Common use of Interest Charges Clause in Contracts

Interest Charges. How Interest Charges are Calculated We calculate interest using the daily balance method with compounding. This means that interest compounds daily. Your Account has a grace period on purchases. We will not charge you interest on new purchases if you pay your full account balance by the due date each month. If you do not pay your account balance in full by the payment due date, we will charge interest starting the day you make a purchase. We will begin accruing interest on Balance Transfers and Cash Advances on the transaction date. How Daily Balance is Determined To determine your Daily Balance, we: Take the beginning balance for that day; then Add the Daily Balances for each day of your billing cycle; then divide this total by the number of days in your billing cycle. 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 total 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 Refer to Part 2 of the Account Opening Table under Interest Rates and Interest Charges Minimum Interest Refer to Part 2 of the Account Opening Table under Interest Rates and Interest Charges

Interest Charges. How Interest Charges are Calculated We calculate HSBC calculates interest using the daily balance method with compounding. This means that the interest compounds daily. Your Account has a grace period on purchasesTo 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. We HSBC 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 pay your account balance in full by take advantage of the payment due dategrace period, we will charge interest starting the day you make a the purchase. We will begin accruing You also pay interest on Balance Transfers cash advances and Cash Advances on balance transfers starting from the transaction datedate of those transactions. How Daily Balance and Average Daily Balance is Determined To determine your Daily Balance, we: Take we take the beginning balance for that on your Account and then add in any new purchases, advances, fees and charges; add in any previous day’s periodic Interest Charges; then Add 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 your the billing cycle; cycle and then divide this the total by the number of days in your the billing cycle. 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 This gives us the total 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 periodAverage Daily Balance. Paying Interest Refer to Part 2 of We will not charge interest on new purchases if you pay your previous non-promotional balance, including fees and finance charges, by the Account Opening Table under Interest Rates due date each month. We will charge interest on cash advances, balance transfers and Interest Charges check transactions on the transaction date. Minimum Interest Refer to Part 2 of the Account Opening Table this Agreement under Minimum Interest Rates and Interest ChargesCharge.

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 is calculated separately for purchases and cash advances. For purchases, the interest is computed by applying the periodic rate to the average daily balance of purchases. For cash advances, interest is computed by applying the periodic rate to the average daily balance of cash advances. Average Daily Balance including new transactions for purchases and balance transfers: Interest Charges are Calculated We will accrue on your average daily balance outstanding during the month. For purchases, the interest is computed by applying the periodic rate to the average daily balance of purchases. To calculate interest using the average daily balance of purchases, we take the beginning outstanding balance of purchases each day, add any new purchases, and subtract any payments and/or credits. This gives us the daily balance method with compounding. This means that interest compounds daily. Your Account has a grace period on of purchases. We will not charge you interest on new then add all the daily balances of purchases if you pay your full account balance by for the due date each month. If you do not pay your account balance in full by billing cycle together and divide the payment due date, we will charge interest starting the day you make a purchase. We will begin accruing interest on Balance Transfers and Cash Advances on the transaction date. How Daily Balance is Determined To determine your Daily Balance, we: Take the beginning balance for that day; then Add the Daily Balances for each day of your billing cycle; then divide this total by the number of days in your the billing cycle. HSBC calculates 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 Balance including new transactions for cash advances: Interest Charges will accrue on your average daily balance outstanding during the month For cash advances, interest charges for each balance is computed by applying the “daily periodic rate” for that balance rate to the “average daily balance” for balance of cash advances. To calculate the balance. HSBC does this for each day in the billing cycle and sum the resulting interest charges. That gives us the total interest charges for that average daily 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 of cash advances, we take the beginning amount outstanding balance of that balance for cash advances each day. We add any new charges for that day, add in any interest on the previous daily balance if there is one in that billing cyclenew cash advances, and subtract any payments or creditscredits that we apply to the cash advance balance. This method gives the “daily balance”. The addition of the prior day’s interest to us the daily balance calculation causes interest 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 compound dailyeach. HSBC adds fees that Grace Period on Purchases and balance transfers: You can avoid Interest 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 specific to a particular charge posted to the same daily account, will be subject to an Interest Charge. You cannot avoid Interest Charges on cash advances; even if you pay the entire cash advance balance as that particular charge. HSBC adds all fees by the payment due date, you will incur the Interest Charges accrued from the date the cash advance is posted to your purchase balance as of the first day of a billing period. Paying Interest Refer to Part 2 of the Account Opening Table under Interest Rates and Interest Charges Minimum Interest Refer to Part 2 of the Account Opening Table under Interest Rates and Interest Chargesaccount.

