Common use of Interest Charges Clause in Contracts

Interest Charges. HOW INTEREST CHARGES ARE CALCULATED HOW DAILY BALANCE IS DETERMINED a) Any new transactions; b) Any previous day’s periodic Interest Charges; c) Any Finance Charges; and d) Any fees and charges, then • Subtract any payments and/or credits. We also make any needed adjustments. For example: • If a transaction posts after, but occurs before the start of a billing cycle, we may adjust the amount above to include this transaction. It will be included as of the first day of the billing cycle in which it posts. • If your Account is subject to a grace period during the billing cycle, your payments will be subtracted from all Daily Balances in the current billing cycle. • If a transaction for a returned payment or a dispute resolved in our favor posts after the beginning of the billing cycle, we will make this adjustment: The applicable Daily Balance(s) and any related Interest Charge calculations will be adjusted to include the transaction amount as of the date of the original payment or transaction. To calculate your Average Daily Balance, we: • Add the Daily Balances for each day of the billing cycle; then • Divide this total by the number of days in the billing cycle. Your due date is at least 25 days after the close of each billing cycle. Your Account has a grace period on purchases. We will not charge you interest on new purchases if you pay your previous non-promotional balance including fees and Interest Charges, by the due date each month. We will begin charging interest on cash advances and balance transfers on the transaction date, unless, under the terms of the promotional offer, no interest will accrue during the promotional offer period, provided your account remains in good standing. However, no Interest will be charged on new purchase for any billing cycle when: • You paid your entire non-promotional balance plus any fees and finance charges in the previous month on time; and • You pay your entire current month’s non-promotional balance plus any fees and finance charges on time as well.

Interest Charges. HOW INTEREST CHARGES ARE CALCULATED HOW DAILY BALANCE IS DETERMINED a) Any 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 transactions; b) Any purchases, advances, fees and charges; add in any previous day’s periodic Interest Charges; c) Any Finance Charges; and d) Any fees and charges, then • Subtract subtract any payments and/or credits. We also make any needed adjustments. For example: • If a transaction posts after, but occurs before The result is the start of a billing cycle, we may adjust the amount above to include this transaction. It will be included as of the first day of the billing cycle in which it posts. • If your Account is subject to a grace period during the billing cycle, your payments will be subtracted from all Daily Balances in the current billing cycle. • If a transaction for a returned payment or a dispute resolved in our favor posts after the beginning of the billing cycle, we will make this adjustment: The applicable Daily Balance(s) and any related Interest Charge calculations will be adjusted to include the transaction amount as of the date of the original payment or transactionBalance. To calculate your Average Daily Balance, we: • Add we add up all of the Daily Balances for each day of the billing cycle; cycle and then • Divide this divide the total by the number of days in the billing cycle. Your due date is at least 25 days after This gives us the close of each billing cycleAverage Daily Balance. Your Account has a grace period on purchases. Paying Interest We will not charge you interest on new purchases if you pay your previous non-promotional balance balance, including fees and Interest Chargesfinance charges, by the due date each month. We will begin charging charge interest on cash advances and advances, balance transfers and check transactions on the transaction date, unless, . Minimum Interest Refer to Part 2 of this Agreement under the terms of the promotional offer, no interest will accrue during the promotional offer period, provided your account remains in good standing. However, no Minimum Interest will be charged on new purchase for any billing cycle when: • You paid your entire non-promotional balance plus any fees and finance charges in the previous month on time; and • You pay your entire current month’s non-promotional balance plus any fees and finance charges on time as wellCharge.

