Common use of Interest Charges Clause in Contracts

Interest Charges. How Interest Charges are Calculated HSBC calculates interest using the daily balance method with compounding. This means the interest compounds daily. To determine your periodic Interest Charges, we take the Average Daily Balance for each type of transaction, then multiply this number by the applicable DPR, then multiply this number by the total number of days in the billing cycle. HSBC will not charge interest on purchases if you pay your non-promotional balance, including fees and interest charges, in full by the due date each month. This is called a grace period. If you do not take advantage of the grace period, we will charge interest starting the day you make the purchase. You also pay interest on cash advances and balance transfers starting from the date of those transactions. How Daily Balance and Average Daily Balance is Determined To determine your Daily Balance, we take the beginning balance on your Account and then add in any new purchases, advances, fees and charges; add in any previous day’s periodic Interest Charges; and subtract any payments and/or credits. The result is the Daily Balance. To calculate your Average Daily Balance, we add up all of the Daily Balances for each day of the billing cycle and then divide the total by the number of days in the billing cycle. This gives us the Average Daily Balance. Paying Interest We will not charge interest on new purchases if you pay your previous non-promotional balance, including fees and finance charges, by the due date each month. We will charge interest on cash advances, balance transfers and check transactions on the transaction date. Minimum Interest Refer to Part 2 of this Agreement under Minimum Interest Charge.

Interest Charges. How Interest Charges are Calculated HSBC calculates We calculate interest using the daily balance method with compounding. This means the that interest compounds daily. To determine your periodic Interest Charges, we take the Average Daily Balance for each type of transaction, then multiply this number by the applicable DPR, then multiply this number by the total number of days in the billing cycleYour Account has a grace period on purchases. HSBC We will not charge you interest on new purchases if you pay your non-promotional balance, including fees and interest charges, in full account balance by the due date each month. This is called a grace period. If you do not take advantage of pay your account balance in full by the grace periodpayment due date, we will charge interest starting the day you make the a purchase. You also pay We will begin accruing interest on cash advances Balance Transfers and balance transfers starting from Cash Advances on the date of those transactionstransaction date. How Daily Balance and Average Daily Balance is Determined To determine your Daily Balance, we take we: Take the beginning balance on your Account and for that day; then add in any new purchases, advances, fees and charges; add in any previous day’s periodic Interest Charges; and subtract any payments and/or credits. The result is the Daily Balance. To calculate your Average Daily Balance, we add up all of Add the Daily Balances for each day of the your billing cycle and cycle; then divide the this total by the number of days in the your billing cycle. This HSBC calculates the interest charges for each balance by applying the “daily periodic rate” for that balance to the “daily balance” for the balance. HSBC does this for each day in the billing cycle and sum the resulting interest charges. That gives us the Average Daily Balancetotal interest charges for that balance for that billing period. The “daily periodic rate” is a daily interest rate. The daily periodic rate for a given balance is equal to the APR for that balance divided by 365. HSBC calculates the “daily balance” for each balance. HSBC takes the beginning amount of that balance for each day. We add any new charges for that day, add any interest on the previous daily balance if there is one in that billing cycle, and subtract any payments or credits. This method gives the “daily balance”. The addition of the prior day’s interest to the daily balance calculation causes interest to compound daily. HSBC adds fees that are specific to a particular charge to the same daily balance as that particular charge. HSBC adds all fees to your purchase balance as of the first day of a billing period. Paying Interest We will not charge interest on new purchases if you pay your previous non-promotional balance, including fees Refer to Part 2 of the Account Opening Table under Interest Rates and finance charges, by the due date each month. We will charge interest on cash advances, balance transfers and check transactions on the transaction date. Interest Charges Minimum Interest Refer to Part 2 of this Agreement the Account Opening Table under Minimum Interest Charge.Rates and Interest Charges

