Delta SkyMiles® Reserve American Express Card Agreement

Charges & Financial Obligations · Company practice

Purchase APR is variable: Prime Rate plus 12.74% to Prime Rate plus 21.74%

The Rates and Fees Table gives the Annual Percentage Rate for purchases as a range, Prime Rate + 12.74% to Prime Rate + 21.74%. It is a variable APR, so it moves with the Prime Rate as explained under 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.

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

Qualifications & exceptions

• Variable rate: the APR changes when the Prime Rate changes (see the variable-rate card).
• The table gives a range, not one rate.

Not stated here

• The text does not say what determines where within the 12.74% to 21.74% margin range a given Account falls.
• The current numeric Prime Rate is not stated, so the table does not show a numeric APR.
• The agreement does not show Daily Periodic Rate values for these APRs.

Charges & Financial Obligations · Company practice

Cash advance APR is variable: Prime Rate plus 21.99%

The APR for cash advances is Prime Rate + 21.99%, a variable APR that moves with the Prime Rate. Cash advances carry a different, higher margin than purchases.

Supporting quotations

APR for Cash Advances

Prime Rate + 21.99%

This is a variable APR. See Explanation of Variable Rates below.

Qualifications & exceptions

• Variable rate: see the variable-rate card.
• Separate rate from purchases; payments are applied across balances with different rates as Part 2 describes.

Not stated here

• The current numeric Prime Rate is not stated here.

Charges & Financial Obligations · Restriction or exception

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

The Penalty APR is Prime Rate + 26.74%, a variable APR. The issuer says it has the right to apply it to new Transactions if either (1) you do not pay at least the Minimum Payment Due by the Payment Due Date, or (2) your payment is returned by your bank. If it is applied, it lasts at least 6 months. The issuer reviews the Account every 6 months after the Penalty APR is applied, and it continues until you have made timely payments with no returned payments during the 6 months being reviewed.

Supporting quotations

Penalty APR and When it Applies

Prime Rate + 26.74% This is a variable APR.

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

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

Qualifications & exceptions

• Applies to new Transactions, per the table text.
• "Have the right to apply" is permissive: the text does not say it is applied automatically on every missed or returned payment.
• Minimum duration is at least 6 months; the end depends on a review every 6 months showing timely payments and no returned payments.

Not stated here

• The sentence "your payment is returned by your bank and we will notify you if we do" is ambiguous about whether "we will notify you" refers to applying the Penalty APR or to the returned payment; the text does not say.
• The text does not say whether balances that already exist are repriced; it speaks only of new Transactions.
• The text does not say how the 6-month review is carried out or whether a notice follows each review.

Charges & Financial Obligations · Company practice

Variable APRs follow the Prime Rate from the first day of the billing period and will not exceed 29.99%

If the Prime Rate increases, variable APRs and the corresponding Daily Periodic Rates increase, so you may pay more interest and may have a higher Minimum Payment Due. When the Prime Rate changes, the resulting APR changes take effect as of 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

• A change takes effect from the first day of the billing period in which the Prime Rate changed, so it can apply to days before the change.
• The 29.99% ceiling is stated for variable APRs; the text does not say whether it also caps the Penalty APR beyond that wording.

Not stated here

• The text says what happens if the Prime Rate increases; it does not spell out the corresponding effect of a decrease.
• The Daily Periodic Rate values are not shown in the agreement.

Charges & Financial Obligations · Context

Prime Rate means the highest Wall Street Journal U.S. Prime Rate on the billing period Closing Date

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

Supporting quotations

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

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

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

Qualifications & exceptions

• The substitute newspaper is chosen by the issuer ("may use"); no specific publication is named.

Charges & Financial Obligations · Company practice

No purchase interest if the whole balance is paid by the due date; cash advance interest starts on the transaction date

The table says the Due Date is at least 25 days after the close of each billing period. The issuer will not charge interest on purchases if you pay your entire balance each month by the due date. If you have a plan outstanding, the test is paying your balance adjusted for plans. Interest on cash advances begins on the transaction date. A later list in How We Calculate and When We Charge Interest adds that, with an active Plan It plan, paying at least the Balance Adjusted for Plans (or Adjusted Balance) by the Payment Due Date puts you in 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.

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

Qualifications & exceptions

• The no-interest result applies to purchases only; cash advances accrue interest from the transaction date.
• The condition is paying the entire balance (or, with a plan outstanding, the balance adjusted for plans) by the due date, not just the Minimum Payment Due.

Not stated here

• This table row says "the entire balance"; the later grace-period list says "New Balance"; the text does not explain whether these are meant to differ.

Cross-references

• qualified by (model-proposed): Purchases earn no interest during an Interest Free Period, which you enter by paying the New Balance by the due date — The grace-period list states the Interest Free Period test as paying the New Balance by the Payment Due Date (or having no previous balance), which qualifies the table row that speaks of paying the entire balance by the due date.

