©2019 Discover Bank, Member FDIC
CMASECDI093019

-1-

©2019 Discover Bank, Member FDIC CMASECDI033119-1 -This is an example of terms that were available to recent applicants as of 09/30/19. Pricing Schedule is part of the Cardmember Agreement.PRICING SCHEDULEInterest Rates and Interest ChargesAnnual Percentage Rate (APR) for Purchases24.99%. This APR will vary with the market based on the Prime Rate.1APR for Balance Transfers24.99%. This APR will vary with the market based on the Prime Rate.1APR for Cash Advances26.99%. This APR will vary with the market based on the Prime Rate.1Penalty APR and When It AppliesNonePaying InterestYour 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 g period in which the transaction posted to your Account.Minimum Interest ChargeIf you are charged interest, the charge will be no less than $0.50.FeesAnnual Fee None Balance Transfer Fee5% of the amount of each transfer.Cash Advance FeeEither $10 or 5% of the amount of each cash advance, whichever is greater.Late Fee None$39.Returned Payment FeeUp to $39.How We Will Calculate Your Balance: We will use a method called “daily balance (including current transactions)”. See the Cardmember Agreement for details.1 .%47.91 fo nigram a sulp etaR emirP eht ot lauqe si RPA refsnart ecnalab dna esahcrup ehT The Cash Advance APR is equal to the Prime Rate plus a margin of 21.74%.SECURITY AGREEMENT

Security Deposit Account

This is the Security Agreement for your Discover it® 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.

Security Deposit Account 
Statements

Electronic Fund Transfers 
to or from your Security 
Deposit Account

Pledge and Grant of  
Security Interest

You will get a monthly Security Deposit Account statement as part of your Account statement.

You may fund your Security Deposit Account with an electronic fund transfer (“Transfer”). If we do not complete a Transfer to your Security Deposit Account on time or in the 
correct amount according to our agreement with you, we will be liable for your losses or damages. However, we will not be liable if circumstances beyond our control (such as 
fire or flood) prevent the transfer, despite reasonable precautions that we have taken. In case of errors or questions about your funding Transfers call us at 1-800-347-3085 or 
write us at P.O. Box 30943, Salt Lake City, UT 84130-0943 as soon as you can, if you think your statement is wrong or if you need more information about a funding Transfer 
listed on the statement. We must hear from you no later than 60 days after we sent the FIRST statement on which the problem or error appeared. (1) Tell us your name and 
Account number. (2) Describe the error or the Transfer you are unsure about, and explain as clearly as you can why you believe it is an error or why you need more information. 
(3) Tell us the dollar amount of the suspected error. If you tell us orally, we may require that you send us your complaint or question in writing within 10 business days. We will 
determine whether an error occurred within 10 business days after we hear from you and will correct any error promptly. If we need more time, however, we may take up to 45 
days to investigate your complaint or question. If we decide to do this, we will credit your Security Deposit Account within 10 business days for the amount you think is in error (if 
applicable), during the time it takes us to complete our investigation. If we ask you to put your complaint or question in writing and we do not receive it within 10 business days, 
we may not credit your Security Deposit Account (if applicable). For errors involving a new Security Deposit Account, we may take up to 90 days to investigate your complaint or 
question. For a new Security Deposit Account, we may take up to 20 business days to credit your Security Deposit Account (if applicable) for the amount you think is in error. We 
will tell you the results within three business days after completing our investigation. If we decide that there was no error, we will send you a written explanation. You may ask 
for copies of the documents that we used in our investigation.

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.

We may comply with any writ of attachment, adverse claim, garnishment, tax levy, restraining order, subpoena, warrant or other legal proceeding involving your Security Deposit 
Account which we believe to be valid. 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 reasonable 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. 

-2-

EBZ_19_656934_Cardmember_Agreement_Updates_Secured

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 5.

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 to make transactions on your Account. You must notify us if you wish to cancel the authority of an Authorized 
User to use your Account. You are responsible for all charges made by your Authorized Users.

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 $28 if you were not charged a Late Fee during any of the prior six billing periods. Otherwise, 
the fee is $39. 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 $28 if you were not charged a Returned Payment Fee during any of the prior six billing periods. Otherwise, the fee is $39. 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.

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  in  U.S.  dollars.  Please  do  not  send  cash.  Sending  cash  is  not 

•  We  credit  your  payments  in  accordance  with  the  terms  contained  on  your  

allowed. All checks must be drawn on funds on deposit in the U.S. 

billing statement.

Minimum Payment Due

•  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.

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 

  –  $15, plus any of the following charges as shown 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.

•  If a third party makes a payment on your Account and we return all or a part 
of such payment, then we may adjust your Account for any amount returned. 
We reserve the right to defend ourselves against any demand to return funds 
we have received, and may agree to a compromise of the demanded amount 
as part of a settlement. 

  fees for any debt protection product that you enrolled in on or after 2/1/2015; 

Interest Charges; and Late Fees (not to exceed 4% of the New Balance). 

