Hilton Honors American Express Aspire Card Agreement

Charges & Financial Obligations · Company practice

Purchase APR is a variable rate over the Prime Rate

The APR for purchases is the Prime Rate plus a margin that ranges from 12.74% to 21.74%. The table labels it a variable APR and points to the Explanation of Variable Rates, which says that rate changes follow changes in the Prime Rate.

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.

Explanation of Variable Rates:

Qualifications & exceptions

• The rate is stated as a range, not a single margin.
• It is variable: it moves when the Prime Rate changes, as explained in How Rates and Fees Work.

Not stated here

• This table row does not say what decides where in the 12.74% to 21.74% range a particular account falls.
• The current Prime Rate value, and so the resulting percentage, is not given in the agreement.

Charges & Financial Obligations · Company practice

Cash advance APR is Prime Rate plus 21.99%

The APR for cash advances is the Prime Rate plus 21.99%, described as a variable APR. Interest on cash advances starts on the transaction date, so a cash advance does not get the interest-free window that the agreement describes for purchases.

Supporting quotations

APR for Cash Advances | Prime Rate + 21.99% This is a variable APR.

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

Qualifications & exceptions

• Variable rate; follows the Prime Rate as explained under How Rates and Fees Work.
• What counts as a cash advance is defined in Part 2 and includes cash equivalents, digital currency and betting transactions (see the cash advance fee card).

Not stated here

• The current Prime Rate value, and so the resulting percentage, is not given in the agreement.

Charges & Financial Obligations · Restriction or exception

When American Express may apply the Penalty APR

American Express says it has the right to apply the Penalty APR (Prime Rate plus 26.74%, variable) 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. In the returned-payment case it says it will notify you if it does apply it. The Penalty APR applies to new Transactions, not to existing balances.

Supporting quotations

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

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

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

Qualifications & exceptions

• It is a right the company holds ("We have the right to apply"), not an automatic result in the wording.
• "To pay by a certain date" means the payment must be received and credited to your Account by that date, per the Part 2 definitions.

Not stated here

• The passage limits the Penalty APR to "new Transactions" and does not say more about balances that existed before the triggering event.

Charges & Financial Obligations · Company practice

How long the Penalty APR lasts and how it can end

If the Penalty APR is applied, it applies for at least 6 months. American Express reviews the Account every 6 months after the Penalty APR is applied. It continues until you have made timely payments with no returned payments during the 6 months being reviewed.

Supporting quotations

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

• Six months is a minimum, not a fixed length: it continues until the review period shows timely payments and no returned payments.

Not stated here

• The passage does not define "timely" beyond the Payment Due Date rule in the trigger, nor say what happens to a review period that includes a late payment.

Charges & Financial Obligations · Company commitment

Variable APRs follow the Prime Rate and are capped at 29.99%

If the Prime Rate increases, variable APRs increase, so you may pay more interest and may have a higher Minimum Payment Due. A change in the Prime Rate takes effect on the first day of the billing period during which the Prime Rate changed. Variable APRs will not exceed 29.99%.

Supporting quotations

If the Prime Rate increases, variable APRs (and corresponding DPRs) will increase. In that case, you may pay more interest and may have a higher Minimum Payment Due. When the Prime Rate changes, the resulting changes to variable APRs take effect as of the first day of the billing period during which the Prime Rate has changed. Variable APRs will not exceed 29.99%.

Qualifications & exceptions

• The rate table describes each APR it lists as a variable APR, so the 29.99% ceiling is stated for variable APRs generally.
• The text says may pay more interest and may have a higher Minimum Payment Due, which is a possibility, not a certainty.

Not stated here

• This passage mentions DPRs (daily periodic rates) but lists no DPR values.

Charges & Financial Obligations · Context

What "Prime Rate" means

The Prime Rate is 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 rate from the previous day it was published is used. If the Journal stops publishing a Prime Rate, American Express may use the Prime Rate published in another newspaper of general circulation.

Supporting quotations

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

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

The Closing Date appears on each billing statement and is the last day of the billing period covered by the billing statement.

Qualifications & exceptions

• The substitute newspaper is something American Express "may" use, not a fixed choice.
• The Closing Date is the last day of the billing period on the billing statement (Part 2 definitions).

Not stated here

• The agreement does not name which other newspaper would be used.

