Mastercard BusinessCard Disclosure
|Annual Percentage Rate (APR) for Purchases||12.00% Standard Rate|
|Grace Period for Repayment of Balances for Purchases||You have not less than 25 days to repay your balance for purchases before a finance charge will be imposed.|
|Method for Computing the Balance for Purchases||Average Daily Balance (including new purchases)|
|Minimum Finance Charge||None|
|Transaction Fee for Purchases||None|
|Transaction Fee for Cash Advances||None|
|Foreign Transaction Fee||1% of transaction amount|
|Balance Transfer Fee||None|
|Late Payment Fee||$30.00 after 10 days|
There is a Returned Check Fee of $25.00.
The information about the costs of the Card described in this application is accurate as of 08/16. This information may have changed after that date. To find out what may have changed, call (800) 531-8456 or write to United Texas Credit Union, 5500 UTSA Blvd., San Antonio, TX 78249.
WHAT THE AGREEMENT COVERS: This Agreement governs the Card issued by the credit union named above for use in connection with any commercial Mastercard BusinessCard account (“Account”).
TERMS USED IN THIS AGREEMENT: In this Agreement, “Company” means the person, company, partnership, association or other entity for which an Account is established. “Authorized Officer” means the person authorized by Company to request that the Account be established for Company and that the Card(s) be issued, and includes any successor to that person that Company identifies. “Cardholder” means any employee, partner, owner, member or officer of Company for whom Company has requested, and to whom we have issued, the Card, and “Cardholders” means all such persons. The words “we,” “our,” “us,” and “Credit Union” means the credit union named above, the issuer of the Card. “The Card” means any credit card issued to Company or to anyone designated by Company under the terms of this Agreement. “Use of the Card” means any procedure used by Company, or by someone authorized by Company, to make a purchase or obtain a cash advance whether or not the purchase or advance is evidenced by a signed written document. “Unauthorized use of the Card” means the use of the Card by someone who does not have actual, implied, or apparent authority from Company for such use, and from which Company receives no benefit. In this Agreement, any plural terms shall be deemed singular and any singular terms shall be deemed plural when context and construction so require.
EXTENSION OF CREDIT: If Company’s application is approved, the Credit Union may, at its discretion, establish the Account in Company’s name and cause one or more Cards to be issued to Cardholders designated by Company. In such event, Company authorizes the Credit Union to pay for the Account all items reflecting credit purchases and cash advances (including balance transfers) obtained by Cardholders through use of the Card. Only Cardholders may use the Card or the Account for any purpose. Credit obtained pursuant to this Agreement is for the benefit of Company and constitutes a financial accommodation for Cardholders. If Company wants to end a Cardholder’s privileges, Company must notify us in writing and return that Card.
OTHERS USING COMPANY’S ACCOUNT: In the event that Company allows anyone other than a Cardholder to use the Account, Company will be liable for all credit extended to such persons. Company promises to pay for all purchases and cash advances made by anyone Company authorizes to use the Account, whether or not Company notifies us of such use. If Credit Union determines that anyone other than a Cardholder is using the Account, Credit Union may suspend all further use of the Account and terminate this Agreement for such use.
BUSINESS PURPOSE; PURCHASES AND CASH ADVANCES: All transactions on the Account must be for Company’s business purposes only and within the scope of the Cardholders’ employment or Company responsibilities. In no event may the Account be used for any other purposes, including, but not limited to, Cardholders’ personal, family, or household purposes. Company agrees to notify Cardholders of this business purpose restriction and to adopt and enforce policies and controls to ensure that the Card and the Account are used strictly for Company’s business purposes. We may permit Cardholders to obtain cash advances by presenting the Card at participating Mastercard member offices or by use of an Automated Teller Machine (“ATM”). We may disable this cash advance feature at any time without notice. We are not liable for the refusal of any merchant to accept or honor the Card for any reason, including the inability to obtain authorization for any purchase or for any failure to complete a transaction at an ATM for any reason, including our disabling the cash advance feature.