Interest Charges. How You agree to pay interest at the rate(s) disclosed to you at the time you open your account and as may be changed from time to time in accordance with applicable law. Interest Charges are Calculated HSBC calculates is calculated separately for purchases and cash advances. For purchases, the interest using is computed by applying the periodic rate to the average daily balance method with compoundingof purchases. This means For cash advances, interest is computed by applying the interest compounds dailyperiodic rate to the average daily balance of cash advances. To determine your periodic Interest Charges, we take the Average Daily Balance including new transactions for each type of transaction, then multiply this number by purchases and balance transfers: Interest Charges will accrue on your average daily balance outstanding during the applicable DPR, then multiply this number by the total number of days in the billing cycle. HSBC will not charge interest on purchases if you pay your non-promotional balance, including fees and interest charges, in full by the due date each month. This For purchases, the interest is called a grace periodcomputed by applying the periodic rate to the average daily balance of purchases. If you do not take advantage To calculate the average daily balance of the grace period, we will charge interest starting the day you make the purchase. You also pay interest on cash advances and balance transfers starting from the date of those transactions. How Daily Balance and Average Daily Balance is Determined To determine your Daily Balancepurchases, we take the beginning outstanding balance on your Account and then of purchases each day, add in any new purchases, advances, fees and charges; add in any previous day’s periodic Interest Charges; and subtract any payments and/or credits. The result is This gives us the Daily Balancedaily balance of purchases. To calculate your Average Daily Balance, we We then add up all the daily balances of the Daily Balances purchases for each day of the billing cycle together and then divide the total by the number of days in the billing cycle. This gives us the average daily balance of purchases. Following any introductory period, balance transfers are calculated in the same manner as purchases. Average Daily BalanceBalance including new transactions for cash advances: Interest Charges will accrue on your average daily balance outstanding during the month For cash advances, interest is computed by applying the periodic rate to the average daily balance of cash advances. Paying To calculate the average daily balance of cash advances, we take the beginning outstanding balance of cash advances each day, add in any new cash advances, and subtract any payments or credits that we apply to the cash advance balance. This gives us the daily balance of cash advances. We then add all the daily balances of cash advances for the billing cycle together and divide the total by the number of days in the billing cycle. This gives us the average daily balance of cash advances. If you have different rates for purchases, cash advances or balance transfers, separate average daily balances for each will be calculated and the appropriate periodic rate is then applied to each. Grace Period on Purchases and balance transfers: You can avoid Interest We Charges on purchases and balance transfers by paying the entire balance each month by the date on which the payment is due. Otherwise, the balance of your account, and subsequent advances from the date they are posted to the account, will be subject to an Interest Charge. You cannot charge interest avoid Interest Charges on new purchases cash advances; even if you pay your previous non-promotional balance, including fees and finance charges, the entire cash advance balance by the payment due date, you will incur the Interest Charges accrued from the date each month. We will charge interest on the cash advances, balance transfers and check transactions on the transaction date. Minimum Interest Refer advance is posted to Part 2 of this Agreement under Minimum Interest Chargeyour account.

Interest Charges. How Interest Charges are Calculated HSBC calculates interest using the daily balance We use a method with compounding. This means the interest compounds daily. To determine your periodic Interest Charges, we take the called Average Daily Balance (excluding new Regular Credit Plan Purchases) to calculate the Interest Charges. First, for each type of transaction, then multiply this number by the applicable DPR, then multiply this number by the total number of days day in the billing cycle. HSBC will not charge interest on purchases if you pay your non-promotional balance, including fees and interest charges, in full by the due date Billing Cycle for each month. This is called a grace period. If you do not take advantage of the grace period, we will charge interest starting the day you make the purchase. You also pay interest on cash advances and balance transfers starting from the date of those transactions. How Daily Balance and Average Daily Balance is Determined To determine your Daily BalanceCredit Plan, we take the beginning balance on your Account and then (excluding any accrued Interest Charges not posted to the Account), add in any new purchases, advances, fees charges and charges; add in any previous day’s periodic Interest Charges; Fees and subtract any payments and/or creditsand credits for each Credit Plan as described in the “How We Apply Your Payments” Section of this Agreement. The result is the Daily Balancedaily balance for each Credit Plan. To calculate your Average Daily BalanceNext, for each Credit Plan, we add up all of the Daily Balances for each day of the billing cycle daily balances together and then divide the total sum by the number of days in the billing cycleBilling Cycle. This gives us The result is the Average Daily BalanceBalance for each Credit Plan. Paying At the end of each Billing Cycle, we multiply your Average Daily Balance for each Credit Plan by the daily periodic rate for that Credit Plan, and then we multiply the result by the number of days in the Billing Cycle. We add the Interest Charges for all Credit Plans together. The result is your total Interest Charge for the Billing Cycle. For purposes of the above calculations, accrued Interest Charges are added (posted) to the daily balance of each Credit Plan on the last day of the Billing Cycle. Fees are added to the Credit Plan as part of the daily balance on the day they are posted to the Account. Any Fees will be treated as a new Regular Credit Plan Purchase in the Billing Cycle it is assessed. For Regular Credit Plan Purchases, new Purchases become part of the Account balance on the transaction date, but when we calculate daily balances for the purpose of computing Interest Charges, we do not add any new Purchases made during the Billing Cycle until the first day of the new Billing Cycle following the date of the Purchase. Due to rounding or a minimum Interest Charge, this calculation may vary slightly from the Interest Charge actually assessed. The daily periodic rate that is used to determine your Interest Charges for each Credit Plan is 1/365th of your Annual Percentage Rate (APR) for each such Credit Plan. We will not charge interest the Interest Charges and Fees to your Account as disclosed in the Pricing Information section, any promotional material or disclosure for Promotional Credit Plan transaction(s) and your Statement. If you paid your Regular Credit Plan balance in full and you made the Minimum Payment due on new purchases if you pay your previous non-promotional balance, including fees and finance charges, Promotional Credit Plans by the due date each monthon your prior Statement, then (1) if you again pay your Regular Credit Plan balance in full and you make the Minimum Payment due on your Promotional Credit Plans by the due date on your current Statement, we will not charge you any new Interest Charges on new Purchases made under your Regular Credit Plan during the current Billing Cycle, and (2) if you pay at least your Minimum Payment due for the current Billing Cycle but less than the amount described in clause (1), we will treat your payment as if it was made on the first day of the current Billing Cycle when we calculate your Interest Charges on new Purchases made under your Regular Credit Plan. In general, unless otherwise indicated in promotional terms, Interest Charges for Promotional Credit Plan transactions begin to accrue from the date of the transaction until paid in full, and there is no grace period to avoid Interest Charges on Promotional Credit Plans. We will charge interest on cash advances, balance transfers may increase your Interest Charges and check transactions on Fees as described in the transaction date. Minimum Interest Refer “Changes to Part 2 Your Agreement” section of this Agreement under Minimum Interest ChargeAgreement. If we charge you interest, the charge will be no less than $2 and will be allocated among all Credit Plan balances that accrue interest at our discretion.

