Rate from the first day of the billing period and are capped at 29.99%

If the Prime Rate increases, variable APRs (and the corresponding DPRs) will increase, so 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%. 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 it that day, the Prime Rate from the previous day it was published is used, and if the Journal is no longer published or stops publishing the Prime Rate, American Express may use the Prime Rate published in another newspaper of general circulation.

Supporting quotations

Explanation of Variable Rates: 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%.

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. If The Wall Street Journal is no longer published or stops publishing the Prime Rate, we may use the Prime Rate published in another newspaper of general circulation.

Qualifications & exceptions

• The 29.99% ceiling applies to variable APRs as the passage states; it is not a statement about the Penalty APR beyond that wording, and the passage does not say separately whether the Penalty APR is included.
• The fallback to another newspaper is written as "may", so the choice of newspaper is at the issuer's discretion.

Not stated here

• The current numeric Prime Rate is not given in the document.
• The passage describes the effect of an increase; it applies the timing rule to any change in the Prime Rate but does not separately describe how a decrease is passed on.

Cross-references

• qualifies (model-proposed): Purchase APR is Prime Rate plus 12.74% to 21.74% and cash advance APR is Prime Rate plus 21.99%, both variable — The table states the Purchase and Cash Advance APRs as margins over the Prime Rate and refers to the Explanation of Variable Rates, which sets how and when changes take effect, the 29.99% cap and what the Prime Rate is.

Charges & Financial Obligations · Restriction or exception

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

The table says American Express has the right to apply the Penalty APR, Prime Rate + 26.74% (a variable APR), 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 (and the table says it will notify you if it does). If the Penalty APR is applied, it applies for at least 6 months. American Express will review 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. See Explanation of Variable Rates below. 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.

How Long Will the Penalty APR Apply? 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 table applies the Penalty APR to "new Transactions"; it does not say here whether balances that already exist are repriced.
• The words "we will notify you if we do" follow the returned-payment trigger; the table does not say whether they limit the other trigger or what form the notice takes.

Not stated here

• "Transactions" is capitalized in the table; the document's Part 2 definitions use the term "charge", and this table does not define "Transactions".

Charges & Financial Obligations · Company commitment

Due Date is at least 25 days after the period closes; no purchase interest if the balance is paid in full

Under Paying Interest, the table says your Due Date is at least 25 days after the close of each billing period, and that American Express will not charge interest on purchases if you pay your entire balance (or, if you have a plan outstanding, your balance adjusted for plans) by the due date each month. Interest on cash advances begins on the transaction date.

Supporting quotations

Paying Interest | 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. We will begin charging interest on cash advances on the transaction date.

Qualifications & exceptions

• The no-interest rule is conditional on paying the entire balance every month by the due date; the longer 'When We Charge Interest (Grace Period)' section explains the Interest Free Period in more detail.
• Interest on cash advances is not covered by the no-interest rule: it begins on the transaction date.

Charges & Financial Obligations · Company practice

The table says interest is figured with the average daily balance method, including new purchases

The Rates and Fees Table states that interest is calculated using the average daily balance method (including new purchases) and points the reader to the 'How we calculate interest' section in Part 2 for the details.

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.

Qualifications & exceptions

• This is a summary line in the table; the formula and the definitions are in Part 2.

Charges & Financial Obligations · Company practice

Plan It carries a monthly fixed finance charge of up to 1.33% of each purchase or amount moved into a plan

The Plan Fee (Fixed Finance Charge) is a monthly fee of up to 1.33% of each purchase or amount placed into a plan, based on the plan duration, the APR that would otherwise apply to the purchase or amount, and other factors. The fee is a fixed finance charge charged each month a plan is active. The dollar amount of the plan fee is disclosed before you set up a plan, and the agreement refers to About Plan It Feature in Part 2 for more.

Supporting quotations

Plan Fee (Fixed Finance Charge) | 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.

Plan Fee (Fixed Finance Charge): Monthly, up to 1.33% of each purchase or amount placed into a plan based on the plan duration, the APR that would otherwise apply to the purchase or amount, 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.