Charges & Financial Obligations · Company practice

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

A Plan Fee (Fixed Finance Charge) is a monthly fee of up to 1.33% of each purchase or amount moved into a plan. Its size depends on the plan duration, the APR that would otherwise apply to the purchase, and other factors. It is a fixed finance charge charged each month a plan is active. The dollar amount of the plan fee is disclosed before you set up a plan. The Part 2 description of the feature adds that purchases or amounts put in a plan are subject to a 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.

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

Qualifications & exceptions

• "Up to 1.33%" is a ceiling; the actual percentage depends on duration, the otherwise-applicable APR and other factors.
• Charged monthly while a plan is active.

Not stated here

• "Other factors" are not named.
• The actual plan fee for a given plan is disclosed only at set-up, not in this text.

Charges & Financial Obligations · Company practice

Annual fee is $650; each additional Delta Reserve card costs $175

The Rates and Fees Table lists the Annual Fee as $650. How Rates and Fees Work points back to that table entry. For each additional Delta Reserve card the issuer will charge $175.

Supporting quotations

Annual Fee | $650

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

We will charge $175 for each additional Delta Reserve card.

Qualifications & exceptions

• The $175 charge is per additional card.
• Fees are generally added to the purchase balance (see the fees-added card). Refund of an annual fee is addressed in Part 3, closing your Account, and is not repeated here.

Not stated here

• The text does not say here when the annual fee is billed or how often.

Cross-references

• qualified by (model-proposed): You may close the Account by calling or writing; the annual fee is refunded only within 30 days of its statement — The Annual Fee is refunded only if you close the Account within 30 days after the Closing Date of the statement showing the fee, and the refund does not apply to Massachusetts billing addresses.

Charges & Financial Obligations · Company practice

Fees go to the purchase balance unless the issuer says otherwise; the cash advance fee goes to the cash advance balance

The issuer adds fees to a purchase balance unless it tells you otherwise. The cash advance fee is the stated exception: it is added to the Cash Advance balance. Which balance a fee lands in matters because balances carry different interest rates.

Supporting quotations

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

We will add this fee to the Cash Advance balance.

Qualifications & exceptions

• "Unless we tell you otherwise" lets the issuer place a fee elsewhere; the text gives no further rule.

Not stated here

• The text does not list every fee and the balance it is added to.

Charges & Financial Obligations · Company practice

Cash advance fee is 5% of the cash advance, minimum $10, and the ATM operator fee counts in the amount

The table says the fee is either $10 or 5% of the amount of each cash advance, whichever is greater. How Rates and Fees Work gives it as 5% of the cash advance transaction, including any fees charged by the ATM operator, with a minimum of $10.

Supporting quotations

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

5% of the cash advance transaction (including fees charged by the ATM operator, if any), with a minimum of $10.

Qualifications & exceptions

• The fee base includes fees charged by the ATM operator, if any.

Charges & Financial Obligations · Company practice

No foreign transaction fee

The Transaction Fees row lists Cash Advance and Foreign Transaction in that order, with the values "Either $10 or 5% ... whichever is greater." and "None". So the Foreign Transaction fee is None, which How Rates and Fees Work confirms: "Foreign Transaction: None."

Supporting quotations

Transaction Fees • Cash Advance • Foreign Transaction

None

Foreign Transaction: None.

Qualifications & exceptions

• Part 3 separately describes how a foreign-currency charge is converted to U.S. dollars; the exchange rate used is not a fee line in this table.

Not stated here

• The conversion rate AE Exposure Management Ltd. uses is described in Part 3 and may differ from the rate on the day of the charge.

Charges & Financial Obligations · Company practice

Late payment fee is $29, then $40 if repeated within 6 billing periods, capped at the prior Minimum Payment Due

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

Supporting quotations

Penalty Fees • Late Payment • Returned Payment • Overlimit

Up to $40. Up to $40. None

Late Payment: Up to $40. If we do not receive the Minimum Payment Due by its Payment Due Date, the fee is $29. If this happens again within the next 6 billing periods, the fee is $40.

However, the late fee on a billing statement will not exceed the Minimum Payment Due on your prior billing statement.

Qualifications & exceptions

• $29 first, $40 on a repeat within the next 6 billing periods.
• Cap: the fee on a statement will not exceed the Minimum Payment Due on the prior statement.

Charges & Financial Obligations · Company practice

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

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

Supporting quotations

Up to $40. Up to $40. None

Returned Payment: Up to $40. If you make a payment that is returned unpaid the first time we present it to your bank, the fee is $29. If you do this again within the same billing period or the next 6 billing periods, the fee is $40.

However, the returned payment fee on a billing statement will not exceed the applicable Minimum Payment Due on your prior billing statement.

Qualifications & exceptions

• The repeat window is the same billing period or the next 6 billing periods.

