Blue Cash Preferred® from American Express Agreement

Charges & Financial Obligations · Company practice

Purchase and balance transfer APRs are variable: Prime Rate + 12.74% to Prime Rate + 21.74%

The Annual Percentage Rate for purchases is the Prime Rate plus a margin somewhere between 12.74% and 21.74%. The APR for balance transfers is the same range, "for any balance transfer requests we may accept", which signals that balance transfers are not guaranteed to be accepted. Both are variable rates, meaning they move when the Prime Rate moves (see the Explanation of Variable Rates).

Supporting quotations

Annual Percentage Rate (APR) for Purchases

Prime Rate + 12.74% to Prime Rate + 21.74% This is a variable APR. See Explanation of Variable Rates below.

APR For Balance Transfers

Prime Rate + 12.74% to Prime Rate + 21.74% for any balance transfer requests we may accept. This is a variable APR.

Variable APRs will not exceed 29.99%.

Qualifications & exceptions

• Both APRs are variable and the table points to the Explanation of Variable Rates for how changes happen.
• A balance transfer APR applies only to balance transfer requests American Express accepts.
• A variable APR will not exceed 29.99% according to the Explanation of Variable Rates.

Not stated here

• The table gives a range and does not say which point in the range applies to a particular Account or what decides it.
• The published agreement does not list any Daily Periodic Rate (DPR) values for these APRs; this section only gives the APRs as Prime Rate plus a margin.

Cross-references

• qualified by (model-proposed): If the Prime Rate rises, variable APRs rise from the first day of the billing period in which it changed, up to 29.99% — The Explanation of Variable Rates sets when changes take effect and caps variable APRs at 29.99%, which qualifies the Prime Rate plus margin APRs in the table.

Charges & Financial Obligations · Company practice

Cash advances have a higher variable APR: Prime Rate + 21.99%

The APR for cash advances is the Prime Rate plus 21.99%, also a variable APR. Interest on cash advances starts on the transaction date (see the Paying Interest row). The agreement's definition of a cash advance is broad: it covers cash and cash equivalents such as travelers cheques, foreign currency, money orders, digital currency, casino gaming chips and race track wagers, and offline and online betting transactions.

Supporting quotations

APR for Cash Advances

Prime Rate + 21.99% This is a variable APR.

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

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

• Variable APR; the Explanation of Variable Rates applies and a variable APR will not exceed 29.99%.
• The definition of cash advance (in Part 2's Definitions) decides which transactions are charged this rate, not the ordinary meaning of the words.

Not stated here

• The published agreement does not list the Daily Periodic Rate for this APR.

Cross-references

• defined by (model-proposed): Key defined terms: we, you, Card, charge, purchase, cash advance, balance transfer, plan and Closing Date — The definition of cash advance in Part 2 decides which transactions are charged the cash advance APR.

Charges & Financial Obligations · Restriction or exception

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

American Express reserves the right to apply a 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. The returned-payment condition ends with the words "we will notify you if we do". If it is applied, it lasts at least 6 months. American Express reviews the Account every 6 months after the Penalty APR is applied, and it keeps applying until you have made timely payments with no returned payments during the 6 months being reviewed.

Supporting quotations

Penalty APR and When it Applies

Prime Rate + 26.74% This is a variable APR.

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

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

Qualifications & exceptions

• It applies to new Transactions, not stated to apply to balances already outstanding.
• "We have the right to apply" is permissive: the table does not say it is applied automatically in every such case.
• Minimum duration is at least 6 months, with a review every 6 months; the exit condition is timely payments with no returned payments in the period reviewed.
• It is a variable APR and the Explanation of Variable Rates applies.

Not stated here

• The words "we will notify you if we do" sit at the end of the returned-payment condition; the text does not say whether the notice promise covers only that trigger or applying the Penalty APR for either trigger.
• The table gives no Daily Periodic Rate for the Penalty APR.

Cross-references

• referred to by (model-proposed): Returned payment fee is $29, or $40 on a repeat; a returned check costs $38 plus the unpaid amount — A payment returned by your bank can both carry a returned payment fee and be one of the two conditions under which American Express may apply the Penalty APR.

Charges & Financial Obligations · Company practice

Purchases are interest-free if you pay the whole balance by the due date; cash advances and balance transfers are not

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

Supporting quotations

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

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

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

Qualifications & exceptions

• The no-interest result for purchases depends on paying the entire balance each month by the due date.
• If a plan is outstanding, the amount to pay is the balance adjusted for plans, not the full balance.
• Cash advances and balance transfers are charged interest from the transaction date.

Charges & Financial Obligations · Company practice

Plan It plans carry a monthly plan fee of up to 1.33%, a fixed finance charge

If you put a purchase or an amount into a Plan It plan, a monthly plan fee of up to 1.33% of each purchase or amount placed in the plan applies. The exact percentage depends on the plan duration, the APR that would otherwise apply, and other factors. The fee is a fixed finance charge charged each month the plan is active, and its dollar amount is disclosed before you set up a plan. Plan purchases or amounts are subject to the plan fee instead of the APR for purchases.

Supporting quotations

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

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

For more information, see About Plan It Feature in Part 2 of your Card Member Agreement.

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

Qualifications & exceptions

• The fee is described as "up to" 1.33%; the actual figure depends on duration, the APR that would otherwise apply, and other factors the table does not list.
• It is charged each month a plan is active, and the dollar amount is disclosed before you create the plan.
• Part 2 (About Plan It) governs how plans work; Part 1 points to it.

Not stated here

• The factors beyond duration and the otherwise-applicable APR ("other factors") are not listed.

Cross-references

• referred to by (model-proposed): Plan It lets you pay qualifying purchases over time for a monthly plan fee instead of the purchase APR — Part 2 describes how Plan It works, including that the plan balance bears the plan fee instead of the purchase APR, which the Part 1 plan fee row summarizes.

Charges & Financial Obligations · Company practice

The annual fee is $95; additional cards have no annual fee

The Rates and Fees Table lists an Annual Fee of $95. Part 1's How Rates and Fees Work points back to that table, and states the Annual Fee for Additional Cards is none.

