Card Agreement Guide

This Guide will help you easily identify sections of the Card Agreement and give you a brief overview of the contents of each
section. This is not intended to be a complete summary of the Card Agreement’s contents, and we encourage you to read your
entire Card Agreement, including the arbitration provision, before you use your Account.

DEFINITIONS
Lists the meanings of particular phrases and terms 
used in the Card Agreement.

YOUR ACCOUNT
Describes some of your responsibilities for using 
your Account. 

ANNUAL PERCENTAGE RATES & 
INTEREST CHARGES
Shows how we calculate interest rates and how that
affects your Account balance.

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CREDIT REPORTING
Describes what information we provide about you to
credit reporting agencies, and how to dispute items 
on your report. This section also explains how we use
information we get about you from those agencies.

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ACCOUNT INFORMATION, INFORMATION SHARING 
& COMMUNICATIONS
Explains that your personal information we use to
manage your Account should always be up to date. 
Also notes that we share information about you and your
Account. In addition, this section describes how we may
contact you.

FEES & FOREIGN CURRENCY CONVERSION
Describes the fees that can be applied to your Account,
including annual membership fees, late fees, as well 
as foreign transaction fees for Purchases not in 
U.S. dollars.

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PAYMENTS
Shows how your monthly Minimum Payment Due is
calculated, tells you how we apply your payments to
balances, and gives you certain instructions for making
payments (and tells you the possible consequences of
not following those instructions).

AUTHORIZED USERS
Describes an Authorized User’s rights and your
responsibility for that user. Also describes what
information we can share about you and your
Authorized User.

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DEFAULT, CLOSING OR SUSPENDING 
YOUR ACCOUNT
Tells you when we may require immediate payment of
your total Account balance, and explains when we may
close or suspend your Account, and when you may
close your Account.

TRANSACTIONS
Provides important information about merchant credits,
recurring Transactions and card refusals.

ARBITRATION
Explains that you cannot go to court, have a jury trial
or initiate or participate in a class action if you have 
a dispute with us. Instead, this provision tells you 
that the dispute must be resolved by a professional
arbitrator, not a judge or jury. This section also
explains how arbitration works and some of the
differences between resolving a dispute in arbitration
and resolving one in court.

AGREEMENT & BENEFIT CHANGES
Explains that we can make changes to the Card
Agreement and your card benefits and features.

MISCELLANEOUS
Explains subjects that aren’t included in previous sections.

YOUR BILLING RIGHTS
Explains your billing rights, which include how to
address possible statement mistakes and your rights 
if you’re not satisfied with a Purchase.

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Card Agreement 

This Card Agreement (Agreement) is your contract with us.

The Facts about Interest and Fees document (Fact Sheet) is part of this Agreement. The Fact Sheet shows important
information about your Account, such as your annual percentage rates and certain fees. Any amendments to this Agreement
also are part of this Agreement. 

Please read all parts of this Agreement, including the arbitration provision, and keep it for your records. 

Note: Throughout the Agreement are examples, helpful tips, and additional explanations 
that will make the Agreement easier to understand.  

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Account – Your Citi Account. 

1DEFINITIONS

Annual Percentage Rate (APR) – A rate, shown as a percentage, used to
calculate interest on the balance on your Account.

Consumer Reporting Agency – An organization, such as Experian,
Equifax and TransUnion, that compiles credit information for the purpose
of generating consumer credit reports. It’s also known as a “credit bureau”
and a “credit reporting agency.”

Authorized User – Any person you allow to use your Account with a Card
we provided with that person’s name. 

Include and including – These terms mean “include [or including] without
limitation.”

Balance Transfer – Use of a Balance Transfer offer, including use of a
check that accesses your Account for any transaction, or the transfer of 
a balance from another credit account to your Account.

Late Payment – A payment is late if you don’t pay at least an amount
equal to the Minimum Payment Due minus any Overlimit Amount by the
payment due date.

Billing Period – The period of time between each date when we create a
statement for your Account. A Billing Period is usually 28 – 33 days. For
each Billing Period, your statement will show any Transactions, other
charges, payments and other credits posted during that Billing Period.

Business Day – Monday through Friday, excluding federal holidays.

New Balance – The total amount you owe us at the end of each Billing
Period. This amount is shown on each statement under the heading “New
Balance.” We explain how we calculate the New Balance below. 

Overlimit Amount – The amount by which your Account balance exceeds
your credit limit in any Billing Period. 

Card – One or more cards or other devices (including an account number)
used to access your Account to obtain credit. 

Purchase – Use of your Card to buy goods and services. Balance Transfers
and Cash Advances are not Purchases.

