Centurion® Card from American Express Agreement

Charges & Financial Obligations · Company practice

Pay Over Time APR is variable: Prime Rate plus 12.74%

The Annual Percentage Rate for Pay Over Time is the Prime Rate plus 12.74%. The table states that this is a variable APR and points to the Explanation of Variable Rates for how it changes. The table gives the margin over the Prime Rate; it does not state a current Prime Rate or a resulting percentage.

Supporting quotations

Prime Rate + 12.74% This is a variable APR. See Explanation of Variable Rates below.

Qualifications & exceptions

• Variable APR: it moves with the Prime Rate (see the Explanation of Variable Rates in the How Rates and Fees Work section).
• Applies to the Pay Over Time feature.

Not stated here

• The current Prime Rate, and so the actual percentage APR, is not stated in the agreement.

Cross-references

• qualified by (model-proposed): Variable APR changes follow the Prime Rate from the first day of the billing period; APRs cannot exceed 29.99% — The Pay Over Time APR is variable; the Explanation of Variable Rates says changes follow the Prime Rate from the first day of the billing period and that variable APRs will not exceed 29.99%.
• defined by (model-proposed): Prime Rate means the highest U.S. Prime Rate in The Wall Street Journal on the Closing Date — The Prime Rate definition says which published rate the Pay Over Time APR margin (Prime Rate + 12.74%) is added to.

Charges & Financial Obligations · Company practice

Cash advance APR is Prime Rate plus 21.99%, with interest from the transaction date

Cash advances carry a variable APR of the Prime Rate plus 21.99%. If you have a cash advance on your Account, interest on cash advances starts on the transaction date, rather than after a grace period.

Supporting quotations

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

If you have Cash Advance on your Account, we will begin charging interest on cash advances on the transaction date.

Qualifications & exceptions

• Variable APR tied to the Prime Rate; see the Explanation of Variable Rates.
• The table states interest begins on the transaction date for cash advances; the Paying Interest row separately describes charges added to a Pay Over Time balance.

Not stated here

• The current Prime Rate, and so the actual percentage APR, is not stated in the agreement.

Cross-references

• qualified by (model-proposed): Variable APR changes follow the Prime Rate from the first day of the billing period; APRs cannot exceed 29.99% — The cash advance APR is variable; the same rate-change timing and 29.99% ceiling for variable APRs are stated in the Explanation of Variable Rates.

Charges & Financial Obligations · Restriction or exception

A penalty APR of Prime Rate plus 26.74% can be applied after a missed or returned payment

The penalty APR is a variable rate of the Prime Rate plus 26.74%. American Express states it has the right to apply it to new transactions in a Pay Over Time balance if you do not pay at least the Minimum Payment Due (or Amount Due, if applicable) by the Payment Due Date, or if your payment is returned by your bank and it notifies you. If applied, it lasts at least 6 months. The Account is reviewed every 6 months after it 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

Prime Rate + 26.74% This is a variable APR.

We have the right to apply the penalty APR to new transactions in a Pay Over Time balance if: • you do not pay at least the Minimum Payment Due (or Amount Due, if applicable) 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

• Applies to new transactions in a Pay Over Time balance, as the table words it.
• Triggers are a payment below the Minimum Payment Due (or Amount Due) by the Payment Due Date, or a payment returned by your bank.
• Minimum duration is 6 months, with a review every 6 months.

Not stated here

• The table does not say whether the penalty APR reaches cash advance or Plan balances.
• The current Prime Rate, and so the actual percentage APR, is not stated.

Charges & Financial Obligations · User right or choice

Paying the full balance each month avoids interest on Pay Over Time charges

The table says the Payment Due Date is at least 25 calendar days after each billing period closes. It says no interest is charged on charges automatically added to a Pay Over Time balance if each month you pay your Account Total New Balance (or, with a Plan balance, your Adjusted Balance) by the Payment Due Date. The fuller grace-period section adds that no interest is charged on such charges in a billing period if your Pay Over Time Previous Balance for the period is zero, or if you paid the Account Total New Balance (or Adjusted Balance) in full by the Payment Due Date for each of the previous two billing periods.

Supporting quotations

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

We will not charge you interest on charges automatically added to a Pay Over Time balance if each month you pay your Account Total New Balance on your billing statement (or, if you have a Plan balance, your Adjusted Balance on your billing statement) by the Payment Due Date.

When We Charge Interest on Pay Over Time and Cash Advance Balances (Grace Period)

However, we will not charge interest on charges added automatically to your Pay Over Time balance in a billing period if:

you paid the Account Total New Balance on your billing statement (if any) or Adjusted Balance (if you have an active plan created through Plan It) for each of the previous two billing periods in full by the Payment Due Date shown on each of those billing statements.

Qualifications & exceptions

• Applies to charges automatically added to a Pay Over Time balance; the table states cash advance interest starts on the transaction date.
• The grace-period section states two alternative conditions for not being charged interest in a billing period, one of which looks back two billing periods; the table summary states the monthly full payment condition.

Cross-references

• contrast (model-proposed): Interest on Pay Over Time charges starts at the transaction date unless a grace-period condition is met — The table row says no interest is charged if each month you pay the Account Total New Balance (or Adjusted Balance) by the Payment Due Date. The grace period section says no interest if the Pay Over Time Previous Balance is zero or the previous two billing periods were paid in full by their Payment Due Dates. The two are worded differently; the agreement does not explain how they fit together.

Charges & Financial Obligations · Company practice

Plan It plan fee: up to 1.33% a month of each purchase placed in a plan

A plan fee (a fixed finance charge) of up to 1.33% of each purchase placed in a plan is charged monthly. How the fee is based depends on where the purchase sits: for purchases in a Pay Over Time balance, the APR that would otherwise apply; for purchases in a Pay In Full balance, the Pay Over Time APR at the time the plan is created; for purchases split between the two, the lower of the two APRs. The plan duration and other factors also affect the fee, and the table refers to the Plan It section for details. The plan fee is disclosed before a plan is created.

Supporting quotations

A monthly plan fee of up to 1.33% of each purchase placed in a plan based on: either the APR that would otherwise apply to that purchase (for purchases in a Pay Over Time balance), the APR that applies to the Pay Over Time feature at the time you create the plan (for purchases in a Pay In Full balance), or the lower of the two APRs (for purchases that are divided between a Pay Over Time balance and a Pay In Full balance); the plan duration; and other factors. (please refer to the Plan It section for additional details).

Each plan fee will be disclosed before you create the applicable plan.

Qualifications & exceptions

• The 1.33% is stated as 'up to', so the actual fee can be lower.
• The fee basis depends on whether the purchase is in a Pay Over Time balance, a Pay In Full balance, or divided between them.

Not stated here

• 'Other factors' that affect the plan fee are not listed in the table.

Charges & Financial Obligations · Company practice

Initiation fee $10,000 and annual fee $5,000

The Fees table lists an Initiation Fee and an Annual Fee with the amounts $10,000 and $5,000. Read in the order the row presents them, the Initiation Fee is $10,000 and the Annual Fee is $5,000.