Supporting quotations

Annual Fee

$95

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

Annual Fee for Additional Cards: None.

Qualifications & exceptions

• A separate refund rule for the Annual Fee appears in Part 3 (Closing or suspending your Account) and is covered with that section.

Not stated here

• The table does not say when in the year or billing cycle the fee is charged.

Cross-references

• qualified by (model-proposed): You can close the Account by phone or in writing; the Annual Fee is refundable only within 30 days of the Closing Date — The $95 Annual Fee is refundable only if you voluntarily close the Account within 30 days after the Closing Date of the statement showing the fee, subject to a Massachusetts exception whose scope is unclear.

Charges & Financial Obligations · Company practice

Fees are added to the purchase balance unless American Express says otherwise

As a general rule, fees are added to your purchase balance. The agreement states exceptions: the balance transfer fee is added to the same balance as the balance transfer, and the cash advance fee is added to the Cash Advance balance, and American Express may "tell you otherwise" for other fees.

Supporting quotations

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

We will add it to the same balance as the balance transfer.

We will add this fee to the Cash Advance balance.

Qualifications & exceptions

• The default is stated as "unless we tell you otherwise", so the allocation can differ where American Express says so.
• Balance transfer and cash advance fees are expressly put on their own balances, which carry a different interest treatment.

Not stated here

• The fee section does not list which other circumstances American Express might use to place a fee elsewhere.

Cross-references

• has exception (model-proposed): Balance transfer fee: 3% of the transfer, at least $5, unless a promotion says otherwise — Fees go to the purchase balance unless American Express says otherwise, and the balance transfer fee is expressly added to the same balance as the balance transfer.
• has exception (model-proposed): Cash advance fee: 5% of the advance (including ATM operator fees), at least $10 — Fees go to the purchase balance unless American Express says otherwise, and the cash advance fee is expressly added to the Cash Advance balance instead.

Charges & Financial Obligations · Company practice

Balance transfer fee: 3% of the transfer, at least $5, unless a promotion says otherwise

The balance transfer fee is the greater of $5 or 3% of each transfer. Part 1's How Rates and Fees Work adds that a different fee may apply if stated in a promotional offer or at the time of a transaction. The fee is a finance charge and is added to the same balance as the balance transfer. The agreement defines a balance transfer as a charge to pay an amount you owe on another credit card account.

Supporting quotations

Either $5 or 3% of the amount of each transfer, whichever is greater.

Balance Transfer: 3% of the transaction, with a minimum of $5. A different fee may apply if stated in a promotional offer or at the time of a transaction. This fee is a finance charge.

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

Qualifications & exceptions

• A different fee may apply if stated in a promotional offer or at the time of a transaction.
• The fee is a finance charge and is added to the balance transfer balance.

Not stated here

• The table and the body text do not say how a different promotional fee would be communicated beyond "a promotional offer or at the time of a transaction".

Cross-references

• exception to (model-proposed): Fees are added to the purchase balance unless American Express says otherwise — Fees go to the purchase balance unless American Express says otherwise, and the balance transfer fee is expressly added to the same balance as the balance transfer.

Charges & Financial Obligations · Company practice

Cash advance fee: 5% of the advance (including ATM operator fees), at least $10

The cash advance fee is the greater of $10 or 5% of each cash advance. In How Rates and Fees Work the 5% is figured on the cash advance transaction "including fees charged by the ATM operator, if any", and the fee is added to the Cash Advance balance. Because the agreement defines cash advance to include cash equivalents such as foreign currency, money orders, digital currency, casino gaming chips and offline and online betting, the fee can apply to transactions that are not ATM withdrawals.

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.

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 5% is calculated on the amount including any ATM operator fee.
• What counts as a cash advance is set by the agreement's definition, which is broader than ATM withdrawals.

Not stated here

• The fee text does not mention any promotional or alternative cash advance fee, unlike the balance transfer fee.

Cross-references

• exception to (model-proposed): Fees are added to the purchase balance unless American Express says otherwise — Fees go to the purchase balance unless American Express says otherwise, and the cash advance fee is expressly added to the Cash Advance balance instead.
• defined by (model-proposed): Key defined terms: we, you, Card, charge, purchase, cash advance, balance transfer, plan and Closing Date — The definition of cash advance in Part 2 decides which transactions bear the 5% cash advance fee.

Charges & Financial Obligations · Company practice

Foreign transaction fee: 2.7% of the amount converted to U.S. dollars

A foreign transaction fee of 2.7% applies to each transaction after conversion to US dollars. How Rates and Fees Work calls it 2.7% of the converted U.S. dollar amount and points to Part 2's section on converting charges made in a foreign currency for the conversion process.

Supporting quotations

2.7% of each transaction after conversion to US dollars.

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

Qualifications & exceptions

• The fee is figured on the converted U.S. dollar amount, so the exchange rate used affects the fee.

Not stated here

• Part 1 does not describe how the conversion rate is chosen; it refers to Part 2.

Charges & Financial Obligations · Company practice

Late and returned payment fees are $29, rising to $40 on a repeat; there is no overlimit fee

The Rates and Fees Table lists penalty fees: Late Payment up to $40, Returned Payment up to $40, and Overlimit none. A late payment fee is $29 if American Express does not receive the Minimum Payment Due by its Payment Due Date, and $40 if that happens again within the next 6 billing periods. A returned payment fee is $29 the first time a payment is returned unpaid when presented to your bank, and $40 if it happens again within the same billing period or the next 6 billing periods. For each, the fee on a billing statement will not exceed the Minimum Payment Due on your prior billing statement (for returned payments, the applicable Minimum Payment Due).

Supporting quotations

Up to $40. Up to $40. None

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.

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

• Late fee: $29 first time, $40 if repeated within the next 6 billing periods; capped at the Minimum Payment Due on the prior billing statement.
• Returned payment fee: $29 first time, $40 if repeated in the same billing period or the next 6 billing periods; capped at the applicable Minimum Payment Due on the prior billing statement.
• Overlimit fee: none.

