Card Agreement Guide

This Guide will help you easily identify sections of the Card Agreement and give you a brief overview of the contents of each section. This is not 
intended to be a complete summary of the Card Agreement’s contents, and we encourage you to read your entire Card Agreement, including the 
arbitration provision, before you use your Account.

Lists the meanings of particular phrases and terms 
used in the Card Agreement.

1 DEFINITIONS
2 YOUR ACCOUNT
3 ANNUAL PERCENTAGE  RATES 

& INTEREST  CHARGES
Shows how we calculate interest rates and how that 
affects your Account balance.

Describes some of your responsibilities for using 
your Account.

4 FEES & FOREIGN CURRENCY CONVERSION

Describes the fees that can be applied to your Account, 
including late fees, returned payment fees, as well as 
foreign transaction fees for Purchases not in U.S. dollars.

5 PAYMENTS

Shows how your monthly Minimum Payment Due is 
calculated, tells you how we apply your payments to 
balances, and gives you certain instructions for making 
payments (and tells you the possible consequences of 
not following those instructions).

6 AUTHORIZED USERS

Describes an Authorized User’s rights and your 
responsibility for that user. Also describes what 
information we can share about you and your 
Authorized User.

7 DEFAULT,  CLOSING OR SUSPENDING 

YOUR ACCOUNT
Tells you when we may require immediate payment of 
your total Account balance, and explains when we may 
close or suspend your Account, and when you may close 
your Account.

8 CREDIT REPORTING

Describes what information we provide about you to 
credit reporting agencies, and how to dispute items on 
your report. This section also explains how we use 
information we get about you from those agencies.

9 ACCOUNT INFORMATION, INFORMATION 

SHARING  &  COMMUNICATIONS
Explains that your personal information we use to 
manage your Account should always be up to date. 
Also notes that we share information about you and 
your Account. In addition, this section describes how 
we may contact you.

10 TRANSACTIONS
11 ARBITRATION

Provides important information about merchant credits, 
recurring Transactions and card refusals.

Explains that you cannot go to court, have a jury trial or 
initiate or participate in a class action if you have a 
dispute with us. Instead, this provision tells you that the 
dispute must be resolved by a professional arbitrator, 
not a judge or jury. This section also explains how 
arbitration works and some of the differences between 
resolving a dispute in arbitration and resolving one 
in court.

Explains that we can make changes to the Card 
Agreement and your card benefits and features.

12 AGREEMENT  &  BENEFIT CHANGES
13 MISCELLANEOUS
14 YOUR BILLING RIGHTS

Explains subjects that aren’t included in 
previous sections.

Explains your billing rights, which include how to 
address possible statement mistakes and your rights 
if you’re not satisfied with a Purchase.

Card Agreement

This Card Agreement (Agreement) is your contract with us. 

The Facts about Interest and Fees document (Fact Sheet) is part of this Agreement. The Fact Sheet shows important information about your Account, 
such as your annual percentage rates and certain fees. Any amendments to this Agreement also are part of this Agreement. 

Please read all parts of this Agreement, including the arbitration provision, and keep it for your records.

Note: Throughout the Agreement are examples, helpful tips and additional explanations 
that will make the Agreement easier to understand.

1

DEFINITIONS

Account – Your Citi Account.

Annual Percentage Rate (APR) – A rate, shown as a percentage, used 
to calculate interest on the balance on your Account.

Authorized User – Any person you allow to use your Account with a 
Card we provided with that person’s name.

Balance Transfer – Use of a Balance Transfer offer, including use of a 
check that accesses your Account for any transaction, or the transfer of 
a balance from another credit account to your Account.

Billing Period – The period of time between each date when we create 
a statement for your Account. A Billing Period is usually 28 – 33 days. 
For each Billing Period, your statement will show any Transactions, other 
charges, payments and other credits posted during that Billing Period.

Business Day – Monday through Friday, excluding federal holidays.

Card – One or more cards or other devices (including an account 
number) used to access your Account to obtain credit.

Card Networks – Organizations, such as Mastercard, Visa and 
American Express, that facilitate the payment process between a 
cardmember, merchants and a card issuer.

Cash Advance – Use of your Card to get cash, including foreign 
currency, or for what we consider a cash-like transaction. Examples 
include using your Card for: ATM and teller withdrawals, wire transfers, 
money orders, traveler’s checks, lottery tickets, gaming chips and other 
methods used for gambling, wagers and other betting transactions.

Consumer Reporting Agency – An organization, such as Experian, 
Equifax and TransUnion, that compiles credit information for the purpose 
of generating consumer credit reports. It’s also known as a “credit 
bureau” and a “credit reporting agency.”

Include and including – These terms mean “include [or including] 
without limitation.”

Late Payment – A payment is late if you don’t pay at least an amount 
equal to the Minimum Payment Due minus any Overlimit Amount by the 
payment due date.

New Balance – The total amount you owe us at the end of each Billing 
Period. This amount is shown on each statement under the heading 
“New Balance.” We explain how we calculate the New Balance below.

