This is an example of terms that were available to recent applicants as of 12/31/13. They may not be available now. If you apply, your terms will be based  
on the terms of the offer when you apply. This Pricing Schedule is part of the Cardmember Agreement.

PRICING SCHEDULE

Interest Rates and Interest Charges

Annual Percentage Rate 
(APR) for Purchases

APR for Balance Transfers

From 18.99% to 22.99%. This APR will vary with the market based on the Prime Rate.1

From 18.99% to 22.99%. This APR will vary with the market based on the Prime Rate.1

APR for Cash Advances

24.99%. This APR will vary with the market based on the Prime Rate.1

Penalty APR and
When It Applies

Paying Interest

From up to 27.99% based on your creditworthiness and other factors.
This APR will vary with the market based on the Prime Rate.2 
This APR may be applied to new purchases and balance transfers if you make a late payment.
How Long Will the Penalty APR Apply? If your APRs for new purchases and balance transfers are increased 
for a late payment, the Penalty APR will apply indefinitely.

Your due date is at least 25 days after the close of each billing period (at least 23 days for billing periods that 
begin in February). We will not charge you any interest on purchases if you pay your entire balance by the due 
date each month. We will begin charging interest on cash advances and balance transfers as of the later of the 
transaction date or the first day of the billing period in which the transaction posted to your Account.

Minimum Interest Charge

If you are charged interest, the charge will be no less than $2.00.

Fees

Annual Fee

Balance Transfer Fee 

Cash Advance Fee

Late Fee

Returned Payment Fee

None

3% of the amount of each transfer.

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

Up to $35

Up to $35

How We Will Calculate Your Balance: We will use a method called “daily balance (including current transactions)”. See the Cardmember Agreement  
for details.

1 The purchase and balance transfer APR is equal to the Prime Rate plus a margin from 15.74% to 19.74%.   
   The Cash Advance APR is equal to the Prime Rate plus a margin of 21.74%.
2 The Penalty APR is equal to the Prime Rate plus a margin from up to 24.74%.  

©2014 Discover Bank, Member FDIC 
CMANPR123113

- 1 -

 
CARDMEMBER AGREEMENT

Thank you for choosing Discover® card. This Agreement explains the current terms and conditions of your Account. The enclosed Pricing Schedule is part of this 
Agreement. Please read this Agreement, including the Pricing Schedule, carefully. Keep them for your records. Contact us if you have any questions. We have 
included a “Definitions” section for your reference on page 4.

ACCEPTANCE OF AGREEMENT

You accept this Agreement if you do not cancel your Account within 30 days after receiving a Card. You also accept this 
Agreement if you or an Authorized User use the Account. You may, however, reject the “Arbitration of Disputes” section as 
explained in that section.

CHANGES TO YOUR AGREEMENT

The rates, fees and terms of this Agreement may change from time to time. We may add or delete any term to this 
Agreement. If required by law, we will give you advance written notice of the change(s) and a right to reject the change(s). 
We will not charge any fee or interest charge prohibited by law.

USING YOUR ACCOUNT

Permitted Uses 

You may use your Account for Purchases, Balance Transfers and Cash Advances. You may not use it for illegal transactions.

Authorized Users 

Joint Accounts 

Checks

You may request additional Cards for Authorized Users. You must notify us if you wish to cancel the authority of an Authorized User to use 
your Account.

If your Account is a joint Account:
•	 each	of	you	agrees	to	be	liable	individually	and	jointly	for	the	entire	amount	owed	on	the	Account;	and
•	 any	notice	we	mail	to	an	address	provided	by	either	of	you	for	the	Account	will	serve	as	notice	to	both	of	you.

If we provide you with Checks, we will tell you whether we will treat the Check as a Purchase, Balance Transfer or Cash Advance. You may 
not use these Checks to pay any amount you owe us.

Credit Authorizations 

We may not authorize a transaction for security or other reasons. We will not be liable to you if we decline to authorize a transaction or if 
anyone refuses your Card, Check or Account number.   

  Credit Lines 

We will tell you what your Account credit line is. You must keep your 
Account balance below your Account credit line. If you do not, we 
may request immediate payment of the amount by which you exceed 
it. We may establish a lower credit line for Cash Advances.  

