**Addendum to the Cardmember Agreement**

**This Addendum to the Cardmember Agreement reflects variations to our standard form credit card agreement in effect on the last business day of the previous calendar quarter that ended on 09/30/2019. Our standard Cardmember Agreement(s) is supplemented with pricing information reflected in the document(s) titled “Pricing Supplement” and other terms and/or features that may vary between the different types of credit card accounts that we offer as reflected in the below “Addendum to the Cardmember Agreement”. These documents are provided to you for informational purposes only. These account terms may not be available after the above date. If you apply and are approved for a credit card account with us, your actual account terms will be based on the terms of the offer available at the time that you applied and your Cardmember Agreement will be the agreement sent to you when your account is first opened.**

*The following provision is to be added at the end of the last sentence of the “ Credit Line/Authorized Usage” paragraph in our standard Cardmember Agreement and is applicable to credit card accounts that do not have a preset spending limit:*

“Because your Account has no pre-set spending limit, we may permit you from time to time at our discretion to make certain charges that cause your outstanding balance to exceed your revolving credit line. These charges will be evaluated based on account performance, other credit accounts with us, and your experience with other creditors. If we authorize these charges, you must pay, with your Minimum Payment Due, the amount by which your balance exceeds your revolving credit line, including amounts due to Purchases, Cash Advances, Interest charges, Fees, or other charges.”

*The provisions describing how we calculate your balance subject to interest rate each month, accrual of interest and how to avoid paying interest on purchases may vary based on the account type that the applicant applied for and whether the applicant is a resident of Iowa. The following two options contain the various provisions that could apply, and one of these options will be reflected in the Cardmember Agreement assigned at account opening: *

**OPTION 1:**

**How We Will Calculate Interest.**

We use a method called “daily balance (including new purchases)”. We calculate interest separately for each “Balance Subject to Interest Rate”. These include for example, Purchases at the current rate, Balance Transfers at the current rate, Cash Advances at the current rate, and different promotional balances. Your monthly billing statement shows each “Balance Subject to Interest Rate”.

To calculate interest, we first calculate a daily balance for each Balance Subject to Interest Rate. We start with the balance, for that Balance Subject to Interest Rate, as of the end of the previous day. We add any interest calculated on the previous day’s balance. (This means interest is compounded daily). We add any new Purchases, Balance Transfers, or Cash Advances to the appropriate balance, subtract any new payments or credits from the appropriate balance, and make other adjustments. A credit balance is treated as a balance of zero. We then multiply each daily balance by the applicable DPR. We do this for each day in the billing period. That gives us the daily interest. We add up all the daily interest for all of the daily balances to get the total interest for the billing period.

**Accrual of Interest and How to Avoid Paying Interest on Purchases.**

On Purchases, interest begins to accrue as of the transaction date. However, you may avoid paying interest on Purchases in any given billing cycle if you pay your Statement Balance in full by the Payment Due Date. For Balance Transfers, interest will accrue from the transaction date which generally will be the day we send the Balance Transfer to the payee. For Checks, interest will accrue from the transaction date which generally will be the day the payee accepts the Check. For Cash Advances, interest will accrue from the transaction date which generally will be the day you take the Cash Advance. If you are charged interest in a billing cycle, we will charge a Minimum Interest Charge (or “Minimum Charge”) on your Account if the total interest charge in that billing cycle is less than the amount of the Minimum Interest Charge.

**OPTION 2:**

**How We Will Calculate Your Balance Subject to Interest Rate (For Residents of Iowa at the Time of Account Opening).**

We use a method called “average daily balance (including new purchases)”. To determine the amount of the interest to be charged on your Account we first calculate the “Balance Subject to Interest Rate” separately for Purchases, for Balance Transfers, and for Cash Advances. We apply the applicable Monthly Periodic Rate to the average daily balances of i) Purchases, ii) Balance Transfers, and iii) Cash Advances. The average daily balances for Purchases, for Balance Transfers, and for Cash Advances are calculated separately and determined as follows: We take the beginning balances for each balance category on your Account each day, add to the respective balances any new transaction, subtract any payments or credits and make any other applicable adjustment(s). A credit balance is treated as a balance of zero. Then we take the sum of all daily balances and divide by the number of days in the billing period to determine the average daily balance. If you multiply the “Balance Subject to Interest Rate” for each balance category as disclosed on your monthly billing statement by the applicable MPRs, the results will be the interest assessed, except for minor variations caused by rounding. We may from time to time offer you “introductory,” “special” or “promotional” APR offers. If any are in effect on your Account, we will separately identify the balances to which such offers apply on your monthly billing statement. These separate balances and the related interest will be calculated in the same manner as described above.

**Accrual of Interest and How to Avoid Paying Interest on Purchases.**

On Purchases, interest begins to accrue as of the transaction date. However, you may avoid paying interest on Purchases in any given billing cycle if you pay your Statement Balance in full by the Payment Due Date each month. For Balance Transfers, interest will accrue from the transaction date which generally will be the day we send the Balance Transfer to the payee. For Checks, interest will accrue from the transaction date which generally will be the day the payee accepts the Check. For Cash Advances, interest will accrue from the transaction date which generally will be the day you take the Cash Advance. If you are charged interest in a billing cycle, we will charge a Minimum Interest Charge (or “Minimum Charge”) on your Account if the total interest charge in that billing cycle is less than the amount of the Minimum Interest Charge that is disclosed in the Account Summary Table.