Overlimit Amount – The amount by which your Account balance 
exceeds your credit limit in any Billing Period.

Purchase – Use of your Card to buy goods and services. Balance 
Transfers and Cash Advances are not Purchases.

Returned Payment – A payment that isn’t honored by your 
financial institution.

Transaction – A Balance Transfer, Cash Advance or Purchase, 
as applicable.

we, us and our – Citibank, N.A.

you and your – The cardmember who opened the Account.

You’ll find  definitions of  other  terms  within  this  Agreement.

1

2

YOUR ACCOUNT

Your Account use is subject to this Agreement. You must pay us for 
all amounts due on your Account, including:

1. Transactions you make, even if you didn’t present your Card or sign 

for the Transaction;

2. Transactions an Authorized User makes;

3. Transactions that other people make if you or an Authorized User let 

them use your Account; and

4. Any fees and interest charges on the Account.

Binding Agreement. This Agreement takes effect once you use your 
Card. Even if you don’t use your Card, this Agreement will take effect 
unless you contact us to cancel your Account within 30 days after we 
sent you this Agreement.

Credit Limit. We assign a credit limit to your Account. Part of this credit 
limit may be available for Cash Advances, and there may be a limit on 
the amount of Cash Advances you can take in a given period. We 
may authorize Transactions that cause your balance to exceed your 
credit limit.

ACCOUNT USE

Consumer Purposes. You aren’t permitted to use your Account for 
business purposes. If you do use your Account for business purposes, 
this Agreement still applies, and you must pay us for those Transactions. 
You have to pay us for any damages and/or expenses resulting from that 
use. In addition, we may also close your Account.

Unlawful Transactions. You aren’t permitted to use your Account for 
unlawful Transactions. If you do use your Account for unlawful 
Transactions, this Agreement still applies and you must pay us for those 
Transactions. You also may have to pay the Card Network and/or us for 
any damages and expenses resulting from that use. In addition, we may 
close your Account.

Mobile Phone or Other Devices. Smart phones, tablets and other 
electronic devices can store your Card (such as through a mobile wallet). 
This means they can be used to make Purchases or other Transactions. 
Any such Transactions are covered by this Agreement. Apps that use 
your Card to make Transactions may have separate terms of use. We’re 
not responsible if you violate those terms, or for any consequences 
resulting from any violation.

Note: It’s important to protect your devices the same way you protect your Card. 
Anyone who can access your Card using your device also can make charges to your Account using that device.

3

ANNUAL PERCENTAGE  RATES & INTEREST  CHARGES

The following sections explain how we calculate the interest you 
owe each Billing Period.

APRs. We use APRs to calculate interest charges on your Account. 
Different APRs may apply to different Transactions. See the listing of your 
APRs on the Fact Sheet.

Variable APRs. A variable APR is an APR that can change each Billing 
Period. We calculate each variable APR first by taking the U.S. Prime 
Rate from The Wall Street Journal ( WSJ ) two Business Days before the 
last day of each Billing Period. (If the WSJ doesn’t publish the U.S. Prime 
Rate that day, then we’ll use another publication.) Then we add to the 
U.S. Prime Rate a certain percentage amount, which we call the Margin . 
You can find the Margin we use for your Account in the Details About 
Your Interest Rate section of the Fact Sheet . Your variable APRs will 
increase if the U.S. Prime Rate increases and decrease if the U.S. Prime 
Rate decreases. If a variable APR increases, then your interest charges 
and Minimum Payment Due may increase.

How is a variable APR calculated?

If the U.S. Prime Rate published in the WSJ two Business Days 
before the end of a Billing Period is 5%; and 
If the Margin is 13.99% ; then 
Add the two together to calculate a variable APR:

5% + 13.99% = 18.99%

If the U.S. Prime Rate changes, we’ll apply the new variable APR starting 
from the first day of the Billing Period when we take the U.S. Prime Rate 
from the WSJ . The new APR will apply to existing balances, as well as 
balances added to your Account after the change.

Penalty APR. If you have a Late or a Returned Payment, we may apply 
a penalty APR to your Account. We determine your penalty APR based 
on your creditworthiness.

•  Penalty APR for new Transactions (less than 60 days late). 

If you make a Late Payment and it’s less than 60 days late or you 
have a Returned Payment, the penalty APR only will apply to new 
Transactions. We’ll review your Account from time to time, to 
determine if any penalty APR should be reduced.

•  Penalty APR for existing balances and new Transactions (60 or 
more days late). If we haven’t received your Minimum Payment Due 
within 60 days after its due date, we may apply the penalty APR to 
both the existing balances and new Transactions. If you make your 
next 6 consecutive Minimum Payments Due on time, we’ll stop 
applying the penalty APR to existing balances and new Transactions. 
If you don’t make your next 6 consecutive Minimum Payments Due on 
time, the penalty APR may continue to apply indefinitely to existing 
balances and new Transactions.

continued on next page

2

Section 3 — ANNUAL PERCENTAGE RATES & INTEREST CHARGES (continued)

Daily Balance 
We calculate interest on your Account each Billing Period first by 
calculating your daily balances. The following explains how we do that.

Here’s how and when Transactions, fees and credits are applied to 
the balances on your Account:

•  We add the amount of a Purchase or Balance Transfer to the 
Purchase balance as of the post date on your statement.

•  We add the amount of a Cash Advance to the Cash Advance balance 

as of the post date on your statement.

•  We add a Balance Transfer fee to the Purchase balance as of the post 
date on your statement. We add a Cash Advance fee to the Cash 
Advance balance as of the post date on your statement. We’ll add any 
other fees to the balance of our choice. If you’re charged interest in a 
Billing Period, but the amount calculated is less than $0.50, we’ll add 
additional interest to the balance(s) of our choice so that you’ll be 
charged $0.50 in interest for that Billing Period.

•  We subtract credits and payments as of the post date shown on 

your statement.

•  Each balance may have a different APR. Certain categories of 

Transactions in a balance may have multiple APRs. For example, 
you may make a Purchase or Balance Transfer that’s subject to a 
promotional APR. Your balances, and their corresponding APRs, 
are shown on your statement.

Note: The post date shown on your statement will usually be the date 
of the Transaction, but it may be later.

Here’s how we calculate each of the daily Purchase and Cash 
Advance balances on your Account:

•  We start with the daily balance from the end of the previous day.

•  We add any new Transactions, fees and other charges, including 
interest accrued on the previous day’s balance. This means that 
interest is compounded daily.

•  We subtract any credits or payments credited as of that day.

•  We make additional adjustments as appropriate, subject to applicable 
law (as an example, for a disputed charge). This gives us the daily 
balance for that day.

Daily balance for purchases from the previous day 
+ New purchases 
+ Fees and interest accrued on the previous day’s Purchase balance 
– Payments, credits and adjustments posted that day

= New daily balance for Purchases

Interest Calculation. Each daily balance may have a different APR. 
Certain categories of Transactions in a daily balance may have multiple 
APRs. For example, you may make a Purchase or Balance Transfer 
that’s subject to a promotional APR. If a daily balance on your Account is 
subject to an APR, we’ll charge interest on that daily balance. We use 
the daily balance method (which includes new Transactions). If interest 
applies to a balance, it will start applying on the day a charge is added 
to that balance and continue until that balance is paid in full. We 
consider a credit balance as a balance of zero when calculating interest 
on that balance.

•  We multiply each daily balance by its applicable daily periodic rates 

(each applicable APR divided by 365).

•  We do this for each day in the Billing Period. This gives us the daily 

interest amounts.

•  Then we total all the daily interest amounts for all the daily balances. 

This gives us the total interest for the Billing Period.

Note: Your balances, and their corresponding APRs, are shown on 
your statement.

Calculating the New Balance. To calculate the New Balance at the end 
of each Billing Period, we begin with the total Account balance at the 
start of that Billing Period. Then we add any Transactions that are new to 
the Account during that Billing Period. Then we subtract any credits 
applied or payments made during that Billing Period. Then we add any 
interest charges or fees incurred during that Billing Period and make 
any other adjustments, as applicable (for example, if you have disputed 
a charge).

Grace Period on Purchases. You won’t pay any interest on Purchases 
if you pay the New Balance, including any Balance Transfers, in full by 
the payment due date shown on your statement each Billing Period. We 
call this a grace period on purchases. If you don’t pay your New 
Balance, including any Balance Transfers, in full by the payment due 
date in a Billing Period, you’ll pay interest on your Purchases from the 
date they’re posted to your Account. You also won’t have a grace period 
on Purchases again until you pay the New Balance in full by the payment 
due date 2 Billing Periods in a row.

There’s no grace period on Balance Transfers and Cash Advances. This 
means you’ll pay interest on Balance Transfers and Cash Advances from 
the date these Transactions post to your Account.

continued on next page

3

4

FEES &  FOREIGN CURRENCY CONVERSION

Amount

About the Fee

FEES

Fee

Annual Membership Fee

See Pricing Table

Late Fee

Up to $39

Returned Payment Fee

Up to $39

If your Account has an annual membership fee, the Fact Sheet shows this fee. 
You’ll see this annual fee on your first statement after opening your Account and 
each year after that. We’ll charge the fee if your Account is open, even if you  don’t 
have a balance.

We have the right to charge you a late fee if you don’t pay at least an amount 
equal to the Minimum Payment Due minus any Overlimit Amount by the payment 
due date.The late fee is $28 and, if you make another Late Payment within the 
next 6 Billing Periods the late fee will be $39. The amount of your late fee will 
never be higher than your Minimum Payment Due.

We have the right to charge you a Returned Payment fee of $28 if your bank 
doesn’t honor your payment. If that happens, we’ll resubmit the payment request. If 
your bank doesn’t honor another payment within 6 consecutive Billing Periods,  the 
returned payment fee will go up to $39.