We may increase or decrease your Account credit line or your Cash 
Advance credit line without notice. We may delay increasing your 
available credit by the amount of any payment that we receive for up 
to 10 business days.

FEES  (See your Pricing Schedule for Additional Fees)

Late Fee

Returned Payment Fee 

If you do not pay the Minimum Payment Due by the Payment Due 
Date, we will charge you a Late Fee. The fee is $25 if you were 
not charged a Late Fee during any of the prior six billing periods. 

Otherwise, the fee is $35. This fee will never exceed the Minimum 
Payment Due that was due immediately prior to the date on which 
the fee was assessed.

If you make a payment that is not honored by your financial 
institution, we will charge you a Returned Payment Fee even if the 
payment is honored after we re-submit it. The fee is $25 if you were 
not charged a Returned Payment Fee during any of the prior six 

billing periods. Otherwise, the fee is $35. This fee will never exceed 
the Minimum Payment Due that was due immediately prior to the 
date on which the payment was returned to us.

Returned Check Fee 

We will charge you a Returned Check Fee each time we decline to 
honor a Check. The fee is $25 if you were not charged a Returned 

Check Fee during any of the prior six billing periods. Otherwise, the 
fee is $35. This fee will never exceed the amount of the Check.

- 2 -

ANNUAL PERCENTAGE RATES (“APRs”)  (See your Pricing Schedule for the APRs, including Penalty APRs, that apply to your Account)

Variable APRs 

Penalty APR 

Your Pricing Schedule may include variable APRs. These APRs are 
determined by adding the number of percentage points that we 
specify to the Prime Rate. Variable APRs will increase or decrease 
when the Prime Rate changes. The APR change will take effect 

on the first day of the billing period that begins during the same 
calendar month that the Prime Rate changes. An increase in the 
APR will increase your interest charges and may increase your 
Minimum Payment Due.

When It Applies 
Each time that you do not pay the Minimum Payment Due by the 
Payment Due Date we may:
•	 terminate	any	promotional	APRs	on	new	transactions;	and
•	 increase	your	APRs	for	new	transactions	to	Penalty	APRs.
We will not apply a Penalty APR to Cash Advances.

How It Affects Your Account 
To determine the variable Penalty APR for a new transaction:
•	 We	add	up	to	5	additional	percentage	points	to	the	otherwise		
  applicable APR. 
•	 We	set	your	Penalty	APR	based	on	your	creditworthiness	and	other  
factors. These factors include your current APRs and Account history.  

•	 When	we	first	determine	the	Penalty	APR,	we	use	the	Prime		

  Rate that is in effect for the billing period in which you did not  
  pay the Minimum Payment Due by the Payment Due Date.

EXAMPLE: Assume the promotional rate for Purchases is 2.99% 
and the standard rate for Purchases is 15.99%. If you pay late, 
the rate for all new Purchases could increase up to a variable rate 
of 20.99%.

We Will Notify You 
We will notify you of the date a Penalty APR will take effect. The 
Penalty APR will only apply to new transactions with a Transaction 
Date more than 14 days after we provide the notice to you.

We May Reduce It 
We will review your Account from time to time as required by law 
to determine if any Penalty APR should be reduced.   

MAKING PAYMENTSyour Account)

Payment Instructions 

•	 You	must	pay	us	in	U.S.	dollars.	All	checks	must	be	drawn	on		

Minimum Payment Due

funds on deposit in the U.S. 

•	 You	must	pay	us	for	all	amounts	due	on	your	Account.	This		

includes charges made by Authorized Users.

•	 We	may	refuse	to	accept	a	payment	in	a	foreign	currency.	If	we		
  do accept it, we will charge your Account our cost to convert it  

to U.S. dollars. 