Charges & Financial Obligations · Company practice

No overlimit fee

The Penalty Fees row lists Late Payment, Returned Payment and Overlimit in that order with values "Up to $40. Up to $40. None", so Overlimit is None. How Rates and Fees Work says "Overlimit: None" and points to Credit Limit and Cash Advance Limit in Part 1.

Supporting quotations

Up to $40. Up to $40. None

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

Qualifications & exceptions

• No overlimit fee does not mean the Credit Limit is never enforced: the same Part 1 describes credit limit rules, and the Minimum Payment Due can include part of an overlimit amount (see the minimum payment card).

Charges & Financial Obligations · Company practice

Returned check fee is $38 plus the unpaid amount

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

Supporting quotations

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

Qualifications & exceptions

• Applies only to checks cashed with the card at approved locations.

Charges & Financial Obligations · Company practice

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

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

Supporting quotations

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

Charges & Financial Obligations · Company practice

The issuer sets and may change your Credit Limit and Cash Advance Limit, even if you pay on time

The issuer assigns a Credit Limit to your Account and may make part of it available for cash advances as a Cash Advance Limit. There may also be a limit on how much you can withdraw from ATMs in a given period. Both limits are shown on page 1 of Part 1 and on each billing statement. The issuer may increase or reduce either limit, even if you pay on time and the Account is not in default. You agree to manage your Account so that your Account balance (including fees and interest) is not more than your Credit Limit and your cash advance balance (including fees and interest) is not more than your Cash Advance Limit.

Supporting quotations

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

The Credit Limit and Cash Advance Limit are shown on page 1 of Part 1 and on each billing statement. 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, and

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

Qualifications & exceptions

• The issuer may reduce limits "even if you pay on time and your Account is not in default".
• The limits you must manage to include fees and interest, not only purchases.

Not stated here

• The text does not give the Credit Limit, the Cash Advance Limit or the ATM withdrawal limit amounts or period; they are shown elsewhere (page 1, statements).
• The text does not say what notice, if any, comes before a reduction.

Cross-references

• contrast (model-proposed): The issuer may approve charges over your Credit Limit with no overlimit fee, but can ask you to repay the excess — You agree to manage the Account so the balance is not more than the Credit Limit, yet the issuer may approve charges that take the balance over it and may then ask you to repay the excess promptly. The text does not say when the issuer asks.

Charges & Financial Obligations · Restriction or exception

The issuer may approve charges over your Credit Limit with no overlimit fee, but can ask you to repay the excess

The issuer may approve charges that push your Account balance over the Credit Limit. If it does, it will not charge an overlimit fee. If the issuer asks you to promptly pay the amount of your balance above the Credit Limit, you agree to do so. A separate minimum payment rule can add part of an overlimit amount to the Minimum Payment Due.

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.

up to 1/24th of any overlimit amount

Qualifications & exceptions

• Approval of an over-limit charge is discretionary ("may approve").
• No overlimit fee, but the Minimum Payment Due can include up to 1/24th of any overlimit amount (see the minimum payment card).

Not stated here

• The text does not define "promptly" or say how the request to repay is made.

Cross-references

• contrast (model-proposed): Minimum Payment Due is the highest of three formulas plus penalty fees, plan payments, past-due and overlimit amounts — The overlimit card says that when the issuer approves charges above the Credit Limit it charges no overlimit fee, while the Minimum Payment Due calculation adds up to 1/24th of any overlimit amount to the minimum. The agreement does not say how the two fit together beyond stating each.
• contrast (model-proposed): The issuer sets and may change your Credit Limit and Cash Advance Limit, even if you pay on time — You agree to manage the Account so the balance is not more than the Credit Limit, yet the issuer may approve charges that take the balance over it and may then ask you to repay the excess promptly. The text does not say when the issuer asks.

Charges & Financial Obligations · Restriction or exception

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

Your person-to-person transactions may not exceed $2,000 within any 30-day period, and you agree to manage your Account so the total in any 30-day period does not exceed that Person-to-Person Limit. The issuer 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.

Supporting quotations

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

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

Qualifications & exceptions

• The $2,000 limit is measured over any 30-day period.
• A person-to-person transaction can also be refused because of the Credit Limit.

Not stated here

• The second sentence says "the applicable person-to-person transaction limit", which may be the $2,000 limit or another applicable limit; the text does not say.

Charges & Financial Obligations · Procedure

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

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

Supporting quotations

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

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

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

$40.

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

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

Qualifications & exceptions

• The three starting formulas exclude penalty fees, overlimit amounts and plan balances from the New Balance used; those items are added back as described.
• Only up to 1/24th of any overlimit amount is added.
• The Minimum Payment Due never exceeds the New Balance.

Cross-references

• contrast (model-proposed): The issuer may approve charges over your Credit Limit with no overlimit fee, but can ask you to repay the excess — The overlimit card says that when the issuer approves charges above the Credit Limit it charges no overlimit fee, while the Minimum Payment Due calculation adds up to 1/24th of any overlimit amount to the minimum. The agreement does not say how the two fit together beyond stating each.