Card Networks – Organizations, such as MasterCard, Visa and American
Express, that facilitate the payment process between a cardmember,
merchants and a card issuer.

Returned Payment – A payment that isn’t honored by your 
financial institution.

Cash Advance – Use of your Card to get cash, including foreign currency,
or for what we consider a cash-like transaction. Examples include using
your Card for: ATM and teller withdrawals, wire transfers, money orders,
traveler’s checks, lottery tickets, gaming chips and other methods used for
gambling, wagers and other betting transactions.

Transaction – A Balance Transfer, Cash Advance or Purchase, 
as applicable.

we, us, and our – Citibank, N.A.

you and your – The cardmember who opened the Account.

You’ll find definitions of other terms within this Agreement. 

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2YOUR ACCOUNT

Your Account use is subject to this Agreement. You must pay us for all amounts
due on your Account, including: 

1. Transactions you make, even if you didn’t present your Card or sign for 

the Transaction; 

2. Transactions an Authorized User makes;

3. Transactions that other people make if you or an Authorized User let them use

your Account; and

4. Any fees and interest charges on the Account.

Binding Agreement. This Agreement takes effect once you use your Card. Even
if you don’t use your Card, this Agreement will take effect unless you contact us to
cancel your Account within 30 days after we sent you this Agreement.

Credit Limit. We assign a credit limit to your Account. Part of this credit limit may
be available for Cash Advances, and there may be a limit on the amount of Cash
Advances you can take in a given period. We may authorize Transactions that
cause your balance to exceed your credit limit. 

ACCOUNT USE

Consumer Purposes. You aren’t permitted to use your Account for business
purposes. If you do use your Account for business purposes, this Agreement still
applies, and you must pay us for those Transactions. You have to pay us for any
damages and/or expenses resulting from that use. In addition, we may also close
your Account.

Unlawful Transactions. You aren’t permitted to use your Account for unlawful
Transactions. If you do use your Account for unlawful Transactions, this
Agreement still applies and you must pay us for those Transactions. You also may
have to pay the Card Network and/or us for any damages and expenses resulting
from that use. In addition, we may close your Account. 

Mobile Phone or Other Devices. Smart phones, tablets and other electronic
devices can store your Card (such as through a mobile wallet). This means they
can be used to make Purchases or other Transactions. Any such Transactions are
covered by this Agreement. Apps that use your Card to make Transactions may
have separate terms of use. We’re not responsible if you violate those terms, or
for any consequences resulting from any violation.

Note: It’s important to protect your devices the same way you protect your Card. Anyone who can access your Card using your device also 
can make charges to your Account using that device.

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ANNUAL PERCENTAGE RATES & INTEREST CHARGES

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The following sections explain how we calculate the interest you owe each 
Billing Period. 

APRs. We use APRs to calculate interest charges on your Account. Different
APRs may apply to different Transactions. See the listing of your APRs on the 
Fact Sheet. 

Variable APRs. A variable APR is an APR that can change each Billing Period.
We calculate each variable APR first by taking the U.S. Prime Rate from The Wall
Street Journal (WSJ) two Business Days before the last day of each Billing
Period. (If the WSJ doesn’t publish the U.S. Prime Rate that day, then we’ll use
another publication.) Then we add to the U.S. Prime Rate a certain percentage
amount, which we call the Margin. You can find the Margin we use for your
Account in the Details About Your Interest Rate section of the Fact Sheet.
Your variable APRs will increase if the U.S. Prime Rate increases and decrease if
the U.S. Prime Rate decreases. If a variable APR increases, then your interest
charges and Minimum Payment Due may increase. 
If the U.S. Prime Rate changes, we’ll apply the new variable APR starting from the
first day of the Billing Period when we take the U.S. Prime Rate from the WSJ.
The new APR will apply to existing balances, as well as balances added to your
Account after the change.

How is a variable APR calculated?

If the U.S. Prime Rate published in the WSJ two Business Days
before the end of a Billing Period is 5%; and 
If the Margin is 13.99%; then 
Add the two together to calculate a variable APR:

5% + 13.99% = 18.99%

Penalty APR. If you have a Late or a Returned Payment, we may apply a penalty
APR to your Account. We determine your penalty APR based on your
creditworthiness.  
•  Penalty APR for new Transactions (less than 60 days late). If you make a

Late Payment and it’s less than 60 days late or you have a Returned Payment,
the penalty APR only will apply to new Transactions. We’ll review your Account
from time to time, to determine if any penalty APR should be reduced.