You may pay the entire New Balance shown on your billing statement 
at any time. Each billing period you must pay at least the Minimum 
Payment Due by the Payment Due Date shown on your billing 
statement. The Minimum Payment Due will be the greater of:
•	 $20;	or	
•	 any	past	due	amount	plus	the	greater	of:																												
  – 3% of the New Balance shown on your billing statement   

   (excluding any Interest Charges and Late fee shown on your  
	 billing	statement);	or																														

•	 We can accept late payments, partial payments or payments  
  marked “payment in full” or with any other restrictive  
  endorsement without losing any of our rights under this  
  Agreement.
•	 We	credit	your	payments	in	accordance	with	the	terms		
  contained on your billing statement.    
•	 If	you	mail	your	payment	to	an	address	other	than	the	address		
  designated on your billing statement, there may be a delay in  
  processing and crediting the payment to your Account. 

  – any Interest Charges and Late Fee shown on your billing  

  statement, plus $15 (not to exceed 4% of the New Balance). 
The Minimum Payment Due may also include amounts by which 
you exceed your Account credit line. It will never exceed the New 
Balance. When we calculate the Minimum Payment Due, we may 
subtract from the New Balance certain fees added to your Account 
during the billing period. The Minimum Payment Due is rounded 
up to the nearest dollar. 

How We Apply Payments 

We apply payments and credits at our discretion, including in a 
manner most favorable or convenient for us. In all cases, we will 
apply payments and credits as required by applicable law. Each 

billing period, we will generally apply amounts you pay that exceed 
the Minimum Payment Due to balances with higher APRs before 
balances with lower APRs as of the date we credit your payment.   

INTEREST CHARGESAccount)

How We Calculate Interest 
Charges—Daily Balance 
Method (including current 
transactions)

We calculate interest charges each billing period by first figuring 
the “daily balance” for each Transaction Category. Transaction 
Categories include standard Purchases, standard Cash Advances 
and different promotional balances, such as Balance Transfers.  
How We Figure the Daily Balance for Each Transaction Category 
•	 We	start	with	the	beginning	balance	for	each	day.	The		
  beginning balance for the first day of the billing period is your  
  balance on the last day of your previous billing period.   
•	 We	add	any	interest	charges	accrued	on	the	previous	day’s	daily		
  balance and any new transactions and fees. We add any new  
transactions or fees as of the later of the Transaction Date or  
the first day of the billing period in which the transaction or fee  

  posted to your Account. 
•	 We	subtract	any	new	credits	and	payments.

•	 We	make	other	adjustments	(including	those	adjustments		

required in the “Paying Interest” section).
How We Figure Your Total Interest Charges 
•	 We	multiply	the	daily	balance	for	each	Transaction	Category	by		
its daily periodic rate. We do this for each day in the billing period.  

  This gives us the interest charges for each Transaction Category.  
  To get a daily periodic rate, we divide the APR that applies to the  
  Transaction Category by 365.
•	 We	add	up	all	the	daily	interest	charges.	The	sum	is	the	total		

interest charge for the billing period.

How We Include Fees 
We add Balance Transfer Fees to the applicable Balance Transfer 
Transaction Category. We add Cash Advance Fees to the  
applicable Cash Advance Transaction Category. We add all  
other fees to the standard Purchase Transaction Category.   

- 3 -

 
 
	
 
 
 
 
 
 
 
 
 
Paying Interest

When Interest Charges Begin 
We begin to impose interest charges on a transaction, fee or 
interest charge from the day we add it to the daily balance. We 
continue to impose interest charges until you pay the total amount 
you owe us. You can avoid paying interest on Purchases as 
described below. However, you cannot avoid paying interest on 
Balance Transfers or Cash Advances.  
How to Avoid Paying Interest on Purchases (“Grace Period”) 
If you paid the New Balance on your previous billing statement by 

the Payment Due Date shown on that billing statement, we will 
not impose interest charges on new Purchases, or any portion of 
a new Purchase, paid by the Payment Due Date on your current 
billing statement. New Purchases are Purchases that first appear 
on the current billing statement.
How We Apply Payments May Impact Your Grace Period 
If you do not pay your New Balance in full each month, then, 
depending on the balance to which we apply your payment,  
you may not get a grace period on new Purchases.

OTHER IMPORTANT INFORMATIONINFORMATION

Default

You are in default if:
•	 you	file	bankruptcy	or	another	insolvency	proceeding	is	filed	by		
	 you	or	against	you;	
•	 we	have	a	reasonable	belief	that	you	are	unable	or	unwilling	to		

repay	your	obligations	to	us;	

•	 you	die	or	are	legally	declared	incompetent	or	incapacitated;

•	 you	fail	to	comply	with	the	terms	of	this	Agreement	or	any		
  Agreement with us or an Affiliate, including failing to make a  

required payment when due, exceeding your Account credit line  

  or using your Card or Account for an illegal transaction.
If you are in default, we may declare the entire balance of your 
Account immediately due and payable without notice.

Collection Costs 

If	we	use	an	attorney	to	collect	your	Account,	we	may	charge	you	our	legal	costs	as	permitted	by	law.	These	include	reasonable	attorneys’	
fees, court or other collection costs, and fees and costs of any appeal.  

Merchant Disputes

Automatic Billing  
Arrangements 

Our Privacy Policy 

Reporting to Credit  
Reporting Agencies

Our Communications  
with You 

If you have a dispute with a merchant, you may request a credit to your Account. If we resolve the dispute in your favor, we will issue a credit 
to your Account. You assign to us your claim for the credited amount against the merchant and/or any third party. At our request, you agree to 
provide this assignment in writing.

You may set up automatic billing with a merchant. If your Account number or Card expiration date changes, you authorize us to provide this 
updated information to any such merchant at our discretion. You must contact the merchant directly if you wish to stop automatic billing.

We send you our Privacy Policy when you open your Account and 
annually. Contact us or visit Discover.com if you would like a copy. 
Please read it carefully. It summarizes:
•	 the	personal	information	we	collect;

•	 how	we	safeguard	its	confidentiality	and	security;
•	 when	it	may	be	shared	with	others;	and	
•	 how	you	can	limit	our	sharing	of	this	information.

We may from time to time review your credit, employment and 
income records. We may report the status and payment history of 
your Account to credit reporting agencies and other creditors. We 
normally report to credit reporting agencies each month. 

If you believe that information we reported is inaccurate or  
incomplete, please write us at Discover, PO Box 15316, 
Wilmington, DE 19850-5316. Please include your name, address, 
home phone number and Account number.

You agree that we (and our affiliates, agents, and contractors) 
may monitor or record any calls between you and us. If we need 
to contact you to service your Account or to collect amounts 
you owe to us, you authorize us (and our affiliates, agents, and 
contractors) to contact you at any number (i) you have provided 
to us (ii) from which you called us, or (iii) which we obtained and 

believe we can reach you at. We may contact you in any way, 
such as calling, texting, or e-mail. We may contact you using 
an automated dialer or using pre-recorded messages.  We may 
contact you on a mobile, wireless, or similar device, even if you are 
charged for it by your provider.

Unauthorized Use 

You must notify us immediately if:
•	 your	Card	is	lost	or	stolen;	or	
•	 you	believe	someone	is	using	your	Account	or	a	Card	without	your	permission.	

Cancellation of Your 
Account 

•	 You	may	cancel	your	Account.	You	will	remain	responsible	for		
  any amount you owe us under this Agreement. 
•	 Any	joint	Accountholder	may	cancel	a	joint	Account.	However,		

  both of you will remain responsible for paying all amounts owed.
•	 We	may	cancel,	suspend	or	not	renew	your	Account	at	any	time		
  without notice.

- 4 -

	
 
Purchases and Cash 
Advances in Foreign 
Currencies 

If you make a Purchase or Cash Advance in a foreign currency, we 
will convert it to U.S. dollars using a rate we choose. This rate will 
either be a government-mandated rate, a government-published 
rate or the interbank exchange rate, depending on the country 

and currency in which the transaction is made. We use the rate 
in effect on the conversion date for the transaction. This rate may 
be different than the rate in effect on the Transaction Date for the 
transaction. 

Governing Law 

This Agreement is governed by applicable federal law and by Delaware law. 

Severability 

If any part of this Agreement is found to be invalid, the rest of it will still remain in effect. However, if the Class Action Waiver in the 
“Arbitration of Disputes” section is invalidated in any proceeding in which you and we are involved, then the “Arbitration of Disputes” section 
will be void with respect to that proceeding. 

Enforcing this Agreement 

We may delay enforcing or not enforce any of our rights under this Agreement without losing or waiving any of them.