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 works one example. Assume a New Balance of $2,900, interest of $29.57, and no active plans, overlimit amount, penalty fees or past-due amounts. The three formulas give $58.27 ($29.57 plus 1% of $2,900 minus $29.57), $58 (2% of $2,900) and $40. The highest, $58.27, is the starting amount. If the Account has any active plans, overlimit amount, penalty fees or amounts past due, the Minimum Payment Due will be higher.

Supporting quotations

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

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

$58 (2% of $2,900)

$40

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

Qualifications & exceptions

• An illustration only; the example assumes no plans, overlimit amount, penalty fees or past-due amounts.

Charges & Financial Obligations · Company practice

Purchases earn no interest during an Interest Free Period, which you enter by paying the New Balance by the due date

You are not charged interest on purchases when you are in an Interest Free Period. The Account enters an Interest Free Period when you pay your New Balance as shown on your statement by the Payment Due Date, or the Account had no previous balance. When the Account is not in an Interest Free Period, interest is charged on purchases from the date of the transaction. The issuer points to the How we calculate interest section for more detail.

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.

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

Qualifications & exceptions

• The test is paying the New Balance by the Payment Due Date, not the Minimum Payment Due.
• Outside an Interest Free Period, purchase interest runs from the transaction date.

Cross-references

• qualifies (model-proposed): No purchase interest if the whole balance is paid by the due date; cash advance interest starts on the transaction date — The grace-period list states the Interest Free Period test as paying the New Balance by the Payment Due Date (or having no previous balance), which qualifies the table row that speaks of paying the entire balance by the due date.

Charges & Financial Obligations · Company practice

Interest can still appear on the next statement after you return to an Interest Free Period

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

Supporting quotations

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.

Qualifications & exceptions

• Applies when an Account that had been carrying interest pays in full and re-enters the Interest Free Period.

Charges & Financial Obligations · User right or choice

With an active Plan It plan, paying the Balance Adjusted for Plans by the due date enters an Interest Free Period

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, instead of the full New Balance.

Supporting quotations

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

Qualifications & exceptions

• Applies only to an Account with an active Plan It plan.

Not stated here

• The term "Balance Adjusted for Plans" (or "Adjusted Balance") is not defined in this packet; the statement shows the figure.

Charges & Financial Obligations · Company practice

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

Balance Transfers and Cash Advances are charged interest from the date of the transaction and do not have an Interest Free Period. Paying the New Balance on time therefore does not remove interest on those balances.

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.

Charges & Financial Obligations · Company commitment

You earn 1 mile per $1 of eligible purchases; fees, interest, cash advances and person-to-person are excluded

You receive 1 mile for each $1 of eligible purchases on the Card Account. Eligible purchases are purchases of goods and services minus returns and other credits. They do not include fees or interest charges, 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. Part 2 defines a "purchase" as a charge for goods, services, or person-to-person transactions, so the rewards supplement narrows that definition for earning miles.

Supporting quotations

You receive 1 mile for each $1 of eligible purchases on your Delta SkyMiles® Reserve American Express Card(Card Account).

Eligible purchases are purchases for goods and services minus returns and other credits.

Eligible purchases do NOT include: fees or interest charges, 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

A purchase is a charge for goods, services, or person-to-person transactions.

Qualifications & exceptions

• Eligible purchases are net of returns and other credits.
• Excluded categories are listed; the list uses "including" for cash equivalents.

Not stated here

• The text does not say how miles are rounded.
• The linked page americanexpress.com/rewardsinfo is not part of the text supplied.

Cross-references

• narrows (model-proposed): Definitions: a cash advance covers cash equivalents including digital currency, casino chips and betting transactions — Part 2 defines a purchase to include person-to-person transactions, while the rewards supplement lists person-to-person transactions among charges that are not eligible purchases for earning miles. The supplement narrows the definition for rewards.

Charges & Financial Obligations · Company commitment

You earn 2 additional miles (3 total) per $1 on Delta purchases submitted with a Delta merchant code

You receive 2 additional miles, a total of 3, for each $1 of eligible purchases on the Card Account for the listed purchases submitted using a Delta merchant code: air travel on a Delta flight, air travel on a Delta partner flight with a DL flight number, Delta Stays prepaid hotels and vacation rentals, Delta Vacations packages, and other Delta services.

Supporting quotations

You receive 2 additional miles (a total of 3) for each $1 of eligible purchases on your Card Account for the following purchases submitted to us using a Delta merchant code: air travel on a Delta flight air travel on a Delta partner flight with a DL flight number

Delta Stays prepaid hotels and vacation rentals

Delta Vacations® packages other Delta services

Qualifications & exceptions

• The extra miles depend on the purchase being submitted to the issuer using a Delta merchant code.
• The list is run together in this text; it appears to name five types of purchase.

Not stated here

• "Other Delta services" is not defined.
• The text does not say how a purchase's merchant code is determined or what happens if it is not a Delta merchant code.