Transaction Fee for 
Balance Transfers

Transaction Fee for 
Cash Advances

Either $5 or 3% of the amount of  each 
transfer, whichever is greater.

Either $10 or 5% of the amount of each 
cash advance, whichever is greater.

We charge you a fee for each Balance Transfer.

We charge you a fee for each Cash Advance.

FOREIGN CURRENCY CONVERSION

Foreign Currency Conversion – Purchases. A Card Network converts 
the amount of a Purchase in a foreign currency into U.S. dollars. Each 
Card Network follows its own procedures for conversion. These 
procedures include how the Card Network chooses an exchange rate 
and when to do the conversion. For example, Visa chooses either a 
government-mandated exchange rate or chooses from a range of rates 
available on wholesale currency markets (and, in either case, the 
exchange rate that it chooses may be less favorable than the rate that 
Visa itself, receives when it makes foreign currency transactions). 
Depending on the policies of each Card Network, the exchange rate 
chosen may be the one in effect on the day the Card Network does the 
conversion, or on the day before. The exchange rate that a Card Network 
uses to convert the Purchase to U.S. dollars may differ from the rate in 
effect on the date you made the Purchase or on the post date for that 
Purchase shown on your statement. The Card Network’s procedures 
may change without notice.

If a third party, such as a merchant, converts the amount of a Purchase 
into U.S. dollars before sending the Purchase to a Card Network, the 
third party chooses the conversion rate instead of the Card Network.

Foreign Currency Conversion – Cash Advances. If you take a Cash 
Advance in a foreign currency at an ATM or branch of a financial 
institution, it may not be the Card Network in all instances that converts 
the Transaction into U.S. dollars. Instead, depending on where the 
Transaction takes place, another third party, such as a financial 
institution, ATM network or ATM operator, may do the conversion. We do 
not control this. However, if you use your Card for a Cash Advance at a 
Citibank ATM or branch, then we or our affiliates may do the conversion.

The party that converts a Cash Advance to U.S. dollars will choose the 
exchange rate and when to do the conversion. The exchange rate in 
effect on the date the Cash Advance is converted to U.S. dollars may 
differ from the rate in effect on the date you took the Cash Advance or 
the post date for that Transaction shown on your statement. The 
exchange rate may also differ from any rate quoted to you when you 
made the Transaction.

continued on next page

4

5

PAYMENTS

Minimum Payment Due. You may pay all or a part of your Account 
balance at any time. You must pay at least the Minimum Payment Due by 
the payment due date each Billing Period.

•  Your “Minimum Payment Due” equals: 
•  Any amount past due; plus 
•  Any Overlimit Amount; plus 
•  The greater of: 

1. The New Balance, if it’s less than $25;

2. $25 if the New Balance is at least $25;

3. 1% of the New Balance (rounded to the nearest dollar), 
plus any billed interest or minimum interest charge, plus 
any late fee; or

Application of Payments. We decide how to apply your payment, up to 
the Minimum Payment Due, to the balances on your Account. We may 
apply the Minimum Payment Due first to interest charges, then to the 
balance with the lowest APR and then to balances with higher APRs. If 
you pay more than the Minimum Payment Due, we’ll apply the amount 
over the Minimum Payment Due first to the balance with the highest 
APR, then to the balance with the next highest APR, and so on, except 
as otherwise required by applicable law.

Payment Instructions. You must follow the instructions below when 
making a payment. If you do, we’ll credit the payment to your Account as 
of the day we receive it.

1. You must pay in U.S. dollars.

2. You must use a check or electronic debit issued by a bank in 

4. 1.5% of the New Balance (rounded to the nearest dollar).

the United States.

The Minimum Payment Due is never more than the New Balance.

3. You must not send us a check dated after the date that we 

Note: Your payment due date is typically the same day of the month 
every month. You may request a change to your monthly due date.

How is the Minimum Payment Due calculated?

For example, in a sample Billing Period, an Account with no past due 
or Overlimit amounts has:

New Balance: $2,500 
Interest: $18.54

Since the New Balance is more than $25, and there are no past due 
or 
Overlimit amounts, the Minimum Payment Due will be the greater of:

1% of the New Balance 
( 1.0% x $2,500: $25.00) + interest ($18.54): $43.54 
or 
1.5% of the New Balance (1.5% x $2,500): $37.50

Since 1% of the New Balance plus interest ($43.54) is greater than 
1.5% of the New Balance ($37.50) the Minimum Payment Due is 
$43.54.

receive it.

4. You must not enclose more than one check per envelope.

5. You must not include any restrictive endorsements on the check.

6. You must follow the additional payment instructions shown on 
your statement.

If you don’t pay in U.S. dollars and we accept your payment, we’ll select 
the currency conversion rate, and you must pay our costs. If you don’t 
follow our payment instructions, we may not accept your payment, or 
there may be a delay in crediting your Account. Either case may result in 
late fees and additional interest charges to your Account. If you don’t 
follow the instructions in this Agreement or on your statement, we may 
accept your payment without losing our rights. We may reject a payment 
if it’s more than the outstanding Account balance. We also may close 
your Account.