COMPANY CREDIT AND CARDHOLDER PURCHASE LIMITS: Company promises that payments made for the Account resulting from use of the Card will at no time cause the outstanding balance in the Account to exceed Company’s Credit Limit as established by us or as adjusted from time to time at our discretion. The Company Credit Limit will appear on the periodic statement we send to Company. If the Company exceeds the Company Credit Limit, we are not, under any circumstances, obligated to extend credit on the Account; but, if we do, Company agrees to immediately pay us the amount in excess of the Company Credit Limit, plus Finance Charges and other applicable fees and charges. In addition, we will establish and notify Company and each Cardholder of a limit, determined in our sole discretion, on the amount of purchases that may be made by each Cardholder during any one (1) periodic billing cycle (“Billing Cycle”). We refer to this limitation on purchases as the “Cardholder Purchase Limit.” We may, at any time and at our sole option, change the Cardholder Purchase Limit. Cardholder agrees not to exceed the Cardholder Purchase Limit at any time. Company will not permit Cardholder to exceed the Cardholder Purchase Limit at any time. If Cardholder exceeds the Cardholder Purchase Limit at any time during a Billing Cycle, we may, without notice, suspend Cardholder’s privilege to use the Card and the Account. Notwithstanding the fact that the aggregate amount of the Cardholder Purchase Limits may be in excess of the Company Credit Limit, Company agrees that it will not use the Account or permit the use of the Card or the Account in any way that would cause the outstanding balance of the Account, including accrued and unpaid Finance Charges and other applicable fees and charges, to exceed the Company Credit Limit. We are not, under any circumstances, obligated to extend credit on the Account if any Cardholder Purchase Limit has been exceeded; but, if we do, Company agrees to immediately pay us the amount in excess of any Cardholder Purchase Limit, plus applicable Finance Charges and other applicable fees and charges.
COMPANY AND CARDHOLDER CASH LIMITS: We will establish and notify Company of a limit, determined in our sole discretion, on the amount of cash advances that can be outstanding at any one time under the Account (“Company Cash Limit”). The Company Cash Limit will appear on the periodic statement we send to Company. We may, at any time and at our sole option, change the Company Cash Limit. Company agrees that it will not use the Account or permit the use of the Card or the Account in any way that would cause the aggregate amount of cash advances obtained on the Account to exceed the Company Cash Limit. We are not, under any circumstances, obligated to permit cash advances on the Account if they exceed the Company Cash Limit; but, if we do, Company agrees to immediately pay us the amount in excess of the Company Cash Limit plus applicable Finance Charges and other applicable fees and charges. In addition, we will establish and notify Company and Cardholder of a limit, determined in our sole discretion, on the total amount of cash advances that Cardholder may obtain from the Account during any one Billing Cycle (“Cardholder Cash Limit”). We may, at any time and at our sole option, change the Cardholder Cash Limit. Cardholder agrees not to exceed the Cardholder Cash Limit at any time. Company will not permit Cardholder to exceed the Cardholder Cash Limit at any time. If Cardholder exceeds the Cardholder Cash Limit at any time during a Billing Cycle, we may, without notice, suspend Cardholder’s privilege to use the Card and the Account. Notwithstanding the fact that the aggregate amount of the Cardholder Cash Limits may be in excess of the Company Cash Limit, Company agrees that it will not use the Account or permit the use of the Card or the Account in any way that would cause the outstanding amount of cash advances under the Account to exceed the Company Cash Limit. We are not, under any circumstances, obligated to permit cash advances on the Account if any Cardholder Cash Limit has been exceeded; but, if we do, Company agrees to immediately pay us the amount in excess of any Cardholder Cash Limit, plus applicable Finance Charges and other applicable fees and charges. Company acknowledges that the Company Cash Limit is solely a limitation on the aggregate amount of cash advances that can be outstanding on the Account at any one time and that all amounts obtained by cash advances are part of the outstanding balance of the Account which cannot at any time exceed the Company Credit Limit. Company further acknowledges that the Cardholder Cash Limit is solely a limitation on the aggregate amount of cash advances that Cardholder may obtain from the Account during any one (1) Billing Cycle and that all amounts obtained by all Cardholders in the form of cash advances are part of the outstanding balance of the Account which cannot at any time exceed the Company Credit Limit.
PROMISE TO PAY: Company and the Authorized Officer are jointly and severally liable for all amounts owing on the Account and each promises to pay the Credit Union for all purchases, cash advances, Finance Charges and all other fees and charges charged to or accrued on Company’s Account under the terms of this Agreement. At the end of each monthly billing cycle, Company will be furnished with a periodic statement showing (i) the “Previous Balance” (the outstanding balance in the account at the beginning of the billing cycle), (ii) an itemization of all cash advances, purchases and Finance Charges posted to Company’s Account during the billing cycle, (iii) the amount of all payments and credits posted to Company’s Account during the billing cycle, and (iv) the “New Balance” which is the sum of (i) and (ii) less (iii). Company agrees to pay on or before the “Payment Due Date” shown on the periodic statement either the entire New Balance or a minimum payment equal to 3% of the New Balance, or $25.00 whichever is greater. If the New Balance is $25.00 or less, Company agrees to pay in full. Company’s minimum payment will be rounded to the next highest dollar amount. In addition to the minimum payment shown on Company’s periodic statement, Company agrees to pay (i) any amounts in excess of the Company Credit Limit established by us, (ii) any past due minimum payments, and (iii) collection costs, costs incurred in recovery of Cards, and attorneys’ fees. Company may make extra payments in advance of the due date without penalty, and Company may repay any funds advanced, credit extended or amount outstanding at any time without penalty for early payment. Regardless of the amount of any extra payments during a given month, a monthly payment will be required the following month if a balance remains in Company’s Account.