Charges & Financial Obligations · User right or choice

No interest on purchases if the whole balance is paid by the due date

The Due Date is at least 25 days after each billing period closes. American Express will not charge interest on purchases if you pay your entire balance each month by the due date. If you have a Plan It plan outstanding, the test uses your balance adjusted for plans, and paying at least the Balance Adjusted for Plans (or Adjusted Balance) by the Payment Due Date lets you enter an Interest Free Period.

Supporting quotations

Your Due Date is at least 25 days after the close of each billing period. We will not charge you interest on purchases if you pay each month your entire balance (or, if you have a plan outstanding, your balance adjusted for plans) by the due date.

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.

When We Charge Interest (Grace Period)

Qualifications & exceptions

• Applies to purchases only; cash advances accrue interest from the transaction date.
• The condition is paying the entire balance (or the plan-adjusted balance) every month, not just the Minimum Payment Due.

Not stated here

• This table row does not explain what happens to interest when a balance is only partly paid; that is covered under When We Charge Interest (Grace Period) and About interest charges.

Charges & Financial Obligations · Company practice

Interest uses the average daily balance method

American Express calculates interest with the average daily balance method, including new purchases, and refers you to the How we calculate interest section in Part 2 for the detail.

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

• The Part 1 sentence is a pointer; the working method and example are in Part 2.

Not stated here

• The calculation steps are not in this Part 1 sentence.

Charges & Financial Obligations · Company practice

Plan It plans carry a monthly plan fee instead of the purchase APR

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

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.

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.

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.

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

• "Up to 1.33%" is a ceiling; the actual amount depends on plan duration, the APR that would otherwise apply and other factors.
• Plan It excludes cash or cash equivalents, balance transfers (if offered), purchases subject to Foreign Transaction Fees, and fees owed to American Express such as Annual Fees.

Not stated here

• The "other factors" that set the plan fee are not listed in these passages.
• The minimum purchase or balance amount that qualifies for a plan is "a specified dollar amount" or "a specified portion" and is not stated here.

Charges & Financial Obligations · Company practice

Annual fee of $550, none for additional cards

The Annual Fee is $550. The Annual Fee for Additional Cards is none. Fees are added to the purchase balance unless American Express says otherwise.

Supporting quotations

Annual Fee | $550

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

Annual Fee for Additional Cards: None.

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

Qualifications & exceptions

• The additional-card figure is "None" in these passages.
• The default is that fees are added to the purchase balance; the cash advance fee is an example of a fee the agreement says goes to the Cash Advance balance.

Not stated here

• These passages do not say when in the year the Annual Fee is billed.

Charges & Financial Obligations · Company practice

Cash advance fee: 5% with a $10 minimum

A cash advance carries a fee of 5% of the cash advance transaction, or $10, whichever is greater. The 5% is calculated on the transaction including any fees charged by the ATM operator, and the fee is added to the Cash Advance balance. A cash advance is defined broadly to include cash equivalents such as travelers cheques, foreign currency, money orders, digital currency, casino gaming chips and race track wagers and other offline and online betting transactions.

Supporting quotations

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

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.

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 base for the 5% includes ATM operator fees, if any.
• The definition of cash advance sits in Part 2, so many transactions that are not literally cash can carry this fee and the cash advance APR.

Not stated here

• Which specific merchant or payment types are treated as betting or cash-equivalent transactions is not listed beyond the definition.

Charges & Financial Obligations · Company practice

No foreign transaction fee

The Foreign Transaction fee is listed as None in both the table and the fee explanations.

Supporting quotations

Foreign Transaction

Foreign Transaction: None.

Qualifications & exceptions

• Applies to the card as described in these passages.

Charges & Financial Obligations · Company practice

Late payment fee: $29, then $40, never above the prior minimum payment

If American Express does not receive the Minimum Payment Due by its Payment Due Date, the late fee is $29. If this happens again within the next 6 billing periods, the fee is $40. The table summarizes this as "Up to $40". The late fee on a 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 $40 amount applies to a repeat within the next 6 billing periods; a first late payment is $29.
• The cap is the prior statement's Minimum Payment Due.

Charges & Financial Obligations · Company practice

Returned payment fee: $29, then $40, never above the minimum payment

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 statement will not exceed the applicable Minimum Payment Due on your prior billing statement.

Supporting quotations

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

Qualifications & exceptions

• The repeat window covers the same billing period and the next 6 billing periods.