Supporting quotations

Initiation Fee Annual Fee | $10,000 $5,000

Qualifications & exceptions

• The row presents both fee names in one cell and both amounts in the next; the pairing follows their order.

Not stated here

• The table does not say here when the initiation fee is charged or whether it is refundable.

Cross-references

• referred to by (model-proposed): Initiation and annual fee amounts are in the Rates and Fees Table — The fees section points to the Rates and Fees Table for the Initiation Fee and Annual Fee amounts.

Charges & Financial Obligations · Company practice

Cash advance fee is the greater of $10 or 5%; no foreign transaction fee

The Fees table sets a cash advance fee of either $10 or 5% of the amount of each cash advance, whichever is greater. It lists the foreign transaction fee as None.

Supporting quotations

Cash Advance: Either $10 or 5% of the amount of each cash advance, whichever is greater.

Foreign Transaction: None.

Qualifications & exceptions

• Cash advance fee is per cash advance and is the greater of $10 or 5%.
• Foreign Transaction: None.

Cross-references

• narrowed by (model-proposed): Cash advance fee is 5% (minimum $10), including any ATM operator fee, added to the Cash Advance balance — The table states the cash advance fee as the greater of $10 or 5%; the fees section adds that the 5% includes any ATM operator fee and that the fee is added to the Cash Advance balance.

Charges & Financial Obligations · Company practice

Late payment and returned payment fees are up to $40 each

The Fees table lists a Late Payment fee of up to $40 and a Returned Payment fee of up to $40. The How Rates and Fees Work section gives the first-time and repeat amounts.

Supporting quotations

Late Payment: Up to $40. Returned Payment: Up to $40.

Qualifications & exceptions

• Both fees are stated as 'up to $40'.

Cross-references

• narrowed by (model-proposed): Late payment fee is $29, then $40 within 6 billing periods, capped at the prior statement's amount due — The table gives the late payment fee as up to $40; the How Rates and Fees Work section gives the $29 first fee, the $40 repeat fee within 6 billing periods and the prior-statement cap.
• narrowed by (model-proposed): Returned payment fee is $29, then $40 within the same or next 6 billing periods, with a cap — The table gives the returned payment fee as up to $40; the How Rates and Fees Work section gives the $29 first fee, the $40 repeat fee and the cap.

Charges & Financial Obligations · Company practice

Interest uses the average daily balance method, including new purchases

American Express calculates interest with the average daily balance method (including new purchases). The table refers to the How we calculate interest section in Part 2 for the full method.

Supporting quotations

How we calculate interest: We use a method called average daily balance method (including new purchases). See the How we calculate interest on Pay Over Time and Cash Advance Balances section in Part 2.

Charges & Financial Obligations · Company practice

Variable APR changes follow the Prime Rate from the first day of the billing period; APRs cannot exceed 29.99%

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. 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%. The Rates and Fees Table describes the Pay Over Time, cash advance and penalty APRs as variable.

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 + 26.74% This is a variable APR.

Qualifications & exceptions

• Rate changes take effect on the first day of the billing period in which the Prime Rate changed, not on the date it changed.
• The 29.99% ceiling is stated for 'variable APRs'; the table describes each of the three APRs it lists as variable.

Not stated here

• This section does not show any daily periodic rate (DPR) values, although it mentions corresponding DPRs.

Cross-references

• qualifies (model-proposed): Pay Over Time APR is variable: Prime Rate plus 12.74% — The Pay Over Time APR is variable; the Explanation of Variable Rates says changes follow the Prime Rate from the first day of the billing period and that variable APRs will not exceed 29.99%.
• qualifies (model-proposed): Cash advance APR is Prime Rate plus 21.99%, with interest from the transaction date — The cash advance APR is variable; the same rate-change timing and 29.99% ceiling for variable APRs are stated in the Explanation of Variable Rates.

Charges & Financial Obligations · Company practice

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

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, the Prime Rate from the previous day it was published is used. 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

Determining the Prime Rate: 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 substitute newspaper is chosen by American Express ('may use'), and is only described as one 'of general circulation'.

Cross-references

• defines (model-proposed): Pay Over Time APR is variable: Prime Rate plus 12.74% — The Prime Rate definition says which published rate the Pay Over Time APR margin (Prime Rate + 12.74%) is added to.

Charges & Financial Obligations · Context

Initiation and annual fee amounts are in the Rates and Fees Table

For the Initiation Fee and the Annual Fee, this section does not repeat the amounts. It says each fee is on the Rates and Fees Table on page 1 of Part 1.

Details not recorded for this card

Supporting quotations

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

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

Cross-references

• refers to (model-proposed): Initiation fee $10,000 and annual fee $5,000 — The fees section points to the Rates and Fees Table for the Initiation Fee and Annual Fee amounts.

Charges & Financial Obligations · Company practice

Additional card annual fees: Centurion $5,000 (limit of 3), Platinum $195, Companion Centurion $0

Each Additional Centurion Card is $5,000 annually, with a limit of 3. Each Additional Platinum Card is $195 annually. Each Companion Centurion Card is $0 annually. If an Annual Fee applies for an Additional Card, the refund policy is the one disclosed in the Closing or suspending your Account sub-section of Part 3.

Supporting quotations

Annual Fee for Additional Cards: Each Additional Centurion Card is $5,000 annually (limit of 3), each Additional Platinum Card is $195 annually, and each Companion Centurion Card is $0 annually.

If an Annual Fee applies for an Additional Card, please refer to the refund policy disclosed in the Closing or suspending your Account sub-section of Part 3 of this Agreement.

Qualifications & exceptions

• The limit of 3 is stated next to the Additional Centurion Card.
• Annual fee refunds for Additional Cards follow the policy in Part 3.

Charges & Financial Obligations · Company practice

The plan fee is a fixed finance charge billed each month a plan is active

The plan fee is a fixed finance charge charged each month that a plan is active. Its dollar amount is disclosed before you set up a plan. The Rates and Fees Table describes the fee, and About Plan It in Part 2 gives more information.

Supporting quotations

Plan Fee (Fixed Finance Charge): This fee is described on the Rates and Fees Table on page 1 of Part 1. 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. For more information, see About Plan It in Part 2.

Each plan fee will be disclosed before you create the applicable plan.

Qualifications & exceptions

• Charged each month a plan is active.

Charges & Financial Obligations · Company practice

Cash advance fee is 5% (minimum $10), including any ATM operator fee, added to the Cash Advance balance

The cash advance fee is 5% of an ATM cash advance (including any fee charged by the ATM operator) or other cash advance, with a minimum of $10. American Express adds this fee to the Cash Advance balance.

Supporting quotations

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

Qualifications & exceptions

• The 5% is calculated on the amount including any ATM operator fee.
• Because the fee is added to the Cash Advance balance, it falls under the cash advance interest and limit terms.

Cross-references

• narrows (model-proposed): Cash advance fee is the greater of $10 or 5%; no foreign transaction fee — The table states the cash advance fee as the greater of $10 or 5%; the fees section adds that the 5% includes any ATM operator fee and that the fee is added to the Cash Advance balance.
• defined by (model-proposed): A cash advance includes cash equivalents, foreign currency, digital currency and betting transactions — The definition of a cash advance (cash equivalents, foreign currency, digital currency, betting transactions) determines which charges are subject to the cash advance fee.