6

AUTHORIZED USERS

Account Use by Authorized Users. You can ask us to add one or more 
Authorized Users to your Account. If we approve, use of your Account by 
an Authorized User is subject to the terms of this Agreement. You must:

•  Obtain permission from each Authorized User before naming him or 

her as an Authorized User on your Account.

•  Make a copy of this Agreement available to each Authorized User.

You’re responsible for:

•  Any Transactions made by an Authorized User on your Account.

•  Any Transaction made by an Authorized User even if the post date 
shown on your statement for that Transaction occurs after the date 
you ask us to remove the Authorized User from your Account.

•  Any Transactions made by others if an Authorized User allows them to 

•  Pay us for all charges incurred by each Authorized User.

use your Account.

•  Notify us to remove an Authorized User from your Account.

•  Fees and charges resulting from any Transactions made by an 

If we remove an Authorized User, in some cases we may close your 
Account, open a new Account and issue you a new Card.

Authorized User or others if an Authorized User allows them to use 
your Account.

continued on next page

5

Section 6 — AUTHORIZED USERS (continued)

What can Authorized Users do?

•  Report lost or stolen Cards 

•  Request statement copies 

•  Initiate billing disputes 

•  Make payments

•  Change the billing address for 

your Account

•  Request refund checks 

•  Obtain Account information 

such as Transaction histories 

Account Information Rights for Authorized Users. You allow us to 
discuss your Account with an Authorized User. This includes giving him 
or her access to your Account information and history. You also agree 
that an Authorized User may use and receive information about the 
Account the same way you do. An Authorized User can’t add other 
Authorized Users, adjust the credit limit or close the Account.

Information about Authorized Users. You agree to give us certain 
personal information about each Authorized User. You must let each one 
know that you’ll give us that information and you must have his or her 
permission to do so. You must have permission from each one to allow 
us to share information about him or her as allowed by applicable law. 
This includes information we may get from you, any Authorized User 
and others. It also includes information about their Transactions on 
the Account.

Credit Reporting. We report information about this Account to 
Consumer Reporting Agencies in the Authorized User’s name that may 
appear on their credit report. This could include information about:

•  Late Payments; 
•  Overlimit Amounts; 
•  Returned Payments; and 
•  Other violations of this Agreement.

You must let each Authorized User know that we report Account 
information in his or her name. Also, see Credit Reporting in Section 8.

7

DEFAULT,  CLOSING OR SUSPENDING YOUR ACCOUNT

Default. We may require immediate payment of your total Account 
balance, to the extent allowed by law, if any of the following occurs:

1. You don’t pay at least the Minimum Payment Due by the due date.

2. You have a Returned Payment.

3. You file for bankruptcy or some other insolvency proceeding is filed 

by or against you.

4. You don’t honor the terms of this Agreement.

5. You default under any other card agreement you have with us.

6. You’re declared incompetent or mentally incapacitated, or in the 

event of your death.

Closing or Suspending Your Account. We may close or suspend your 
Account if any of the events listed above occur, or for any reason, or for 
no reason. We may do this at any time, without notifying you, as allowed 
by law. We may cancel your current Card and issue you a substitute 
Card at any time. You also may close your Account at any time by 
notifying us by telephone or in writing. If we close or suspend your 
Account, or if you close your Account, you must pay us all amounts 
you owe on the Account, even if they post to your Account after it’s 
closed or suspended.

Closing Secured Accounts. If your Account is a secured Account, you 
gave us a security interest in a deposit account. This secures repayment 
of your Account. If you withdraw your funds from the deposit account, we 
will close your Account. If you gave us a security interest in a deposit 
account, we may use the deposit amount to pay any amount you owe.

8

CREDIT REPORTING

You allow us to get information about you. We get it from Consumer 
Reporting Agencies and other sources that provide consumer financial 
information. You allow us to use it for:

•  Renewal of your Account;

•  Credit line increases or decreases;

•  Administration or review of your Account, collection and any 

other servicing;

•  All other credit-related purposes connected with this Agreement;

•  Offers for other cards, insurance products and other services; and

•  Other uses permitted by law.

We report Account information in your name, as well as information 
about you to Consumer Reporting Agencies, on a monthly basis. The 
information we provide may appear on your credit reports. This can 
include information about:

•  Late Payments; 
•  Overlimit Amounts; 
•  Returned Payments; and 
•  Other violations of this Agreement.

If you think we’ve given incorrect information to a Consumer Reporting 
Agency about you (or about an Authorized User), please write to us at the 
Customer Service address on your statement and we’ll research it. We’ll let 
you know if we agree or disagree with you. If we agree with you, we’ll contact 
each Consumer Reporting Agency we reported to and request a correction.

continued on next page

6

ACCOUNT INFORMATION, INFORMATION  SHARING  &  COMMUNICATIONS

9

Changes to Account Information. You provided certain personal 
information to us when you opened your Account. You agree to notify 
us if this information changes. If you don’t, or if we ask you to verify 
your Account information and you cannot, we may suspend or close 
your Account.