Cross-references

• has exception (model-proposed): No additional miles for Delta flights bought as part of all-inclusive air or sea tour packages — Delta flights bought as part of all-inclusive air or sea tour packages do not earn the 2 additional miles, an exception to the additional miles for air travel on a Delta flight.

Charges & Financial Obligations · Restriction or exception

No additional miles for Delta flights bought as part of all-inclusive air or sea tour packages

You will not receive the additional miles for purchases of air travel on a Delta flight that are part of all-inclusive air or sea tour packages. The text points to americanexpress.com/rewardsinfo for more information about rewards.

Supporting quotations

You will NOT receive additional miles for: purchases of air travel on a Delta flight that are part of all-inclusive air or sea tour packages

Please visit americanexpress.com/rewardsinfo for more information about rewards.

Qualifications & exceptions

• This limits only the additional miles; whether the 1 mile per $1 base rate applies is not stated here.

Not stated here

• The page americanexpress.com/rewardsinfo is referenced but not supplied, so any further rewards terms there are unknown.

Cross-references

• exception to (model-proposed): You earn 2 additional miles (3 total) per $1 on Delta purchases submitted with a Delta merchant code — Delta flights bought as part of all-inclusive air or sea tour packages do not earn the 2 additional miles, an exception to the additional miles for air travel on a Delta flight.

Charges & Financial Obligations · Permission or license

The issuer may make promotional bonus-mile offers whose terms can differ from the regular miles terms

From time to time the issuer may make promotional offers of bonus miles. Those offers include their own terms about how you can earn the bonus miles and when you can use them. Those offer terms may differ from the terms above on miles earned for charges to the Card Account, including about when you can use the miles.

Supporting quotations

From time to time, we may make promotional offers of bonus miles. These offers include terms about how you can earn the bonus miles and when you can use them. These offer terms may differ from the terms above concerning miles earned for charges to your Card Account, including about when you can use the miles.

Qualifications & exceptions

• Offer terms may differ from the base earning terms, including when miles can be used.

Not stated here

• No specific offer, amount or duration is described; offers are made "from time to time".

Charges & Financial Obligations · Restriction or exception

Promotional bonus miles post 8 to 12 weeks after month end if the account is not cancelled or delinquent

Bonus miles awarded for promotional offers are posted to your Delta SkyMiles account 8 to 12 weeks after the end of each month. To be eligible to earn bonus miles, your account must not be cancelled or delinquent at the time of bonus fulfillment.

Supporting quotations

Bonus miles awarded for promotional offers will be posted to your Delta SkyMiles account 8 to 12 weeks after the end of each month. To be eligible to earn bonus miles, your account must not be cancelled or delinquent at time of bonus fulfillment.

Qualifications & exceptions

• Eligibility is tested at the time of bonus fulfillment, not when the purchase was made.

Not stated here

• "Delinquent" is not defined in this passage.

Charges & Financial Obligations · Restriction or exception

Miles earned in the billing period are forfeited if the Minimum Payment Due is not paid by the Payment Due Date

If the Minimum Payment Due is not paid by the Payment Due Date of the billing period in which it is due, you forfeit the miles you earned for eligible purchases during that billing period. The agreement's example: if a billing period closes January 15, the minimum payment for that billing period is due February 10, and you do not pay it by February 10, you will not earn miles for purchases in the billing period ending February 15. So the miles lost are those for purchases in the billing period in which the missed due date falls.

Supporting quotations

When you will forfeit miles: If the Minimum Payment Due is not paid by the Payment Due Date of the billing period in which it is due, you will forfeit the miles you earned for eligible purchases during that billing period.

For example, if your billing period closes January 15 and the minimum payment for that billing period is due on February 10, and you do not make that minimum payment due by the due date on February 10, then you will not earn miles for purchases in the billing period ending February 15.

Qualifications & exceptions

• The forfeiture is tied to the Minimum Payment Due and its Payment Due Date.
• Per the example, the forfeited miles are for purchases in the billing period containing the missed due date.

Not stated here

• The rule text says "the billing period in which it is due" and the example speaks of a minimum payment "for that billing period" closing January 15; the text does not say in plain words whether miles earned in the earlier period are also affected.
• The example's wording of the closing and due dates is quoted as published.

Cross-references

• qualified by (model-proposed): Forfeited miles can be reinstated within 12 billing periods for a $35 fee if the account is not past due — Forfeited miles can be reinstated within the next 12 billing periods if the Card Account is not past due and a $35 fee is paid.

Charges & Financial Obligations · User right or choice

Forfeited miles can be reinstated within 12 billing periods for a $35 fee if the account is not past due

You may reinstate those forfeited miles within the next 12 billing periods if your Card Account is not past due and you pay a $35 fee.

Supporting quotations

You may reinstate those miles within the next 12 billing periods if your Card Account is not past due and you pay a $35 fee.

