A cardholder agreement is a legal document that defines the conditions under which a credit card is offered to a customer. The cardholder`s agreement sets, among other things, the annual percentage rate of charge (APR) of the card as well as the calculation of the minimum payments of the card. Seduced by these features, Mia decides to accept the new card. However, beforehand, it checks in depth the agreement of the cardholders. She discovers that many of the functions promoted involve considerable costs. For example, while the card offers a 5% cash back program for food purchases, it also requires a significant monthly fee and charges penalties if the average monthly balance falls below a certain level. Although their details vary, most cardholder agreements are written in a simple format and tone. They address key issues such as the services available to the cardholder; the cardholder`s obligations to the issuing entity; interest rates, penalties and other costs that may be incurred in different circumstances; and the methods of handling disputes between the cardholder and the issuer, if they occur. Since Mia is careful to maintain relatively modest monthly expenses, she decides that she will be charged for maintaining an insufficient monthly balance. Had it not reviewed the terms of the cardholder agreement, it could have been forced to pay high and unexpected penalties.
By accepting and using the Card, you agree to be bound by the terms of this Agreement as well as the terms of the PayPal Use Agreement between you and PayPal. . . .