•  Penalty APR for existing balances and new Transactions (60 or more days
late). If we haven’t received your Minimum Payment Due within 60 days after its
due date, we may apply the penalty APR to both the existing balances and new
Transactions. If you make your next six consecutive Minimum Payments Due on
time, we’ll stop applying the penalty APR to existing balances and new
Transactions. If you don’t make your next six consecutive Minimum Payments
Due on time, the penalty APR may continue to apply indefinitely to existing
balances and new Transactions.

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SECTION 3 — ANNUAL PERCENTAGE RATES & INTEREST CHARGES (continued)

Daily Balance
We calculate interest on your Account each Billing Period first by
calculating your daily balances. The following explains how we do that.

Here’s how and when Transactions, fees and credits are applied to
the balances on your Account:
•  We add the amount of a Purchase or Balance Transfer to the Purchase

balance as of the post date on your statement. 

•  We add the amount of a Cash Advance to the Cash Advance balance

as of the post date on your statement.  

•  We add a Balance Transfer fee to the Purchase balance as of the post

date on your statement. We add a Cash Advance fee to the Cash
Advance balance as of the post date on your statement. We’ll add any
other fees to the balance of our choice. If you’re charged interest in a
Billing Period, but the amount calculated is less than $0.50, we’ll add
additional interest to the balance(s) of our choice so that you’ll be
charged $0.50 in interest for that Billing Period. 

•  We subtract credits and payments as of the post date shown on your

statement.

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•  Each balance may have a different APR. Certain categories of

Transactions in a balance may have multiple APRs. For example, you
may make a Purchase or Balance Transfer that’s subject to a
promotional APR. Your balances, and their corresponding APRs, are
shown on your statement.

Note: The post date shown on your statement will usually be the date
of the Transaction, but it may be later.

Here’s how we calculate each of the daily Purchase and Cash
Advance balances on your Account:
•  We start with the daily balance from the end of the previous day.
•  We add any new Transactions, fees and other charges, including

interest accrued on the previous day’s balance. This means that interest
is compounded daily.

•  We subtract any credits or payments credited as of that day.
•  We make additional adjustments as appropriate, subject to applicable
law (as an example, for a disputed charge). This gives us the daily
balance for that day. 

Daily balance for purchases from the previous day
+ New purchases
+ Fees and interest accrued on the previous day’s Purchase balance
– Payments, credits and adjustments posted that day

= New daily balance for Purchases

Interest Calculation. Each daily balance may have a different APR.
Certain categories of Transactions in a daily balance may have multiple
APRs. For example, you may make a Purchase or Balance Transfer that’s
subject to a promotional APR. If a daily balance on your Account is
subject to an APR, we’ll charge interest on that daily balance. We use the
daily balance method (which includes new Transactions). If interest
applies to a balance, it will start applying on the day a charge is added to
that balance and continue until that balance is paid in full. We consider a
credit balance as a balance of zero when calculating interest on that
balance. 
•  We multiply each daily balance by its applicable daily periodic rates

(each applicable APR divided by 365). 

•  We do this for each day in the Billing Period. This gives us the daily 

interest amounts. 

•  Then we total all the daily interest amounts for all the daily balances. 

This gives us the total interest for the Billing Period.

Note: Your balances, and their corresponding APRs, are shown on 
your statement.

Calculating the New Balance. To calculate the New Balance at the end
of each Billing Period, we begin with the total Account balance at the start
of that Billing Period. Then we add any Transactions that are new to the
Account during that Billing Period. Then we subtract any credits applied or
payments made during that Billing Period. Then we add any interest
charges or fees incurred during that Billing Period and make any other
adjustments, as applicable (for example, if you have disputed a charge).
Grace Period on Purchases. You won’t pay any interest on Purchases if
you pay the New Balance, including any Balance Transfers, in full by the
payment due date shown on your statement each Billing Period. We call
this a grace period on purchases. If you don’t pay your New Balance,
including any Balance Transfers, in full by the payment due date in a
Billing Period, you’ll pay interest on your Purchases from the date they’re
posted to your Account. You also won’t have a grace period on Purchases
again until you pay the New Balance in full by the payment due date 2
Billing Periods in a row. 
There’s no grace period on Balance Transfers and Cash Advances. This
means you’ll pay interest on Balance Transfers and Cash Advances from
the date these Transactions post to your Account.

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FEES

Fee

FEES & FOREIGN CURRENCY CONVERSION

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Amount

About the Fee

Annual Membership Fee

See Pricing Table

Late Fee

Up to $35  

Returned Payment Fee

Up to $35 

If your Account has an annual membership fee, the Fact Sheet shows this fee. 
You’ll see this annual fee on your first statement after opening your Account and 
each year after that. We’ll charge the fee if your Account is open, even if you 
don’t have a balance.