Charges & Financial Obligations · Company practice

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

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

Supporting quotations

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 detailed calculation is in Part 2 and is covered in that section.

Charges & Financial Obligations · Company practice

If the Prime Rate rises, variable APRs rise from the first day of the billing period in which it changed, up to 29.99%

When 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. Changes take effect on the first day of the billing period during which the Prime Rate has 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 change takes effect from the first day of the billing period in which the Prime Rate changed, not from the day of the change.
• 29.99% is a ceiling stated for variable APRs.

Not stated here

• The published agreement does not list any Daily Periodic Rate values, even though this passage mentions "corresponding DPRs"; Part 2 defines a DPR as 1/365th of an APR, and the agreement does not show the resulting values.

Cross-references

• qualifies (model-proposed): Purchase and balance transfer APRs are variable: Prime Rate + 12.74% to Prime Rate + 21.74% — The Explanation of Variable Rates sets when changes take effect and caps variable APRs at 29.99%, which qualifies the Prime Rate plus margin APRs in the table.

Charges & Financial Obligations · Context

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

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 Wall Street Journal does not publish a Prime Rate that day, American Express uses the rate from the previous day it was published. If the Journal stops publishing it, 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 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 reference date is the Closing Date of the billing period.
• The fallback source is "may use", at American Express's choice, and only another newspaper of general circulation.

Charges & Financial Obligations · Company practice

Returned payment fee is $29, or $40 on a repeat; a returned check costs $38 plus the unpaid amount

Two different returned-item fees are described. A returned payment fee applies when a payment you make is returned unpaid the first time American Express presents it to your bank: $29, or $40 if it happens again within the same billing period or the next 6 billing periods, never more than the applicable Minimum Payment Due on your prior billing statement. A separate returned check fee of $38 applies if you use your card to cash a check at one of American Express's approved locations and that check is returned unpaid; American Express will also charge you the unpaid amount.

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.

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

• The returned payment fee is capped at the applicable Minimum Payment Due on the prior billing statement; the returned check fee has no such cap stated.
• A returned payment can also trigger the Penalty APR (see the Penalty APR card).

Cross-references

• refers to (model-proposed): A Penalty APR of Prime Rate + 26.74% can apply after a missed minimum payment or returned payment — A payment returned by your bank can both carry a returned payment fee and be one of the two conditions under which American Express may apply the Penalty APR.

Charges & Financial Obligations · Company practice

No overlimit fee, but an amount over the Credit Limit may have to be paid promptly

The Overlimit fee is none. American Express may approve charges that take your balance over your Credit Limit and, if it does, it will not charge an overlimit fee. However, if American Express asks you to promptly pay the amount of your balance above your Credit Limit, you agree to do so, and the Minimum Payment Due calculation adds up to 1/24th of any overlimit amount.

Supporting quotations

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

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.

up to 1/24th of any overlimit amount

Qualifications & exceptions

• Approval of charges over the Credit Limit is at American Express's discretion ("We may approve").
• No fee does not mean no obligation: you agree to pay promptly the amount above the Credit Limit if asked.
• Up to 1/24th of any overlimit amount is added to the Minimum Payment Due.

Not stated here

• The text does not say when or how American Express will ask for prompt payment of the overlimit amount.

Cross-references

• contrast (model-proposed): Minimum Payment Due is the highest of three amounts, plus penalty fees, overlimit, plan payments and past-due amounts — There is no overlimit fee, yet the Minimum Payment Due adds up to 1/24th of any overlimit amount and American Express may ask you to promptly pay the amount over the Credit Limit. The two pull in different directions on the cost of going over the limit.

Charges & Financial Obligations · Company practice

Re-opening a cancelled Account costs $25

If your Account is cancelled, you ask American Express to re-open it, and it does so, a $25 Account Re-opening fee applies. Three conditions all apply: cancellation, your request, and American Express agreeing to re-open.

Supporting quotations

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

Qualifications & exceptions

• Applies only if all three events happen: cancelled, you ask, and American Express re-opens.

Charges & Financial Obligations · Company practice

American Express sets and can change your Credit Limit and Cash Advance Limit at any time, even if you pay on time

American Express assigns your Account a Credit Limit and may make part of it available for cash advances (the Cash Advance Limit). There may also be a limit on ATM withdrawals in a given period. The limits are shown on page 1 of Part 1 and on each billing statement. American Express may increase or reduce either limit, even if you pay on time and your Account is not in default. You agree to manage the Account so that your balance (including fees and interest) stays at or under the Credit Limit, and your cash advance balance (including fees and interest) stays at or under the Cash Advance Limit. Your plan balances (including plan fees) must also stay within the Credit Limit. Separately, American Express may decline a charge for various reasons, including suspected fraud or its assessment of your creditworthiness, even if the charge would not take you over the Credit Limit and your Account is not in default.

Supporting quotations

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

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

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

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

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

We may decline to authorize a charge for various reasons, including if we suspect fraud or based on our assessment of your creditworthiness, even if the charge would not cause you to go over your Credit Limit and even if your Account is not in default. We are not responsible for any losses you incur if we do not authorize a charge or if any merchant refuses to accept the Card.

Qualifications & exceptions

• American Express may change the limits at its discretion, including a reduction while the Account is in good standing.
• Your agreement to stay within the limits sits alongside American Express's ability to approve some charges over the limit (see the overlimit card).
• A declined charge is not American Express's responsibility: it is not responsible for losses if it does not authorize a charge or a merchant refuses the Card.

Not stated here

• The specific ATM withdrawal limit is not stated in this agreement.

Charges & Financial Obligations · Restriction or exception

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

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

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 $2,000 limit is measured over any 30-day period, not a calendar month.
• A person-to-person transaction is also subject to the Credit Limit.

Charges & Financial Obligations · Procedure

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

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

Supporting quotations

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

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

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

$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-way test picks the highest value, then the add-ons are added on top.
• The Minimum Payment Due will not exceed the New Balance.
• Paying more than the minimum is allowed at any time, up to the New Balance.