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 We calculate interest using the daily balance method with compounding. This means that interest compounds daily. Your Account has a grace period on purchasesPurchases, Balance Transfers and Cash Advances. We will not charge you periodic interest on new purchases and balance transfers if you pay your full account balance by the due date each month. If you do not pay your account balance in full the total New Balance listed on the previous monthly statement by the payment due date. Otherwise, we will charge periodic interest starting on each purchase and balance transfer from the day you make date of 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 purchasecash 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. (1) First, we determine the “average daily balance” by taking each day’s beginning balance, adding any new transactions, and subtracting any payments or credits. We will begin accruing do not add interest on Balance Transfers incurred during the billing period. The result is the “daily balance.” We then add all the daily balances for the billing period and Cash Advances on the transaction date. How Daily Balance is Determined To determine your Daily Balance, we: Take the beginning balance for that day; then Add the Daily Balances for each day of your billing cycle; then divide this total by the number of days in your billing cycle. 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 total interest charges for that balance for that billing period. The result is the “average daily periodic ratebalance” (also called the “balance subject to interest charge” on your monthly statement). (2) Second, we multiply the average daily balance by the number of days in the billing period. That number is a daily interest rate. The 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 given balance particular billing period is equal to 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 that balance divided by 365each billing period, and for each category of transactions, is disclosed in your monthly statement. HSBC calculates 11.1: “Prime Rate” and 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 balanceIndex”. The addition 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 prior daycalendar 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 interest to the daily balance calculation causes interest to compound dailyPrime Rate increase or decrease. HSBC adds fees that are specific to a particular charge to the same daily balance as that particular charge. HSBC adds all fees to The resulting changes in your purchase balance as of APR and DPR will take effect on the first day of a your billing periodcycle the following month. Paying Interest Refer You acknowledge that the Bank’s Prime Rate does not mean the lowest rate at which Bank makes loans to Part 2 any of its customers, now or in the Account Opening Table under Interest Rates and Interest Charges Minimum Interest Refer to Part 2 of the Account Opening Table under Interest Rates and Interest Chargesfuture. 12.0:

Interest Charges. How In the case of any transactions under Your Account, the balances subject to the peri- odic Interest Charges Charge are Calculated the average daily transactions balances outstanding during the month (new and previous). To get the average daily balance, We calculate interest using the daily balance method with compounding. This means that interest compounds daily. Your Account has a grace period on purchases. We will not charge you interest on new purchases if you pay your full account balance by the due date each month. If you do not pay your account balance in full by the payment due date, we will charge interest starting the day you make a purchase. We will begin accruing interest on Balance Transfers and Cash Advances on the transaction date. How Daily Balance is Determined To determine your Daily Balance, we: Take take the beginning balance of Your Account each day, add any new purchases. cash advances, insurance premiums, debit adjustments or other charges and subtract any payments, credits and unpaid Interest Charges. This gives Us the daily balance. Then We add up all the daily balances for that day; then Add the Daily Balances for each day of your billing cycle; then cycle and divide this total them by the number of days in your the billing cycle. HSBC calculates the interest charges The Interest Charge 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 a billing cycle and sum is computed by multiplying the resulting interest chargesaverage daily balance subject to an Interest Charge by the Monthly Periodic Rate. That gives us You can avoid Interest Charges on purchases by paying the total 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 full amount of that the entire balance for owed each daymonth within 25 days of Your statement closing date. We add any Otherwise, the new charges for that day, add any interest on the previous daily balance if there is one in that billing cycleof purchases, and subtract any payments or creditssubsequent purchases from the date they are posted to Your Account, will be subject to an Interest Charge. This method gives Cash advances are always subject to an Interest Charge from the “daily balance”. The addition later of the prior day’s interest date they are posted 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 Your Account or from the first day of the billing cycle in which the cash advance is posted to Your Account. VARIABLE RATE: Upon the expiration of any Introductory Rate, all transactions described in the Pricing Document are subject to a billing periodVariable Rate that is based on the highest Prime Rate as published in the Money Rates section of The Wall Street Journal in effect on the 15th day of each month of each year (‘Index’) plus Our Margin. Paying The Index plus the Margin equals the Interest Refer to Part 2 Rate. An increase or a decrease in the Index will cause a corresponding increase or decrease in Your Variable Interest Rate on the first day of the Account Opening Table under Interest Rates and Interest Charges Minimum Interest Refer to Part 2 billing cycle of the Account Opening Table under month immediately following any such change in the index. An increase in the index means that You will have a higher interest Rate and have a higher Minimum Payment Due. If the Wall Street Journal does not publish the U.S. Prime Rate, or if it changes the definition of the U.S. Prime Rate, we may, at our sole discretion, substitute another index. Your Interest Rates Rate will never be greater than 24.99% and Interest Chargeswill apply to Your remaining principal balance. For the applicable Margin, Index, Monthly Periodic Rate and corresponding Annual Percentage Rate, refer to the accompanying Pricing Document that We have enclosed with and made a part of this Agreement. DEFAULT ANNUAL PERCENTAGE RATE. A default APR may be applied to your account if you:

Interest Charges. How We use a method called Average Daily Balance (excluding new Regular Credit Plan Purchases) to calculate the Interest Charges. First, for each day in the Billing Cycle for each Credit Plan, we take the beginning balance (excluding any accrued Interest Charges are Calculated not posted to the Account), add any new charges and Fees and subtract any payments and credits for each Credit Plan as described in the “How We calculate interest using Apply Your Payments” Section of this Agreement. The result is the daily balance method with compoundingfor each Credit Plan. This means that interest compounds daily. Your Account has a grace period on purchases. We will not charge you interest on new purchases if you pay your full account balance by the due date Next, for each month. If you do not pay your account balance in full by the payment due dateCredit Plan, we will charge interest starting add the day you make a purchase. We will begin accruing interest on Balance Transfers daily balances together and Cash Advances on divide the transaction date. How Daily Balance is Determined To determine your Daily Balance, we: Take the beginning balance for that day; then Add the Daily Balances for each day of your billing cycle; then divide this total sum by the number of days in your billing cyclethe Billing Cycle. HSBC calculates The result is the interest charges Average Daily Balance for each balance Credit Plan. At the end of each Billing Cycle, we multiply your Average Daily Balance for each Credit Plan by applying the “daily periodic rate” rate for that balance 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” 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 balancepurpose 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. HSBC does Due to rounding or a minimum Interest Charge, this for each day in calculation may vary slightly from the billing cycle and sum the resulting interest charges. That gives us the total interest charges for that balance for that billing period. The “daily periodic rate” is a daily interest rateInterest Charge actually assessed. The daily periodic rate for a given balance that is equal used to the APR for that balance divided by 365. HSBC calculates the “daily balance” determine your Interest Charges for each balance. HSBC takes the beginning amount Credit Plan is 1/365th of that balance your Annual Percentage Rate (APR) for each daysuch Credit Plan. We add will charge 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 your Promotional Credit Plans by the due date on 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 charges for that day, add any interest Interest Charges on new Purchases made under your Regular Credit Plan during the previous daily balance if there is one in that billing cyclecurrent Billing Cycle, and subtract any payments or credits. This method gives (2) if you pay at least your Minimum Payment due for the “daily balance”. The addition of current Billing Cycle but less than 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 amount described in clause (1), we will treat your payment as that particular charge. HSBC adds all fees to your purchase balance as of if it was made on the first day of a billing periodthe current Billing Cycle when we calculate your Interest Charges on new Purchases made under your Regular Credit Plan. Paying In general, unless otherwise indicated in promotional terms, Interest Refer Charges for Promotional Credit Plan transactions begin to Part 2 accrue from the date of the Account Opening Table under Interest Rates transaction until paid in full, and there is no grace period to avoid Interest Charges Minimum on Promotional Credit Plans. We may increase your Interest Refer Charges and Fees as described in the “Changes to Part Your Agreement” section of this Agreement. If we charge you interest, the charge will be no less than $2 of the Account Opening Table under Interest Rates and Interest Chargeswill be allocated among all Credit Plan balances that accrue interest at our discretion.