Interest Charges. HOW INTEREST CHARGES ARE CALCULATED HOW DAILY BALANCE IS DETERMINED a) Any Credit Purchases, Method “G”: Average Daily Balance (including New Purchases). An Interest Charge will be imposed on Credit Purchases only if you elect not to pay the entire New Balance of purchases shown on your monthly statement for the previous billing cycle within 25 days from the closing date of that statement. If you elect not to pay the entire New Balance of purchases shown on your previous monthly statement within that 25-day period, an Interest Charge will be imposed on the unpaid average daily balance of such Credit Purchases from the previous statement closing date and on new transactions; b) Any previous day’s periodic Interest Charges; c) Any Finance Charges; and d) Any fees and charges, then • Subtract any payments and/or credits. We also make any needed adjustments. For example: • If a transaction posts after, but occurs before Credit Purchases from the start date of a posting to your account during the current billing cycle, we may adjust and will continue to accrue until the amount above closing date of the billing cycle preceding the date on which the entire New Balance of purchases is paid in full or until the date of payment if more than 25 days from the closing date. For Credit Purchases, the Interest Charge for a billing cycle is computed by applying the Monthly Periodic Rate to include this transactionthe average daily balance of Credit Purchases, which is determined by dividing the sum of the daily balances during the billing cycle by the number of days in the cycle. It will be included Each daily balance of Credit Purchases is determined by adding to the outstanding unpaid balance of Credit Purchases at the beginning of the billing cycle any new Credit Purchases posted to your account, and subtracting any payments as of received and credits as posted to your account, but excluding any unpaid Interest Charges. Cash Advances and Balance Transfers, Method “A”: Average daily balance. The Interest Charge on cash advances begins to accrue on the date you obtain the cash advance or the first day of the billing cycle in which it postsis posted to your account, whichever is later. • If your Account For Cash Advances, the Interest Charge for a billing cycle is subject computed by applying the Monthly Periodic Rate to a grace period the average daily balance, which is determined by dividing the sum of the daily balances during the billing cycle, your payments will be subtracted from all Daily Balances in the current billing cycle. • If a transaction for a returned payment or a dispute resolved in our favor posts after the beginning of the billing cycle, we will make this adjustment: The applicable Daily Balance(s) and any related Interest Charge calculations will be adjusted to include the transaction amount as of the date of the original payment or transaction. To calculate your Average Daily Balance, we: • Add the Daily Balances for each day of the billing cycle; then • Divide this total cycle by the number of days in the cycle. Each daily balance is determined by adding to the Previous Balance (the outstanding balance of your account at the beginning of the billing cycle) any new Cash Advances received and any new Credit Purchases posted to your account, and subtracting any payments as received or credits as posted to your account but excluding any unpaid Interest Charges. The ANNUAL PERCENTAGE RATE will be assigned based on Your due date creditworthiness. The Interest Charge will be calculated using one of these ANNUAL PERCENTAGE RATES: (1) by multiplying the average daily balance on your Account by the Monthly Periodic Rate of .9916%, which is an ANNUAL PERCENTAGE RATE of 11.90%; or (2) by multiplying the average daily balance on your Account by the Monthly Periodic Rate of 1.1583%, which is an ANNUAL PERCENTAGE RATE of 13.90%; or (3) by multiplying the average daily balance on your Ac- count by the Monthly Periodic Rate of 1.325%, which is an ANNUAL PERCENTAGE RATE of 15.90%, or (4) by multiplying the average daily balance on your Account by the Monthly Periodic Rate of 1.4916%, which is an ANNUAL PERCENTAGE RATE of 17.9%. All interest rates and Interest Charge are subject to change. In the event of an increase in these rates or charges We will provide you at least 25 days after the close of each billing cycle. Your Account has a grace period on purchases. We will not charge you interest on new purchases if you pay your previous non-promotional balance including fees and Interest Charges, minimum notice required by the due date each month. We will begin charging interest on cash advances and balance transfers on the transaction date, unless, under the terms of the promotional offer, no interest will accrue during the promotional offer period, provided your account remains in good standing. However, no Interest will be charged on new purchase for any billing cycle when: • You paid your entire non-promotional balance plus any fees and finance charges in the previous month on time; and • You pay your entire current month’s non-promotional balance plus any fees and finance charges on time as welllaw.

Interest Charges. HOW INTEREST CHARGES ARE CALCULATED HOW DAILY BALANCE IS DETERMINEDThe following interest charges apply whether before or after default, judgment, or the closing of your Account: (a) Any new transactions; b) Any When Periodic Interest Charges Begin To Accrue. Your due date is at least 24 days after the close of each billing cycle. We will not charge you any interest on purchases if you pay your entire balance by the due date each month, otherwise, periodic interest charges will be assessed on each purchase from the date of the transaction. If during the previous day’s periodic Interest Charges; c) Any Finance Charges; and d) Any fees and chargesbilling cycle you paid in full by the Payment Due Date, then • Subtract any payments and/or credits. We also make any needed adjustments. For example: • If a transaction posts after, but occurs before the start of a billing cycle, we may adjust the amount above to include this transaction. It will be included as of the first day of the billing cycle in which it posts. • If your Account is subject to a grace period during the billing cycle, your payments will be subtracted from all Daily Balances in the current billing cyclecycle you will have an additional interest‐free period on the amount of any Regular Plan Purchases paid by the Payment Due Date, based on our payment allocation method. • If a transaction Under certain Promotional Plans that may be offered from time to time, interest charges may be waived under the specific terms that will be provided at or prior to the time of purchase under such Promotional Plan. (b) Calculation of Interest Charges. The total amount of interest charges for a returned payment or a dispute resolved in our favor posts after billing period will be calculated as follows: (1) Regular Plan ‐ We calculate the interest charge on your account by applying the periodic rate to the Average Daily Balance of your account (including new transactions). To get the Average Daily Balance we take the beginning balance of your Regular Plan account each day, add any new purchases and fees and subtract any payments or credits. This gives us the daily balance (any unpaid interest charges incurred during that billing period are not included in the daily balance). Then we add up all the daily balances for the billing cycle, we will make this adjustment: The applicable Daily Balance(s) cycle and any related Interest Charge calculations will be adjusted to include divide the transaction amount as of the date of the original payment or transaction. To calculate your Average Daily Balance, we: • Add the Daily Balances for each day of the billing cycle; then • Divide this total by the number of days in the billing cycle. Your due date This gives us the “Average Daily Balance,” which is at least 25 days after also called the close of each billing cycle. Your Account has a grace period “Balance Subject to Interest Rate” on purchasesyour monthly statement. We will not charge you interest on new purchases if you pay your previous non-promotional balance including fees and Interest Charges, then multiply the Average Daily Balance by the due date each monthdaily periodic rate (DPR). We will begin charging interest on cash advances and balance transfers on That number is then multiplied by the transaction date, unless, under the terms number of the promotional offer, no interest will accrue during the promotional offer period, provided your account remains in good standing. However, no Interest will be charged on new purchase for any billing cycle when: • You paid your entire non-promotional balance plus any fees and finance charges days in the previous month on time; and • You pay your entire current month’s non-promotional balance plus any fees and finance charges on time as wellbilling period.