Cross-references

• contrast (model-proposed): No overlimit fee, but an amount over the Credit Limit may have to be paid promptly — There is no overlimit fee, yet the Minimum Payment Due adds up to 1/24th of any overlimit amount and American Express may ask you to promptly pay the amount over the Credit Limit. The two pull in different directions on the cost of going over the limit.

Charges & Financial Obligations · Context

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

The agreement's example assumes a $2,900 New Balance, $29.57 of interest and no active plans, overlimit amount, penalty fees or past-due amounts. Interest plus 1% of the balance (excluding interest) gives $58.27, 2% of $2,900 gives $58, and the fixed floor is $40. The highest, $58.27, is the Minimum Payment Due. The example also notes that active plans, an overlimit amount, penalty fees or past-due amounts would make the Minimum Payment Due higher.

Supporting quotations

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 example illustrates the formula and does not set any actual amounts for an account.
• Any active plans, overlimit amount, penalty fees or amounts past due raise the Minimum Payment Due above the formula result.

Charges & Financial Obligations · Company practice

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

You are not charged interest on purchases while you are in an Interest Free Period. Your account enters one when you pay your New Balance as shown on the statement by the Payment Due Date, or when the account had no previous balance. 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 billing statement, reflecting interest charged from the beginning of that billing cycle through the date your payment was received. "To pay by a certain date" means your payment must be received and credited to your Account by that date. If you have an active Plan It plan, you can enter an Interest Free Period by paying at least the Balance Adjusted for Plans (or Adjusted Balance) by the Payment Due Date.

Supporting quotations

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

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

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.

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

• Entering an Interest Free Period depends on paying the New Balance shown on the statement (or the plan-adjusted balance) by the Payment Due Date, or on having no previous balance.
• Interest may still appear on the next statement for the part of the cycle before the payment was received.
• Paying "by" a date means the payment is received and credited by that date.

Charges & Financial Obligations · Company practice

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

Balance transfers and cash advances are charged interest from the date of the transaction and do not have an Interest Free Period. This differs from purchases, which can be interest-free if you pay your New Balance by the Payment Due Date. The section points to How we calculate interest for how interest charges are figured.

Supporting quotations

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

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

Qualifications & exceptions

• According to this passage the Interest Free Period does not apply to balance transfers or cash advances.

Charges & Financial Obligations · Company practice

You earn Blue Cash Reward Dollars on eligible purchases, a percentage of eligible spend each billing period

The Blue Cash Preferred card earns Blue Cash Reward Dollars for eligible purchases. The number earned is a percentage of the dollar amount of eligible purchases in each billing period. Eligible purchases are purchases made on the Card for goods and services minus returns and other credits. The supplement then lists what eligible purchases do NOT include: fees or interest charges, balance transfers, cash advances (written without a comma between the two), purchases of traveler's checks, purchases or reloading of prepaid cards, purchases of any cash equivalents including gift cards, and person-to-person transactions. The percentage rates for each category are in the next section.

Supporting quotations

You will earn Blue Cash® Reward Dollars (reward dollars) for eligible purchases on your Blue Cash Preferred® from American Express Account.

The number of reward dollars you earn is based on a percentage of the dollar amount of your eligible purchases during each billing period. Eligible purchases are purchases made on your Card for goods and services minus returns and other credits.

Eligible purchases do NOT include: fees or interest charges, balance transfers cash advances, purchases of traveler's checks, purchases or reloading of prepaid cards, purchases of any cash equivalents, including gift cards, or person-to-person transactions.

Qualifications & exceptions

• The agreement's general definition of a purchase includes person-to-person transactions, but person-to-person transactions are listed as not eligible for rewards.
• Returns and other credits reduce eligible purchases.

Charges & Financial Obligations · Restriction or exception

Fees, interest, cash-like transactions, prepaid cards and person-to-person transactions are not eligible purchases

Reward dollars are earned only on eligible purchases, and the agreement lists what is not an eligible purchase: fees or interest charges, balance transfers, cash advances (written without a comma between the two), purchases of traveler's checks, purchases or reloading of prepaid cards, purchases of any cash equivalents including gift cards, and person-to-person transactions. These transactions do not earn any reward rate, including the 1 percent rate.

Supporting quotations

Eligible purchases do NOT include: fees or interest charges, balance transfers cash advances, purchases of traveler's checks, purchases or reloading of prepaid cards, purchases of any cash equivalents, including gift cards, or person-to-person transactions.

Qualifications & exceptions

• The list is introduced as "do NOT include" and is written as a single run of items, so the grouping of "balance transfers cash advances" follows the printed text.

Charges & Financial Obligations · Company commitment

6% back on the first $6,000 a calendar year at U.S. supermarkets, with several store types excluded

You earn 6 percent on the first $6,000 of eligible purchases in a calendar year at supermarkets located in the U.S. The agreement says that superstores, convenience stores, warehouse clubs and meal-kit delivery services are not considered supermarkets, so purchases there do not qualify for this category. The text sets the $6,000 limit for supermarkets in a calendar year and does not state, in this passage, what rate applies to supermarket purchases beyond the first $6,000.

Supporting quotations

You will earn a reward of:

6 percent on the first $6,000 of eligible purchases in a calendar year at supermarkets located in the U.S. (superstores, convenience stores, warehouse clubs, and meal-kit delivery services are not considered supermarkets)

Qualifications & exceptions

• Applies only to eligible purchases (see the earning rules), and only the first $6,000 in a calendar year at U.S. supermarkets.
• Superstores, convenience stores, warehouse clubs and meal-kit delivery services are not considered supermarkets.
• Which stores count is decided by merchant category codes (see the merchant codes card).

Not stated here

• The agreement does not state the rate for supermarket purchases beyond the first $6,000; the only other rate stated is 1 percent on all other eligible purchases, and the text does not say whether that applies.