Charges & Financial Obligations · Company practice

No foreign transaction fee; foreign charges are converted by AE Exposure Management Ltd.

The Foreign Transaction fee is listed as None. Part 3 separately says that a charge made in a foreign currency is converted into U.S. dollars by AE Exposure Management Ltd. (AEEML) on the date American Express or its agents process it.

Supporting quotations

Foreign Transaction: None.

AE Exposure Management Ltd. ("AEEML") will convert it into U.S. dollars on the date we or our agents process it

Qualifications & exceptions

• The conversion rate is chosen by AEEML; it is not part of this fee line.

Not stated here

• This line does not state how the conversion rate is set; that is covered in Part 3.

Cross-references

• contrast (model-proposed): Some charges are not moved to Pay Over Time on the Closing Date, including disputed, fraud-reported and plan charges — The Fees table lists Foreign Transaction as None, while the Closing Date move excludes charges 'subject to a Foreign Transaction Fee'. The agreement does not say whether any charge on this Card is subject to such a fee.
• contrast (model-proposed): Qualifying Plan It purchases need a minimum amount and exclude cash equivalents, foreign-fee purchases and fees — The Fees table lists Foreign Transaction as None, while qualifying Plan It purchases exclude purchases 'subject to Foreign Transaction Fees'. The agreement does not say whether any purchase on this Card is subject to such a fee.

Charges & Financial Obligations · Company practice

Late payment fee is $29, then $40 within 6 billing periods, capped at the prior statement's amount due

If American Express does not receive the Amount Due (or Minimum Payment Due, if applicable) by the Payment Due Date, the late payment fee is $29. If this happens again within the next 6 billing periods, the fee is $40. The table summarizes this as up to $40. The late fee on a billing statement will not exceed the Amount Due (or Minimum Payment Due, if applicable) on the prior billing statement.

Supporting quotations

Late Payment: Up to $40. If we do not receive the Amount Due (or Minimum Payment Due, if applicable) by the 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 Amount Due (or Minimum Payment Due, if applicable) on your prior billing statement.

Qualifications & exceptions

• $29 is the first fee; $40 applies if a late payment happens again within the next 6 billing periods.
• The fee is capped by the Amount Due (or Minimum Payment Due) on the prior statement.

Cross-references

• narrows (model-proposed): Late payment and returned payment fees are up to $40 each — The table gives the late payment fee as up to $40; the How Rates and Fees Work section gives the $29 first fee, the $40 repeat fee within 6 billing periods and the prior-statement cap.

Charges & Financial Obligations · Company practice

Returned payment fee is $29, then $40 within the same or next 6 billing periods, with a cap

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 Amount Due (or Minimum Payment Due, if applicable) on the 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 Amount Due (or Minimum Payment Due, if applicable) on your prior billing statement.

Qualifications & exceptions

• The $40 fee applies to a repeat within the same billing period or the next 6 billing periods.
• The fee is capped by the Amount Due (or Minimum Payment Due) on the prior statement.

Cross-references

• narrows (model-proposed): Late payment and returned payment fees are up to $40 each — The table gives the returned payment fee as up to $40; the How Rates and Fees Work section gives the $29 first fee, the $40 repeat fee and the cap.

Charges & Financial Obligations · Company practice

Returned check fee is $38 plus the unpaid amount when a check cashed with the card is returned

If you use your card to cash a check at one of the issuer's approved locations and the check is returned unpaid, the fee is $38. American Express will also charge you the unpaid amount.

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.

Charges & Financial Obligations · Restriction or exception

Cash advance limit is $10,000, with possible ATM cash limits and approval checks

Your cash advance balance may not exceed $10,000, and you agree to manage your Account so that the cash advance balance (including fees and interest) is not more than the Cash Advance Limit. There may also be a limit on the amount of cash and number of times you can get cash from ATMs in a given period. For the limit, the cash advance balance is determined by adding new cash advance transactions to the ending cash advance balance of the prior day. American Express may also decline a cash advance if it would take the total of your Pay Over Time and/or Cash Advance balance and Plan balance over your Pay Over Time Limit.

Supporting quotations

Cash Advance Limit: Your cash advance balance may not exceed $10,000.

There may also be a limit on the amount of cash and number of times you can obtain cash from ATMs in a given period. You agree to manage your Account so that your cash advance balance (including fees and interest) is not more than the Cash Advance Limit.

For purposes of the Cash Advance Limit, your cash advance balance will be determined by adding new cash advance transactions to the ending cash advance balance of the prior day.

In addition, we may not approve a cash advance transaction if it would cause the total of your Pay Over Time and/or Cash Advance balance and Plan balance to go over your Pay Over Time Limit.

Qualifications & exceptions

• The $10,000 limit includes fees and interest.
• ATM limits are described only as something that 'may' exist.

Not stated here

• The ATM cash and frequency limits are not stated here.
• The Pay Over Time Limit amount is not given in this text.

Cross-references

• qualified by (model-proposed): The Pay Over Time Limit is assigned and can be raised or lowered at any time, and is not a spending limit — A cash advance may be declined if it would take the Pay Over Time, Cash Advance and Plan balances over the Pay Over Time Limit; the Part 2 section explains the Pay Over Time Limit and that it is not a spending limit.

Charges & Financial Obligations · Restriction or exception

Person-to-person transactions are limited to $5,000 in any 30-day period

Your person-to-person transactions may not exceed $5,000 within any 30-day period, and you agree to manage your Account so that the total does not exceed the Person-to-Person Limit. American Express may not approve a person-to-person transaction that would take the Account over the limit.

Supporting quotations

Person-to-Person Limit: Your person-to-person transactions may not exceed $5,000 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 does 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 Limit.

Qualifications & exceptions

• The limit is measured over any 30-day period.

Charges & Financial Obligations · Company practice

The monthly amount due is the Pay In Full balance plus any minimum and plan payments, including past-due amounts

The amount you owe each month is the sum of the Pay In Full New Balance, any Pay Over Time and/or Cash Advance Minimum Due, and any Plan Payment Due on your billing statement. These amounts include any past due amounts.

Details not recorded for this card

Supporting quotations

The amount you owe each month is the sum of the following on your billing statement:

The Pay In Full New Balance

Any Pay Over Time and/or Cash Advance Minimum Due

Any Plan Payment Due

Above amounts include any past due amounts.

Qualifications & exceptions

• The components that apply depend on which balances the Account has.

Charges & Financial Obligations · Company practice

Pay Over Time and/or Cash Advance Minimum Due is the highest of $40, 2% of the balance, or a stepped formula

The Pay Over Time and/or Cash Advance Minimum Due is the highest of three amounts: $40; 2% of the Pay Over Time and/or Cash Advance New Balance; or a total calculated in steps. In the steps, the Amount is the New Balance minus the Interest charged on the statement. The sum of 1% of the Amount from $0 through $20,000, 2% from $20,000.01 through $35,000, 5% from $35,000.01 through $50,000 and 10% above $50,000 is divided by the Amount and rounded to four decimals, multiplied by the Amount, and then the Interest charged plus any Pay Over Time and/or Cash Advance amount past due is added.

