This is an example of terms that were available to recent applicants as of 3/31/14. 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

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

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

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

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.

Paying Interest

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 of 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 
CMASEC33114

- 1 -

 
security deposit account

security agreement

This is the Security Agreement for your Discover® Secured Credit Card Account (“Account”). The words “you,” “your,” and “yours” mean you and any other person(s) 
who are contractually liable under the Cardmember Agreement governing the Account. The words “our,” “us,” and “we” mean Discover Bank. “Business days” are 
Monday through Friday, excluding Federal Reserve Bank holidays.

 In consideration of and as a condition to our opening the Account for you and other good and valuable consideration, you are providing funds from an account in 
your name to serve as security for your Account (“Funds”). We will hold these Funds in an account (“Security Deposit Account”) under our exclusive control. You must 
maintain this Security Deposit Account as security for the Account, and you grant us a security interest in the Security Deposit Account. This Security Deposit Account 
will include any and all future extensions, renewals, or replacements of the Security Deposit Account. No portion of the Security Deposit Account may be used to 
secure other loans. The minimum amount required to be deposited is the amount of your initial Account credit line but will not be less than $200. You may make a 
transfer to the Security Deposit Account solely for purposes of funding your required security deposit. The Security Deposit Account will be solely owned by you. Funds 
in Discover Bank Security Deposit Accounts are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to the maximum allowable limits. For more detailed 
information on FDIC coverage, contact the FDIC directly at 1-877-ASKFDIC (1-877-275-3342), (TDD: 1-800-925-4618) or visit www.fdic.gov. Discover will maintain 
separate records to account for your Funds. 

Withdrawals

 You will not be permitted to make withdrawals from the Security Deposit Account. (See Return of Funds Section below for terms and conditions regarding return of 
the Funds and closure of your Account.)

additional Funds

 Other than depositing Funds to secure your Account, you will not be permitted to make deposits to the Security Deposit Account.

Pledge and grant of  
security interest

You understand that granting us a security interest in the Security Deposit Account and the Funds is a necessary condition for opening your Account. As security for the 
prompt payment and performance of all your obligations to us arising pursuant to the Account (“Obligations”), you hereby grant a security interest to us in all of your 
right, title, and interest in the Security Deposit Account and any and all Funds, including all proceeds of and additions to the Security Deposit Account and the Funds. We 
may increase or decrease your Account credit line and no such action shall change the fact that the Security Deposit Account and the Funds are held by us as security for 
the Obligations. You represent that there are no current lawsuits or bankruptcy proceedings that might affect our interest in the Security Deposit Account or the Funds. 
You have not and will not attempt to transfer or offer any interest in the Security Deposit Account or the Funds to any person other than us. You and we acknowledge that 
subject to our possession of and security interest in the Security Deposit Account and the Funds, you retain beneficial ownership of the Security Deposit Account and the 
Funds for FDIC insurance purposes.

interest on Funds

No interest will be paid on the Funds. If we do pay interest in the future, we will add it to the Security Deposit Account. 

application of Funds to  
the account

return of Funds

confidentiality

legal Proceedings

miscellaneous

If you are in default under the Cardmember Agreement or the Account is closed for any reason, you authorize us at any time(s) to withdraw all or any portion of the 
Funds from the Security Deposit Account and apply them to reduce your Obligations. Any such application of Funds will not constitute any part of the Minimum Payment 
Due under the Cardmember Agreement. You will continue to be responsible for making payments as required under the Cardmember Agreement and for repaying any 
outstanding Obligations. Our rights under this Security Agreement are in addition to any others we have under applicable law. We may make settlements or compromises 
on the Security Deposit Account, transfer the Security Deposit Account to our name, or exercise ownership rights on the Security Deposit Account. We are not required to 
notify you of any of the above.

If we determine that you qualify for return of any Funds from the Security Deposit Account, we will return these Funds to you by a method we deem sufficient. If your 
Account is closed, we will return any excess Funds that remain in the Security Deposit Account after repayment of all Obligations. We generally return these excess Funds 
within ten days after the end of the second billing period following the time that Funds are initially applied to reduce your Obligations. If we mail a check to you, we 
will mail it to your mailing address on file with us for the Security Deposit and Card Accounts. In the event of your death, we will not release Funds on deposit unless all 
Obligations have been repaid and all legal documents we require are delivered to us. 

We will disclose information to third parties about your Security Deposit Account or any transfers you make: (a) where it is necessary for completing a transfer, or (b) in 
order to verify the existence and condition of your Security Deposit Account for a third party, or (c) in order to comply with government agency or court orders, or (d) if you 
give us your written permission, or (e) as permitted by the privacy notice we have provided to you.

If your Account, your Security Deposit Account, or your Funds become involved or are likely to become involved in a legal proceeding, you understand that the entire 
balance of your Funds in the Security Deposit Account may be restricted until the matter has been resolved. Such proceedings are subject to our security interest. We shall 
be entitled to rely upon the representations, warranties, and statements made in such legal proceedings. You agree to hold harmless and indemnify us for any losses, 
expenses and costs, including attorneys’ fees, incurred by us as a result of complying with such legal proceedings. In addition to the events of default set forth in the 
Cardmember Agreement, you will be in default under the Cardmember Agreement if we are served or become involved with a legal proceeding regarding the Funds or 
Security Deposit Account. 

This Security Agreement and our security interest and rights as pledge hereunder are governed by Delaware law. We may, in our sole discretion, assign the Security 
Deposit Account and our rights and obligations under this Security Agreement. If we use an attorney to defend or enforce our rights under this Security Agreement or 
to perform any legal services in connection with this Security Agreement, we may charge you our legal costs as permitted by law. This Security Agreement supplements  
the Cardmember Agreement. The other terms of the Cardmember Agreement apply to this Security Agreement, and as such disputes regarding the terms of this Security 
Agreement are subject to Arbitration as set forth in the Cardmember Agreement. The terms of this Security Agreement shall survive and continue to apply to the Security 
Deposit Account following closure of the Account or the Security Deposit Account, and shall be binding on you even if you cancel your Account or do not accept the 
Cardmember Agreement as permitted in the Cardmember Agreement. If any part of the Security Agreement is invalid, the rest of the Security Agreement will remain  
in effect. 

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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

authorized users

Joint accounts

checks

credit authorizations

credit lines

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

 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.

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.

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.

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 Payments

Payment instructions

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

  “payment in full” or with any other restrictive endorsement without losing 

in the U.S.

any of our rights under this agreement.

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

•		We	 credit	 your	 payments	 in	 accordance	 with	 the	 terms	 contained	 on	 your	 

made by Authorized Users.

billing statement.

•		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

•		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.

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minimum Payment due

how We apply Payments

interest charges
how We calculate interest 
charges—daily balance 
method (including current 
transactions)

Paying interest

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

 –  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. 

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.

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

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.

 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
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

merchant disputes

automatic billing  
arrangements

our Privacy Policy

reporting to credit  
reporting agencies

our communications  
with you

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. 

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;

 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.

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 

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

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 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.

Purchases and cash 
advances in Foreign 
currencies

governing law

severability

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.

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

 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	 

“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.

or similar items.

“check” means any check we send to you to access your Account.

-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 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  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.  

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