Common use of How We Calculate and Charge Interest Clause in Contracts

How We Calculate and Charge Interest. Interest Rate The annual interest rate that applies to your Visa Account is shown on the Disclosure Statement and will appear on your statements. From time to time, we may offer you promotional interest rates on certain Transactions, such as Balance Transfers, Cash Advances or new purchases. We will tell you about promotional interest rates as explained in Section 4(F) of this Agreement – “Promotional Offers”. We may change the interest rate at any time. If we increase your interest rate, we will let you know (in writing) at least 30 days ahead of time. Your current interest rate will always appear on your statements. When we charge interest, we calculate it on the basis of your average daily balance using a daily interest rate. To get the daily interest rate we take the applicable yearly interest rate, divide it by 365 (or 366 for a leap year) and round down to 5 digits after the decimal point. Interest on Cash Advances and Balance Transfers For Cash Advances and Balance Transfers, we will always charge you interest at the applicable daily rate (which varies depending on your card type) every day from the date of the Transaction. There is no interest-free grace period on these types of Transactions. Even if you re-pay the amount of a Cash Advance or Balance Transfer on the same day that you completed the Transaction (and you have no other Balance outstanding), we will charge you interest for that one day. Interest on Purchases and Fees No interest will be payable on Purchases and fees if your Balance is paid in full every statement period by the Payment Due Date. Your Payment Due Date will always appear on your statements. • When we say “your Balance is paid in full”, this includes any outstanding Balances from previous statements, from any type of Transaction (not just Purchases) and includes all unpaid interest and fees. • When we say “paid in full by the Payment Due Date”, we mean that we have received your payment by the Payment Due Date. The day we receive your payment will depend on the payment method you choose. If you send a payment through the mail for example, it may take us several days to receive it. You are responsible for making sure that we receive your payments on time. Your Payment Due Date will be 21 days after the last day of the statement period. This 21 days is known as a “grace period” because for any Purchases or fees appearing on your statement for the first time, we will not charge you interest on those Purchases or fees for this 21-day period, even if you didn’t pay your full Balance from previous statements. If you don’t pay your entire Balance in full by the Payment Due Date, interest charges on those Purchases and fees will be included on your next statement. We will charge interest retroactively from the Transaction date of those Purchases and fees until the date we receive payment in full. The 21-day grace period for each statement period applies only to Purchases and fees appearing on your statement for the first time in that statement period. If you have any Balances outstanding from Transactions (including Purchases and fees) from previous statements, we will continue to charge interest on those Balances until you pay your entire Visa Account Balance in full. How We Calculate Interest If interest applies, we calculate interest as follows: • we add together the interest-bearing amount you owe each day in each Transaction category (for example, the amount of Purchases is one “Transaction category” and the amount of Cash Advances is a separate “Transaction category”) to get total interest- bearing amount owing in each Transaction category; • we divide the total interest-bearing amount owing in each Transaction category by the number of days in the statement period. This amount is your average daily balance for the interest-bearing amount you owe in each Transaction category; • we then multiply the average daily balance by the daily interest rate that applies, and multiply that amount by the number of days in the statement period. If interest is charged on a Transaction, it is charged starting from the original Transaction date. The total is the amount of interest posted to your Visa Account at the end of your statement period. Your statement shows the interest charges for each Transaction category. If a different daily interest rate applies to a Transaction (for example, a promotional interest rate on a Balance Transfer), we use that different daily interest rate in our calculation. We will not charge you interest on unpaid interest. Here’s an Example of How We Charge Interest on Purchases If your statement period is April 1 – April 30, the end of your statement period will be April 30 and the payment due date will be May 21. • If you pay your entire Visa Account Balance by May 21, we will not charge you any interest on any of the Purchases you made in April. • If you do not pay your entire Visa Account Balance by May 21, on May 22 we will start charging you interest on the Purchases you made in April. • The interest on your April Purchases will be charged starting on the Transaction date of each Purchase. Interest will be calculated on the average daily balance at the daily interest rate (which varies depending on your card type). • We will continue to charge interest every day on your April Purchases until your entire Visa Account Balance has been paid in full. • The 21-day grace period from May 1 – May 21 in this example applies only to new Purchases in April. If you have any Balances outstanding from Transactions from previous statements, we will continue to charge interest on those Balances every day (including May 1 – May 21) until you pay your entire Visa Account Balance in full.