Charges & Financial Obligations · Company commitment

6% back on U.S. streaming subscriptions from select providers; bundled or third-party-billed ones may not qualify

You earn 6 percent on eligible purchases of U.S. streaming subscriptions from select providers. The current list of select providers is at americanexpress.com/rewards-info, which is not part of this document. If your subscription is bundled with another product or service, or billed by a third party such as a digital platform, a cable, telecommunications or internet provider, or a car manufacturer, your purchase may not be eligible.

Supporting quotations

6 percent on eligible purchases of U.S. streaming subscriptions from select providers (the current list of select providers is available at americanexpress.com/rewards-info).

If your subscription is bundled with another product or service or billed by a third party (such as a digital platform, a cable, telecommunications, or internet provider, or a car manufacturer), your purchase may not be eligible;

Qualifications & exceptions

• Only streaming subscriptions from select providers on a list kept at americanexpress.com/rewards-info.
• Bundled subscriptions and subscriptions billed by a third party (digital platform, cable, telecom or internet provider, car manufacturer) may not be eligible; the text says "may not", not that they never are.

Not stated here

• The list of select streaming providers is not in the supplied agreement.
• The text does not say how American Express decides whether a given bundled or third-party-billed subscription is eligible.

Charges & Financial Obligations · Company commitment

3% back at U.S. gas stations and on transit; 1% back on all other eligible purchases

You earn 3 percent on eligible purchases of gasoline at gasoline stations located in the U.S. Superstores, supermarkets and warehouse clubs that sell gasoline are not considered gas stations. You earn 3 percent on eligible purchases on transit, including trains, taxicabs, ride share services, ferries, tolls, parking, buses and subways. Airfare, car rental and cruises are not considered transit. All other eligible purchases earn 1 percent.

Supporting quotations

3 percent on eligible purchases of gasoline at gasoline stations located in the U.S. (superstores, supermarkets and warehouse clubs that sell gasoline are not considered gas stations);

3 percent on eligible purchases on transit, including trains, taxicabs, ride share services, ferries, tolls, parking, buses, and subways (airfare, car rental and cruises are not considered transit); and 1 percent on all other eligible purchases.

Qualifications & exceptions

• The gasoline rate applies to gasoline at gas stations in the U.S.; sellers such as superstores, supermarkets and warehouse clubs are not considered gas stations even if they sell gasoline.
• Airfare, car rental and cruises are expressly outside transit.
• The 1 percent rate is for eligible purchases that do not fall in a higher category.

Charges & Financial Obligations · Restriction or exception

Reward categories follow merchant codes; inaccurate or indirect purchase data can mean no bonus rewards

Merchants are assigned codes based on what they primarily sell. American Express groups certain merchant codes into the categories that earn additional rewards, and a purchase with a merchant whose code is not in a reward category does not earn additional rewards. You may also not receive additional rewards if American Express receives inaccurate information or cannot identify the purchase as eligible for a category. The examples include when a merchant uses a third party to sell its products or services, when a merchant uses a third party to process or submit your transaction (for example mobile or wireless card readers), or when you pay through a third-party payment account or a mobile or digital wallet. For questions about additional rewards on a purchase, call the number on the back of your Card; americanexpress.com/rewards-info has more information.

Supporting quotations

Merchants are assigned codes based on what they primarily sell. We group certain merchant codes into categories that are eligible for additional rewards. A purchase with a merchant will not earn additional rewards if the merchant's code is not included in a reward category.

You may not receive additional rewards if we receive inaccurate information or are otherwise unable to identify your purchase as eligible for a reward category.

a merchant uses a third-party to sell their products or services; or a merchant uses a third-party to process or submit your transaction to us (e.g., using mobile or wireless card readers); or you choose to make a purchase using a third-party payment account or make a purchase using a mobile or digital wallet.

For questions about additional rewards on a purchase, call the number on the back of your Card.

Qualifications & exceptions

• Category depends on the merchant's assigned code, not on what the item bought actually was.
• The listed situations are examples ("for example"), not a complete list; the wording is "may not receive".
• More information is available at americanexpress.com/rewards-info, which is not part of this agreement.

Not stated here

• Which merchant codes are grouped into each category is not listed in the agreement.

Charges & Financial Obligations · Restriction or exception

No reward dollars for a billing period if the Minimum Payment Due is not paid on time; credits reduce rewards

You will not earn reward dollars for eligible purchases posted during a billing period if the Minimum Payment Due on that period's statement is not paid by the Payment Due Date shown on the statement. Credits for eligible purchases reduce the number of reward dollars you earn. Eligible purchases are defined as purchases for goods and services minus returns and other credits.

Supporting quotations

You will not earn reward dollars for eligible purchases posted to your Card Account during a billing period if the Minimum Payment Due shown on the statement for that billing period is not paid by the Payment Due Date shown on that statement.

Credits for eligible purchases will reduce the number of reward dollars you earn.

Eligible purchases are purchases made on your Card for goods and services minus returns and other credits.

Qualifications & exceptions

• The condition is tied to the Minimum Payment Due and the Payment Due Date on that billing period's statement.
• The text says reward dollars are not earned for that billing period's eligible purchases, and does not say whether earlier reward dollars are affected.

Not stated here

• The agreement does not say whether reward dollars withheld for a missed minimum payment can be restored by a later payment.

Charges & Financial Obligations · User right or choice

Reward dollars can be redeemed as statement credits at $1 each, but not toward the Minimum Payment Due

You can redeem reward dollars for statement credits with no minimum redemption amount. The statement credit appears on your Card Account within 3 days and applies to the billing period in which it appears. Reward dollars redeemed for a statement credit cannot be used to pay your Minimum Payment Due. Redemption is a statement credit of $1 per reward dollar, and partial reward dollars are redeemed at the equivalent amount (for example, 32.11 reward dollars for a $32.11 credit). American Express may, at its option, offer other ways to redeem from time to time, such as gift cards or merchandise. You cannot redeem reward dollars if your Card Account is cancelled or past due.

Supporting quotations

You can redeem reward dollars for statement credits with no minimum redemption amount. The statement credit will appear on your Card Account within 3 days and will apply to the billing period in which it appears.