Assignment of Account 

We may sell, assign or transfer your Account or any portion of it without notice to you. You may not sell, assign or transfer your Account 
without first obtaining our prior written consent. 

CONTACT US

DEFINITIONS

Unless we tell you otherwise, you can notify us:
•	 by	phone	at	1-800	DISCOVER	(1-800-347-2683)	or	
•	 in	writing	to	Discover,	PO	Box	30943,	Salt	Lake	City,	UT		
  84130-0943.  

When writing, please include your name, address, home phone 
number and Account number. You must contact us within 15 days 
after changing your e-mail address, mailing address or phone 
number.

“Account” means your Discover card account.
“Affiliate” means our parent corporations, subsidiaries and 
affiliates.
“Authorized User” means any person you authorize to use your 
Account or a Card, whether you notify us or not. 
“Balance Transfer” means a balance transferred from another 
creditor to your Account.  
“Card” means any one or more Discover cards issued to you or 
someone else with your authorization. 
“Cash Advance” means the use of your Account to:
•	 obtain	cash	from	participating	automated	teller	machines,		
	 financial	institutions	or	other	locations;
•	 purchase	lottery	tickets,	money	orders,	casino	chips,	foreign		
  currency or similar items.
“Check” means any check we send to you to access your Account.  

“Pricing Schedule” means the document entitled, “Pricing 
Schedule”, which lists the APRs that apply to your Account and other 
important information. 
“Prime Rate” means the highest rate of interest listed as the U.S. 
Prime rate in the Money Rates section of The Wall Street Journal on 
the last business day of the month. 
“Purchase” means the use of your Account to purchase or lease 
goods or services at participating merchants.  
 “We,” “us” and “our” refer to Discover Bank, the issuer of your 
Card. 
“You,” “your” or “yours” refer to you and any other person(s) 
who are also contractually liable under this Agreement. 
“Transaction Date” means the date shown on your billing 
statement for a transaction or fee.

- 5 -

ARBITRATION

Agreement  to  arbitrate.  In  the  event  of  a  dispute 
between you and us arising under or relating to this 
Account, either may choose to resolve the dispute by 
binding arbitration, as described below, instead of in 
court.  Any  claim  (except  for  a  claim  challenging  the 
validity or enforceability of this arbitration agreement, 
including  the  Class  Action  Waiver)  may  be  resolved 
by  binding  arbitration  if  either  side  requests  it.  THIS 
MEANS IF EITHER YOU OR WE CHOOSE ARBITRATION, 
NEITHER PARTY SHALL HAVE THE RIGHT TO LITIGATE 
SUCH CLAIM IN COURT OR TO HAVE A JURY TRIAL. 
ALSO DISCOVERY AND APPEAL RIGHTS ARE LIMITED 
IN ARBITRATION.
CLASS  ACTION  WAIVER.  ARBITRATION  MUST  BE 
ON  AN  INDIVIDUAL  BASIS.  THIS  MEANS  NEITHER 
YOU  NOR  WE  MAY 
JOIN  OR  CONSOLIDATE 
CLAIMS  IN  ARBITRATION  BY  OR  AGAINST  OTHER 
IN  COURT  OR 
CARDMEMBERS,  OR  LITIGATE 
ARBITRATE ANY CLAIMS AS A REPRESENTATIVE OR 
MEMBER  OF  A  CLASS  OR  IN  A  PRIVATE  ATTORNEY 
GENERAL CAPACITY. 
Only a court, and not an arbitrator, shall determine the 
validity and effect of the Class Action Waiver. Even if 
all parties have opted to litigate a claim in court, you 
or we may elect arbitration with respect to any claim 
made by a new party or any new claims later asserted 
in that lawsuit.
Your Right to Go To Small Claims Court. We will not 
choose to arbitrate any claim you bring in small claims 
court. However, if such a claim is transferred, removed 
or appealed to a different court, we may then choose 
to arbitrate.
Governing  Law  and  Rules.  This  arbitration 
agreement  is  governed  by  the  Federal  Arbitration 
Act  (FAA).  Arbitration  must  proceed  only  with  the 
American Arbitration Association (AAA) or JAMS. The 
rules for the arbitration will be those in this arbitration 
agreement and the procedures of the chosen arbitration 
organization, but the rules in this arbitration agreement 
will be followed if there is disagreement between the 