Qualifications & exceptions

• The percentage is a maximum ("up to 1.33%"); the actual fee depends on plan duration, the APR that would otherwise apply, and other factors that the document does not list in full.
• The fee is charged each month that a plan is active.

Not stated here

• The "other factors" that affect the plan fee are not listed.

Charges & Financial Obligations · Company practice

Annual fee is $150, none for additional Cards; fees go to the purchase balance unless stated otherwise

The Rates and Fees Table lists an Annual Fee of $150. The How Rates and Fees Work section says the Annual Fee is the one on the table, that the Annual Fee for Additional Cards is None, and that American Express adds fees to a purchase balance unless it tells you otherwise.

Supporting quotations

Annual Fee | $150

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

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

• Fees are added to the purchase balance by default; the cash advance fee is the stated example of a fee added to a different balance (the Cash Advance balance).
• Part 3 sets out when the Annual Fee is refunded if you close the Account; that policy is described in its own card.

Not stated here

• This section does not say when during the year or in which billing period the Annual Fee is charged.

Charges & Financial Obligations · Company practice

Cash advance fee is the greater of $10 or 5% of the advance, added to the Cash Advance balance

The table sets the cash advance transaction fee at either $10 or 5% of the amount of each cash advance, whichever is greater. The How Rates and Fees Work section states the fee as 5% of the cash advance transaction (including fees charged by the ATM operator, if any), with a minimum of $10, and says American Express will add the fee to the Cash Advance balance.

Supporting quotations

Transaction Fees • Cash Advance • Foreign Transaction | Either $10 or 5% of the amount of each cash advance, whichever is greater. None

Cash Advance: 5% of the cash advance transaction (including fees charged by the ATM operator, if any), with a minimum of $10. We will add this fee to the Cash Advance balance.

Qualifications & exceptions

• The 5% is calculated on the cash advance amount including any ATM operator fees.

Charges & Financial Obligations · Company commitment

No foreign transaction fee is listed

Both the Rates and Fees Table and the Fees section of How Rates and Fees Work list the Foreign Transaction fee as None. Part 3 separately explains how charges made in a foreign currency are converted into U.S. dollars.

Supporting quotations

Transaction Fees • Cash Advance • Foreign Transaction | Either $10 or 5% of the amount of each cash advance, whichever is greater. None

Foreign Transaction: None.

Qualifications & exceptions

• "None" describes the fee in this fees list; currency conversion is a separate matter covered in Part 3.

Charges & Financial Obligations · Company practice

Late payment fee is $29, or $40 on a repeat within 6 billing periods, capped at the prior Minimum Payment Due

A late payment fee applies if American Express does not receive the Minimum Payment Due by its Payment Due Date. The table says up to $40; the fee is $29 the first time. If it 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.

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

• The cap is the Minimum Payment Due on the prior billing statement, so a late fee can be lower than $29 or $40 if that minimum is lower.

Charges & Financial Obligations · Company practice

Returned payment fee is $29, or $40 on a repeat, capped at the prior Minimum Payment Due

If a payment you make is returned unpaid the first time American Express 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 returned payment fee on a billing statement will not exceed the applicable Minimum Payment Due on your prior billing statement. The table lists the fee as up to $40.

Supporting quotations

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

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.

Qualifications & exceptions

• The cap refers to the applicable Minimum Payment Due on the prior billing statement.

Charges & Financial Obligations · Company practice

A $38 returned check fee applies to card-cashed checks and there is no overlimit fee

A returned check fee of $38 applies if you use your Card to cash a check at one of American Express's approved locations and the check is returned unpaid; American Express will also charge you the unpaid amount. The Overlimit fee is listed as None, with a pointer to Credit Limit and Cash Advance Limit in Part 1.

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.

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

Qualifications & exceptions

• The returned check fee applies to checks cashed with the Card at approved locations.

Charges & Financial Obligations · Company practice

Re-opening a cancelled Account costs $25

The fees list says that if your Account is cancelled, you ask American Express to re-open it, and it does so, the Account Re-opening fee is $25.

Supporting quotations

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

Qualifications & exceptions

• All three conditions in the list must occur: cancellation, your request to re-open, and American Express re-opening the Account.
• Part 3 words the re-opening charge as something American Express "may charge"; the two passages are described in their own cards.

Charges & Financial Obligations · Restriction or exception

Charges over the Credit Limit may be approved with no overlimit fee, and you must repay the excess if asked

American Express may approve charges that cause the Account balance to go over the Credit Limit. If it does, it will not charge an overlimit fee. If it asks you to promptly pay the amount of your Account 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 an over-limit charge is permissive ("may approve"); the document does not promise that over-limit charges will be approved.
• The passage does not set a time for repaying the excess beyond "promptly" when asked.

Charges & Financial Obligations · Restriction or exception

Person-to-person transactions are capped at $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 the Account so that the total of these transactions in any 30-day period does not exceed the Person-to-Person Limit. American Express may not approve a person-to-person transaction if it would cause the Account to exceed the applicable person-to-person transaction limit or the 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.

Qualifications & exceptions

• Part 2 defines a person-to-person transaction as a charge for funds sent to another person or a charge to add funds to an Amex Send account; the limit applies to that kind of transaction.

Charges & Financial Obligations · Company practice

Minimum Payment Due is the highest of three amounts plus fees, plan payments, past-due and overlimit amounts

To calculate the Minimum Payment Due, American Express starts with the highest of: (1) interest charged on the billing 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 billing 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 the New Balance, and 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 first two amounts are computed on the New Balance with specific exclusions that differ slightly: the first excludes interest as well as penalty fees, overlimit amount and plan balances; the second does not list interest as excluded.
• The additions are made after the highest of the three amounts is chosen.

Charges & Financial Obligations · Context

Worked example: a $2,900 New Balance with $29.57 interest gives a $58.27 Minimum Payment Due

The agreement gives an example of the Minimum Payment Due calculation. It 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 amounts are $58.27 ($29.57 plus 1% multiplied by $2,900 minus $29.57), $58 (2% of $2,900) and $40, and the highest is $58.27. It 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

• The figures are assumptions for illustration and are not this Card's rates or any Card Member's actual amounts.

Charges & Financial Obligations · Company practice

Purchases carry no interest in an Interest Free Period, which starts when you pay the New Balance by the due date

You are not charged interest on purchases when you are in an Interest Free Period. The Account enters an Interest Free Period when you pay your New Balance as shown on your statement by the Payment Due Date, or if the Account had no previous balance. When the Account is not in an Interest Free Period, interest is charged on purchases from the date of the transaction. After you enter an Interest Free Period again, interest may appear on your next billing statement, reflecting interest charged from the beginning of that billing cycle through the date the payment was received. 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.

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.

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.

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 Interest Free Period applies to purchases; balances from balance transfers and cash advances are treated separately (see the next card).
• The way to enter the period differs if you have an active plan: pay at least the Balance Adjusted for Plans (or Adjusted Balance) rather than the New Balance.

Cross-references

• has exception (model-proposed): Balance transfers and cash advances accrue interest from the transaction date with no Interest Free Period — The Interest Free Period described for purchases does not apply to balance transfers and cash advances, which accrue interest from the transaction date.

Charges & Financial Obligations · Restriction or exception

Balance transfers and cash advances accrue interest from the transaction date with 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 section closes by pointing to the How we calculate interest section of the agreement for more detail on interest charges.

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.

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

Qualifications & exceptions

• This exception limits the purchase-only Interest Free Period described in the previous card.
• Part 2 says balance transfers are available only at American Express's discretion and cannot come from other accounts issued by American Express or its affiliates.

Cross-references

• exception to (model-proposed): Purchases carry no interest in an Interest Free Period, which starts when you pay the New Balance by the due date — The Interest Free Period described for purchases does not apply to balance transfers and cash advances, which accrue interest from the transaction date.