COST OF CREDIT: Company will pay a Finance Charge for all advances made against the Account. Cash advances and balance transfers incur a Finance Charge from the date they are posted to the Account. New purchases will not incur a Finance Charge on the date they are posted to the Account if Company has paid the Account in full by the Payment Due Date shown on Company’s previous monthly statement or if there was no Previous Balance. The Payment Due Date will be not less than 25 days from the billing cycle closing date shown on Company’s statement.
The periodic rate used to compute the Finance Charge is 0.03288% per day, which corresponds to an Annual Percentage Rate of 12.00% (“Standard Rate”).
If at any time an account is 2 cycles or more past due more than 3 times in 12 months, the rate will increase to a daily periodic rate of 0.04932%, corresponding to an APR of 18.00%. After Company has made payments at the increased rate for 6 consecutive months, Credit Union may adjust Company’s rate to the Standard Rate.
Finance Charge: The Finance Charge is figured by applying the periodic rate to the balance subject to Finance Charge, which is the “average daily balance” of Company’s Account, including current transactions. The average daily balance is arrived at by taking the beginning balance of Company’s Account each day and adding any new cash advances, and, unless Company pays Company’s Account in full by the due date shown on Company’s previous monthly statement or there is no previous balance, adding in new purchases, and subtracting any payments or credits and unpaid Finance Charges. This gives us the daily balance. The daily balances for the billing cycle are then added together and divided by the number of days in the billing cycle. The result is the average daily balance. The Finance Charge is determined by multiplying the average daily balance by the number of days in the billing cycle and applying the periodic rate to the product. Company may pay any amounts outstanding at any time without penalty for early payment.
ATM Fee: If Company obtains a cash advance by using an Automated Teller Machine or otherwise, Company may be charged a fee imposed by the owner or operator of the machine, or by the financial institution. Any charge made under this paragraph will be added to the balance of Company’s Account and treated as a purchase.
Late Charge: If a payment is ten or more days in arrears, Company will be charged a late charge of $30.00.
Over-The-Limit Fee: If Company’s Account balance exceeds Company’s pre-established Credit Limit, Company will be charged an Over-the-Limit fee of $30.00. This fee will be charged only once per month, regardless of the number of times the balance exceeds Company’s credit limit in any given billing cycle.
Annual Fee: None.
Returned Check Fee: If any payment Company sends us is returned unpaid for any reason, we may charge and Company agrees to pay a Returned Check Fee of $25.00. We will charge you this fee the first time any payment is returned unpaid, even if it is paid upon resubmission.
SECURITY: COMPANY SPECIFICALLY GRANTS US A CONSENSUAL SECURITY INTEREST IN ALL ACCOUNTS COMPANY HAS WITH US NOW AND IN THE FUTURE TO SECURE REPAYMENT OF CREDIT EXTENSIONS MADE UNDER THIS AGREEMENT. THE GRANTING OF THIS SECURITY INTEREST IS A CONDITION FOR THE ISSUANCE OF ANY CARD WHICH COMPANY MAY USE, DIRECTLY OR INDIRECTLY, TO OBTAIN EXTENSIONS OF CREDIT UNDER THIS AGREEMENT.
ADDITIONAL SECURITY: If Company has other loans with us, now or in the future, collateral securing those loans may also secure Company’s obligations under this Agreement.
CREDITING OF PAYMENTS: We do not charge for payments made by standard mail service or other reasonable means. If we charge a fee for any expedited payment service we offer, that fee will be disclosed at the time Company requests the service. If Company’s payment is received by 5:00 p.m. Central Standard Time (during the Credit Union designee’s business day at the address designated on the periodic statement), it will be credited to the Account on the date of receipt. If the date of receipt is not a business day, Company’s payment will be credited on the first business day following receipt. If payment is made at any location other than the designated address, credit for such payment may be delayed up to five (5) days. Payments or credits will be applied first to any late charges and collection costs due, then to any Over-the-Limit fees and other charges due, then to any Finance Charge due, and the remainder to the unpaid balance. Interest paid or agreed to be paid shall not exceed the maximum amount permissible under applicable law. If we receive anything of value deemed interest under applicable law which would exceed the maximum amount of interest permissible under applicable law, the excessive interest shall be applied to the reduction of the unpaid principal amount or refunded to Company.