The Minimum Payment Due may also include amounts by which you exceed your 
Account  credit  line.  It  will  never  exceed  the  New  Balance.  When  we  calculate 
the Minimum Payment Due, we may subtract from the New Balance certain fees 
added to your Account during the billing period. The Minimum Payment Due is 
rounded up to the nearest dollar. 

How We Apply Payments

We  apply  payments  and  credits  at  our  discretion,  including  in  a  manner  most 
favorable or convenient for us. In all cases, we will apply payments and credits as 
required by applicable law. 

Each  billing  period,  we  will  generally  apply  amounts  you  pay  that  exceed  the 
Minimum Payment Due to balances with higher APRs before balances with lower 
APRs as of the date we credit your payment.

-3-

EBZ_19_656934_Cardmember_Agreement_Updates_Secured

INTEREST CHARGES
How We Calculate Interest 
Charges—Daily Balance 
Method (including current 
transactions)

Paying Interest

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

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 Account  
Information Updates

Our Privacy Policy

Credit Reporting  
Agency Information

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 or store your Account information with an Affiliate, merchant, wallet provider, or other third party (“Permitted Party”). If you do, you 
authorize us to share your Account information, which may include your rewards account balance, with the Permitted Party, regarding the use of your Account. If your Account 
information changes, which may include your billing address, you authorize us to provide this updated information to any such Permitted Party at our discretion. You must 
contact the Permitted Party directly or remove your credit card information from the Permitted Party website if you wish to stop automatic billing or Account updates.

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.

 You authorize us to review your credit, employment, and income for the purpose of 
this Account, as well as to consider you for other products and services. 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, P.O. Box 30939, Salt Lake City, UT 84130-0939. Please include your name, 
address, home phone number and Account number.

You agree that we, our Affiliates, and agents, including service providers (“Authorized 
Parties”) may contact you, including calls, text message or email, about any current 
or future accounts or applications, with respect to all products you have with us at 
any phone number or email (i) you have provided to us, (ii) from which you contacted 
us, or (iii) which we obtained and believe we can reach you at, even if your phone 
provider may charge you message and data rates for calls or texts. You agree that the 
Authorized Parties may record or monitor any calls between you and the Authorized 
Parties. You agree to notify us if you change or discontinue using any phone number

you  provide.  You  agree  that  the  Authorized  Parties  may  contact  you  using  an 
automatic dialer or pre-recorded voice message. If you no longer wish to be contacted 
on your cell phone by an automated dialer or pre-recorded voice message, you must 
provide us written notice cancelling your consent at this address: Discover Bank, P.O. 
Box 30937, Salt Lake City, UT 84130-0937. The written notice must include: your 
name, mailing address, the last four digits of your Account number and the specific 
cell phone number(s) for which you would like to cancel your consent to be contacted 
by an automated dialer or pre-recorded voice message.

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 

•  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.

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.

-4-

EBZ_19_656934_Cardmember_Agreement_Updates_Secured

Governing Law

This Agreement is governed by applicable federal law and by Delaware law. However, in the event you default and we file a lawsuit to recover funds loaned to 
you, the statute of limitations of the state where the lawsuit is filed will apply, without regard to that state’s conflicts of laws principles or its “borrowing statute.”

Severability

Except as set forth in the “Arbitration” section, if any part of this Agreement is found to be invalid, the rest of it will still remain in effect.

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

MILITARY BORROWERS
Statement of MAPR

Oral Disclosures 

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.

Federal law provides important protections to members of the Armed Forces and their dependents relating to extensions of consumer credit. In general, the cost 
of consumer credit to a member of the Armed Forces and his or her dependent may not exceed an Annual Percentage Rate of 36 percent. This rate must include, as 
applicable to the credit transaction or account: (1) the costs associated with credit insurance premiums; (2) fees for ancillary products sold in connection with the 
credit transaction; (3) any application fee charged (other than certain application fees for specified credit transactions or accounts); and (4) any participation fee 
charged (other than certain participation fees for a credit card account). If you would like more information about whether this section applies to you, please contact 
us at 1- 844- DFS- 4MIL (1-844-337-4645) anytime 24/7. If calling outside the U.S. you can contact us at +1-801-451-3730.

Before  agreeing  to  this  Agreement,  in  order  to  hear  important  disclosures  and  payment  information  about  this  Agreement,  please  call  1- 844- DFS- 4MIL  
(1-844-337-4645) anytime 24/7. If calling outside the U.S. you can contact us at +1-801-451-3730. 