Information Sharing. You agree to let us share information about you 
and your Account as allowed by law. This includes information we get 
from you and others. Our privacy notice, which is enclosed with your new 
Account materials, describes reasons Citi can share its customers’ 
personal information.

COMMUNICATIONS

Contacting You. You agree that we (and/or our service providers or 
anyone we authorize) may contact you at any phone number, email 
address or mailing address you provide or we obtain in other ways.

This includes communications to mobile, cellular/wireless, or similar 
devices. We may contact you by live operator, auto-dialer, recorded or 
artificial voice, text, or email.

You agree to pay any charges from your plan provider for communications 
we send to you, as well as communications you send to us.

How We Capture and Use Voiceprints. We may use voice recognition 
technology to verify your identity when you call. We may capture and 
store your voiceprint for this purpose.

Call Monitoring. We may monitor and record any calls between you 
and us.

Notices. We send any notices to your billing address or, if you’ve agreed, 
by email to the address you gave us. We consider a notice sent as soon 
as we mail it. We consider an electronic notice sent as soon as we email 
it, unless we receive notification that the email was undeliverable.

10

TRANSACTIONS

Merchant Refunds. A merchant refund to your Account will post to your 
Account as a credit. We don’t control when a merchant sends an Account 
credit. We’ll choose how to apply the credit to your existing Account 
balances. If a credit creates a credit balance on your Account, we’ll mail 
you a check for the amount of the credit balance.

Note: Merchant Surcharges. Some merchants, including merchants 
outside the U.S., may charge you a fee to use your Card for a Purchase. 
The fee will be either a percentage of the amount of your Purchase, or a 
flat fee, and will be added to the amount of your Purchase. Usually, a 
merchant will tell you about this fee before you use your Card, but not 
always. We don’t control these fees, and can’t prevent them.

Recurring Authorized Transactions. If you authorize a merchant or any 
other person to charge your Account for recurring Transactions, you must 
notify the merchant if:

•  You want to discontinue these Transactions;

•  Your Account is closed;

•  Your Account number changes;

•  Your Card expiration date changes.

You’re responsible for reinstating any recurring authorized Transactions.

Refusal of the Card. We don’t guarantee approval of Transactions. We 
are not liable for those that aren’t approved, even if you have enough 
available credit on your Account. If we detect unusual or suspicious 
activity, we may suspend your credit privileges. We also may limit the 
number of Transactions approved in a single day.

11

ARBITRATION

PLEASE READ THIS PROVISION OF THE AGREEMENT CAREFULLY.

•  If arbitration is chosen by any party, neither you nor we will 

This section provides that disputes may be resolved by binding 
arbitration. Arbitration replaces the right to go to court, have a jury trial or 
initiate or participate in a class action. In arbitration, disputes are 
resolved by an arbitrator, not a judge or jury. Arbitration procedures are 
simpler and more limited than in court. This arbitration provision is 
governed by the Federal Arbitration Act (FAA), and shall be interpreted in 
the broadest way the law will allow.

Covered claims

•  You or we may arbitrate any claim, dispute or controversy between 

you and us arising out of or related to your Account, a previous related 
Account or our relationship (called “Claims”).

have the right to litigate that Claim in court or have a jury trial 
on that Claim.

Except as stated below, all Claims are subject to arbitration, no matter 
what legal theory they’re based on or what remedy (damages, or 
injunctive or declaratory relief) they seek, including Claims based on 
contract, tort (including intentional tort), fraud, agency, your or our 
negligence, statutory or regulatory provisions, or any other sources of 
law; Claims made as counterclaims, cross-claims, third-party claims, 
interpleaders or otherwise; Claims made regarding past, present or 
future conduct; and Claims made independently or with other claims. 
This also includes Claims made by or against anyone connected with us 
or you or claiming through us or you, or by someone making a claim

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Section 11 — ARBITRATION (continued)

through us or you, such as a co-applicant, Authorized User, employee, 
agent, representative or an affiliated/parent/subsidiary company.

Arbitration limits

•  Individual Claims filed in a small claims court are not subject to 
arbitration, as long as the matter stays in small claims court.

•  We won’t initiate arbitration to collect a debt from you unless you 

choose to arbitrate or assert a Claim against us. If you assert a Claim 
against us, we can choose to arbitrate, including actions to collect a 
debt from you. You may arbitrate on an individual basis Claims brought 
against you, including Claims to collect a debt.