How We Calculate and Charge Interest. Interest Rate The annual interest rate that applies to your Visa Account is shown on the Disclosure Statement and will appear on your statements. From time to time, we may offer you promotional interest rates on certain Transactions, such as Balance Transfers, Cash Advances or new purchases. We will tell you about promotional interest rates as explained in Section 4(F) of this Agreement – “Promotional Offers”. We may change the interest rate at any time. If we increase your interest rate, we will let you know (in writing) at least 30 days ahead of time. Your current interest rate will always appear on your statements. When we charge interest, we calculate it on the basis of your average daily balance using a daily interest rate. To get the daily interest rate we take the applicable yearly interest rate, divide it by 365 (or 366 for a leap year) and round down to 5 digits after the decimal point. Interest on Cash Advances and Balance Transfers For Cash Advances and Balance Transfers, we will always charge you interest at the applicable daily rate (which varies depending on your card type) every day from the date of the Transaction. There is no interest-free grace period on these types of Transactions. Even if you re-pay the amount of a Cash Advance or Balance Transfer on the same day that you completed the Transaction (and you have no other Balance outstanding), we will charge you interest for that one day. Interest on Purchases and Fees No interest will be payable on Purchases and fees if your Balance is paid in full every statement period by the Payment Due Date. Your Payment Due Date will always appear on your statements. • When we say “your Balance is paid in full”, this includes any outstanding Balances from previous statements, from any type of Transaction (not just Purchases) and includes all unpaid interest and fees. • When we say “paid in full by the Payment Due Date”, we mean that we have received your payment by the Payment Due Date. The day we receive your payment will depend on the payment method you choose. If you send a payment through the mail for example, it may take us several days to receive it. You are responsible for making sure that we receive your payments on time. Your Payment Due Date will be 21 days after the last day of the statement period. This 21 days is known as a “grace period” because for any Purchases or fees appearing on your statement for the first time, we will not charge you interest on those Purchases or fees for this 21-day period, even if you didn’t pay your full Balance from previous statements. If you don’t pay your entire Balance in full by the Payment Due Date, interest charges on those Purchases and fees will be included on your next statement. We will charge interest retroactively from the Transaction date of those Purchases and fees until the date we receive payment in full. The 21-day grace period for each statement period applies only to Purchases and fees appearing on your statement for the first time in that statement period. If you have any Balances outstanding from Transactions (including Purchases and fees) from previous statements, we will continue to charge interest on those Balances until you pay your entire Visa Account Balance in full. How We Calculate Interest If interest applies, we calculate interest as follows: • we add together the interest-bearing amount you owe each day in each Transaction category (for example, the amount of Purchases is one “Transaction category” and the amount of Cash Advances is a separate “Transaction category”) to get total interest- bearing amount owing in each Transaction category; • we divide the total interest-bearing amount owing in each Transaction category by the number of days in the statement period. This amount is your average daily balance for the interest-bearing amount you owe in each Transaction category; • we then multiply the average daily balance by the daily interest rate that applies, and multiply that amount by the number of days in the statement period. If interest is charged on a Transaction, it is charged starting from the original Transaction date. The total is the amount of interest posted to your Visa Account at the end of your statement period. Your statement shows the interest charges for each Transaction category. If a different daily interest rate applies to a Transaction (for example, a promotional interest rate on a Balance Transfer), we use that different daily interest rate in our calculation. We will not charge you interest on unpaid interest. Here’s an Example of How We Charge Interest on Purchases If your statement period is April 1 – April 30, the end of your statement period will be April 30 and the payment due date will be May 21. • If you pay your entire Visa Account Balance by May 21, we will not charge you any interest on any of the Purchases you made in April. • If you do not pay your entire Visa Account Balance by May 21, on May 22 we will start charging you interest on the Purchases you made in April. • The interest on your April Purchases will be charged starting on the Transaction date of each Purchase. Interest will be calculated on the average daily balance at the daily interest rate (which varies depending on your card type)rate. • We will continue to charge interest every day on your April Purchases until your entire Visa Account Balance has been paid in full. • The 21-day grace period from May 1 – May 21 in this example applies only to new Purchases in April. If you have any Balances outstanding from Transactions from previous statements, we will continue to charge interest on those Balances every day (including May 1 – May 21) until you pay your entire Visa Account Balance in full.