Qualifications & exceptions

• Two conditions: the Card Account is not past due, and the $35 fee is paid.
• Window: the next 12 billing periods.

Not stated here

• The text does not say how the reinstatement is requested.

Cross-references

• qualifies (model-proposed): Miles earned in the billing period are forfeited if the Minimum Payment Due is not paid by the Payment Due Date — Forfeited miles can be reinstated within the next 12 billing periods if the Card Account is not past due and a $35 fee is paid.

Charges & Financial Obligations · Restriction or exception

Miles are earned only for eligible purchases intended for personal, family or household use

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

Supporting quotations

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

Not stated here

• The text does not say how the issuer decides whether a purchase is intended for personal, family or household use.

Charges & Financial Obligations · Permission or license

The issuer may change the terms of this reward program at its discretion

The issuer may change the terms of this reward program at its discretion. The text does not tie this to notice or to applicable law, unlike the general right to change the Agreement in Part 2.

Supporting quotations

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

Not stated here

• No notice method or period for reward program changes is stated.

Cross-references

• contrast (model-proposed): The issuer may change the Agreement subject to applicable law; the written Agreement cannot be changed orally — The issuer may change the reward program terms "at our discretion" with no mention of applicable law, while the general right to change the Agreement is "subject to applicable law". The text does not say how the two interact.

Charges & Financial Obligations · Restriction or exception

Violating or abusing the reward program can cost you some or all of your miles

If you violate or abuse this reward program, you may forfeit some or all of your miles.

Supporting quotations

If you violate or abuse this reward program, you may forfeit some or all of your miles.

Not stated here

• "Violate or abuse" is not defined in this passage, and the text does not say who decides.

Charges & Financial Obligations · Context

Definitions: a cash advance covers cash equivalents including digital currency, casino chips and betting transactions

A "charge" is any amount added to the Account, such as purchases, cash advances, balance transfers, fees and interest charges. A "purchase" is a charge for goods, services, or person-to-person transactions. A "cash advance" is a charge to get cash or cash equivalents, including travelers cheques, gift cheques, foreign currency, money orders, digital currency, casino gaming chips, race track wagers, and other offline and online betting transactions. A "balance transfer" is a charge to pay an amount you owe on another credit card account. A "person-to-person transaction" is a charge for funds sent to another person or a charge to add funds to your Amex Send Account. A "plan" is a portion of your account balance that you have selected to pay over time through a set number of monthly payments using Plan It.

Supporting quotations

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

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

A balance transfer is a charge to pay an amount you owe on another credit card account. A person-to-person transaction is a charge for funds sent to another person or a charge to add funds to your Amex SendTM Account.

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

Qualifications & exceptions

• These definitions decide which fee, interest rate and Interest Free Period rules apply: cash advances carry a separate APR, a cash advance fee and no Interest Free Period.
• The rewards supplement excludes cash advances and person-to-person transactions from eligible purchases.

Not stated here

• The text does not list every transaction that counts as "other offline and online betting transactions" or "cash equivalents".

Cross-references

• narrowed by (model-proposed): You earn 1 mile per $1 of eligible purchases; fees, interest, cash advances and person-to-person are excluded — Part 2 defines a purchase to include person-to-person transactions, while the rewards supplement lists person-to-person transactions among charges that are not eligible purchases for earning miles. The supplement narrows the definition for rewards.

Charges & Financial Obligations · Context

Definitions: "pay by" a date means received and credited by then; the Closing Date ends the billing period

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

Supporting quotations

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

• A payment sent on time but received or credited after the date is not "paid by" the date under this definition.

Charges & Financial Obligations · Permission or license

Plan It lets the issuer offer you a payment plan for qualifying purchases, with a monthly plan fee

The issuer may offer Plan It, which lets you create a payment plan for qualifying purchases or a qualifying amount, subject to a plan fee. The plan fee is a fixed finance charge charged each month that a plan is active. Whether you can create a plan depends on a variety of factors such as your creditworthiness and your Credit Limit.

Supporting quotations

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

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

Qualifications & exceptions

• Plan It is offered at the issuer's discretion ("may offer").
• Ability to create plans depends on factors including creditworthiness and Credit Limit.

Not stated here

• The factors are not exhaustive and the actual plan fee is disclosed only when a plan is set up.

Charges & Financial Obligations · Procedure

A Plan It plan moves purchases into a plan balance that carries a plan fee instead of the purchase APR

You select qualifying purchases or a qualifying amount and a plan duration, and you can view the monthly plan payments, including the plan fee, for your selection. Each plan fee is disclosed before you create the plan and is based on the plan duration, the APR that would otherwise apply to the purchase amount(s), and other factors. When you set up a plan, the purchases or amount are added to a plan balance and are subject to a plan fee instead of the APR for purchases. A qualifying purchase is a purchase of at least a specified dollar amount. A qualifying amount is a specified portion of your balance. Qualifying purchases (or a qualifying amount, if you have a Card with a Credit Limit) do not include purchases of cash or cash equivalents, balance transfers (if offered), purchases subject to Foreign Transaction Fees, or any fee owed to the issuer, such as Annual Fees.