Charges & Financial Obligations · Company practice

Returned check fee of $38 plus the unpaid amount

If you use your card to cash a check at one of the approved locations and the check is returned unpaid, American Express charges $38 and also charges 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.

Qualifications & exceptions

• Applies when the card is used to cash a check at an approved location.

Not stated here

• Which locations are approved is not listed in these passages.

Charges & Financial Obligations · Company practice

No overlimit fee

The overlimit fee is none. The explanation points to Credit Limit and Cash Advance Limit in Part 1 for the limits themselves.

Supporting quotations

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

Qualifications & exceptions

• A no-fee statement is not a statement that spending above a limit is always permitted; the limits are in the referenced section.

Charges & Financial Obligations · Company practice

$25 to re-open a cancelled account

If your Account is cancelled, you ask American Express to re-open it, and it does so, the 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 apply: cancelled, you ask, and the company agrees to re-open.

Charges & Financial Obligations · Restriction or exception

Charges over the limit may be approved with no fee, but you may be asked to pay the excess

American Express may approve charges that put your Account balance over the Credit Limit. If it does, it will not charge an overlimit fee. If American Express asks you to promptly pay the amount of your Account balance above the 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 is discretionary ("may approve").
• No overlimit fee is stated for this case, but the Minimum Payment Due calculation still refers to any overlimit amount (see the minimum payment card).

Not stated here

• The passage does not say how long "promptly" is.

Charges & Financial Obligations · Restriction or exception

Person-to-person transactions are capped at $2,000 in any 30 days

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 stays within that Person-to-Person Limit. American Express may decline a person-to-person transaction that would take the Account over this limit or over the Credit Limit. A person-to-person transaction means a charge for funds sent to another person or a charge to add funds to an Amex Send Account.

Supporting quotations

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

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

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

Qualifications & exceptions

• The limit runs over any rolling 30-day period, not a calendar month.
• The approval test is "may not approve", which is discretion, not a stated rule that every such transaction is refused.

Charges & Financial Obligations · Procedure

How the Minimum Payment Due is worked out

For each billing statement American Express starts with the highest of three amounts: interest charged on the statement plus 1% of the New Balance; 2% of the New Balance; or $40. The 1% and 2% bases exclude penalty fees, overlimit amounts and plan balances, and the 1% base also excludes interest. It then adds any penalty fees on the statement, up to 1/24th of any overlimit amount, any plan payment due and any amount past due. The Minimum Payment Due will not exceed the New Balance, and you may pay more than the minimum, 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 three starting amounts are alternatives; the highest one is used.
• The add-ons (penalty fees, overlimit amount share, plan payment, past due amount) can make the minimum higher than the highest starting amount.

Not stated here

• The passage does not define "New Balance" or "amount past due" beyond how they are used here.

Charges & Financial Obligations · Context

Worked example: New Balance of $2,900 gives a $58.27 minimum

The agreement's example assumes a New Balance of $2,900, interest of $29.57 and no active plans, overlimit amount, penalty fees or past-due amounts. The three starting amounts are $58.27 (interest plus 1% of the balance after interest), $58 (2% of $2,900) and $40, so the highest, $58.27, is the Minimum Payment Due. The text adds that active plans, an overlimit amount, penalty fees or past-due amounts would make the minimum 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 numbers are an illustration under stated assumptions, not a figure for any particular account.

Charges & Financial Obligations · User right or choice

Purchases are interest-free while you are in an Interest Free Period

You are not charged interest on purchases when you are in an Interest Free Period. Your account enters one when you pay your New Balance as shown on your statement by the Payment Due Date, or if your account had no previous balance. If you have an active Plan It plan, you can enter an Interest Free Period by paying at least the Balance Adjusted for Plans (or Adjusted Balance) by the Payment Due Date. When the account is not in an Interest Free Period, interest on purchases is charged from the date of the transaction. After you enter an Interest Free Period again, interest may still appear on your next statement, reflecting interest from the beginning of that billing cycle through the date your payment was received.

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.

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

Qualifications & exceptions

• Applies to purchases; balance transfers and cash advances are treated separately.
• Paying only the Minimum Payment Due does not meet the test in these passages; the test is the New Balance (or, with an active plan, the Balance Adjusted for Plans).