DEFAULT: Company will be in default: (1) if Company fails to make any payment on time; (2) if Company fails to keep any promises Company has made under this or any other Agreement with the Credit Union; (3) if Company or the Authorized Officer is the subject of an order for relief under Title 11 of the U.S. Code (Bankruptcy); (4) if anyone tries, by legal process, to take any of Company’s money in the Credit Union; (5) if Company has given the Credit Union false or inaccurate information in obtaining Company’s Card; or (6) if anything happens which the Credit Union reasonably believes endangers Company’s ability to repay what Company owes.
ACCELERATION: If Company is in default, the Credit Union may, without prior notice to Company, call any amounts Company still owes immediately due and payable plus Finance Charges which shall continue to accrue until the entire amount is paid. Company expressly waives any right to notice or demand, including but not limited to, demand upon default, notice of intention to accelerate, and notice of acceleration.
LIABILITY FOR UNAUTHORIZED USE: Company may be liable for the unauthorized use of Company’s Card. Company will not be liable for any unauthorized use of Company’s Card if Company notifies us in writing at the Credit Card Center, P.O. Box 815909, Dallas, TX, 75381-5909, or by calling us at 1-800-442-4757, of the loss, theft, or unauthorized use of Company’s Card. Such notice must be given within one (1) day of the loss, theft, or unauthorized use. If fewer than ten cards are issued, then Company’s liability for unauthorized use will not exceed $50.00. Otherwise, Company and Authorized Officer will be jointly and severally liable for unauthorized use of Company’s Card. No Cardholder shall be individually liable for more than $50.00 for unauthorized use.
LIABILITY IN THE EVENT OF CARDHOLDER OR AUTHORIZING OFFICER LAYOFF OR TERMINATION OF EMPLOYMENT: In the event that Cardholder’s employment or other association with Company terminates (whether voluntarily or involuntarily) or Cardholder gives to Company or receives from Company notification of immediate or pending termination of employment or other association with Company (any such event hereinafter a “Cardholder Termination Event”), Company must immediately (a) notify us of such Cardholder Termination Event, and (b) use all reasonable efforts to collect and destroy the Card and provide written verification to us of such destruction or of Company’s inability to collect and destroy the Card. Company, the Authorized Officer and Cardholder shall be jointly and severally liable for the amount of any transaction on the Account by Cardholder after the occurrence of any Cardholder Termination Event (together with any applicable Finance Charges and other applicable fees and charges) until Company complies with all of the requirements of this paragraph and we have a reasonable opportunity to restrict or revoke Cardholder’s ability to use the Card and the Account. In the event that the Authorized Officer’s employment or other association with Company terminates whether voluntarily or involuntarily) or the Authorized Officer gives to Company or receives from Company notification of immediate or pending termination of employment or other association with Company (any such event hereinafter an “Authorized Officer Termination Event”), Company must immediately (a) notify us of such Authorized Officer Termination Event, and (b) use all reasonable efforts to collect and destroy the Card and provide written verification to us of such destruction or of Company’s inability to collect and destroy the Card. Company shall be jointly and severally liable with the Authorized Officer for the amount of any transaction on the Account by the Authorized Officer after the occurrence of any Authorized Officer Termination Event (together with any applicable Finance Charges and other applicable fees and charges) until Company complies with all of the requirements of this paragraph and we have a reasonable opportunity to restrict or revoke the Authorized Officer’s ability to use the Card, the Checks, and the Account. Upon the occurrence of any Authorized Officer Termination Event or, if for any reason Company desires to change the Authorized Officer on the Account, Company shall promptly notify us and shall submit a new application for the Account or other documentation required by us signed by the new Authorized Officer.