Supporting quotations

Your Pay Over Time and/or Cash Advance Minimum Due is the highest of:

$40

2% of the Pay Over Time and/or Cash Advance New Balance

The total calculated by following these steps: Use the Pay Over Time and/or Cash Advance New Balance minus the Interest charged on the billing statement as the Amount to calculate the sum of a. through d. below:

a. 1% of the Amount from $0 through $20,000

b. 2% of the Amount from $20,000.01 through $35,000

c. 5% of the Amount from $35,000.01 through $50,000

d. 10% of the Amount above $50,000

e. Then divide the sum from steps a. through d. by the Amount and round to four decimals

f. Multiply by the Amount

g. Add the Interest charged on the billing statement Plus any Pay Over Time and/or Cash Advance amount past due.

Qualifications & exceptions

• The Minimum Due is the highest of the three methods.
• The stepped percentages apply to bands of the Amount, not to the whole Amount at one rate.

Charges & Financial Obligations · User right or choice

The Minimum Due cannot exceed the New Balance, and you may pay more at any time

Your Pay Over Time and/or Cash Advance Minimum Due will not exceed your Pay Over Time and/or Cash Advance New Balance. You may pay more than the Minimum Payment Due, up to your entire outstanding balance, at any time.

Supporting quotations

Your Pay Over Time and/or Cash Advance Minimum Due will not exceed your Pay Over Time and/or Cash Advance New Balance. You may pay more than the Minimum Payment Due, up to your entire outstanding balance, at any time.

Charges & Financial Obligations · Context

Minimum Due worked example: $200 Pay In Full balance and $30,300 Pay Over Time and/or Cash Advance balance

The agreement's worked example assumes a Pay In Full New Balance of $200 and a Pay Over Time and/or Cash Advance New Balance of $30,300, which includes Interest of $300. It then compares $40, 2% multiplied by $30,300 (equals $606), and the stepped total starting with $30,300 minus $300 (equals $30,000). The example is illustrative of the formula, not this Account's figures.

Details not recorded for this card

Supporting quotations

EXAMPLE: You have: a Pay In Full New Balance of $200 and a Pay Over Time and/or Cash Advance New Balance of $30,300, which includes Interest of $300.

$40

2% multiplied by $30,300 equals $606

$30,300 minus $300 equals $30,000

Qualifications & exceptions

• The figures are an example in the agreement, not a statement of any actual Account's balances.

Charges & Financial Obligations · Context

Worked example result: Minimum Due of $699 plus $200 gives a Minimum Payment Due of $899

In the agreement's example, the stepped calculation starts from $30,300 minus $300, which equals $30,000. The steps give $200 for the first 1% band, $200 for the 2% band and $0 for the higher bands. ($200 plus $200) divided by $30,000 is 0.0133, times $30,000 is $399, and adding the $300 of interest gives $699. The highest of the three methods ($40, $606 and $699) is $699. That Pay Over Time and/or Cash Advance Minimum Due plus the $200 Pay In Full New Balance makes a Minimum Payment Due of $899.

Supporting quotations

$30,300 minus $300 equals $30,000

a. 1% multiplied by $20,000 equals $200

b. 2% multiplied by ($30,000 minus $20,000) equals $200

c. 5% multiplied by $0 equals $0

d. 10% multiplied by $0 equals $0

e. ($200 plus $200) divided by $30,000 equals 0.0133

f. $30,000 multiplied by 0.0133 equals $399

g. $399 plus $300 equals $699

The highest of 1., 2. or 3. is $699. The Pay Over Time and/or Cash Advance Minimum Due of $699 plus the Pay in Full New Balance of $200 together make up the Minimum Payment Due of $899.

2% multiplied by $30,300 equals $606

Qualifications & exceptions

• The figures are an illustration of the formula in the agreement, not a statement of any actual Account's balances.

Charges & Financial Obligations · Company practice

Cash advances accrue interest from the transaction date and the interest cannot be avoided

For cash advances, American Express charges interest from the transaction date, and you cannot avoid paying interest on cash advances. Interest on Pay Over Time balances is charged as described in the rest of the section.

Supporting quotations

We charge interest on Pay Over Time balances as described below. For cash advances, we charge interest from the transaction date. You cannot avoid paying interest on cash advances.

Qualifications & exceptions

• Applies to cash advances; Pay Over Time balances follow the separate timing rules.

Charges & Financial Obligations · Company practice

Interest on Pay Over Time charges starts at the transaction date unless a grace-period condition is met

For charges added automatically to a Pay Over Time balance when they post, interest is charged from the transaction date until they are paid. For charges that are automatically moved from the Pay In Full balance to the Pay Over Time balance on the Closing Date, interest is charged from the day after they are added until paid. However, no interest is charged on charges added automatically to the Pay Over Time balance in a billing period if either (1) your Pay Over Time Previous Balance for the billing period is zero, or (2) you paid the Account Total New Balance (if any), or Adjusted Balance if you have an active plan created through Plan It, in full by the Payment Due Date for each of the previous two billing periods. The Rates and Fees Table summarizes this as no interest if each month you pay the Account Total New Balance (or Adjusted Balance) by the Payment Due Date.

Supporting quotations

For charges added automatically to a Pay Over Time balance at the time they post to your account, we charge interest from the transaction date until they are paid. For charges or portions of charges that we automatically move from your Pay In Full balance to your Pay Over Time balance on your Closing Date, we charge interest from the day after they are added to your Pay Over Time balance until they are paid. However, we will not charge interest on charges added automatically to your Pay Over Time balance in a billing period if:

your Pay Over Time Previous Balance for the billing period is zero; or

you paid the Account Total New Balance on your billing statement (if any) or Adjusted Balance (if you have an active plan created through Plan It) for each of the previous two billing periods in full by the Payment Due Date shown on each of those billing statements.

We will not charge you interest on charges automatically added to a Pay Over Time balance if each month you pay your Account Total New Balance on your billing statement (or, if you have a Plan balance, your Adjusted Balance on your billing statement) by the Payment Due Date.

Qualifications & exceptions

• Either of the two conditions is enough ('or').
• The second condition looks back at each of the previous two billing periods' statements.
• The table's monthly full-payment wording and this section's two-part wording are different formulations of the grace period; both are quoted.

Not stated here

• The agreement does not say how the table's 'each month' wording and the two-period look-back fit together beyond the text quoted.

Cross-references

• contrast (model-proposed): Paying the full balance each month avoids interest on Pay Over Time charges — The table row says no interest is charged if each month you pay the Account Total New Balance (or Adjusted Balance) by the Payment Due Date. The grace period section says no interest if the Pay Over Time Previous Balance is zero or the previous two billing periods were paid in full by their Payment Due Dates. The two are worded differently; the agreement does not explain how they fit together.

Charges & Financial Obligations · Company practice

Pay Over Time Select purchases accrue interest from the date they are added, with no grace period stated

For Pay Over Time Select, American Express charges interest on purchases added at your request to a Pay Over Time Select balance from the date they are added until they are paid.