Reward Dollars redeemed for a statement credit cannot be used to pay your Minimum Payment Due. Redemption will be in the form of a statement credit of $1 for every reward dollar redeemed.

From time to time we may, at our option, offer you other ways to redeem reward dollars, such as for gift cards or merchandise.

You cannot redeem reward dollars if your Card Account is cancelled or past due.

Qualifications & exceptions

• A statement credit cannot be used to pay the Minimum Payment Due.
• Other redemption options (gift cards, merchandise) are offered only "from time to time" and "at our option".
• Redemption is blocked while the Account is cancelled or past due, subject to the New York rule.

Cross-references

• has exception (model-proposed): New York Card Members get 90 days to redeem after cancellation notice and can redeem while past due, by phone — New York Card Members can redeem while past due and for 90 days after notice of cancellation, an exception to the general bar on redeeming reward dollars when the Account is cancelled or past due.

Charges & Financial Obligations · User right or choice

New York Card Members get 90 days to redeem after cancellation notice and can redeem while past due, by phone

For New York Card Members (Accounts with a New York billing address), the general bar on redeeming when an Account is cancelled or past due is relaxed. New York Card Members have 90 days from notification of cancellation to redeem reward dollars and can also redeem while the Account is past due. They must call the number on the back of the Card to redeem after notice of cancellation or while past due, and cannot redeem in the online Account or mobile app in those situations. The forfeiture rule is similarly softened: New York Card Members receive 90 days from notification of cancellation to redeem.

Supporting quotations

New York Card Members receive 90 days to redeem reward dollars from notification of the cancellation of your Card Account. New York Card Members can also redeem reward dollars while their Card Account is past due. You must call the number on the back of your Card to redeem after notification of account cancellation or while your account is past due. You will not be able to redeem in your online Account or mobile application.

You are a New York Card Member if your Card Account has a New York billing address.

New York Card Members receive 90 days to redeem reward dollars from notification of the cancellation of your Card Account.

Qualifications & exceptions

• Applies only if the Card Account has a New York billing address.
• Redemption in these situations is by phone only, not online or in the mobile application.

Cross-references

• exception to (model-proposed): Reward dollars can be redeemed as statement credits at $1 each, but not toward the Minimum Payment Due — New York Card Members can redeem while past due and for 90 days after notice of cancellation, an exception to the general bar on redeeming reward dollars when the Account is cancelled or past due.
• exception to (model-proposed): You forfeit your entire reward dollar balance if the Account is cancelled for any reason — New York Card Members receive 90 days to redeem from notification of cancellation, which qualifies the rule that the whole reward dollar balance is forfeited on cancellation for any reason.

Charges & Financial Obligations · Restriction or exception

You forfeit your entire reward dollar balance if the Account is cancelled for any reason

You will forfeit your entire reward dollar balance if your Card Account is cancelled for any reason. New York Card Members receive 90 days to redeem from notification of cancellation. Separately, if you violate or abuse the program, you may forfeit some or all of your accrued reward dollars.

Supporting quotations

You will forfeit your entire reward dollar balance if your Card Account is cancelled for any reason.

New York Card Members receive 90 days to redeem reward dollars from notification of the cancellation of your Card Account.

If you violate or abuse this program, you may forfeit some or all of your accrued reward dollars

Qualifications & exceptions

• The forfeiture trigger is cancellation "for any reason", which is broad and includes cancellation by either side as the text does not limit it.
• New York Card Members have a 90-day redemption window from notification of cancellation.
• Program violation or abuse can lead to loss of some or all accrued reward dollars ("may forfeit").

Not stated here

• The agreement does not define "violate or abuse this program".

Cross-references

• has exception (model-proposed): New York Card Members get 90 days to redeem after cancellation notice and can redeem while past due, by phone — New York Card Members receive 90 days to redeem from notification of cancellation, which qualifies the rule that the whole reward dollar balance is forfeited on cancellation for any reason.

Charges & Financial Obligations · Context

The Reward Dollars Summary on your statement is informational and can show a negative balance

The Reward Dollars Summary on a billing statement is for informational purposes only and does not show the actual reward dollars you may be entitled to. For example, a credit to your Card Account for eligible purchases can lower the reward dollars shown. If a credit puts your eligible purchases in a negative status, the summary shows a negative balance, and continues to do so until you accumulate eligible purchases exceeding the negative amount.

Supporting quotations

The reward dollars shown on your billing statement under the heading Reward Dollars Summary is only for informational purposes. It does not show the actual reward dollars that you may be entitled to receive.

If a credit to your Card Account places your eligible purchases in a negative status, the Reward Dollars Summary on your billing statement will show a negative balance. It will continue to show a negative balance until you accumulate eligible purchases exceeding the negative eligible purchases.

Qualifications & exceptions

• The summary is not a statement of entitlement.

Charges & Financial Obligations · Restriction or exception

Rewards are for personal use, are not cash, and American Express may change the program at its discretion

You only receive rewards for eligible purchases for personal, family or household use. Reward dollars are redeemable for rewards as described, and they are not cash. American Express may change the terms of the program at its discretion.

Supporting quotations

You will only receive rewards for eligible purchases for personal, family or household use.

Reward dollars are redeemable for rewards as described above, they are not cash.

We may change the terms of this program at our discretion.

Qualifications & exceptions

• Business purchases are not stated to earn rewards: only purchases for personal, family or household use do.

Not stated here

• The agreement does not say whether or how it will notify you of program changes.

Charges & Financial Obligations · Permission or license

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

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 qualifying purchases or a qualifying amount and a plan duration, and you can view the monthly plan payments, including the plan fee, before you create it. Each plan fee is disclosed before you create the plan and is based on the plan duration, the APR that would otherwise apply to the purchase amount(s), and other factors. Once set up, the purchases or amount are added to a plan balance and subject to a plan fee instead of the APR for purchases. A qualifying purchase is a purchase of at least a specified dollar amount, and a qualifying amount is a specified portion of your balance. Qualifying purchases (or a qualifying amount, if you have a Card with a Credit Limit) exclude cash or cash equivalents, balance transfers (if offered), purchases subject to Foreign Transaction Fees and any fee owed to American Express, such as Annual Fees.