Not stated here

• The Part 1 table describes the test as paying "your entire balance" while this section says "New Balance as shown on your statement"; the agreement does not say whether these differ.

Charges & Financial Obligations · Company practice

Balance transfers and cash advances never get an 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.

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.

Qualifications & exceptions

• Paying the New Balance does not stop interest from running on these two types of charge from their transaction date.

Charges & Financial Obligations · Context

What counts as a charge, purchase, cash advance, balance transfer or person-to-person transaction

A charge is any amount added to the Account, such as purchases, cash advances, balance transfers, fees and interest. 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 owed on another credit card account. A person-to-person transaction is a charge for funds sent to another person or to add funds to an Amex Send Account.

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.

Qualifications & exceptions

• Person-to-person transactions are counted as purchases in this definition.
• The cash advance definition reaches several things that are not literally cash.

Charges & Financial Obligations · Context

What a plan, "pay by a date" and the Closing Date mean

A plan is a portion of the account balance you have selected to pay over time through a set number of monthly payments using Plan It. "To pay by a certain date" means to send your payment so that American Express receives and credits it to the Account by that date. The Closing Date appears on each billing statement and is the last day of the billing period it covers.

Supporting quotations

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. To pay by a certain date means to send your payment so that we receive it and credit it to your Account by that date. The Closing Date appears on each billing statement and is the last day of the billing period covered by the billing statement.

Qualifications & exceptions

• Sending a payment is not enough: it must be received and credited by the date.

Not stated here

• Payment cut-off times and methods are covered, if at all, under About Payments.

Charges & Financial Obligations · Company practice

Plan It: pay selected purchases over time for a monthly plan fee

American Express may offer Plan It, which lets you 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. You select the qualifying purchases or amount and a plan duration and can view the monthly plan payments, including the fee, before creating the plan. When a plan is set up, the purchases or amount move into a plan balance and are subject to a plan fee instead of the purchase APR. A qualifying purchase is one of at least a specified dollar amount; a qualifying amount is a specified portion of your balance. Cash and cash equivalents, balance transfers (if offered), purchases subject to Foreign Transaction Fees and fees owed to American Express such as Annual Fees do not qualify.

Supporting quotations

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

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

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

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

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

Qualifications & exceptions

• Plan It is offered at American Express's option ("We may offer you Plan It").
• The plan fee is disclosed before the plan is created and depends on duration, the APR that would otherwise apply, and other factors.

Not stated here

• The specified minimum purchase amount and the specified portion of balance that qualify are not stated.
• The "other factors" behind the plan fee are not listed.

Charges & Financial Obligations · User right or choice

A plan cannot be cancelled, but you can pay it off early

Plans cannot be cancelled after they have been created. You can choose to pay a plan 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 future plan fees on that plan. While a plan is active, you also agree that the total of your plan balances, including plan fees, will not be more than your Credit Limit.

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.

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

Qualifications & exceptions

• Early payoff is done by paying the New Balance on the most recent statement in full, not by cancelling the plan.
• Plan fees already charged are not mentioned in this passage; it speaks only of future plan fees.

Charges & Financial Obligations · Company practice

You promise to pay all charges, including those others make with your Account

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.

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.

Qualifications & exceptions

• The promise covers charges made by Additional Card Members and by others you permit.
• It applies even where the Card is not presented or no signature is given.

Not stated here

• This passage does not address charges made without your permission; Card loss or misuse is dealt with in the use-of-the-Card passages.

Charges & Financial Obligations · User right or choice

Pay at least the Minimum Payment Due on or before the Payment Due Date

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. To pay by a date means that American Express must receive the payment and credit it to the Account by that date.

Supporting quotations

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.

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

Qualifications & exceptions

• The time and manner come from each billing statement.
• Late payment fees, the Penalty APR and Points forfeiture are consequences described elsewhere in the agreement.

Not stated here

• The statement-specific payment cut-off time is not stated in the agreement text.

Charges & Financial Obligations · Procedure

Payments must be in U.S. dollars by check, negotiable instrument or electronic payment

Make payments 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 (a money order is the example), 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.

Qualifications & exceptions

• The list is of the accepted payment forms; each check or instrument must be a single one.

Charges & Financial Obligations · Procedure

Paying by mail: one payment per Account, to the coupon address, with Account number and coupon

When paying by mail you must make a separate payment for each Account, mail it to the address on the payment coupon on your billing statement, and write your Account number on your check or negotiable instrument and include the payment coupon.