Supporting quotations

For Pay Over Time Select: we charge you interest on purchases added at your request to a Pay Over Time Select balance from the date they are added to a Pay Over Time Select balance until they are paid.

Qualifications & exceptions

• Applies to purchases added at your request to a Pay Over Time Select balance.

Not stated here

• This text does not otherwise define Pay Over Time Select or say how it is set up.

Charges & Financial Obligations · Context

Defined terms: charge, purchase and person-to-person transaction

A charge is any amount added to your Account, such as purchases, cash advances, fees and interest charges. A purchase is a charge for goods, services or person-to-person transactions. A person-to-person transaction is a charge for funds sent to another person or a charge to add funds to your Amex Send Account.

Details not recorded for this card

Supporting quotations

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

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.

Charges & Financial Obligations · Context

A cash advance includes cash equivalents, foreign currency, digital currency and betting transactions

A cash advance is a charge to get cash or cash equivalents. The definition names travelers cheques, gift cheques, foreign currency, money orders, digital currency, casino gaming chips, race track wagers, and other offline and online betting transactions. Charges that fall in this definition get cash advance treatment elsewhere in the Agreement, such as the cash advance APR, fee and limit.

Supporting quotations

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.

Qualifications & exceptions

• The list is introduced with 'including', so the named items are examples of cash equivalents.

Cross-references

• defines (model-proposed): Cash advance fee is 5% (minimum $10), including any ATM operator fee, added to the Cash Advance balance — The definition of a cash advance (cash equivalents, foreign currency, digital currency, betting transactions) determines which charges are subject to the cash advance fee.

Charges & Financial Obligations · Context

Defined terms: plan and Closing Date

A plan is a portion of your Account balance that you have selected to pay through a set number of monthly payments using Plan It. The Closing Date appears on each billing statement and is the last day of the billing period covered by that statement.

Details not recorded for this card

Supporting quotations

A plan is a portion of your Account balance that you have selected to pay through a set number of monthly payments using Plan It. The Closing Date appears on each billing statement and is the last day of the billing period covered by the billing statement.

Charges & Financial Obligations · User right or choice

Pay Over Time lets you carry a balance with interest up to your limit and has an active or inactive setting

If Pay Over Time is a feature of your Account, you may carry a balance with interest, up to your Pay Over Time Limit. It has two settings, active and inactive, which you can change or view at any time through your online account or by phone. Purchases made and Annual Fees charged while it is inactive are added to your Pay In Full balance, which is due in full each month. With a Pay Over Time balance, you can each month pay the Account Total New Balance in full, the Minimum Payment Due, or any amount in between. Charges are added to the Pay Over Time balance as described in the rules that follow.

Supporting quotations

Pay Over Time: If Pay Over Time is a feature of your Account, you may carry a balance with interest, up to your Pay Over Time Limit. Pay Over Time has two settings: active and inactive. You can change or view your Pay Over Time setting at any time through your online account or by calling the number on the back of your Card. Purchases made and Annual Fees charged when Pay Over Time is set to inactive will be added to your Pay In Full balance, which will be due in full each month. If you have a Pay Over Time balance, you can choose each month to pay your Account Total New Balance in full, the Minimum Payment Due, or any amount in between. Charges will be added to your Pay Over Time balance as described below.

On the Transaction Date:

Qualifications & exceptions

• Applies only 'if Pay Over Time is a feature of your Account'.
• Charges made while Pay Over Time is inactive go to the Pay In Full balance.

Not stated here

• The Pay Over Time Limit amount is not stated in this text.

Charges & Financial Obligations · Company practice

Eligible charges go to the Pay Over Time balance on the transaction date if Pay Over Time is active at 8 p.m. ET

If Pay Over Time is set to active at 8 p.m. ET on the transaction date provided by the merchant for an eligible charge (or on the date an eligible Annual Fee is charged), the charge is automatically added to the Pay Over Time balance, subject to the Pay Over Time Limit. If adding the entire charge would take the total of the Pay Over Time, Cash Advance and Plan balances over the limit, the charge goes to the Pay In Full balance instead. The merchant's transaction date may differ from the purchase date, for example if the merchant is late submitting the transaction or uses the shipping date. Charges with the same transaction date are added in any order American Express chooses. Charges made while Pay Over Time is inactive are added to the Pay In Full balance, which is due in full each month.

Supporting quotations

On the Transaction Date:

If Pay Over Time is set to active at 8 p.m.ET on the transaction date provided by the merchant for an eligible charge, or on the date when an eligible Annual Fee is charged to your Account, the charge will automatically be added to your Pay Over Time balance, subject to your Pay Over Time Limit. If the addition of an entire charge to your Pay Over Time balance would cause the total of your Pay Over Time, Cash Advance, and Plan balances to exceed your Pay Over Time Limit, that charge will be added to your Pay In Full balance. The transaction date provided by the merchant may differ from the date you made the purchase if, for example, there is a delay in the merchant submitting the transaction to us or if the merchant uses the shipping date as the transaction date. Charges with the same transaction date will be added to your Pay Over Time balance in any order we choose.

Purchases made and Annual Fees charged when Pay Over Time is set to inactive will be added to your Pay In Full balance, which will be due in full each month.

The Pay Over Time Limit applies to the total of your Pay Over Time, Cash Advance, and Plan balances. Your Pay Over Time balance cannot exceed your Pay Over Time Limit.

Qualifications & exceptions

• The test is the setting at 8 p.m. ET on the merchant-provided transaction date.
• An entire charge that would exceed the Pay Over Time Limit goes to the Pay In Full balance; at the transaction date it is not split.
• The Pay Over Time Limit applies to the total of Pay Over Time, Cash Advance and Plan balances.

Not stated here

• The Pay Over Time Limit amount is not stated in this text.

Charges & Financial Obligations · Company practice

On the Closing Date, eligible Pay In Full charges may be moved to Pay Over Time, in whole or in part

If on the Closing Date (1) the total of the Pay Over Time, Cash Advance and Plan balances is less than the Pay Over Time Limit, (2) Pay Over Time is set to active at 8 p.m. ET, and (3) there are eligible new charges in the Pay In Full balance with a transaction date when Pay Over Time was active, the Card Member authorizes American Express to automatically move all or a portion of those charges to the Pay Over Time balance, subject to the limit. If moving a charge would exceed the limit, a portion up to the limit is moved and the rest stays in the Pay In Full balance. Charges are moved in order of transaction date, and in any order American Express chooses when dates match.

Supporting quotations

On your Closing Date:

Also, if on your Closing Date, 1) the total of your Pay Over Time, Cash Advance, and Plan balances is less than your Pay Over Time Limit,

Pay Over Time is set to active at 8 p.m. ET and 3) there are eligible new charges in your Pay In Full balance with a transaction date when Pay Over Time was set to active, you authorize us to automatically move all or a portion of those charges to your Pay Over Time balance, subject to your Pay Over Time Limit.

If the addition of a charge to your Pay Over Time balance would cause the total of your Pay Over Time, Cash Advance, and Plan balances to exceed your Pay Over Time Limit, we will move a portion of that charge to your Pay Over Time balance, up to your Pay Over Time Limit. The remaining portion of the charge will remain in your Pay In Full balance. Eligible charges will be moved to your Pay Over Time balance in order of the transaction dates. Charges with the same transaction date will be added to your Pay Over Time balance in any order we choose.