We have the right to charge you a late fee if you don’t pay at least an amount
equal to the Minimum Payment Due minus any Overlimit Amount by the payment
due date.The late fee is $25 and, if you make another Late Payment within the 
next 6 Billing Periods the late fee will be $35. The amount of your late fee will 
never be higher than your Minimum Payment Due.

We have the right to charge you a Returned Payment fee of $25 if your bank 
doesn’t honor your payment. If that happens, we’ll resubmit the payment request.
If your bank doesn’t honor another payment within 6 consecutive Billing Periods, 
the returned payment fee will go up to $35. 

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Transaction Fee for 
Balance Transfers

Transaction Fee for 
Cash Advances

Either $5 or 3% of the amount of 
each transfer, whichever is greater.

Either $10 or 5% of the amount of each 
cash advance, whichever is greater.

We charge you a fee for each Balance Transfer. 

We charge you a fee for each Cash Advance. 

Transaction Fee for non-Costco 
Purchases in Foreign Currency

0 – 3% of the amount of the Transaction
after conversion to U.S. dollars.

We charge you a fee for a Purchase made in a currency other than U.S. dollars 
regardless of where the Transaction takes place or who the merchant is.

FOREIGN CURRENCY CONVERSION
Foreign Currency Conversion – Purchases. A Card Network converts the
amount of a Purchase in a foreign currency into U.S. dollars. Each Card Network
follows its own procedures for conversion. These procedures include how the
Card Network chooses an exchange rate and when to do the conversion. For
example, Visa chooses either a government-mandated exchange rate or chooses
from a range of rates available on wholesale currency markets (and, in either
case, the exchange rate that it chooses may be less favorable than the rate that
Visa itself, receives when it makes foreign currency transactions). Depending on
the policies of each Card Network, the exchange rate chosen may be the one in
effect on the day the Card Network does the conversion, or on the day before.
The exchange rate that a Card Network uses to convert the Purchase to U.S.
dollars may differ from the rate in effect on the date you made the Purchase or on
the post date for that Purchase shown on your statement. The Card Network’s
procedures may change without notice. 
If a third party, such as a merchant, converts the amount of a Purchase into U.S.
dollars before sending the Purchase to a Card Network, the third party chooses
the conversion rate instead of the Card Network.

Foreign Currency Conversion – Cash Advances. If you take a Cash Advance
in a foreign currency at an ATM or branch of a financial institution, it may not be
the Card Network in all instances that converts the Transaction into U.S. dollars.
Instead, depending on where the Transaction takes place, another third party,
such as a financial institution, ATM network, or ATM operator, may do the
conversion. We do not control this. However, if you use your Card for a Cash
Advance at a Citibank ATM or branch, then we or our affiliates may do the
conversion.
The party that converts a Cash Advance to U.S. dollars will choose the exchange
rate and when to do the conversion. The exchange rate in effect on the date the
Cash Advance is converted to U.S. dollars may differ from the rate in effect on the
date you took the Cash Advance or the post date for that Transaction shown on
your statement. The exchange rate may also differ from any rate quoted to you
when you made the Transaction.

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5PAYMENTS

Minimum Payment Due. You may pay all or a part of your Account
balance at any time. You must pay at least the Minimum Payment Due by
the payment due date each Billing Period.
Your “Minimum Payment Due” equals: 
•  Any amount past due; plus
•  Any Overlimit Amount; plus 
•  The greater of:

1.  The New Balance, if it’s less than $25;
2.  $25 if the New Balance is at least $25;
3.  1% of the New Balance (rounded to the nearest dollar), plus any
billed interest or minimum interest charge, plus any late fee; or

4.  1.5% of the New Balance (rounded to the nearest dollar).
The Minimum Payment Due is never more than the New Balance.

Note: Your payment due date is typically the same day of the month
every month. You may request a change to your monthly due date.

How is the Minimum Payment Due calculated?

For example, in a sample Billing Period, an Account with no past due 
or Overlimit amounts has:

New Balance: $2,500
Interest: $18.54

Since the New Balance is more than $25, and there are no past due or
Overlimit amounts, the Minimum Payment Due will be the greater of:

1% of the New Balance (1.0% x $2,500: $25.00) 
+ interest ($18.54): $43.54

or

1.5% of the New Balance (1.5% x $2,500): $37.50

Since 1% of the New Balance plus interest ($43.54) is greater than
1.5% of the New Balance ($37.50) the Minimum Payment Due is
$43.54.

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Application of Payments. We decide how to apply your payment, up to
the Minimum Payment Due, to the balances on your Account. We may
apply the Minimum Payment Due first to interest charges, then to the
balance with the lowest APR and then to balances with higher APRs. If
you pay more than the Minimum Payment Due, we’ll apply the amount
over the Minimum Payment Due first to the balance with the highest APR,
then to the balance with the next highest APR, and so on, except as
otherwise required by applicable law. 
Payment Instructions. You must follow the instructions below when
making a payment. If you do, we’ll credit the payment to your Account as
of the day we receive it.  