Supporting quotations

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

You may use this feature by selecting qualifying purchases or a qualifying amount and a plan duration. You will be able to view the monthly plan payments, including the plan fee, for your selection.

Each plan fee will be disclosed before you create the applicable plan and will be based on the plan duration, the APR that would otherwise apply to the purchase amount(s), and other factors.

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

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

Qualifying purchases (or a qualifying amount, if you have a Card with a Credit Limit) do not include purchases of cash or cash equivalents, balance transfers (if offered), purchases subject to Foreign Transaction Fees, or any fee owed to us, such as Annual Fees.

Qualifications & exceptions

• Plan It is something American Express "may offer", not a guaranteed feature.
• The plan fee replaces the purchase APR for the plan balance.
• Purchases subject to Foreign Transaction Fees, cash or cash equivalents, balance transfers and fees owed to American Express do not qualify.

Not stated here

• The specified dollar amount for a qualifying purchase and the specified portion of balance for a qualifying amount are not stated in the agreement.
• The "other factors" behind the plan fee are not listed.

Cross-references

• refers to (model-proposed): Plan It plans carry a monthly plan fee of up to 1.33%, a fixed finance charge — Part 2 describes how Plan It works, including that the plan balance bears the plan fee instead of the purchase APR, which the Part 1 plan fee row summarizes.

Charges & Financial Obligations · Restriction or exception

Your ability to create plans depends on creditworthiness and account status, and American Express can change plan limits

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

Supporting quotations

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

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

We will tell you the number of active plans you may have and we may change this number at any time.

The plan durations offered to you, and your ability to include multiple qualifying purchases or a qualifying amount in a single plan, will be at our discretion and will be based on a variety of factors such as your creditworthiness, the purchase amount(s), and your Account history.

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

Qualifications & exceptions

• The conditions that block plan creation cover any of your American Express accounts, not only this one.
• The number of active plans and the durations offered are discretionary and can change at any time.

Not stated here

• The agreement does not list all the factors, and does not state the number of active plans allowed.

Charges & Financial Obligations · Restriction or exception

Plans cannot be cancelled once created, but you can pay one off early to stop future plan fees

Plans cannot be cancelled after they are 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 any future plan fees on that plan.

Supporting quotations

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

Qualifications & exceptions

• The early payoff route is paying the full New Balance from your most recent billing statement; it is not stated as a separate plan-only payment.

Charges & Financial Obligations · Company practice

You promise to pay all charges on the Account, including those made by Additional Card Members or others you allow

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

Supporting quotations

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

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

Qualifications & exceptions

• Responsibility covers charges that others make with your permission, and charges made without presenting the Card or signing.

Charges & Financial Obligations · Procedure

Pay in U.S. dollars by check, negotiable instrument or electronic payment; mail a separate payment per Account

Payments are made in U.S. dollars by a single check drawn on a U.S. bank, by a single negotiable instrument clearable through the U.S. banking system (for example a money order), or by an electronic payment that can be cleared through the U.S. banking system. For payments 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.

Supporting quotations

Make payments to us 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

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

When making a payment by mail:

make a separate payment for each Account

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

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

Qualifications & exceptions

• Each method has to be clearable through the U.S. banking system.

Charges & Financial Obligations · Procedure

Compliant payments are credited the day received, non-compliant ones may be delayed, foreign-currency ones are refused

If your payment meets the requirements, American Express credits it to your Account as of the day it receives it, as long as it arrives by the time and in the manner disclosed on your billing statement; if received after that time it is credited the next day. If a payment does not meet the requirements, crediting may be delayed, which may result in late payment fees and additional interest charges. American Express will not accept a payment 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 restrictive language, that has no effect on its rights and does not change the Agreement.

Supporting quotations

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

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

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

• Credit date depends on the statement-disclosed time and manner of payment.
• Processing a late, partial or restricted-language payment does not waive any right of American Express.

Charges & Financial Obligations · Procedure

Payment order: the minimum goes to plans and the lowest-rate balance first; any excess to the highest-rate balance first

Your Account may have balances at different interest rates (for example purchases at a lower rate than cash advances) and plan balances with plan fees. American Express says it generally applies payments in a billing period this way. Up to the Minimum Payment Due, payments go first to any plan amounts included in the Minimum Payment Due, then to the balance with the lowest interest rate, then to balances with higher rates. After the Minimum Payment Due is paid, payments go to the balance with the highest interest rate, then to lower-rate balances, and then to any plan balances. In most cases a credit is applied to the same balance as the related charge, such as a purchase credit to the purchase balance. 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 same payment order, so plan balances may be paid before they otherwise would be. If you receive a credit for a purchase placed into a plan, you must call the number on the back of your Card to have the credit applied to the plan balance.

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.

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.

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

• The order is described with the word "generally"; American Express keeps discretion within balances and among balances with the same interest rate.
• Because amounts above the Minimum Payment Due go to the highest-rate balance first, extra payments go first toward the most expensive balance, and plan balances come last.
• A purchase credit for a purchase in a plan is not applied to the plan balance automatically: you must call.

Charges & Financial Obligations · Procedure

Interest is figured on each balance by average daily balance times daily periodic rate times days in the billing period

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 a billing period is the sum of the interest on each balance. Except for rounding, interest on a balance equals the Average Daily Balance multiplied by the Daily Periodic Rate (DPR) multiplied 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

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.

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

Average Daily Balance (ADB) multiplied by

Daily Periodic Rate (DPR) multiplied by

number of days in the billing period.

DPR: A DPR is 1/365th of an APR, rounded to one ten-thousandth of a percentage point. Your DPRs are shown in How Rates and Fees Work in Part 1.

Qualifications & exceptions

• Each balance with a different rate is figured separately and the results added.
• Results can vary slightly because of rounding.