Charges & Financial Obligations · Context

Definitions of charge, purchase, cash advance, balance transfer, person-to-person transaction and plan

A charge is any amount added to the Account, such as purchases, cash advances, balance transfers, fees, and interest charges. A purchase is a charge for goods, services, or person-to-person transactions. 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. A person-to-person transaction is a charge for funds sent to another person or a charge to add funds to an Amex Send Account. A plan is a portion of the account balance that you have selected to pay over time through a set number of monthly payments using Plan It.

Supporting quotations

A charge is any amount added to your Account, such as purchases, cash advances, balance transfers, fees, and interest charges. A purchase is a charge for goods, services, or person-to-person transactions.

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. 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.

A plan is a portion of your account balance that you have selected to pay over time through a set number of monthly payments using Plan It.

Qualifications & exceptions

• A person-to-person transaction counts as a purchase under this definition, while the rewards supplement separately excludes person-to-person transactions from eligible purchases.
• Part 1 sets a separate APR and fee for cash advances; this definition decides which charges count as cash advances.

Not stated here

• The definition of cash advance is a list introduced by "including"; the document does not say whether other charges can also be cash advances.

Charges & Financial Obligations · Company practice

Plan It lets you pay qualifying purchases or amounts over time for a monthly fixed plan fee instead of the purchase APR

American Express may offer Plan It, which allows you to create a payment plan for qualifying purchases or a qualifying amount, subject to a plan fee. The fee is a fixed finance charge charged each month a plan is active. When you set up a plan, you select qualifying purchases or a qualifying amount and a plan duration, and you 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 to the purchase amount(s), 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.

Supporting quotations

About Plan It: 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 may use this feature by selecting qualifying purchases or a qualifying amount and a plan duration. 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.

Qualifications & exceptions

• Plan It is offered at American Express's option ("may offer").
• The plan fee replaces the purchase APR on the plan balance.

Not stated here

• The "other factors" that affect the plan fee are not listed.

Charges & Financial Obligations · Restriction or exception

Plan It excludes cash, balance transfers, purchases with Foreign Transaction Fees, and fees owed to American Express

A qualifying purchase for Plan It 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 you have a Card with 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 American Express, such as Annual Fees.

Supporting quotations

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. Qualifying purchases (or a qualifying amount, if you have a Card with 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 us, such as Annual Fees.

Qualifications & exceptions

• The exclusions apply to qualifying purchases and, for a Card with a Credit Limit, to a qualifying amount.

Not stated here

• The minimum dollar amount of a qualifying purchase and the portion of the balance that is a qualifying amount are described only as "specified" and are not stated here.

Charges & Financial Obligations · Restriction or exception

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

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.

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.

Qualifications & exceptions

• The early payoff route described is paying the New Balance in full.

Not stated here

• The passage does not say whether a smaller payment can pay off a single plan early.

Charges & Financial Obligations · Restriction or exception

You promise to pay all charges, including Additional Card Members', and at least the Minimum Payment Due on time

You promise to pay all charges added to the 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.

Supporting quotations

Promise to pay: 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. When you must pay: 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.

Qualifications & exceptions

• The promise covers charges you permit others to make and charges made without presenting the Card or signing.

Charges & Financial Obligations · Procedure

Payments must be in U.S. dollars by check, negotiable instrument or electronic payment; mail one per Account

Payments must be made to American Express 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. When making a payment by mail, you make a separate payment for each Account, mail it 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.

Supporting quotations

How to make payments: 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.

When making a payment by mail:

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.

Qualifications & exceptions

• The mailing steps apply to payments made by mail.

Charges & Financial Obligations · Company practice

Compliant payments are credited the day received if on time; others are credited the next day or delayed

If your payment meets the requirements above, American Express credits it to your Account as of the day it receives it, as long as it receives it by the time and in the manner disclosed in your billing statement. If it receives the payment after that time, it credits the payment on the day after it receives it. If your 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 (see the How Rates and Fees Work section in Part 1).