1. You must pay in U.S. dollars.
2. You must use a check or electronic debit issued by a bank in the 

United States. 

3. You must not send us a check dated after the date that we receive it.  
4. You must not enclose more than one check per envelope.
5. You must not include any restrictive endorsements on the check.
6. You must follow the additional payment instructions shown on 

your statement.

If you don’t pay in U.S. dollars and we accept your payment, we’ll select
the currency conversion rate, and you must pay our costs. If you don’t
follow our payment instructions, we may not accept your payment, or
there may be a delay in crediting your Account. Either case may result in
late fees and additional interest charges to your Account. If you don’t
follow the instructions in this Agreement or on your statement, we may
accept your payment without losing our rights. We may reject a payment 
if it’s more than the outstanding Account balance. We also may close 
your Account.

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AUTHORIZED USERS

Account Use by Authorized Users. You can ask us to add one or more
Authorized Users to your Account. If we approve, use of your Account by
an Authorized User is subject to the terms of this Agreement. You must:
• Obtain permission from each Authorized User before naming him or her

as an Authorized User on your Account.

•  Make a copy of this Agreement available to each Authorized User.
• Pay us for all charges incurred by each Authorized User.
• Notify us to remove an Authorized User from your Account.
If we remove an Authorized User, in some cases we may close your
Account, open a new Account and issue you a new Card.

You’re responsible for:
• Any Transactions made by an Authorized User on your Account.
• Any Transaction made by an Authorized User even if the post date

shown on your statement for that Transaction occurs after the date you
ask us to remove the Authorized User from your Account. 

• Any Transactions made by others if an Authorized User allows them to

use your Account.

• Fees and charges resulting from any Transactions made by an

Authorized User or others if an Authorized User allows them to use 
your Account.

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SECTION 6 — AUTHORIZED USERS (continued)

What can Authorized Users do? 

• Report lost or stolen Cards
• Request statement copies
•  Initiate billing disputes
• Make payments 
• Change the billing address  

for your Account 

•  Request refund checks 
• Obtain certain Account 
information such as 
Transaction histories

Account Information Rights for Authorized Users. You allow us to
discuss your Account with an Authorized User. This includes giving him
or her access to your Account information and history. You also agree
that an Authorized User may use and receive information about the
Account the same way you do. An Authorized User can’t add other
Authorized Users, adjust the credit limit or close the Account. 

Information about Authorized Users. You agree to give us certain
personal information about each Authorized User. You must let each one
know that you’ll give us that information and you must have his or her
permission to do so. You must have permission from each one to allow us
to share information about him or her as allowed by applicable law. This
includes information we may get from you, any Authorized User and
others. It also includes information about their Transactions on the
Account. 

Credit Reporting. We report information about this Account to Consumer
Reporting Agencies in the Authorized User’s name that may appear on
their credit report. This could include information about:

•  Late Payments; 
•  Overlimit Amounts;
•  Returned Payments; and   
•  Other violations of this Agreement.
You must let each Authorized User know that we report Account
information in his or her name. Also, see Credit Reporting in Section 8.

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DEFAULT, CLOSING OR SUSPENDING YOUR ACCOUNT

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Default. We may require immediate payment of your total Account
balance, to the extent allowed by law, if any of the following occur:
1.  You don’t pay at least the Minimum Payment Due by the due date. 
2.  You have a Returned Payment.
3.  You file for bankruptcy or some other insolvency proceeding is filed by 

or against you. 

4.  You don’t honor the terms of this Agreement.
5.  You default under any other card agreement you have with us. 
6.  You’re declared incompetent or mentally incapacitated, or in the event 

of your death.

Closing or Suspending Your Account. We may close or suspend your
Account if any of the events listed above occur, or for any reason, or for
no reason. We may do this at any time, without notifying you, as allowed
by law. We may cancel your current Card and issue you a substitute Card
at any time. You also may close your Account at any time by notifying us
by telephone or in writing. If we close or suspend your Account, or if you
close your Account, you must pay us all amounts you owe on the
Account, even if they post to your Account after it’s closed or suspended.

Closing Secured Accounts. If your Account is a secured Account, you
gave us a security interest in a deposit account. This secures repayment
of your Account. If you withdraw your funds from the deposit account, we
will close your Account. If you gave us a security interest in a deposit
account, we may use the deposit amount to pay any amount you owe.