Qualifications & exceptions

• The extracted text shows the conditions as '1)', then an unnumbered list item, then '3)'; the second condition (Pay Over Time set to active at 8 p.m. ET) appears without its '2)' marker.
• The move is a standing authorization by the Card Member, subject to the Pay Over Time Limit.
• Only 'eligible' charges move; the ineligible categories are listed separately.

Cross-references

• has exception (model-proposed): Some charges are not moved to Pay Over Time on the Closing Date, including disputed, fraud-reported and plan charges — The Closing Date move applies to eligible new charges; the listed categories are not eligible to be moved.

Charges & Financial Obligations · Restriction or exception

Some charges are not moved to Pay Over Time on the Closing Date, including disputed, fraud-reported and plan charges

A new charge, or a portion of one, will not be eligible to be moved to the Pay Over Time balance on the Closing Date if: the charge is subject to a Foreign Transaction Fee; it or a portion is disputed for a reason other than fraud and the dispute is not resolved in the billing period in which it was opened; it or a portion is reported as fraudulent and either it was determined fraudulent in the same billing period it posted or has not yet been determined in that billing period; you created a plan for it using Plan It; Pay Over Time is suspended; or the Account is cancelled or enrolled in a payment program.

Supporting quotations

A new charge, or a portion of a new charge, will not be eligible to be moved to your Pay Over Time balance on your Closing Date if:

that charge is subject to a Foreign Transaction Fee;

that charge or a portion of that charge is disputed (for a reason other than fraud) and that dispute is not resolved in the same billing period in which it was opened;

that charge or a portion of that charge is reported as fraudulent and either (i) we determined the charge is fraudulent in the same billing period in which it was posted to your Account, or (ii) we have not yet determined if the charge is fraudulent in the same billing period in which it was posted to your Account;

you created a plan for that charge using Plan It;

Pay Over Time is suspended on your Account; or

your Account is cancelled or enrolled in a payment program.

Qualifications & exceptions

• Each item is an independent reason the charge is not eligible for the Closing Date move.
• The Fees table lists Foreign Transaction as None for this Card; whether any charge is subject to a Foreign Transaction Fee is not stated here, so the first exclusion's practical reach is unclear.

Not stated here

• Whether any charge on this Card is 'subject to a Foreign Transaction Fee' is not stated beyond the table's 'None'.

Cross-references

• exception to (model-proposed): On the Closing Date, eligible Pay In Full charges may be moved to Pay Over Time, in whole or in part — The Closing Date move applies to eligible new charges; the listed categories are not eligible to be moved.
• contrast (model-proposed): No foreign transaction fee; foreign charges are converted by AE Exposure Management Ltd. — The Fees table lists Foreign Transaction as None, while the Closing Date move excludes charges 'subject to a Foreign Transaction Fee'. The agreement does not say whether any charge on this Card is subject to such a fee.

Charges & Financial Obligations · Company practice

Pay Over Time Travel adds eligible travel purchases to its balance regardless of the Pay Over Time setting

If you have the Pay Over Time Travel feature, American Express automatically adds eligible travel-related purchases to your Pay Over Time Travel balance, subject to the Pay Over Time Limit, whether your Pay Over Time setting is active or inactive. If you request to cancel Pay Over Time Travel, you cannot re-enroll.

Supporting quotations

If you have the Pay Over Time Travel feature on your Account: we will automatically add eligible travel-related purchases to your Pay Over Time Travel balance subject to your Pay Over Time Limit regardless of whether your Pay Over Time setting is active or inactive. If you request to cancel your Pay Over Time Travel feature, you will not be able to re-enroll.

Qualifications & exceptions

• Applies only if the Account has the Pay Over Time Travel feature.
• Cancellation of this feature cannot be undone.

Not stated here

• Which purchases count as 'eligible travel-related purchases' is not defined here.

Charges & Financial Obligations · Permission or license

Plan It, if offered, lets you pay qualifying purchases over time for a monthly fixed finance charge

American Express may offer Plan It, which lets you create a payment plan for qualifying purchases, subject to a plan fee. The plan fee is a fixed finance charge charged each month that a plan is active. You use the feature by selecting qualifying purchases and a plan duration, and you can see the monthly plan payments, including the plan fee, for your selection.

Supporting quotations

Plan It: We may offer you Plan It, which allows you to create a payment plan for qualifying purchases 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 and a plan duration. You will be able to view the monthly plan payments, including the plan fee, for your selection.

Qualifications & exceptions

• Plan It is something American Express 'may offer'; it is not stated to be available on every Account.

Charges & Financial Obligations · Company practice

The plan fee is based on the APR for where the purchase sits: Pay Over Time, Pay In Full or split

If you create a plan for a purchase in your Pay Over Time balance, the plan fee is based on the APR that would otherwise apply to the purchase amount. If the purchase is in your Pay In Full balance, the fee is based on the APR that applies to the Pay Over Time feature at the time you create the plan. If the purchase is divided between the Pay Over Time and Pay In Full balances because only part was moved on the Closing Date, the fee is based on the lower of the APR that would otherwise apply to the Pay Over Time portion and the Pay Over Time APR at the time you create the plan. The Rates and Fees Table states the monthly plan fee as up to 1.33% of each purchase, based on these APRs, the plan duration and other factors.

Supporting quotations

If you create a plan for a purchase in your Pay Over Time balance, the purchase will be added to a plan balance and will be subject to a plan fee based on the APR that would otherwise apply to the purchase amount. If you create a plan for a purchase that is in your Pay In Full balance, the purchase will be added to a plan balance and will be subject to a plan fee based on the APR that applies to the Pay Over Time feature at the time you create the plan. If you create a plan for a purchase that is divided between your Pay Over Time and Pay In Full balances, because only a portion of that purchase was moved to your Pay Over Time balance on your Closing Date, the purchase will be added to a plan balance and will be subject to a plan fee based on either the APR that would otherwise apply (to the portion of the purchase that was in your Pay Over Time balance) or the APR that applies to the Pay Over Time feature at the time you create the plan, whichever is lower.

A monthly plan fee of up to 1.33% of each purchase placed in a plan

Qualifications & exceptions

• The basis differs for purchases in a Pay Over Time balance, in a Pay In Full balance, and split between them (lower of two APRs).
• The 1.33% figure is stated in the table as an 'up to' amount.

Not stated here

• The plan fee percentage for a given plan is not stated; the table gives only the maximum monthly figure and says the fee is disclosed before a plan is created.

Charges & Financial Obligations · Restriction or exception

Qualifying Plan It purchases need a minimum amount and exclude cash equivalents, foreign-fee purchases and fees

A qualifying purchase for Plan It is a purchase of at least a specified dollar amount. Qualifying purchases do not include purchases of cash or cash equivalents, 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. Qualifying purchases do not include purchases of cash or cash equivalents, purchases subject to Foreign Transaction Fees, or any fee owed to us, such as Annual Fees.