Supporting quotations

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

• The plan fee replaces the purchase APR on the plan balance.
• Excluded from plans: cash or cash equivalents, balance transfers (if offered), purchases subject to Foreign Transaction Fees, and fees owed to the issuer such as Annual Fees.

Not stated here

• The "specified dollar amount" and "specified portion of your balance" are not stated here.
• This Card's fee table lists no Foreign Transaction fee, so whether the foreign-transaction exclusion ever applies to this Card is not stated.

Charges & Financial Obligations · Restriction or exception

Plan It plans are not available in several situations, and the issuer sets the number, durations and combinations

Your ability to create plans is based on a variety of factors such as creditworthiness and Credit Limit. You will not be able to 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 that was returned unpaid, or is past due. The issuer will tell you the number of active plans you may have and may change that number at any time. The plan durations offered to you, and your ability to include multiple qualifying purchases or a qualifying amount in a single plan, are at the issuer's discretion and based on factors such as creditworthiness, purchase amount(s) and 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.

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 blocks on creating plans cover your other American Express accounts as well as this one.
• The number of active plans can be changed "at any time".

Not stated here

• "Payment program" is not defined in this passage.
• The number of plans and the plan durations are not stated.

Charges & Financial Obligations · User right or choice

A plan cannot be cancelled, but you can pay it off early by paying the New Balance in full and avoid future plan fees

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

Supporting quotations

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

Qualifications & exceptions

• Early payoff is done by paying the whole New Balance on the most recent statement.

Charges & Financial Obligations · Company commitment

You promise to pay all charges, including those made by people you allow, and at least the Minimum Payment Due on time

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.

Supporting quotations

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

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

Qualifications & exceptions

• Responsibility reaches charges made by people you permit, with or without the Card present or a signature.

Charges & Financial Obligations · Procedure

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

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

Supporting quotations

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

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

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

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

Charges & Financial Obligations · Procedure

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

When making a payment 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

When making a payment by mail:

make a separate payment for each Account,

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

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

Charges & Financial Obligations · Procedure

A compliant payment received on time is credited the day it arrives; a late or noncompliant one may be delayed

If your payment meets the stated requirements, it is credited to your Account as of the day it is received, as long as it is received by the time and in the manner disclosed in your billing statement. If it is received after that time, it is credited the day after it is received. If a payment does not meet the requirements, there may be a delay in crediting your Account, which may result in late payment fees and additional interest charges (see How Rates and Fees Work in Part 1). A payment counts as made by a date only when the issuer receives it and credits it by that date.

Supporting quotations

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

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

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

Qualifications & exceptions

• Crediting date depends on meeting the billing statement's time and manner.
• A delay from a noncompliant payment can lead to late fees and additional interest.

Not stated here

• The cutoff time and manner are stated on the billing statement, not in this text.

Charges & Financial Obligations · Restriction or exception

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

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

Supporting quotations

We will not accept a payment made in a foreign currency or a payment drawn on an account at a bank located outside of the U.S. If we process a late payment, a partial payment, or a payment marked with any restrictive language, that will have no effect on our rights and will not change this Agreement.

Charges & Financial Obligations · Procedure

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

If your Account has balances with different interest rates, Plan balances or Plan fees, the issuer 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 Payment Due, then to the balance with the lowest interest rate, then to balances with higher rates. After the Minimum Payment Due has been paid, payments go to the balance with the highest interest rate, then to balances with lower rates, 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 order is stated as how the issuer "generally" applies payments.
• Payment above the Minimum Payment Due goes to the highest-rate balance first, which includes cash advances if they carry the higher rate.

Charges & Financial Obligations · Procedure

Credits usually go to the balance of the related charge; a credit on a planned purchase needs a call

In most cases the issuer applies a credit to the same balance as the related charge; a credit for a purchase goes to the purchase balance. It may apply payments and credits within balances, and among balances with the same interest rate, in any order it chooses. If any balance is negative at the end of a billing period, the excess credit is redistributed to other balances under the payment order above, so in some cases 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 your Card to have the credit applied to the Plan balance.

Supporting quotations

In most cases, we apply a credit to the same balance as the related charge. 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" - the same-balance rule has stated exceptions.
• A credit on a purchase placed in a plan is applied to the plan only if you call.

Charges & Financial Obligations · Company practice

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

The issuer 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. The Average Daily Balance method (including new transactions) is used to figure interest on 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.

Charges & Financial Obligations · Procedure

Interest for a balance equals Average Daily Balance times the Daily Periodic Rate times the days in the billing period

Except for variations caused by rounding, the interest charged for a balance in a billing period equals the Average Daily Balance (ADB) multiplied by the Daily Periodic Rate (DPR) multiplied by the number of days in the billing period. The ADB for a balance is the sum of its daily balances divided by the number of days in the billing period.