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CREDIT REPORTING

You allow us to get information about you. We get it from Consumer
Reporting Agencies and other sources that provide consumer financial
information. You allow us to use it for: 
• Renewal of your Account;
• Credit line increases or decreases;
• Administration or review of your Account, collection and any 

we provide may appear on your credit reports. This can include
information about:
• Late Payments;
• Overlimit Amounts;
•   Returned Payments; and
•   Other violations of this Agreement.

other servicing;

• All other credit-related purposes connected with this Agreement; 
• Offers for other cards, insurance products and other services; and
• Other uses permitted by law.

We report Account information in your name, as well as information about
you to Consumer Reporting Agencies, on a monthly basis. The information

If you think we’ve given incorrect information to a Consumer Reporting
Agency about you (or about an Authorized User), contact Customer
Service and we’ll research it. We’ll let you know if we agree or disagree
with you. If we agree with you, we’ll contact each Consumer Reporting
Agency we reported to and request a correction. 

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ACCOUNT INFORMATION, INFORMATION SHARING & COMMUNICATIONS

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Changes to Account Information. You provided certain personal
information to us when you opened your Account. You agree to notify 
us if this information changes. If you don’t, or if we ask you to verify 
your Account information and you cannot, we may suspend or close 
your Account.

Information Sharing. You agree to let us share information about you 
and your Account as allowed by law. This includes information we get
from you and others. Our privacy notice, which is enclosed with your new
Account materials, describes reasons Citi can share its customers’
personal information. 

COMMUNICATIONS

Contacting You. You agree that we (and/or our service providers or anyone
we authorize) may contact you at any phone number, email address, or
mailing address you provide or we obtain in other ways. This includes

communications to mobile, cellular/wireless, or similar devices. We may
contact you by live operator, auto-dialer, recorded or artificial voice, text, 
or email.
You agree to pay any charges from your plan provider for communications
we send to you, as well as communications you send to us. 
How We Capture and Use Voiceprints. We may use voice recognition
technology to verify your identity when you call. We may capture and store
your voiceprint for this purpose. 
Call Monitoring. We may monitor and record any calls between you 
and us.
Notices. We send any notices to your billing address or, if you’ve agreed,
by email to the address you gave us. We consider a notice sent as soon as
we mail it. We consider an electronic notice sent as soon as we email it,
unless we receive notification that the email was undeliverable.

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10TRANSACTIONS

Merchant Refunds. A merchant refund to your Account will post to your
Account as a credit. We don’t control when a merchant sends an Account
credit. We’ll choose how to apply the credit to your existing Account
balances. If a credit creates a credit balance on your Account, we’ll mail
you a check for the amount of the credit balance.

Note: Merchant Surcharges. Some merchants, including merchants 
outside the U.S., may charge you a fee to use your Card for a Purchase. 
The fee will be either a percentage of the amount of your Purchase, or a flat 
fee, and will be added to the amount of your Purchase. Usually, a merchant 
will tell you about this fee before you use your Card, but not always. We
don’t control these fees, and can’t prevent them.

Recurring Authorized Transactions. If you authorize a merchant or any
other person to charge your Account for recurring Transactions, you must
notify the merchant if: 

•  You want to discontinue these Transactions; 
•  Your Account is closed; 
•  Your Account number changes;  
•  Your Card expiration date changes.

You’re responsible for reinstating any recurring authorized Transactions. 

Refusal of the Card. We don’t guarantee approval of Transactions. We
are not liable for those that aren’t approved, even if you have enough
available credit on your Account. If we detect unusual or suspicious
activity, we may suspend your credit privileges. We also may limit the
number of Transactions approved in a single day.

11ARBITRATION

PLEASE READ THIS PROVISION OF THE AGREEMENT CAREFULLY.
This section provides that disputes may be resolved by binding
arbitration. Arbitration replaces the right to go to court, have a jury trial or
initiate or participate in a class action. In arbitration, disputes are resolved
by an arbitrator, not a judge or jury. Arbitration procedures are simpler and
more limited than in court. This arbitration provision is governed by the
Federal Arbitration Act (FAA), and shall be interpreted in the broadest way
the law will allow.

Covered claims 
• You or we may arbitrate any claim, dispute or controversy between

you and us arising out of or related to your Account, a previous related
Account or our relationship (called “Claims”).

• If arbitration is chosen by any party, neither you nor we will have
the right to litigate that Claim in court or have a jury trial on that
Claim.