agreement  and  the  organization’s  procedures.  If  the 
organization’s  procedures  change  after  the  claim  is 
filed, the procedures in effect when the claim was filed 
will apply. For a copy of each organization’s procedures, 
to file a claim or for other information, please contact:
•	 AAA	at	1101	Laurel	Oak	Rd.,	Voorhees,	NJ	08043,	
		www.adr.org	(phone	1-877-495-4185)	or
•	 	JAMS	 at	 620	 Eighth	 Ave.,	 Floor	 34,	 New	 York,	 

NY	10018,

		www.jamsadr.com	(phone	1-800-352-5267).
If  both  AAA  and  JAMS  are  completely  unavailable, 
and if you and we cannot agree on a substitute, then 
either  you  or  we  may  request  that  a  court  appoint  
a substitute. 
Fees and Costs. If you wish to begin an arbitration 
against  us  but  you  cannot  afford  to  pay  the 
organization’s  or  arbitrator’s  costs,  we  will  advance 
those costs if you ask us in writing. Any request like 
this	should	be	sent	to	Discover,	PO	Box	30421,	Salt	Lake	
City,	UT	 84130-0421.	 If	 you	 lose	 the	 arbitration,	the	
arbitrator will decide whether you must reimburse us for 
money we advanced for you for the arbitration. If you 
win the arbitration, we will not ask for reimbursement 
of money we advanced.
Hearings  and  Decisions.  Arbitration  hearings  will 
take place in the federal judicial district where you live. 
A single arbitrator will be appointed.
The arbitrator must:
•	 Follow	all	applicable	substantive	law,	except	when
    contradicted by the FAA;
•	 Follow	applicable	statutes	of	limitations;
•	 Honor	valid	claims	of	privilege;
•	 	Issue	 a	 written	 decision	 including	 the	 reasons	 for	 

the award.

The  arbitrator’s  decision  will  be  final  and  binding 
except for any review allowed by the FAA. However, 
if	more	than	$100,000	was	genuinely	in	dispute,	then	
either you or we may choose to appeal to a new panel 
of three arbitrators. The appellate panel is completely 

free to accept or reject the entire original award or any 
part of it. The appeal must be filed with the arbitration 
organization not later than 30 days after the original 
award  issues.  The  appealing  party  pays  all  appellate 
costs unless the appellate panel determines otherwise 
as part of its award. 
Any  arbitration  award  may  be  enforced  (such  as 
through a judgment) in any court with jurisdiction. 
Other  Beneficiaries  of  this  Provision.  In  addition 
to you and us, the rights and duties described in this 
arbitration agreement apply to: our Affiliates and our 
and their officers, directors and employees; any third 
party	co-defendant	of	a	claim	subject	to	this	arbitration	
provision; and all joint Accountholders and Authorized 
Users of your Account(s). 

Survival of this Provision. This arbitration provision 
shall survive:
•	 closing	of	your	Account;
•	 voluntary	payment	of	your	Account	or	any	part	of	it;
•	 any	legal	proceedings	to	collect	money	you	owe;
•	 any	bankruptcy	by	you;	and
•	 any	sale	by	us	of	your	Account.
You  Have  the  Right  to  Reject  Arbitration  for 
this  Account.  You  may  reject  the  arbitration 
agreement  but  only  if  we  receive  from  you  a 
written  notice  of  rejection  within  30  days  of 
your  receipt  of  the  Card  after  your  Account  is 
opened. You must send the notice of rejection to: 
Discover, PO Box 30938, Salt Lake City, UT 84130-
0938. Your rejection notice must include your name, 
address, phone number, Account number and personal 
signature. No one else may sign the rejection notice for 
you.  Your rejection notice also must not be sent with 
any other correspondence. Rejection of arbitration will 
not  affect  your  other  rights  or  responsibilities  under 
this  Agreement.  If  you  reject  arbitration,  neither  you 
nor we will be subject to the arbitration provisions for  
this Account.  

- 6 -