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.

Qualifications & exceptions

• Rounding can cause small variations.

Not stated here

• The actual DPR values are not stated in this agreement (see the DPR card in the packet that defines the DPR).

Cross-references

• qualified by (model-proposed): A DPR is 1/365th of an APR, but this agreement does not list any DPR values although it says they are in Part 1 — The interest formula multiplies by the DPR, and the DPR sentence says the DPRs are shown in Part 1, but the published agreement shows none. The formula therefore cannot be applied to numbers from this document alone.

Charges & Financial Obligations · Context

A DPR is 1/365th of an APR, but this agreement does not list any DPR values although it says they are in Part 1

The agreement defines a DPR (Daily Periodic Rate) as 1/365th of an APR, rounded to one ten-thousandth of a percentage point, and says "Your DPRs are shown in How Rates and Fees Work in Part 1." The published agreement does not show any DPR. Its How Rates and Fees Work section in Part 1 holds the Explanation of Variable Rates, Determining the Prime Rate, Fees, the credit and cash advance limits, the Minimum Payment Due calculation and when interest is charged, and none of these states a DPR. The Rates and Fees Table gives APRs as the Prime Rate plus a margin (some as a range), with no DPR values. This analysis does not calculate DPRs from the APRs or take them from any other agreement or from a cardmember's personal Part 1.

Supporting quotations

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.

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.

Qualifications & exceptions

• The DPR is defined only by its relationship to an APR; each DPR changes when its variable APR changes.

Not stated here

• The DPR values the text says are shown in Part 1 are not in the published agreement, so the daily rate used for any balance is not known from this document.
• The numeric Prime Rate is not stated, so the APRs are not numeric either.

Cross-references

• qualifies (model-proposed): Interest for a balance equals Average Daily Balance times the Daily Periodic Rate times the days in the billing period — The interest formula multiplies by the DPR, and the DPR sentence says the DPRs are shown in Part 1, but the published agreement shows none. The formula therefore cannot be applied to numbers from this document alone.

Charges & Financial Obligations · Context

Worked example: a 15.99% rate, $2,250 ADB and a 30-day period give $29.57 of interest

The agreement works one example. Assume 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

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

• An illustration with an assumed rate; 15.99% is not an APR stated in this Card's Rates and Fees Table.

Charges & Financial Obligations · Procedure

A daily balance adds new charges and subtracts payments and credits, and a negative daily balance counts as zero

The daily balance for each balance is figured by taking the beginning balance for the day, adding any new charges, subtracting any payments or credits, and making any appropriate adjustments. A new charge is added to a daily balance as of its transaction date. 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 the transaction date.
• "Appropriate adjustments" are not described.

Not stated here

• The text does not say what adjustments are made.

Charges & Financial Obligations · Company practice

Interest compounds daily because each day's beginning balance includes the previous day's interest

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

Charges & Financial Obligations · Permission or license

The issuer may use other equivalent interest methods and may choose not to charge interest on certain charges

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

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.

Not stated here

• The text does not say which types of charges might be exempted from interest.

Charges & Financial Obligations · Restriction or exception

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

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

Supporting quotations

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.

Charges & Financial Obligations · Company practice

AE Exposure Management Ltd. converts foreign-currency charges to U.S. dollars at a rate it chooses, within stated limits

If you make a charge in a foreign currency, AE Exposure Management Ltd. ("AEEML") converts it into U.S. dollars on the date the issuer or its agents process it, and the issuer bills you in U.S. dollars on that basis. Unless a particular rate is required by law, AEEML chooses a conversion rate that is acceptable to the issuer for that date. The rate is no more than the highest official rate published by a government agency or the highest interbank rate AEEML identifies from customary banking sources on the conversion date or the prior business day. This 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 when the issuer or its agents process the charge, which may differ from the charge date.
• The text sets a ceiling (no more than the highest official or interbank rate) rather than one fixed rate.
• No foreign transaction fee is listed in the Rates and Fees Table, and this passage describes the conversion rate separately.

Not stated here

• The text does not say how AEEML's rate compares to a typical market rate or whether any markup is included within the stated ceiling.
• The relationship between AEEML and the issuer is not described beyond the name.

Charges & Financial Obligations · User right or choice

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

The notice to Oregon residents says that 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

• Labeled as a notice to Oregon residents; the text does not say how Oregon status is determined (for example by billing address).

Not stated here

• The text does not say whether the Oregon notice changes any rate or fee stated elsewhere.

Charges & Financial Obligations · User right or choice

Notice for Washington residents: no interest caused solely by delay in posting a return credit

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

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

• Applies to interest charges resulting solely from the posting delay.
• The first branch needs you to have notified the issuer of the merchant's delay.

Not stated here

• The statute itself is not supplied; this card relies only on how the agreement words the notice.
• The text does not say how Washington status is determined or how to notify the issuer of a merchant's delay.