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).

Qualifications & exceptions

• Same-day credit depends on both meeting the payment requirements and receipt by the time and in the manner shown on the statement.

Not stated here

• The cutoff time is on the billing statement and is not stated in this document.

Charges & Financial Obligations · Restriction or exception

Foreign-currency and non-U.S. bank payments are refused; restrictive payments do not change the Agreement

American Express 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 it 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 · Company practice

Payments cover Plan amounts and the lowest-rate balance first up to the minimum, then the highest-rate balance first

If the Account has balances with different interest rates, Plan balances, or Plan fees, payments are generally applied in a billing period as follows. Payments up to the Minimum Payment Due are applied first to any Plan amounts included in the 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, payments are applied to the balance subject to the highest interest rate, then to balances subject to lower interest rates, and then to any Plan balances.

Supporting quotations

How we apply payments and credits: Your Account may have balances with different interest rates. For example, purchases may have a lower interest rate than cash advances. Your Account may also have Plan balances which are assessed Plan fees. If your Account has balances with different interest rates, Plan balances, or Plan fees, 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 text says payments are "generally" applied this way, which leaves room for exceptions that the passage does not list.

Charges & Financial Obligations · Company practice

Credits go to the same balance as the related charge; within a balance, American Express may apply them in any order

In most cases, American Express applies a credit to the same balance as the related charge; for example, a credit for a purchase goes to the purchase balance. It may apply payments and credits within balances, and among balances with the same interest rate, in any order it chooses. If there is a negative balance in any balance at the end of a billing period, that excess credit is redistributed to other balances in line with how payments are applied, which means that in certain circumstances Plan balances may be paid before they otherwise would be. If you receive a credit for a purchase placed into a plan, you must call the number on the back of the 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. For example, we apply a credit for a purchase to the purchase balance. 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. This means that in certain 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 us at the number on the back of your Card to have the credit applied to the Plan balance.

Qualifications & exceptions

• "In most cases" qualifies the same-balance rule.
• A credit for a purchase that was placed into a plan is not applied to the Plan balance unless you call.

Charges & Financial Obligations · Company practice

Interest is calculated per balance as average daily balance times daily periodic rate times days in the billing period

Interest for a billing period is calculated by first figuring the interest on each balance, since different categories of transactions, such as purchases and cash advances, may have different interest rates, and balances within each category may also have different rates. American Express uses the Average Daily Balance method (including new transactions) to figure interest charges for each balance, and the total interest charged for a billing period is the sum of the interest charged on each balance. Except for variations caused by rounding, the interest charged for a balance in a billing period equals the Average Daily Balance (ADB) multiplied by the Daily Periodic Rate (DPR) multiplied by the number of days in the billing period.

Supporting quotations

How we calculate interest: We calculate interest for a billing period by first figuring the interest on each balance. 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.

Interest: 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.

Qualifications & exceptions

• ADB and DPR are defined in the following passages; the DPR is derived from an APR.

Not stated here

• No DPR values are shown in this published agreement; see the card on the ADB and DPR definitions.

Cross-references

• defined by (model-proposed): ADB and DPR are defined here, but the published agreement shows no DPR values despite pointing to Part 1 — The formula uses the Average Daily Balance and the Daily Periodic Rate; the ADB and DPR are defined in the following passage, which also points to Part 1 for DPR values that the published agreement does not show.

Charges & Financial Obligations · Context

ADB and DPR are defined here, but the published agreement shows no DPR values despite pointing to Part 1

The Average Daily Balance (ADB) for a balance is found by adding up its daily balances and dividing 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. The passage then says "Your DPRs are shown in How Rates and Fees Work in Part 1." The published agreement does not show any DPR: its How Rates and Fees Work section holds the Explanation of Variable Rates (which mentions "corresponding DPRs"), Determining the Prime Rate, the fees, the limits, the Minimum Payment Due calculation and the Interest Free Period passages, and the Rates and Fees Table gives APRs as the Prime Rate plus a margin, some as a range, with no DPR values. The document therefore gives the DPR only as a definition and in the worked example, which uses an assumed rate.