Qualifications & exceptions

• The Fees table lists Foreign Transaction as None for this Card; the exclusion refers to purchases 'subject to' such fees.

Not stated here

• The 'specified dollar amount' is not stated in this text.
• Whether any purchase on this Card is subject to a Foreign Transaction Fee is not stated beyond the table's 'None'.

Cross-references

• contrast (model-proposed): No foreign transaction fee; foreign charges are converted by AE Exposure Management Ltd. — The Fees table lists Foreign Transaction as None, while qualifying Plan It purchases exclude purchases 'subject to Foreign Transaction Fees'. The agreement does not say whether any purchase on this Card is subject to such a fee.

Charges & Financial Obligations · Permission or license

American Express sets the number of active plans, plan durations and combined purchases at its discretion

American Express tells you the number of active plans you may have and may change that number at any time. The plan durations offered to you, and your ability to include multiple qualifying purchases in a single plan, are at its discretion and based on factors such as your creditworthiness, the purchase amounts and your Account history. Plan It itself is something it may offer.

Supporting quotations

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 in a single plan, will be at our discretion and will be based on a variety of factors such as your creditworthiness, the purchase amount(s), and your Account history.

We may offer you Plan It, which allows you to create a payment plan for qualifying purchases subject to a plan fee.

Qualifications & exceptions

• The number of plans can change at any time.

Not stated here

• The number of active plans and available durations are not stated in this text.

Charges & Financial Obligations · User right or choice

Plans cannot be cancelled, but paying the Account Total New Balance in full ends future plan fees

Plans cannot be cancelled after they have been created. You can choose to pay them early by paying the Account Total 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 Account Total 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

• Early payoff means paying the Account Total New Balance from the most recent statement in full.

Charges & Financial Obligations · Restriction or exception

The Pay Over Time Limit is assigned and can be raised or lowered at any time, and is not a spending limit

If you have Pay Over Time, American Express assigns a Pay Over Time Limit shown on page 1 of Part 1 and on each billing statement. It applies to the total of your Pay Over Time, Cash Advance and Plan balances, and your Pay Over Time balance cannot exceed it. A charge that would take the Pay Over Time balance over the limit is added to the Pay In Full balance. When posting of cash advances or plans is delayed, the total may exceed the limit. It is not a spending limit, so a charge may be approved or declined regardless of whether the balance is above or below it. American Express may increase or reduce it at any time, even if you pay on time and are not in default, and will tell you. You must pay in full by the Payment Due Date all charges not added to a Pay Over Time, Cash Advance or Plan balance.

Supporting quotations

Pay Over Time Limit: If you have Pay Over Time, we assign a Pay Over Time Limit to your Account, which is shown on page 1 of Part 1 and on each billing statement. The Pay Over Time Limit applies to the total of your Pay Over Time, Cash Advance, and Plan balances. Your Pay Over Time balance cannot exceed your Pay Over Time Limit. If the addition of a charge would cause your Pay Over Time balance to exceed your Pay Over Time Limit, that charge will be added to your Pay In Full balance. When there is a delay in posting cash advances or plans to your Account, the total of your Pay Over Time, Cash Advance, and Plan balances may exceed your Pay Over Time Limit.

The Pay Over Time Limit is not a spending limit. We may approve or decline a charge regardless of whether your Card Account balance is greater or less than your Pay Over Time Limit. We may increase or reduce your Pay Over Time Limit at any time. We may do so even if you pay on time and your Account is not in default. We will tell you if we change your Pay Over Time Limit. You must pay in full, by the Payment Due Date, all charges that are not added to a Pay Over Time, Cash Advance, or Plan balance.

Qualifications & exceptions

• Applies only if you have Pay Over Time.
• Changes can be made even if you pay on time and your Account is not in default.

Not stated here

• The Pay Over Time Limit amount is shown on page 1 of Part 1 and statements; it is not in this text.

Cross-references

• qualifies (model-proposed): Cash advance limit is $10,000, with possible ATM cash limits and approval checks — A cash advance may be declined if it would take the Pay Over Time, Cash Advance and Plan balances over the Pay Over Time Limit; the Part 2 section explains the Pay Over Time Limit and that it is not a spending limit.

Charges & Financial Obligations · Restriction or exception

You promise to pay all charges, including those made by Additional Card Members, by the Payment 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 no one signs. You must pay the Amount Due, or at least the Minimum Payment Due, as applicable, 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 the Amount Due, or at least the Minimum Payment Due, as applicable, on or before the Payment Due Date in the time and manner shown on each billing statement.

Qualifications & exceptions

• Responsibility covers charges permitted to others, not only your own.

Charges & Financial Obligations · Procedure

Payments are made in U.S. dollars by check, negotiable instrument or electronic payment cleared through U.S. banking

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.

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.

Charges & Financial Obligations · Procedure

Mailed payments need a separate payment per Account, the coupon address and the Account number on the check

When paying by mail, 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.

Details not recorded for this card

Supporting quotations

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.

Charges & Financial Obligations · Company practice

Compliant payments received on time are credited as of the day received; others may be delayed

If your payment meets the requirements, 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 on your billing statement. If it is received after that time, it is credited on the day after receipt. If your payment does not meet the requirements, crediting may be delayed, which may result in late payment fees and additional interest charges.

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.

Qualifications & exceptions

• Same-day crediting depends on the time and manner on the statement.
• Non-compliant payments may be delayed, with possible late fees and interest.

Charges & Financial Obligations · Restriction or exception

Foreign-currency and non-U.S. bank payments are not accepted; late, partial or restricted payments do not change rights

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 the Pay In Full balance and plans first, then lower-rate balances to the minimum, then highest rate

Where an Account has balances with different interest rates, plan balances or plan fees, American Express says it generally applies payments in a billing period as follows. Up to the Minimum Payment Due, payments go first to the Pay In Full New Balance, then to any plan amounts included in the Minimum Payment Due, then to the Pay Over Time and/or Cash Advance New Balance, first to the balance with the lowest interest rate and then to balances with higher rates. After the Minimum Payment Due has been paid, payments go first to the Pay Over Time and/or Cash Advance balances with the highest interest rate, then to lower-rate balances, 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 no interest rate or 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 the Pay in Full New Balance; then to any plan amounts included in your Minimum Payment Due; and then to the Pay Over Time and/or Cash Advance New Balance, first to the balance with the lowest interest rate and then to balances with higher interest rates.

After the Minimum Payment Due has been paid, we apply payments first to the Pay Over Time and/or Cash Advance balances with the highest interest rate and then to balances with lower interest rates, and then to any Plan balances.

Qualifications & exceptions

• The order is described as how payments are 'generally' applied.
• The order is different for the part of a payment up to the Minimum Payment Due and the part above it.

Charges & Financial Obligations · Procedure

Credits usually go to the same balance as the charge; credits for plan purchases need a call

In most cases, a credit is applied to the same balance as the related charge. American Express may apply payments and credits within balances, and among balances with the same interest rate, in any order it chooses. A negative balance at the end of a billing period is redistributed to other balances under the payment order, so plan balances may in some circumstances be paid before they otherwise would be. If you receive a credit for a purchase added to a plan, you must call 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. This means that in certain circumstances, plan balances may get paid before they otherwise would. If you receive a credit for a purchase added to 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' signals exceptions to applying a credit to the same balance.
• A credit for a plan purchase is not applied to the plan balance unless you call.

