pricing schedule

This is an example of terms that were available to recent applicants as of 09/30/13. They may not be available now. If you apply, your terms will be based on the terms of the offer when you apply. This Pricing 
Schedule is part of the Cardmember Agreement.

Interest Rates and Interest Charges

Annual Percentage Rate (APR) for Purchases

From 12.99% to 24.99%. This APR will vary with the market based on the Prime Rate.1

APR for Balance Transfers

APR for Cash Advances

From 12.99% to 24.99%. 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

Penalty APR and When It Applies

none

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 

none 

3% of the amount of each transfer.

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

none the first time you pay late. After that, up to $35.

Returned Payment Fee

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 9.74% to 21.74%.
The Cash Advance APR is equal to the Prime Rate plus a margin of 21.74%.

©2013 Discover Bank, Member FDIC 
CMANPRDI093013 

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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

 We will not charge a Late Fee the first time you do not make the Minimum Payment 
Due by the Payment Due Date.  After that, 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 that apply to your account)

Variable aprs

 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. 

penalty apr

None

making paYments

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 

“ 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  

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.

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 the greater of: 
•  $20; or
•    Any amount past due 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. 

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making paYments

how We apply payments

interest charges

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

paying interest

 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.

 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).

 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 

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.

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

collection costs

merchant disputes

automatic Billing  
arrangements

our privacy policy

reporting to credit  
reporting agencies

our communications  
with You

unauthorized use

cancellation of 
Your account

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.

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;

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

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

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

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

You 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.

you at.  We may contact you in any way, such as calling, texting, or email. 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.

•   You may cancel your Account. You will remain responsible for any amount you 

•   We may cancel, suspend or not renew your Account at any time without notice.

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.

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other important information

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

contact us

definitions

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.

Unless we tell you otherwise, you can notify us:
•  by phone at 1-800-347-3085 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 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  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 

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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.