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.

Qualifications & exceptions

• These are the requirements a mailed payment must meet to be credited on the day it is received (see the crediting card).

Charges & Financial Obligations · Company commitment

A conforming payment is credited the day it is received, if on time

If your payment meets the requirements above, American Express credits it 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 it after that time, it credits the payment on the day after it receives it.

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.

Qualifications & exceptions

• Same-day credit depends on both meeting the payment requirements and meeting the statement's time and manner.

Not stated here

• The statement's time cut-off is not stated in the agreement text.

Charges & Financial Obligations · Restriction or exception

Payments that miss the requirements may be credited late, causing fees and interest

If your payment does not meet the requirements, there may be a delay in crediting your Account. That may result in late payment fees and additional interest charges, and the passage refers to How Rates and Fees Work in Part 1. American Express will not accept a payment made in a foreign currency or drawn on an account at a bank 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

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).

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.

Qualifications & exceptions

• A delay in crediting is described as a possible result ("there may be").
• Processing a late, partial or restrictively marked payment does not waive American Express's rights.

Not stated here

• What counts as "restrictive language" is not defined in this passage.

Charges & Financial Obligations · Company practice

Payments go first to the Minimum Payment Due, then to the highest-rate balance

The Account may have balances at different interest rates (purchases may be lower than cash advances) and plan balances with plan fees. American Express says it generally applies payments in a billing period as follows. Payments up to the Minimum Payment Due go first to any plan amounts included in the minimum, then to the balance with the lowest interest rate, then to balances with higher rates. Once the Minimum Payment Due has been paid, payments go to the balance with the highest interest rate, then to lower-rate balances, then to any plan balances.

Supporting quotations

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 word "generally" qualifies the order.
• The order differs for the portion up to the minimum and the portion above it.

Not stated here

• The order among balances with the same interest rate is addressed in the credits passage ("any order we choose").

Charges & Financial Obligations · Company practice

Credits usually go to the balance of the related charge

In most cases American Express applies a credit to the same balance as the related charge, for example a purchase credit 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 a balance is negative at the end of a billing period, the excess credit is redistributed to other balances as described for payments, so in some circumstances plan balances may be paid before they otherwise would. 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 placed in a plan is not applied to the plan balance unless you call.

Charges & Financial Obligations · Company practice

Interest is figured on each balance with the Average Daily Balance method

American Express calculates 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, and balances within a category may also have different 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: 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.

Qualifications & exceptions

• Each balance is calculated separately, then summed.

Charges & Financial Obligations · Procedure

Interest equals average daily balance times daily periodic rate times days

The interest charged on 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. The ADB is found by adding up the balance's daily balances and dividing 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. The agreement says "Your DPRs are shown in How Rates and Fees Work in Part 1", but the published agreement does not list any DPR values there: its Part 1 section gives APRs as the Prime Rate plus a margin and does not show the daily rates.

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

Qualifications & exceptions

• Rounding can cause small variations.
• The DPR is derived from the APR, which for these rates moves with the Prime Rate.

Not stated here

• The DPR values are not shown in the published agreement even though the text says they are in Part 1; they are not computed or imported here.
• The agreement gives no Prime Rate value, so no DPR can be read from it.

Charges & Financial Obligations · Context

ADB and DPR are defined, but the DPR values the text points to are not published

The Average Daily Balance (ADB) for a balance is found by adding up its daily balances and dividing by the number of days in the billing period. A DPR (Daily Periodic Rate) is 1/365th of an APR, rounded to one ten-thousandth of a percentage point. The text says "Your DPRs are shown in How Rates and Fees Work in Part 1", but the published Part 1 section under that heading holds only the Explanation of Variable Rates, Determining the Prime Rate and Fees; it gives APRs as the Prime Rate plus a margin and lists no DPR values. The variable-rate explanation also refers to "corresponding DPRs" that rise with the APR.

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.

variable APRs (and corresponding DPRs) will increase

How Rates and Fees Work

Qualifications & exceptions

• The DPR is defined as a fraction of the APR, and the APRs here move with the Prime Rate.

Not stated here

• The DPR values that the text says are shown in Part 1 do not appear in the published agreement. They are not computed from the APR ranges here and are not taken from any other document.

Charges & Financial Obligations · Context

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

The agreement's example 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

number of days in the billing period.

Qualifications & exceptions

• The 15.99% rate is the example's assumption and is not stated to be a rate for this card.
• The example shows the formula in use, with rounding to 0.0438%.

Charges & Financial Obligations · Procedure

How each daily balance is figured

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. A new charge is added to a daily balance as of its transaction date. If the daily balance is negative, it is treated as zero.

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.

Qualifications & exceptions

• New charges count from their transaction date.
• "Appropriate adjustments" are not itemized.

Not stated here

• What adjustments are "appropriate" is not listed.

Charges & Financial Obligations · Company practice

Interest compounds daily

For the first day of a billing period, the beginning balance is the prior period's ending balance, including unpaid interest. For the rest of the period, the beginning balance is the previous day's daily balance plus interest equal to that daily balance multiplied by the DPR for that balance. The agreement 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.

Qualifications & exceptions

• Unpaid interest is added into the balance on which later interest is charged.

Charges & Financial Obligations · Permission or license

American Express may use equivalent methods and may skip interest on some charges

To figure the ADB 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

• Alternative methods must produce equivalent results.

Not stated here

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

Charges & Financial Obligations · Context

Annual Fee refund for Additional Cards is governed by Part 3

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, the policy applies when you cancel the Additional Card on which the fee was assessed.

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

• This applies only if an Annual Fee applies for Additional Cards; Part 1 lists the Annual Fee for Additional Cards as "None".

Not stated here

• The refund terms themselves are in Part 3 and are analyzed in their own section.

Charges & Financial Obligations · Company practice

Foreign currency charges are converted to U.S. dollars by AE Exposure Management Ltd.

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 American Express bills you in U.S. dollars at 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 those establishments 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 conversion date is the processing date, not the date of the charge.
• The text sets a ceiling on the rate, not a fixed rate.
• The Part 1 table lists no foreign transaction fee; this passage covers the conversion rate.

Not stated here

• The actual rate applied on any day is not given, and the passage does not say whether the rate chosen sits below the stated ceiling.

Charges & Financial Obligations · Company commitment

Your share of arbitration fees is capped at court filing fees

You are responsible for paying your share of any arbitration fees (including filing, administrative, hearing or other fees), but only up to the amount of the filing fees you would have incurred if you had brought the claim in court. American Express is responsible for any additional arbitration fees. At your written request, it will consider in good faith making a temporary advance of your share of the fees, or paying for the reasonable fees of an expert appointed by the arbitrator for good cause.

Supporting quotations

Arbitration Fees and Costs: You will be responsible for paying your share of any arbitration fees (including filing, administrative, hearing or other fees), but only up to the amount of the filing fees you would have incurred if you had brought a claim in court. We will be responsible for any additional arbitration fees. At your written request, we will consider in good faith making a temporary advance of your share of any arbitration fees, or paying for the reasonable fees of an expert appointed by the arbitrator for good cause.

Qualifications & exceptions

• The advance or expert-fee payment is something American Express will "consider in good faith", not a promise to pay.

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

• Only "reasonable" costs are covered.

Charges & Financial Obligations · User right or choice

You can close the Account; the Annual Fee is refundable only within 30 days of the statement

You may close your Account by calling or writing to American Express. If an Annual Fee applies, it refunds the fee if you notify it that you are voluntarily closing the Account within 30 days after the Closing Date of the billing statement on which that fee appears. For cancellations after that, the Annual Fee is non-refundable. This policy does not apply if your billing address is in the Commonwealth of Massachusetts when you close the Account. If an account is cancelled and re-opened at your request, American Express may charge a $25 fee.

Supporting quotations

You may close your Account by calling us or writing to us. If an Annual Fee applies, we will refund this fee if you notify us that you are voluntarily closing your Account within 30 days after the Closing Date of the billing statement on which that fee appears. For cancellations after this 30-day period, the Annual Fee is non-refundable.

If your billing address is in the Commonwealth of Massachusetts at the time you close your Account, this policy will not apply to you.

If your account is cancelled and we re-open it at your request, we may charge you a $25 fee.

Qualifications & exceptions

• The 30 days run from the Closing Date of the statement showing the fee.
• Massachusetts billing addresses are carved out of this refund policy; the passage does not state what applies instead.

Not stated here

• What refund rule applies to a Massachusetts billing address is not stated in this passage.