•  Claims brought as part of a class action, private attorney general or 
other representative action can be arbitrated only on an individual 
basis. The arbitrator has no authority to arbitrate any claim on a class 
or representative basis and may award relief only on an individual 
basis. If arbitration is chosen by any party, neither you nor we may 
pursue a Claim as part of a class action or other representative action. 
Claims of 2 or more persons may not be combined in the same 
arbitration. However, applicants, co-applicants, Authorized Users on a 
single Account and/or related Accounts, or corporate affiliates are here 
considered as one person.

How arbitration works

•  Arbitration shall be conducted by the American Arbitration Association 
(“AAA”) according to this arbitration provision and the applicable AAA 
arbitration rules in effect when the claim is filed (“AAA Rules”), except 
where those rules conflict with this arbitration provision. You can obtain 
copies of the AAA Rules at the AAA’s website (www.adr.org) or by 
calling 800-778-7879. You or we may choose to have a hearing, 
appear at any hearing by phone or other electronic means, and/or be 
represented by counsel. Any in-person hearing will be held in the 
same city as the U.S. District Court closest to your billing address.

•  Arbitration may be requested at any time, even where there is a 

pending lawsuit, unless a trial has begun or a final judgment entered. 
Neither you nor we waive the right to arbitrate by filing or serving a 
complaint, answer, counterclaim, motion or discovery in a court 
lawsuit. To choose arbitration, a party may file a motion to compel 
arbitration in a pending matter and/or commence arbitration by 
submitting the required AAA forms and requisite filing fees to the AAA.

•  The arbitration shall be conducted by a single arbitrator in accord with 
this arbitration provision and the AAA Rules, which may limit discovery. 
The arbitrator shall not apply any federal or state rules of civil 
procedure for discovery, but the arbitrator shall honor claims of 
privilege recognized at law and shall take reasonable steps to protect 
Account information and other confidential information of either party if 
requested to do so. The arbitrator shall apply applicable substantive 
law consistent with the FAA and applicable statute of limitations, and 
may award damages or other relief under applicable law.

•  The arbitrator shall make any award in writing and, if requested by you 
or us, may provide a brief statement of the reasons for the award. 
An arbitration award shall decide the rights and obligations only of 
the parties named in the arbitration, and shall not have any bearing on 
any other person or dispute.

Paying for arbitration fees

•  We’ll pay your share of the arbitration fee for an arbitration of Claims 
of $75,000 or less if they are unrelated to debt collection. Otherwise, 
arbitration fees will be allocated according to the applicable AAA 
Rules. If we prevail, we may not recover our arbitration fees, unless 
the arbitrator decides your Claim was frivolous. All parties are 
responsible for their own attorney’s fees, expert fees and any other 
expenses, unless the arbitrator awards such fees or expenses to you 
or us based on applicable law.

The final award

•  Any award by an arbitrator is final unless a party appeals it in writing to 
the AAA within 30 days of notice of the award. The arbitration appeal 
shall be determined by a panel of 3 arbitrators. The panel will consider 
all facts and legal issues anew based on the same evidence presented 
in the prior arbitration, and will make decisions based on a majority 
vote. Arbitration fees for the arbitration appeal shall be allocated 
according to the applicable AAA Rules. An award by a panel on appeal 
is final. A final award is subject to judicial review as provided by 
applicable law.

Survival and Severability of Terms

•  This arbitration provision shall survive changes in this Agreement and 
termination of the Account or the relationship between you and us, 
including the bankruptcy of any party and any sale of your Account, or 
amounts owed on your Account, to another person or entity. If any part 
of this arbitration provision is deemed invalid or unenforceable, the 
other terms shall remain in force, except that there can be no 
arbitration of a class or representative Claim. This arbitration provision 
may not be amended, severed or waived, except as provided in this 
Agreement or in a written agreement between you and us.

Rules for rejecting this arbitration provision

•  You may reject this arbitration provision by sending a written rejection 

notice to us at: PO Box 6195; Sioux Falls, SD 57117-6195. Your 
rejection notice must be mailed within 45 days of Account opening. 
Your rejection notice must state that you reject the arbitration provision 
and include your name, address, Account number and personal 
signature. No one else may sign the rejection notice. Your rejection 
notice will not apply to the arbitration provision(s) governing any other 
account(s) that you have or had with us. Rejection of this arbitration 
provision won’t affect your other rights or responsibilities under this 
Agreement, including use of the Account.

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12

AGREEMENT  &  BENEFIT CHANGES

Changes to this Agreement. We may change this Agreement for any 
reason and at any time, subject to applicable law. This means that 
we can change rates and fees that apply to your Account. It also 
means we can add, replace or remove provisions of this Agreement. 
If required by applicable law, we’ll give you notice of the changes. If 
you have the right to reject a change, we’ll notify you and tell you

how to reject. If we notify you of a change, we may do so on your 
statement or send you a separate written notice, either of which 
may be sent electronically if permitted by applicable law.

Changing Benefits. Any benefit, reward, service or feature offered may 
change or be discontinued at any time for any reason. Separate terms 
and conditions will describe any exceptions.

13

MISCELLANEOUS

Assignment. We may assign any or all of our rights and obligations 
under this Agreement to a third party. You may not sell, assign or transfer 
your Account or any of your obligations under this Agreement.