Unless we tell you otherwise, you can notify us:
•  by phone at 1-800-347-3085 or 
•  in writing to Discover, P.O. 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 for:
•   obtaining  cash  from  participating  automated  teller  machines,  financial 

institutions or other locations; and

•   online gambling, or to 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. In the event of a dispute between you 
and us arising out of or relating to this Account or the relationships 
resulting from this Account or any other dispute between you or 
us (“Claim”), either you or we may choose to resolve the Claim 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.
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.
This Arbitration Provision does not apply if, on the date you submit 
your Application or on the date we seek to invoke our arbitration 
provision, you are a member of the Armed Forces or a dependent 
of such a member covered by the federal Military Lending Act. If 
you would like more information about whether you are covered 
by the Military Lending Act, please contact us at 1-844-DFS-4MIL 
(1-844-337-4645)  or  if  you  are  calling  from  outside  the  U.S.  at 
+1-801-451-3730.
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. 
The  arbitrator  may  award  injunctive  relief  only  in  favor  of  the 
individual  party  seeking  relief  and  only  to  the  extent  necessary 
to provide relief warranted by that party’s individual claim. The 
arbitrator may not award class, representative or public injunctive 
relief. If a court decides that applicable law precludes enforcement 
of  any  of  this  paragraph’s  limitations  as  to  a  particular  claim 
for  relief,  then  after  all  appeals  from  that  decision  have  been 
exhausted, that claim (and only that claim) must be severed from 
the arbitration and may be brought in court. Only a court, and not 
an arbitrator, shall determine the validity, scope, and effect of the 
Class Action Waiver. 
Your Right to Go To Small Claims Court. We will not choose 
to arbitrate any individual claim you bring in small claims court or 
your state’s equivalent 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 

-5-

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 with jurisdiction appoint a substitute.
Fees and Costs. If you wish to begin 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, P.O. 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. 

 
EBZ_19_656934_Cardmember_Agreement_Updates_Secured

ARBITRATION

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.
Claim Notice and Special Payment. If you have a Claim, before 
initiating an arbitration proceeding, you may give us written notice 
of the Claim (“Claim Notice”) at least 30 days before initiating the 
arbitration proceeding. The Claim Notice must include your name, 
address, and account number and explain in reasonable detail the 
nature of the Claim and any supporting facts. Any Claim Notice 

shall be sent to us at Discover, P.O. Box 794, Deerfield, IL 60015 
(or such other address as we shall subsequently provide to you). 
If, and only if, (1) you submit a Claim Notice in accordance with 
this  agreement  on  your  own  behalf  (and  not  on  behalf  of  any 
other party); and (2) an arbitrator, after finding in your favor in 
any  respect  on  the  merits  of  your  claim,  issues  you  an  award 
that (excluding any arbitration fees or attorneys’ fees and costs 
awarded by the arbitrator) is greater than the value of Discover’s 
last  written  settlement  offer  made  before  an  arbitrator  was 
selected, then you will be entitled to the amount of the award or 
$7,500, whichever is greater. If you are entitled to the $7,500, you 
will receive in addition any arbitration fees or attorneys’ fees and 
costs awarded by the arbitrator. 
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, 
P.O. 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.  Rejection  of  arbitration 
for this Account will not constitute rejection of any prior or future 
arbitration agreement between you and us. 

Your Billing Rights:
Keep This Document For Future Use

This notice tells you about your rights and our responsibilities under the Fair Credit  
Billing Act.

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:

Discover
PO Box 30421
Salt Lake City, UT 84130-0421.
You may also contact us on the Web: https://discover.com/billingerrornotice

In your letter or on the Web, please give us the following information: 
• Account information: Your name and account number. 
• Dollar amount: The dollar amount of the suspected error. 
•  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:
• Within 60 days after the error appeared on your statement.
•  By 5:00 P.M. ET on the date an automated payment is scheduled, if you want to stop payment on the 
amount you think is wrong. You must notify us of any potential errors in writing or electronically. You 
may call us, but if you do we are not necessarily required to investigate any potential errors and you 
may have to pay the amount in question.

What Will Happen After We Receive Your Letter or Web Submission

After we finish our investigation, one of two things will happen: 
•  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 (or visit  
https://discover.com/billingerrornotice) 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 Are 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.

To use this right, all of the following must be true: 
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 are 
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.)

When we receive your written or electronic notice, we must do two things:
1.   Within 30 days of receiving your notice, we must tell you that we received it. We will also tell you if 

2.  You must have used your credit card for the purchase. Purchases made with cash advances from an 

ATM or with a check that accesses your credit card account do not qualify.

we have already corrected the error.

2.  Within 90 days of receiving your notice, we must either correct the error or explain to you why we 

believe the bill is correct.

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 charge in question may continue to appear on your statement.
•  While you do not have to pay the amount in question, you are responsible for the remainder of  

your balance.

• We can apply any unpaid amount against your credit limit.

If all of the criteria above are met and you are still dissatisfied with the purchase, contact us in writing 
or electronically at:

Discover 
PO Box 30945 
Salt Lake City, UT 84130-0945 
https://discover.com/billingerrornotice

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.

-6-