How We Calculate and Charge Interest. Interest Rate The annual interest rate that applies to your Visa Account is shown on the Disclosure Statement and will appear on your statements. From time to time, we may offer you promotional interest rates on certain Transactions, such as Balance Transfers, Cash Advances or new purchases. We will tell you about promotional interest rates as explained in Section 4(F) of this Agreement – “Promotional Offers”. We may change the interest rate at any time. If we increase your interest rate, we will let you know (in writing) at least 30 days ahead of time. Your current interest rate will always appear on your statements. When we charge interest, we calculate it on the basis of your average daily balance using a daily interest rate. To get the daily interest rate we take the applicable yearly interest rate, divide it by 365 (or 366 for a leap year) and round down to 5 digits after the decimal point. Interest on Cash Advances and Balance Transfers For Cash Advances and Balance Transfers, we will always charge you interest at the applicable daily rate (which varies depending on your card type) every day from the date of the Transaction. There is no interest-free grace period on these types of Transactions. Even if you re-pay the amount of a Cash Advance or Balance Transfer on the same day that you completed the Transaction (and you have no other Balance outstanding)Transaction, we will charge you interest for that one day. Interest on Purchases and Fees No interest will be payable on Purchases and fees if your Balance is paid in full every statement period by the Payment Due Date. Your Payment Due Date will always appear on your statements. • When we say “your Balance is paid in full”, this includes any outstanding Balances from previous statements, from any type of Transaction (not just Purchases) and includes all unpaid interest and fees. • When we say “paid in full by the Payment Due Date”, we mean that we have received your payment by the Payment Due Date. The day we receive your payment will depend on the payment method you choose. If you send a payment through the mail for example, it may take us several days to receive it. You are responsible for making sure that we receive your payments on time. Your Payment Due Date will be 21 days after the last day of the statement period. This 21 days is known as a “grace period” because for any Purchases or fees appearing on your statement for the first time, we will not charge you interest on those Purchases or fees for this 21-day period, even if you didn’t pay your full Balance from previous statements. If you don’t pay your entire Balance in full by the Payment Due Date, interest charges on those Purchases and fees will be included on your next statement. We will charge interest retroactively from the Transaction date of those Purchases and fees until the date we receive payment in full. The 21-day grace period for each statement period applies only to Purchases and fees appearing on your statement for the first time in that statement period. If you have any Balances outstanding from Transactions (including Purchases and fees) from previous statements, we will continue to charge interest on those Balances until you pay your entire Visa Account Balance in full. How We Calculate Interest If interest applies, we calculate interest as follows: • we add together the interest-bearing amount you owe each day in each Transaction category (for example, the amount of Purchases is one “Transaction category” and the amount of Cash Advances is a separate “Transaction category”) to get total interest- bearing amount owing in each Transaction category; • we divide the total interest-bearing amount owing in each Transaction category by the number of days in the statement period. This amount is your average daily balance for the interest-bearing amount you owe in each Transaction category; • we then multiply the average daily balance by the daily interest rate that applies, and multiply that amount by the number of days in the statement period. If interest is charged on a Transaction, it is charged starting from the original Transaction date. The total is the amount of interest posted to your Visa Account at the end of your statement period. Your statement shows the interest charges for each Transaction category. If a different daily interest rate applies to a Transaction (for example, a promotional interest rate on a Balance Transfer), we use that different daily interest rate in our calculation. We will not charge you interest on unpaid interest. Here’s an Example of How We Charge Interest on Purchases If your statement period is April 1 – April 30, the end of your statement period will be April 30 and the payment due date will be May 21. • If you pay your entire Visa Account Balance by May 21, we will not charge you any interest on any of the Purchases you made in April. • If you do not pay your entire Visa Account Balance by May 21, on May 22 we will start charging you interest on the Purchases you made in April. • The interest on your April Purchases will be charged starting on the Transaction date of each Purchase. Interest will be calculated on the average daily balance at the daily interest rate (which varies depending on your card type)rate. • We will continue to charge interest every day on your April Purchases until your entire Visa Account Balance has been paid in full. • The 21-day grace period from May 1 – May 21 in this example applies only to new Purchases in April. If you have any Balances outstanding from Transactions from previous statements, we will continue to charge interest on those Balances every day (including May 1 – May 21) until you pay your entire Visa Account Balance in full.