Governing Law. Federal law and the law of South Dakota govern the 
terms and enforcement of this Agreement.

Enforcing this Agreement. We won’t lose our rights under this 
Agreement because we delay in enforcing them or fail to enforce them. 
If any provision of this Agreement is found to be unenforceable, all other 
provisions of the Agreement will remain in effect.

Collection Costs. To the extent allowed by law, you’re liable to us for our 
legal costs if we refer collection of your Account to a lawyer who isn’t our 
salaried employee. These costs may include reasonable attorneys’ fees, 
as well as costs and expenses of any legal action.

Unforeseen Circumstances. From time to time, our services might be 
unavailable due to circumstances beyond our control (such as fires, 
floods, natural disasters, system failures or other unpredictable events). 
When this happens, you might not be able to use your Card or obtain 
information about your Account. We’re not responsible or liable if 
this happens.

Lost or Stolen Cards, Account Numbers or Account Checks. You 
must try to prevent the unauthorized use of your Account and any Card, 
including your Account number. You must call us if any Card is lost or 
stolen. Also, you must call us if you think someone has used or may use 
these items without permission.

Headings. The headings in this Agreement are included as a matter of 
convenience and don’t define, limit or enlarge the scope of this 
Agreement or any of its provisions.

14

YOUR BILLING RIGHTS

This notice tells you about your rights and our responsibilities 
under the Fair Credit Billing Act. Keep this document for future use.

What to Do if You Find a Mistake on Your Statement

If you think there is an error on your statement, write to us at the 
address for billing inquiries and correspondence shown on the front of 
your statement.

In your letter, give us the following information:

•  Account information: Your name and account number.

You must notify us of any potential errors in writing. You may call us, but 
if you do we are not required to investigate any potential errors and you 
may have to pay the amount in question.

What Will Happen After We Receive Your Letter

When we receive your letter, we must do 2 things:

1. Within 30 days of receiving your letter, we must tell you that we 

received your letter. We will also tell you if we have already corrected 
the error.

2. Within 90 days of receiving your letter, we must either correct the error 

•  Dollar amount: The dollar amount of the suspected error.

or explain to you why we believe the bill is correct.

•  Description of problem: If you think there is an error on your bill, 
describe what you believe is wrong and why you believe it is 
a mistake.

You must contact us:

While we investigate whether or not there has been an error:

•  We cannot try to collect the amount in question, or report you as 

delinquent on that amount.

•  The transaction in question may remain on your statement, and we 

•  Within 60 days after the error appeared on your statement.

may continue to charge you interest on that amount.

•  At least 3 business days before an automated payment is scheduled, 

•  While you do not have to pay the amount in question, you are 

if you want to stop payment on the amount you think is wrong.

responsible for the remainder of your balance.

•  We can apply any unpaid amount against your credit limit.

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9

Section 14 — YOUR BILLING RIGHTS (continued)

After we finish our investigation, one of two things will happen:

To use this right, all of the following must be true:

•  If we made a mistake: You will not have to pay the amount in question 

or any interest or other fees related to that amount.

•  If we do not believe there was a mistake: You will have to pay the 

amount in question, along with applicable interest and fees. We will 
send you a statement of the amount you owe and the date payment is 
due. We may then report you as delinquent if you do not pay the 
amount we think you owe.

If you receive our explanation but still believe your bill is wrong, you must 
write to us within 10 days telling us that you still refuse to pay. If you do 
so, we cannot report you as delinquent without also reporting that you 
are questioning your bill. We must tell you the name of anyone to whom 
we reported you as delinquent, and we must let those organizations 
know when the matter has been settled between us.

If we do not follow all of the rules above, you do not have to pay the first 
$50 of the amount you question even if your bill is correct.

Your Rights if You’re Dissatisfied with Your Credit Card Purchases

If you are dissatisfied with the goods or services that you have 
purchased with your credit card, and you have tried in good faith to 
correct the problem with the merchant, you may have the right not to pay 
the remaining amount due on the purchase.

1. The purchase must have been made in your home state or within 100 
miles of your current mailing address, and the purchase price must 
have been more than $50. ( Note: Neither of these is necessary if your 
purchase was based on an advertisement we mailed to you, or if we 
own the company that sold you the goods or services.)

2. You must have used your credit card for the purchase. Purchases 
made with cash advances from an ATM or with an Account check 
do not qualify.

3. You must not yet have fully paid for the purchase.

If all of the criteria above are met and you are still dissatisfied with the 
purchase, contact us in writing at the address for billing inquiries and 
correspondence shown on the front of your statement.

While we investigate, the same rules apply to the disputed amount as 
discussed above. After we finish our investigation, we will tell you our 
decision. At that point, if we think you owe an amount and you do not 
pay, we may report you as delinquent.

For Further Information: Call the Customer Service number shown on the 
statement or on the back of your Card if you need more information.

089, 093

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