Except as stated below, all Claims are subject to arbitration, no matter
what legal theory they’re based on or what remedy (damages, or
injunctive or declaratory relief) they seek, including Claims based on
contract, tort (including intentional tort), fraud, agency, your or our
negligence, statutory or regulatory provisions, or any other sources of
law; Claims made as counterclaims, cross-claims, third-party claims,
interpleaders or otherwise; Claims made regarding past, present, or future
conduct; and Claims made independently or with other claims. This also
includes Claims made by or against anyone connected with us or you or

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SECTION 11 — ARBITRATION (continued)

claiming through us or you, or by someone making a claim through us 
or you, such as a co-applicant, Authorized User, employee, agent,
representative or an affiliated/parent/subsidiary company.

Arbitration limits
• Individual Claims filed in a small claims court are not subject to
arbitration, as long as the matter stays in small claims court. 
• We won’t initiate arbitration to collect a debt from you unless you

choose to arbitrate or assert a Claim against us. If you assert a Claim
against us, we can choose to arbitrate, including actions to collect a
debt from you. You may arbitrate on an individual basis Claims brought
against you, including Claims to collect a debt.

• Claims brought as part of a class action, private attorney general or
other representative action can be arbitrated only on an individual
basis. The arbitrator has no authority to arbitrate any claim on a class
or representative basis and may award relief only on an individual
basis. If arbitration is chosen by any party, neither you nor we may
pursue a Claim as part of a class action or other representative action.
Claims of 2 or more persons may not be combined in the same
arbitration. However, applicants, co-applicants, Authorized Users on a
single Account and/or related Accounts, or corporate affiliates are here
considered as one person.

How arbitration works
• Arbitration shall be conducted by the American Arbitration Association
(“AAA”) according to this arbitration provision and the applicable AAA
arbitration rules in effect when the claim is filed (“AAA Rules”), except
where those rules conflict with this arbitration provision. You can obtain
copies of the AAA Rules at the AAA’s website (www.adr.org) or by
calling 800-778-7879. You or we may choose to have a hearing, appear
at any hearing by phone or other electronic means, and/or be
represented by counsel. Any in-person hearing will be held in the same
city as the U.S. District Court closest to your billing address.
• Arbitration may be requested at any time, even where there is a

pending lawsuit, unless a trial has begun or a final judgment entered.
Neither you nor we waive the right to arbitrate by filing or serving a
complaint, answer, counterclaim, motion, or discovery in a court
lawsuit. To choose arbitration, a party may file a motion to compel
arbitration in a pending matter and/or commence arbitration by
submitting the required AAA forms and requisite filing fees to the AAA.
• The arbitration shall be conducted by a single arbitrator in accord with
this arbitration provision and the AAA Rules, which may limit discovery.
The arbitrator shall not apply any federal or state rules of civil
procedure for discovery, but the arbitrator shall honor claims of privilege
recognized at law and shall take reasonable steps to protect Account
information and other confidential information of either party if
requested to do so. The arbitrator shall apply applicable substantive law
consistent with the FAA and applicable statute of limitations, and may
award damages or other relief under applicable law.

• The arbitrator shall make any award in writing and, if requested by you 
or us, may provide a brief statement of the reasons for the award. 
An arbitration award shall decide the rights and obligations only of 
the parties named in the arbitration, and shall not have any bearing on
any other person or dispute.

Paying for arbitration fees  
• We’ll pay your share of the arbitration fee for an arbitration of Claims 
of $75,000 or less if they are unrelated to debt collection. Otherwise,
arbitration fees will be allocated according to the applicable AAA Rules.
If we prevail, we may not recover our arbitration fees, unless the
arbitrator decides your Claim was frivolous. All parties are responsible
for their own attorney’s fees, expert fees and any other expenses,
unless the arbitrator awards such fees or expenses to you or us based
on applicable law.

The final award  
• Any award by an arbitrator is final unless a party appeals it in writing to
the AAA within 30 days of notice of the award. The arbitration appeal
shall be determined by a panel of 3 arbitrators. The panel will consider
all facts and legal issues anew based on the same evidence presented
in the prior arbitration, and will make decisions based on a majority
vote. Arbitration fees for the arbitration appeal shall be allocated
according to the applicable AAA Rules. An award by a panel on appeal
is final. A final award is subject to judicial review as provided by
applicable law.

Survival and Severability of Terms 
This arbitration provision shall survive changes in this Agreement and
termination of the Account or the relationship between you and us,
including the bankruptcy of any party and any sale of your Account, or
amounts owed on your Account, to another person or entity. If any part of
this arbitration provision is deemed invalid or unenforceable, the other
terms shall remain in force, except that there can be no arbitration of a
class or representative Claim. This arbitration provision may not be
amended, severed or waived, except as provided in this Agreement or in
a written agreement between you and us.