Charges & Financial Obligations · Company practice

Interest is figured per balance using the Average Daily Balance method including new transactions

American Express calculates interest for a billing period by first figuring the interest on each balance. Balances within the Pay Over Time feature and Cash Advance balances may have different interest rates. It uses the Average Daily Balance method (including new transactions) for each balance, and the total interest for the billing period is the sum of the interest on each balance.

Supporting quotations

How we calculate interest on Pay Over Time and Cash Advance balances: We calculate interest for a billing period by first figuring the interest on each balance. Balances within the Pay Over Time feature and Cash Advance balances may 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.

Charges & Financial Obligations · Company practice

Interest equals average daily balance times daily periodic rate times days; the DPR is 1/365th of the APR

The interest charged for a balance in a billing period, apart from rounding, equals the Average Daily Balance multiplied by the Daily Periodic Rate (DPR) multiplied by the number of days in the billing period. To get the Average Daily Balance, American Express adds up the balance's daily balances and divides by the number of days in the billing period. A DPR is 1/365th of an APR, rounded to one ten-thousandth of a percentage point.

Supporting quotations

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.

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.

Qualifications & exceptions

• The result can vary slightly because of rounding.

Cross-references

• qualified by (model-proposed): The agreement says your DPRs are shown in Part 1, but the published agreement lists none — The interest formula uses each balance's DPR and says the DPRs are shown in Part 1; the published agreement shows no DPR values.

Charges & Financial Obligations · Context

The agreement says your DPRs are shown in Part 1, but the published agreement lists none

Part 2 says 'Your DPRs are shown in How Rates and Fees Work in Part 1.' In this published Card Member Agreement, that section holds the Explanation of Variable Rates, Determining the Prime Rate, and the fees and limits, and the Rates and Fees Table gives the APRs as the Prime Rate plus a margin. No daily periodic rate values are shown. The DPR is defined only as 1/365th of an APR, rounded, and the Prime Rate is not stated, so the agreement does not show a DPR for this Card. The DPR values are not computed or taken from elsewhere here.

Supporting quotations

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

Qualifications & exceptions

• This is a gap in the published agreement, not a statement that DPRs do not exist: the reference points to a Part 1 that the published text does not complete.
• The example figures in the next section are illustrative, not this Card's rates.

Not stated here

• The Card's actual DPR values, which the text says are shown in Part 1, are not in the published agreement.
• The current Prime Rate is not stated.

Cross-references

• qualifies (model-proposed): Interest equals average daily balance times daily periodic rate times days; the DPR is 1/365th of the APR — The interest formula uses each balance's DPR and says the DPRs are shown in Part 1; the published agreement shows no DPR values.

Charges & Financial Obligations · Context

Interest example: 15.99% rate, $2,250 average daily balance and 30 days gives $29.57

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 equals 0.0438%. The interest is $2,250 multiplied by 0.0438% multiplied by 30 days, which equals $29.57. The rate in the example is an assumption, not this Card's rate.

Details not recorded for this card

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 figures are an illustration of the formula in the agreement, not this Account's rate or balance.

Charges & Financial Obligations · Company practice

The daily balance starts from the day's beginning balance, adds charges, subtracts payments and credits, then adjusts

American Express 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.

Details not recorded for this card

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.

Charges & Financial Obligations · Company practice

New charges join the daily balance on their transaction date, moved charges the next day; negative counts as zero

American Express adds a new charge to a daily balance as of its transaction date. The exception is charges automatically moved from the Pay In Full balance to the Pay Over Time balance on the Closing Date, which are added as of the day after they are moved. If a daily balance is negative, it is treated as zero.

Supporting quotations

We add a new charge to a daily balance as of its transaction date, except for charges automatically moved from your Pay In Full balance to your Pay Over Time balance on your Closing Date, which we add to a daily balance as of the day after they are moved to your Pay Over Time balance. If the daily balance is negative, we treat it as zero.

Charges & Financial Obligations · Company practice

Interest compounds daily because unpaid interest and the previous day's interest feed into the next day's balance

For the first day of a billing period, the beginning balance is the ending balance from 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 that day's balance multiplied by the DPR for that balance. American Express states that this method results in daily compounding of interest.

Supporting quotations

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.

Charges & Financial Obligations · Permission or license

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

To figure the average daily balance and interest, American Express may use other formulas or methods that produce equivalent results. It may also 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

• Other methods are limited to those that 'produce equivalent results'.

Not stated here

• Which types of charges might be exempt from interest is not stated.

Charges & Financial Obligations · Procedure

Additional Card annual fee refunds follow the Part 3 closing policy, applied when the fee-bearing card is cancelled

If an Annual Fee applies for an Additional Card, the refund policy is the one disclosed in the Closing or suspending your Account sub-section of Part 3. If a single Annual Fee applies for a group of Additional Cards on your Account, that policy applies when you cancel the Additional Card on which the fee was assessed.

Details not recorded for this card

Supporting quotations

If an Annual Fee applies for an Additional Card, please refer to the refund policy disclosed in the Closing or suspending your Account sub-section of Part 3 of this Agreement. If a single Annual Fee applies for a group of Additional Cards on your Account, this policy will apply when you cancel the Additional Card on which the fee was assessed.

Qualifications & exceptions

• For a group fee, the refund policy applies on cancellation of the card on which the fee was assessed.

Cross-references

• refers to (model-proposed): You may close the Account; the Annual Fee is refunded only if you close within 30 days of the statement Closing Date — The Additional Card annual fee refund policy points to the Closing or suspending your Account sub-section of Part 3, which sets the 30-day refund window and the Massachusetts exception.

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'.

Charges & Financial Obligations · Company practice

Foreign currency charges are converted to U.S. dollars by AEEML at a rate it chooses 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 American Express or its agents process it, and you are billed in U.S. dollars on that conversion. Unless a particular rate is required by law, AEEML chooses a rate acceptable to American Express 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.

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 chosen by AEEML, an entity named in the Agreement, within the stated 'no more than the highest' limits.
• The conversion date is when American Express or its agents process the charge, which can differ from the charge date.
• Charges converted by establishments are billed at the establishments' rates.

Charges & Financial Obligations · Context

Oregon notice: service charges not above what the law permits, and you may pay more than the minimum

For Oregon residents, the 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 notice is addressed to Oregon residents.

Charges & Financial Obligations · User right or choice

Washington notice: no interest solely caused by a merchant's or American Express's late posting of a return credit

For residents of Washington State, the notice says that, 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 it of the merchant's delay in posting such credit, or from its 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 notice is addressed to residents of Washington State.
• Two situations are described: a merchant's failure to transmit the credit within seven working days (where you have notified American Express of the delay), and American Express's failure to post the credit within three working days of receiving it.
• The sentence is ambiguous on whether the notification requirement also applies to the second situation.

Not stated here

• The text of Section 63.14.167 is not supplied in the Agreement, so this card does not say what the statute itself provides.