Interest Charges. How The following interest charges will apply whether before or after default, judgment, or the closing of your Account. 10.1: Periodic Interest Charges are Calculated HSBC calculates interest using the daily balance method with compoundingon Purchases, Balance Transfers and Cash Advances. This means the interest compounds daily. To determine your periodic Interest Charges, we take the Average Daily Balance for each type of transaction, then multiply this number by the applicable DPR, then multiply this number by the total number of days in the billing cycle. HSBC We will not charge periodic interest on purchases and balance transfers if you pay your non-promotional balance, including fees and interest charges, in full the total New Balance listed on the previous monthly statement by the payment due date each monthdate. This is called a grace period. If you do not take advantage of the grace periodOtherwise, we will charge interest starting the day you make the purchase. You also pay periodic interest on cash advances each purchase and balance transfers starting transfer from the date of those that purchase and balance transfer transaction. For every cash advance we charge interest from the date of that transaction. There is no grace period during which a cash advance can be repaid without incurring an interest charge. 10.2: Periodic Interest Charge Calculation(s). The interest charged on purchase transactions and balance transfers is calculated separately from the interest charged on cash advances. Those separately calculated interest amounts are then combined to determine the total interest charged for the billing period. For each category of transactions, interest is calculated as follows. How Daily Balance and Average Daily Balance is Determined To determine your Daily Balance(1) First, we take determine the “average daily balance” by taking each day’s beginning balance on your Account and then add in balance, adding any new purchasestransactions, advances, fees and charges; add in any previous day’s periodic Interest Charges; and subtract subtracting any payments and/or or credits. We do not add interest incurred during the billing period. The result is the Daily Balance. To calculate your Average Daily Balance, we “daily balance.” We then add up all of the Daily Balances daily balances for each day of the billing cycle period and then divide the total by the number of days in the billing cycleperiod. This gives us The result is the Average Daily Balance“average daily balance” (also called the “balance subject to interest charge” on your monthly statement). Paying Interest We will not charge interest on new purchases if you pay your previous non-promotional balance(2) Second, including fees and finance charges, we multiply the average daily balance by the due date number of days in the billing period. That number is then multiplied by the daily periodic rate (DPR) for that category of transactions. The resulting number is the interest charged for that category of transactions. If you are charged interest, the minimum interest charge will be no less than $1. 11.0: ANNUAL PERCENTAGE RATE (“APR”) AND DAILY PERIODIC RATE (“DPR”). The APR and DPR for all transactions are variable rates. The APR for a particular billing period is the sum of the Bank’s “Prime Rate” for that billing period plus a “Margin.” The applicable Margin depends on the type of transaction and the type of credit card Account. Daily periodic interest is calculated using the DPR. The DPR is 1/365th of the APR (or 1/366 in a leap year). The APR and DPR on the Effective Date are disclosed on the card carrier. The actual APR in effect for each billing period, and for each category of transactions, is disclosed in your monthly statement. 11.1: “Prime Rate” and the “Index”. The Prime Rate is equal to, and varies with, an independent index (the “Index”). The Index is the U.S. prime rate, as published by the Wall Street Journal. For any particular billing period, the Bank’s Prime Rate is the published Index rate for the day that precedes by 6 business days the first calendar day of the calendar month in which that billing period ends (If a range of rates is published for that date, the highest of the rates is used). If the Index becomes unavailable, the Bank may designate a substitute Index in its sole discretion. Your APR and DPR, and the amount of your minimum payment, will increase or decrease as the Index and Bank’s Prime Rate increase or decrease. The resulting changes in your APR and DPR will take effect on the first day of your billing cycle the following month. We will charge interest on cash advancesYou acknowledge that the Bank’s Prime Rate does not mean the lowest rate at which Bank makes loans to any of its customers, balance transfers and check transactions on now or in the transaction datefuture. Minimum Interest Refer to Part 2 of this Agreement under Minimum Interest Charge.12.0: