Discount Rate. DISCOUNT RATE The applicable Discount Rate for all Purchases as of the Effective Date and until changed as set forth below shall be 1.50%. Provided, that in the event of a legislated or judicial reduction in the annual percentage rate or fees that may be charged by Bank to Cardholders, or if the Discount Rate is substantially higher than the rate that Company would incur for comparable credit card services, Company and Bank agree to negotiate in good faith an increase or decrease in the Discount Rate. Commencing on January 31, 2004 and annually thereafter, the Discount Rate will be subject to change by Bank on an annual basis in accordance with the matrix set forth below and Bank shall apply the corresponding Discount Rate to future Discount Fees applied by Bank until the next adjustment is made. The Fin Chg/STM ('95$) calculation for the matrix will include the amount by which the then current late fees per statement exceed the amount of the late fees per statement calculated using a late fee of $5. In the event Bank increases (for increases made by Bank on or after March 1, 2003) any of the finance charges and/or late fees charged to Cardholders as a result of increases in Bank's cost of postage for mailing Account billing statements, form letters or new Credit Cards, then Bank will exclude the amount of such increase in the finance charges and/or late fees from its calculation of the Discount Rate using the matrix. Notwithstanding the foregoing, Bank agrees that Bank will waive any increase Bank is entitled to for the Discount Rate during the calendar year 2003, provided, however, that in the event Bank waives such increase in the Discount Rate, then (i) if the number of Applicants during the calendar year 2003 is less than the number of Applicants during the calendar year 2002, Bank shall invoice Company for the amount of the Discount Fees waived by Bank during the calendar year 2003 and Company shall pay such amount within thirty (30) days after the date of such invoice, or (ii) Bank shall have the right during any future calendar year to defer any decreases in the Discount Rate until such time as Bank has recouped the amount of the Discount Fees waived by Bank during the calendar year 2003.
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Samples: Program Agreement (Alliance Data Systems Corp), Program Agreement (Alliance Data Systems Corp), Program Agreement (Alliance Data Systems Corp)
Discount Rate. DISCOUNT RATE The applicable Discount Rate for all Purchases as of the Effective Date and until changed as set forth below shall be 1.500.75%. Provided, that in the event of a legislated or judicial reduction in the annual percentage rate or fees that may be charged by Bank to Cardholders, or if the Discount Rate is substantially higher than the rate that Company would incur for comparable credit card services, Company and Bank agree to negotiate in good faith an increase or decrease in the Discount Rate. Commencing on January 31, 2004 and annually thereafter, the Discount Rate will be subject to change by Bank on an annual basis in accordance with the matrix set forth below and Bank shall apply the corresponding Discount Rate to future Discount Fees applied by Bank until the next adjustment is made. The Fin Chg/STM ('95$) calculation for the matrix will include the amount by which the then current late fees per statement exceed the amount of the late fees per statement calculated using a late fee of $5. In the event Bank increases (for increases made by Bank on or after March 1, 2003) any of the finance charges and/or late fees charged to Cardholders as a result of increases in Bank's cost of postage for mailing Account billing statements, form letters or new Credit Cards, then Bank will exclude the amount of such increase in the finance charges and/or late fees from its calculation of the Discount Rate using the matrix. Notwithstanding the foregoing, Bank agrees that Bank will waive any increase Bank is entitled to for the Discount Rate during the calendar year 2003, provided, however, that in the event Bank waives such increase in the Discount Rate, then (i) if the number of Applicants during the calendar year 2003 is less than the number of Applicants during the calendar year 2002, Bank shall invoice Company for the amount of the Discount Fees waived by Bank during the calendar year 2003 and Company shall pay such amount within thirty (30) days after the date of such invoice, or (ii) Bank shall have the right during any future calendar year to defer any decreases in the Discount Rate until such time as Bank has recouped the amount of the Discount Fees waived by Bank during the calendar year 2003. Xxxxx Xxxxxx Merchant Fee Matrix Bad Debt % Credit Sales Fin Chg/ STM ('95 $) 0.3% 0.5% 0.7% 0.9% 1.1% 1.3% 1.5% $ 7.35 0.30% 0.40% 0.50% 0.60% 0.70% 0.75% 0.75% $ 7.20 0.35% 0.45% 0.55% 0.65% 0.75% 0.75% 0.75% $ 7.05 0.40% 0.50% 0.60% 0.70% 0.75% 0.75% 0.75% $ 6.90 0.45% 0.55% 0.65% 0.75% 0.75% 0.75% 0.75% $ 6.75 0.50% 0.60% 0.70% 0.75% 0.75% 0.75% 0.75% $ 6.60 0.55% 0.65% 0.75% 0.75% 0.75% 0.75% 0.75% $ 6.45 0.60% 0.70% 0.75% 0.75% 0.75% 0.75% 0.75% Minimum ROA 2.0% ROA over 4% share 50-50 30 Schedule 2.1 Service Standards Base Level Targeted Level Standard #1 The Bank will process mailed-in applications five days per week. The Bank will process % of such applications within five Business Days of receipt. 95 % 98 % Standard #2 The Bank will process "instant" credit applications from 9:00am to 12:30am (Eastern time) Monday through Saturday and from 10:00am to 9:30pm (Eastern time) Sunday, excluding Holidays ("Normal Store Hours"). The Bank will process at least % of such applications within five minutes of receipt. 90 % 92 % Standard #3 The Bank will issue % of new and replacement Credit Cards within four business days of embossing tape output. 95 % 96 % Standard #4 The Bank will answer at least % of incoming Cardholder service calls within 20 seconds. Bank will provide Cardholder service from 9am-9pm(Eastern time) Monday-Saturday, excluding Holidays. 85 % 86 % Standard #5 The Bank will not permit the abandoned call rate for Cardholder customer service calls to exceed % measured on a monthly basis. 2.0 % 1.7 % Standard #6 The Bank will provide electronic authorization means to be available at least % of Normal Store Hours. Bank will also provide batch authorizations for catalog sales. 99.5 % 99.6 % Standard #7 The Bank will post valid non-payment Transactions to the Cardholder's Account within 24 hours of receipt. 100 % 100 % Standard #8 The Bank will xxxx and mail % of Account statements within four business days of the scheduled billing date. 97 % 100 % Standard #9 The Bank will process at least % of payments within 24 hours of receipt. In the event any payment is not processed within 24 hours of receipt, such payment shall be backdated to the date of receipt. 96 % 97 % Standard #10 The Bank will respond to at least % of mailed-in Cardholder inquiries within seven business days of receipt. 90 % 97 % Standard #11 The Bank will provide "Quick Credit" during % of Normal Store Hours. 95 % 98 % Service Standards will be calculated and reported in a manner that is consistent with prior practices. Holidays shall mean New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Targeted Levels: Any failure to meet the Targeted Level for Service Standards will be reported on the monthly Service Standards report. Failure to meet the same Targeted Level for a single Service Standard for more than two consecutive months, will result in Bank taking the actions set forth in the chart below, provided that such failure to meet the Targeted Level was not caused by any unprivileged action or action in violation of this Agreement by Company or inaction of Company (where Company has a duty to act) or by a force majeure event specified in Section 10.11. Failure to Meet Targeted Level 3rd Consecutive Month 4th Consecutive Month 5th Consecutive Month 6th Consecutive Month and Each Consecutive Month Thereafter Actions to be taken by Bank following consecutive month failure to attain Targeted Level Letter to Company's CEO Bank's CEO will meet with Company's senior management and/or Company's parent company's management to discuss an action plan. Bank's CEO will meet with Company's senior management and/or Company's parent company's management to discuss an action plan. Bank's CEO will meet with Company's senior management and/or Company's parent company's management to discuss an action plan. Penalty to be Paid by Bank to Company None $5,000 $10,000 $20,000 Base Levels: Failure to meet a Base Level will be reported on the monthly service standards report and may trigger a Service Standard Termination Event as set forth in Section 9.7.
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Discount Rate. DISCOUNT RATE The applicable Discount Rate for all Purchases as of the Effective Date and until changed as set forth below shall be 1.50%. Provided, that in the event of a legislated or judicial reduction in the annual percentage rate or fees that may be charged by Bank to Cardholders, or if the Discount Rate is substantially higher than the rate that Company would incur for comparable credit card services, Company and Bank agree to negotiate in good faith an increase or decrease in the Discount Rate. Commencing on January 31, 2004 and annually thereafter, the Discount Rate will be subject to change by Bank on an annual basis in accordance with the matrix set forth below and Bank shall apply the corresponding Discount Rate to future Discount Fees applied by Bank until the next adjustment is made. The Fin Chg/STM ('95$) calculation for the matrix will include the amount by which the then current late fees per statement exceed the amount of the late fees per statement calculated using a late fee of $5. In the event Bank increases (for increases made by Bank on or after March 1, 2003) any of the finance charges and/or late fees charged to Cardholders as a result of increases in Bank's cost of postage for mailing Account billing statements, form letters or new Credit Cards, then Bank will exclude the amount of such increase in the finance charges and/or late fees from its calculation of the Discount Rate using the matrix. Notwithstanding the foregoing, Bank agrees that Bank will waive any increase Bank is entitled to for the Discount Rate during the calendar year 2003, provided, however, that in the event Bank waives such increase in the Discount Rate, then (i) if the number of Applicants during the calendar year 2003 is less than the number of Applicants during the calendar year 2002, Bank shall invoice Company for the amount of the Discount Fees waived by Bank during the calendar year 2003 and Company shall pay such amount within thirty (30) days after the date of such invoice, or (ii) Bank shall have the right during any future calendar year to defer any decreases in the Discount Rate until such time as Bank has recouped the amount of the Discount Fees waived by Bank during the calendar year 2003. Victoria's Secret Direct Merchant Fee Matrix Fin Chg/ STM ('95 $) Bad Debt % Credit Sales 3.6% 3.8% 4.0% 4.2% 4.4% 4.6% 4.8% 5.0% 5.2% $ 4.45 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% $ 4.30 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 1.10% 1.20% $ 4.15 0.60% 0.70% 0.80% 0.90% 1.00% 1.10% 1.20% 1.30% 1.40% $ 4.00 0.80% 0.90% 1.00% 1.10% 1.20% 1.30% 1.40% 1.50% 1.50% $ 3.85 1.00% 1.10% 1.20% 1.30% 1.40% 1.50% 1.50% 1.50% 1.50% $ 3.70 1.20% 1.30% 1.40% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% $ 3.55 1.35% 1.45% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% $ 3.40 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.70% 1.90% $ 3.25 1.50% 1.50% 1.50% 1.50% 1.50% 1.70% 1.90% 2.10% 2.30% $ 3.10 1.50% 1.50% 1.50% 1.60% 1.80% 2.00% 2.20% 2.40% 2.60% $ 2.95 1.50% 1.60% 1.80% 2.00% 2.20% 2.40% 2.60% 2.80% 3.00% Minimum ROA 2.0% ROA over 4% share 50-50 30 Schedule 2.1 Service Standards Base Level Targeted Level Standard #1 The Bank will process mailed-in applications five days per week. The Bank will process % of such applications within five Business Days of receipt. 95 % 98 % Standard #2 The Bank will process "instant" credit applications from 9:00am to 12:30am (Eastern time) Monday through Saturday and from 10:00am to 9:30pm (Eastern time) Sunday, excluding Holidays ("Normal Store Hours"). The Bank will process at least % of such applications within five minutes of receipt. 90 % 92 % Standard #3 The Bank will issue % of new and replacement Credit Cards within four business days of embossing tape output. 95 % 96 % Standard #4 The Bank will answer at least % of incoming Cardholder service calls within 20 seconds. Bank will provide Cardholder service from 9am-9pm(Eastern time) Monday-Saturday, excluding Holidays. 85 % 86 % Standard #5 The Bank will not permit the abandoned call rate for Cardholder customer service calls to exceed % measured on a monthly basis. 2.0 % 1.7 % Standard #6 The Bank will provide electronic authorization means to be available at least % of Normal Store Hours. Bank will also provide batch authorizations for catalog sales. 99.5 % 99.6 % Standard #7 The Bank will post valid non-payment Transactions to the Cardholder's Account within 24 hours of receipt. 100 % 100 % Standard #8 The Bank will xxxx and mail % of Account statements within four business days of the scheduled billing date. 97 % 100 % Standard #9 The Bank will process at least % of payments within 24 hours of receipt. In the event any payment is not processed within 24 hours of receipt, such payment shall be backdated to the date of receipt. 96 % 97 % Standard #10 The Bank will respond to at least % of mailed-in Cardholder inquiries within seven business days of receipt. 90 % 97 % Standard #11 The Bank will provide "Quick Credit" during % of Normal Store Hours. 95 % 98 % Service Standards will be calculated and reported in a manner that is consistent with prior practices. Holidays shall mean New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Targeted Levels: Any failure to meet the Targeted Level for Service Standards will be reported on the monthly Service Standards report. Failure to meet the same Targeted Level for a single Service Standard for more than two consecutive months, will result in Bank taking the actions set forth in the chart below, provided that such failure to meet the Targeted Level was not caused by any unprivileged action or action in violation of this Agreement by Company or inaction of Company (where Company has a duty to act) or by a force majeure event specified in Section 10.11. Failure to Meet Targeted Level 3rd Consecutive Month 4th Consecutive Month 5th Consecutive Month 6th Consecutive Month and Each Consecutive Month Thereafter Actions to be taken by Bank following consecutive month failure to attain Targeted Level Letter to Company's CEO Bank's CEO will meet with Company's senior management and/or Company's parent company's management to discuss an action plan. Bank's CEO will meet with Company's senior management and/or Company's parent company's management to discuss an action plan. Bank's CEO will meet with Company's senior management and/or Company's parent company's management to discuss an action plan. Penalty to be Paid by Bank to Company None $5,000 $10,000 $20,000 Base Levels: Failure to meet a Base Level will be reported on the monthly service standards report and may trigger a Service Standard Termination Event as set forth in Section 9.7.
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Discount Rate. DISCOUNT RATE The applicable Discount Rate for all Purchases as of the Effective Date and until changed as set forth below shall be 1.50%. Provided, that in the event of a legislated or judicial reduction in the annual percentage rate or fees that may be charged by Bank to Cardholders, or if the Discount Rate is substantially higher than the rate that Company would incur for comparable credit card services, Company and Bank agree to negotiate in good faith an increase or decrease in the Discount Rate. Commencing on January 31, 2004 and annually thereafter, the Discount Rate will be subject to change by Bank on an annual basis in accordance with the matrix set forth below and Bank shall apply the corresponding Discount Rate to future Discount Fees applied by Bank until the next adjustment is made. The Fin Chg/STM ('95$) calculation for the matrix will include the amount by which the then current late fees per statement exceed the amount of the late fees per statement calculated using a late fee of $5. In the event Bank increases (for increases made by Bank on or after March 1, 2003) any of the finance charges and/or late fees charged to Cardholders as a result of increases in Bank's cost of postage for mailing Account billing statements, form letters or new Credit Cards, then Bank will exclude the amount of such increase in the finance charges and/or late fees from its calculation of the Discount Rate using the matrix. Notwithstanding the foregoing, Bank agrees that Bank will waive any increase Bank is entitled to for the Discount Rate during the calendar year 2003, provided, however, that in the event Bank waives such increase in the Discount Rate, then (i) if the number of Applicants during the calendar year 2003 is less than the number of Applicants during the calendar year 2002, Bank shall invoice Company for the amount of the Discount Fees waived by Bank during the calendar year 2003 and Company shall pay such amount within thirty (30) days after the date of such invoice, or (ii) Bank shall have the right during any future calendar year to defer any decreases in the Discount Rate until such time as Bank has recouped the amount of the Discount Fees waived by Bank during the calendar year 2003. Victoria's Secret Stores Merchant Fee Matrix Bad Debt % Credit Sales Fin Chg/ STM ('95 $) 3.6% 3.8% 4.0% 4.2% 4.4% 4.6% 4.8% 5.0% 5.2% $ 4.45 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% $ 4.30 0.40% 0.50% 0.60% 0.70% 0.80% 0.90% 1.00% 1.10% 1.20% $ 4.15 0.60% 0.70% 0.80% 0.90% 1.00% 1.10% 1.20% 1.30% 1.40% $ 4.00 0.80% 0.90% 1.00% 1.10% 1.20% 1.30% 1.40% 1.50% 1.50% $ 3.85 1.00% 1.10% 1.20% 1.30% 1.40% 1.50% 1.50% 1.50% 1.50% $ 3.70 1.20% 1.30% 1.40% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% $ 3.55 1.35% 1.45% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% $ 3.40 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.50% 1.70% 1.90% $ 3.25 1.50% 1.50% 1.50% 1.50% 1.50% 1.70% 1.90% 2.10% 2.30% $ 3.10 1.50% 1.50% 1.50% 1.60% 1.80% 2.00% 2.20% 2.40% 2.60% $ 2.95 1.50% 1.60% 1.80% 2.00% 2.20% 2.40% 2.60% 2.80% 3.00% Minimum ROA 2.0% ROA over 4% share 50-50 30 Schedule 2.1 Service Standards Base Level Targeted Level Standard #1 The Bank will process mailed-in applications five days per week. The Bank will process % of such applications within five Business Days of receipt. 95 % 98 % Standard #2 The Bank will process "instant" credit applications from 9:00am to 12:30am (Eastern time) Monday through Saturday and from 10:00am to 9:30pm (Eastern time) Sunday, excluding Holidays ("Normal Store Hours"). The Bank will process at least % of such applications within five minutes of receipt. 90 % 92 % Standard #3 The Bank will issue % of new and replacement Credit Cards within four business days of embossing tape output. 95 % 96 % Standard #4 The Bank will answer at least % of incoming Cardholder service calls within 20 seconds. Bank will provide Cardholder service from 9am-9pm(Eastern time) Monday-Saturday, excluding Holidays. 85 % 86 % Standard #5 The Bank will not permit the abandoned call rate for Cardholder customer service calls to exceed % measured on a monthly basis. 2.0 % 1.7 % Standard #6 The Bank will provide electronic authorization means to be available at least % of Normal Store Hours. Bank will also provide batch authorizations for catalog sales. 99.5 % 99.6 % Standard #7 The Bank will post valid non-payment Transactions to the Cardholder's Account within 24 hours of receipt. 100 % 100 % Standard #8 The Bank will xxxx and mail % of Account statements within four business days of the scheduled billing date. 97 % 100 % Standard #9 The Bank will process at least % of payments within 24 hours of receipt. In the event any payment is not processed within 24 hours of receipt, such payment shall be backdated to the date of receipt. 96 % 97 % Standard #10 The Bank will respond to at least % of mailed-in Cardholder inquiries within seven business days of receipt. 90 % 97 % Standard #11 The Bank will provide "Quick Credit" during % of Normal Store Hours. 95 % 98 % Service Standards will be calculated and reported in a manner that is consistent with prior practices. Holidays shall mean New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Targeted Levels: Any failure to meet the Targeted Level for Service Standards will be reported on the monthly Service Standards report. Failure to meet the same Targeted Level for a single Service Standard for more than two consecutive months, will result in Bank taking the actions set forth in the chart below, provided that such failure to meet the Targeted Level was not caused by any unprivileged action or action in violation of this Agreement by Company or inaction of Company (where Company has a duty to act) or by a force majeure event specified in Section 10.11. Failure to Meet Targeted Level 3rd Consecutive Month 4th Consecutive Month 5th Consecutive Month 6th Consecutive Month and Each Consecutive Month Thereafter Actions to be taken by Bank following consecutive month failure to attain Targeted Level Letter to Company's CEO Bank's CEO will meet with Company's senior management and/or Company's parent company's management to discuss an action plan. Bank's CEO will meet with Company's senior management and/or Company's parent company's management to discuss an action plan. Bank's CEO will meet with Company's senior management and/or Company's parent company's management to discuss an action plan. Penalty to be Paid by Bank to Company None $5,000 $10,000 $20,000 Base Levels: Failure to meet a Base Level will be reported on the monthly service standards report and may trigger a Service Standard Termination Event as set forth in Section 9.7.
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Discount Rate. DISCOUNT RATE The applicable Discount Rate for all Purchases as of the Effective Date and until changed as set forth below shall be 1.501.75%. Provided, that in the event of a legislated or judicial reduction in the annual percentage rate or fees that may be charged by Bank to Cardholders, or if the Discount Rate is substantially higher than the rate that Company would incur for comparable credit card services, Company and Bank agree to negotiate in good faith an increase or decrease in the Discount Rate. Commencing on January 31, 2004 and annually thereafter, the Discount Rate will be subject to change by Bank on an annual basis in accordance with the matrix set forth below and Bank shall apply the corresponding Discount Rate to future Discount Fees applied by Bank until the next adjustment is made. The Fin Chg/STM ('95$) calculation for the matrix will include the amount by which the then current late fees per statement exceed the amount of the late fees per statement calculated using a late fee of $5. In the event Bank increases (for increases made by Bank on or after March 1, 2003) any of the finance charges and/or late fees charged to Cardholders as a result of increases in Bank's cost of postage for mailing Account billing statements, form letters or new Credit Cards, then Bank will exclude the amount of such increase in the finance charges and/or late fees from its calculation of the Discount Rate using the matrix. Notwithstanding the foregoing, Bank agrees that Bank will waive any increase Bank is entitled to for the Discount Rate during the calendar year 2003, provided, however, that in the event Bank waives such increase in the Discount Rate, then (i) if the number of Applicants during the calendar year 2003 is less than the number of Applicants during the calendar year 2002, Bank shall invoice Company for the amount of the Discount Fees waived by Bank during the calendar year 2003 and Company shall pay such amount within thirty (30) days after the date of such invoice, or (ii) Bank shall have the right during any future calendar year to defer any decreases in the Discount Rate until such time as Bank has recouped the amount of the Discount Fees waived by Bank during the calendar year 2003.
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