Not stated here

• The agreement says "Your DPRs are shown in How Rates and Fees Work in Part 1", but the published agreement does not list any Daily Periodic Rate: its How Rates and Fees Work section in Part 1 gives APRs as Prime Rate plus a margin and no DPR values. This analysis does not compute DPR values from the APRs or take them from any other agreement.

Cross-references

• defined by (model-proposed): ADB and DPR are defined here; the agreement points to Part 1 for your DPRs but does not list any — Part 2 defines the DPR used in the interest formula as 1/365th of an APR and refers to Part 1 for values that the published Part 1 does not list.

Charges & Financial Obligations · Context

ADB and DPR are defined here; the agreement points to Part 1 for your DPRs but does not list any

Part 2 explains that 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, and that a Daily Periodic Rate (DPR) is 1/365th of an APR, rounded to one ten-thousandth of a percentage point. It then says "Your DPRs are shown in How Rates and Fees Work in Part 1." The public Part 1 does not do this: its How Rates and Fees Work section holds only the Explanation of Variable Rates, Determining the Prime Rate and the Fees and limits text, and the Rates and Fees Table gives APRs as the Prime Rate plus a margin (some as a range) with no DPR values. Because variable APRs change with the Prime Rate, the corresponding DPRs change too.

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.

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

Qualifications & exceptions

• A DPR is derived from an APR (1/365th of it) and so moves with variable APRs when the Prime Rate changes.
• The reference to Part 1 is a gap in this published agreement; it may refer to a Card Member's personal Part 1, which is not supplied.

Not stated here

• The published agreement does not show any DPR. This analysis does not compute DPR values from the APRs or take them from another agreement or a personal Part 1.

Cross-references

• defines (model-proposed): Interest is figured on each balance by average daily balance times daily periodic rate times days in the billing period — Part 2 defines the DPR used in the interest formula as 1/365th of an APR and refers to Part 1 for values that the published Part 1 does not list.

Charges & Financial Obligations · Context

Worked example: a 15.99% rate, $2,250 average daily balance and 30 days 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 it gives as 0.0438%. Interest is $2,250 multiplied by 0.0438% multiplied by 30 days, which equals $29.57.

Supporting quotations

EXAMPLE: Calculating Interest

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

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

Qualifications & exceptions

• The 15.99% rate is a made-up illustration and is not a rate stated for this card.

Charges & Financial Obligations · Procedure

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

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, and a negative daily balance is treated as zero. 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 an amount of interest equal to that daily balance multiplied by the DPR. The agreement states this results in daily compounding of interest.

Supporting quotations

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

taking the beginning balance for the day,

adding any new charges,

subtracting any payments or credits; and

making any appropriate adjustments.

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

For the first day of a billing period, the beginning balance is the ending balance for the prior billing period, including unpaid interest. 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 becomes part of the balance that later interest is charged on.

Charges & Financial Obligations · Permission or license

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

To figure the ADB and interest charges, 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 must produce equivalent results; the choice not to charge interest on certain charges is American Express's.

Not stated here

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

Charges & Financial Obligations · Restriction or exception

You agree to pay American Express's 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

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

Qualifications & exceptions

• Only reasonable costs, but they include attorneys' fees.

Charges & Financial Obligations · Permission or license

Paying by check authorizes a one-time electronic withdrawal, possibly the same day, with the check not returned

When you pay American Express by check, you authorize it to use information from your check, such as the routing number, account number and check serial number, to make a one-time electronic fund transfer from your bank or other asset account. Your payment may be withdrawn as soon as the same day American Express receives your check, and you will not receive that check back from your bank or financial institution. In certain circumstances, American Express may process your payment as a check transaction.

Supporting quotations

When you pay us by check, you authorize us to use information from your check (such as routing number, account number and check serial number) to make a one-time electronic fund transfer from your bank or other asset account.

your payment may be withdrawn from your bank or other asset account as soon as the same day we receive your check, and you will not receive that check back from your bank or financial institution. In certain circumstances, we may process your payment as a check transaction.

Qualifications & exceptions

• The authorization covers a one-time electronic fund transfer using information from the check.
• The check is not returned to you, and the withdrawal can be the same day.

Not stated here

• "Certain circumstances" in which the payment is processed as a check transaction are not described.

Charges & Financial Obligations · Company practice

Foreign currency charges are converted to U.S. dollars by AE Exposure Management Ltd. at a rate it chooses

If you make a charge in a foreign currency, AE Exposure Management Ltd. (AEEML) converts it into U.S. dollars on the date American Express or its agents process it, and you are billed in U.S. dollars based on that conversion. Unless a particular rate is required by law, AEEML chooses a 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. That 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. The 2.7% foreign transaction fee is figured on the converted U.S. dollar amount.

Supporting quotations

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

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

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

Qualifications & exceptions

• The conversion date is the processing date, not the date of your charge, so the rate can differ from the rate on the date of the charge.
• The rate is a ceiling ("no more than" the highest official or interbank rate), not a promise of the best rate.
• Where an establishment converts the charge, its rate is used.

Not stated here

• The agreement does not publish the actual conversion rate or any margin; the text only sets an upper bound.

Charges & Financial Obligations · User right or choice

Oregon residents: service charges not above those permitted by law, and you may pay more than the minimum at any time

The Oregon notice says service charges not in excess of those permitted by law will be charged on the outstanding balances from month to month, and that 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 State: no interest for delay in posting a credit, per the cited Washington statute

The Washington 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 American Express of the merchant's delay in posting the credit, or from American Express's failure to post such a credit to your Account within three working days of its receipt of the credit.

Supporting quotations

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

Qualifications & exceptions

• The notice is addressed to residents of Washington State.
• Interest relief is limited to charges that result solely from the delay.

Not stated here

• The sentence joins the merchant-delay case, which mentions that you have notified American Express, with American Express's own failure to post within three working days using "or"; the text does not say whether your notice is also required for the second case.
• The text of the cited statute is not supplied, so this card does not describe the statute beyond what the notice says.