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.

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

Qualifications & exceptions

• Under the definition a DPR is derived from an APR, but the Purchase APR is a range stated over a variable Prime Rate, so this published copy does not supply a DPR for the Card.
• No DPR value has been computed here from the APRs or taken from another agreement, and a Card Member's own Part 1 was not supplied.

Not stated here

• The DPR values that the passage says are shown in Part 1 are absent from this published agreement.
• Which DPR applies to a particular balance cannot be determined from the supplied text.

Cross-references

• defines (model-proposed): Interest is calculated per balance as average daily balance times daily periodic rate times days in the billing period — The formula uses the Average Daily Balance and the Daily Periodic Rate; the ADB and DPR are defined in the following passage, which also points to Part 1 for DPR values that the published agreement does not show.

Charges & Financial Obligations · Context

Worked example: a 15.99% rate, a $2,250 ADB and 30 days gives $29.57 of interest

The agreement works an example of the interest calculation. It assumes a single interest rate of 15.99%, an ADB of $2,250 and 30 days in the billing period. The DPR is 15.99% divided by 365 days, which equals 0.0438%. The interest is $2,250 multiplied by 0.0438% multiplied by 30 days, which equals $29.57.

Supporting quotations

EXAMPLE: Calculating Interest

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 15.99% rate is an assumption for illustration and is not stated as a rate for this Card.

Charges & Financial Obligations · Company practice

Daily balances add new charges as of the transaction date, and interest compounds daily

The daily balance for each balance is figured 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 billing 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 of figuring the beginning balance 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.

Beginning balance: 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 billing period, 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

• Interest is added to the beginning balance each day, so interest accrues on previously accrued interest.

Charges & Financial Obligations · Permission or license

American Express may use other equivalent methods and may choose not to charge interest on some charges

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

Supporting quotations

Other methods: 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.

Qualifications & exceptions

• Alternative methods must produce equivalent results.

Not stated here

• The passage does not say which types of charges might not bear interest.

Charges & Financial Obligations · Company practice

Foreign currency charges are converted to dollars by AEEML at a rate capped at the highest official or interbank rate

If you make a charge in a foreign currency, AE Exposure Management Ltd. (AEEML) converts it into U.S. dollars on the date American Express or its agents process it, and you are billed in U.S. dollars based on that conversion. Unless a particular rate is required by law, AEEML chooses a conversion rate that is acceptable to American Express 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 the rates in effect on the date of your charge. Charges converted by establishments (such as airlines) are billed at the rates they use.

Supporting quotations

Converting charges made in a foreign currency: 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 determined on the processing date, not the charge date, and may differ from the rate on the charge date.
• Part 1 lists no foreign transaction fee; this passage describes conversion only.
• Where an establishment, such as an airline, converts the charge, American Express bills at the establishment's rate.

Not stated here

• The actual rate AEEML uses on a given date is not stated in the 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

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.

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 notice is addressed to Oregon residents.

Charges & Financial Obligations · User right or choice

Washington residents: not responsible for interest caused solely by delay in posting a returned-goods credit

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 American Express within seven working days a credit for goods or services accepted for return or forgiven if you have notified American Express of the merchant's delay in posting such credit, or from American Express's failure to post such credit to your Account within three working days of its receipt of 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 protection depends on the interest charges resulting solely from the delay and, for the merchant delay, on you having notified American Express of it.
• The sentence is long; the wording after "if you have notified us" can be read as applying to the merchant delay and the posting delay together or to the merchant delay only. It is quoted exactly.

Not stated here

• The text of the cited Washington statute is not supplied and is not described here.

Charges & Financial Obligations · Restriction or exception

You agree to pay reasonable collection costs, including attorneys' fees

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

Supporting quotations

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

Qualifications & exceptions

• The costs must be reasonable.