This is an example of terms that were available to recent applicants as of 12/30/11. 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

APR for Cash Advances

Penalty APR and
When It Applies

Paying Interest

From 9.99% to 22.99%.  This APR will vary with the market based on the Prime Rate.1
From 9.99% to 22.99%.  This APR will vary with the market based on the Prime Rate.1
23.99%. This APR will vary with the market based on the Prime Rate.1

From up to 14.99% to 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 $0.50.

Fees

Annual Fee

Balance Transfer Fee 

Cash Advance Fee

late Fee 

Returned Payment Fee

$60 or none

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

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 6.74% to 19.74%.  
  The Cash Advance APR is equal to the Prime Rate plus a margin of 20.74%.
2 The Penalty APR is equal to the Prime Rate plus a margin from up to 11.74% to up to 24.74%.   

©2012 Discover Bank, Member FDIC 

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.

©2012 Discover Bank, Member FDIC 

- 1 -

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		

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. 

•	 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. 

Minimum Payment due

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 any amount past due 
plus the greater of:
•	 $40;
•	 2%	of	the	New	Balance	shown	on	your	billing	statement	(plus		
	 $40	if	the	New	Balance	includes	a	Balance	Transfer	balance);	or			

•	 any	Interest	Charges	and	Late	Fee	shown	on	your	billing		

statement, plus $20. 

The Minimum Payment Due may also include amounts by which 
you exceed your Account credit line. However, 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.   

- 2 -

 
 
 
 
 
 
 
 
 
 
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 InFoRMATIon 
InFoRMATIon
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 our personnel may listen to or record phone calls 
between you and our representatives without additional notice 
to you including calls we make to collect debts. We may use any 
medium permitted by law including mail, live telephone calls, 
automated telephone equipment, prerecorded telephone calls, 
e-mail, text messages and calls to your cell phone (which may be 

at your expense) to contact you about your Account or to offer you 
products or services that may be of value to you. If you prefer not to 
be contacted in one or more of these ways, you must either call us 
at 1-800-DISCOVER (1-800-347-2683) or write to us at Discover, 
PO Box 30961, Salt Lake City, UT 84130-0961. Please include your 
name, address and Account number.

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.

- 3 -

	
 
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.

ARBITRATIon

Agreement to arbitrate. If a dispute arises between 
you and us, 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 
includes claims and disputes relating to any other 
Account or agreement you have or had with us. THIS 
MEANS IF EITHER YOU OR WE CHOOSE ARBITRA-
TION, 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 CARDMEMBERS, 
OR LITIGATE IN COURT OR 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 arbitra-
tion organization, but the rules in this arbitration 
agreement will be followed if there is disagreement 

- 4 -

ARBITRATIon–ConTInued

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	335	Madison	Ave.,	Floor	10,	New	York,	NY		
  10017-5905, www.adr.org (phone 1-800-778-7879) 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	pay	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.  
Additionally, if you win the arbitration, the arbitrator 
may decide that you are entitled to be reimbursed 
your	reasonable	attorneys’	fees	and	costs	(if	actually	
paid by you).

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. The appellate panel may order that the loser of 
the	appeal	pay	the	winner’s	costs	and	attorneys’	fees.			

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 May Have the Right to Reject Arbitration. 
You may reject the Arbitration of Disputes section 
but only if we receive from you a written notice 
of rejection within 30 days of your receipt of 
the Card. 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. However, if 
you previously had the chance to reject an arbitration 
agreement with us but did not, you may not reject it 
now. Rejection of arbitration will not affect your other 
rights or responsibilities under this Agreement or your 
obligation to arbitrate disputes under any other account 
as to which you and we have agreed to arbitrate 
disputes. If you once sent us a rejection notice on a 
different account or card, you must send us a new 
rejection notice or else this arbitration agreement will 
apply to any disputes with us relating to your other 
accounts or cards.

- 5 -