Rules for rejecting this arbitration provision
You may reject this arbitration provision by sending a written rejection
notice to us at: PO Box 6195; Sioux Falls, SD 57117-6195. Your rejection
notice must be mailed within 45 days of Account opening. Your rejection
notice must state that you reject the arbitration provision and include your
name, address, Account number and personal signature. No one else
may sign the rejection notice. Your rejection notice will not apply to the
arbitration provision(s) governing any other account(s) that you have or
had with us. Rejection of this arbitration provision won’t affect your other
rights or responsibilities under this Agreement, including use of the
Account.

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AGREEMENT & BENEFIT CHANGES

Changes to this Agreement. We may change this Agreement for any 
reason and at any time, subject to applicable law. This means that
we can change rates and fees that apply to your Account. It also
means we can add, replace or remove provisions of this Agreement.
If required by applicable law, we’ll give you notice of the changes. If
you have the right to reject a change, we’ll notify you and tell you

how to reject. If we notify you of a change, we may do so on your
statement or send you a separate written notice, either of which may
be sent electronically if permitted by applicable law.

Changing Benefits. Any benefit, reward, service or feature offered may
change or be discontinued at any time for any reason. Separate terms
and conditions will describe any exceptions.  

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MISCELLANEOUS

Assignment. We may assign any or all of our rights and obligations
under this Agreement to a third party. You may not sell, assign or transfer
your Account or any of your obligations under this Agreement. 
Governing Law. Federal law and the law of South Dakota govern the
terms and enforcement of this Agreement.
Enforcing this Agreement. We won’t lose our rights under this
Agreement because we delay in enforcing them or fail to enforce them. If
any provision of this Agreement is found to be unenforceable, all other
provisions of the Agreement will remain in effect. 
Collection Costs. To the extent allowed by law, you’re liable to us for our
legal costs if we refer collection of your Account to a lawyer who isn’t our
salaried employee. These costs may include reasonable attorneys’ fees,
as well as costs and expenses of any legal action. 

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Unforeseen Circumstances. From time to time, our services might be
unavailable due to circumstances beyond our control (such as fires,
floods, natural disasters, system failures or other unpredictable events).
When this happens, you might not be able to use your Card or obtain
information about your Account. We’re not responsible or liable if this
happens. 
Lost or Stolen Cards, Account Numbers or Account Checks. You
must try to prevent the unauthorized use of your Account and any Card,
including your Account number. You must call us if any Card is lost or
stolen. Also, you must call us if you think someone has used or may use
these items without permission.

Headings. The headings in this Agreement are included as a matter of
convenience and don’t define, limit or enlarge the scope of this
Agreement or any of its provisions. 

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YOUR BILLING RIGHTS

This notice tells you about your rights and our responsibilities under the
Fair Credit Billing Act. Keep this document for future use.
What to Do if You Find a Mistake on Your Statement
If you think there is an error on your statement, write to us at the address for
billing inquiries and correspondence shown on the front of your statement. 

In your letter, give us the following information:
•  Account information: Your name and account number.
•  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.
• At least 3 business days before an automated payment is scheduled, 

2. Within 90 days of receiving your letter, 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 transaction in question may remain on your statement, and we may

continue to charge you interest on that amount. 

•  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. 
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 you want to stop payment on the amount you think is wrong.

•  If we do not believe there was a mistake: You will have to pay the amount in

You must notify us of any potential errors in writing. You may call us, but if you do
we are not required to investigate any potential errors and you may have to pay
the amount in question.

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.

What Will Happen After We Receive Your Letter

When we receive your letter, we must do 2 things:
1.  Within 30 days of receiving your letter, we must tell you that we received
your letter. We will also tell you if we have already corrected the error.

If you receive our explanation but still believe your bill is wrong, you must write to
us within 10 days telling us that you still refuse to pay. If you do so, we cannot
report you as delinquent without also reporting that you are questioning your bill.
We must tell you the name of anyone to whom we reported you as delinquent,
and we must let those organizations know when the matter has been settled
between us.

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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.

2. You must have used your credit card for the purchase. Purchases made with

cash advances from an ATM or with an Account check do not qualify.

Your Rights if You’re Dissatisfied with Your Credit Card Purchases

3. You must not yet have fully paid for the purchase.

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 is necessary if your purchase was based on
an advertisement we mailed to you, or if we own the company that sold you
the goods or services.)

If all of the criteria above are met and you are still dissatisfied with the purchase,
contact us in writing at the address for billing inquiries and correspondence shown
on the front of your statement. 

While we investigate, the same rules apply to the disputed amount as discussed
above. After we finish our investigation, we will tell you our decision. At that 
point, if we think you owe an amount and you do not pay, we may report you 
as delinquent.

For Further Information: Call the Customer Service number shown on 
the statement or on the back of your Card if you need more information.

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