CREDIT INVESTIGATION: In conjunction with Company’s application for credit and, if approved, maintenance of the Account, Company agrees that we have the right to investigate Company’s credit history, to verify Company’s credit references, to request and use credit reports, and to report the way Company pays the Account to credit bureaus and other interested parties. The Authorized Officer consents to our (i) investigation of the Authorized Officer’s credit history, (ii) obtaining updated credit bureau reports from time to time on the Authorized Officer for the purpose of considering the Authorized Officer’s request for the Account and subsequently in connection with any updates or renewals of the Account or reviewing or collecting the Account, and (iii) releasing information to, or responding to inquiries from, third parties regarding the existence, status and history of the Account. Within ninety (90) days after the end of its fiscal year, Company agrees to provide us with financial statements as of such fiscal year ended (including balance sheet, income statement, and cash flow statement, prepared in accordance with generally accepted accounting principles, consistently applied, and audited or otherwise acceptable to us). Company also agrees to provide us with comparable quarterly financial statements and Company’s tax returns upon request.
TERMINATION OR CHANGES: We can terminate this Agreement at any time, subject to such notice as may be required by law. By written notice, Company may terminate this Agreement or terminate the authority of Cardholder to use the Account as to future advances at any time. Termination by either party shall not affect Company’s or Authorized Officer’s obligation to repay any payments made for the Account resulting from use of the Card as well as Finance Charges and other related charges. Upon written notice, we may change any of the terms of this Agreement, including the periodic rate, at any time without limitation. If Company or Cardholder uses Company’s Card to make a purchase or obtain a cash advance after having been given notice of a change in terms, Company agrees that the existing balance in Company’s Account at the time of that use will be subject to the new terms, as shall subsequent uses.
BILLING DISPUTES: All written communications to us concerning disputed amounts, including any check or other payment instrument (i) tendered in an amount less than the full amount due marked “Paid in Full,” (ii) tendered with other conditions or limitations, or (iii) otherwise tendered as full satisfaction of a disputed amount must be sent to us at the address for inquiries shown on the periodic statement. Company shall notify us in writing of any questions, problems, discrepancies or disputes concerning amounts reflected on a periodic statement within sixty (60) days following the billing cycle closing date of the periodic statement on which such amounts first appear. We will promptly investigate any properly disputed amount and determine whether or not the periodic statement correctly reflected the amount. Until we complete our investigation and determine whether or not the periodic statement correctly reflected any properly disputed amount, we will not include such disputed amount in the average daily balance of the Account for purposes of calculating the Minimum Payment Due. However, such disputed amount will be deemed part of the outstanding balance of the Account for purposes of applying the Company Credit Limit and the Cardholder Purchase Limit, and if applicable to the disputed amount, the Company Cash Limit and the Cardholder Cash Limit. If the result of the investigation is our determination that the periodic statement did not properly reflect the disputed amount, we will make an appropriate adjustment to the Account. If the result of the investigation is our determination that the periodic statement properly reflected the disputed amount, we will include the disputed amount in the outstanding balance of the Account for all purposes as of the date of such determination. Notwithstanding any provision to the contrary contained in this Agreement, (a) resolution of all claims and disputes of any kind regarding goods or services purchased using the Card or the Account shall be between Cardholder or Company and the merchant that provided the goods or services, and (b) except prior to our determination with respect to any amount properly disputed pursuant to the foregoing provisions of this paragraph, you may not raise a claim against or dispute with a merchant as a defense to an obligation to pay us for any amounts owing on the Account.
ILLEGAL TRANSACTIONS: Company or Cardholder may not use the Card for any illegal transaction. Company agrees that we may decline to process any transaction that we believe in good faith to be for an illegal purpose. Company agrees that we will not be liable for declining to process any such transaction. If we do process any transaction that ultimately is determined to have been for an illegal purpose, Company agrees that Company will remain liable to us under this Agreement for any such transaction notwithstanding its illegal nature. Company agrees that any illegal use of the Card will be deemed an act of default under this Agreement. Company further agrees to waive any right to take legal action against us for Company’s or Cardholder’s illegal use of the Card and to indemnify and hold us and MasterCard International, Incorporated harmless from and against any lawsuits, other legal action, or liability that results directly or indirectly from such illegal use.
FOREIGN CURRENCY TRANSACTIONS: If Company effects a transaction with Company’s MasterCard in a currency other than U.S. dollars, MasterCard International will convert the charge into a U.S. dollar amount. MasterCard International will use its currency conversion procedure, which is disclosed to institutions that issue MasterCard cards. Currently the currency conversion rate used by MasterCard International to determine the transaction amount in U.S. dollars for such transactions is generally either a government mandated rate or a wholesale rate determined by MasterCard International for the processing cycle in which the transaction is processed, increased by an adjustment factor established from time to time by MasterCard International. The currency conversion rate used by MasterCard International on the processing date may differ from the rate that would have been used on the purchase date or cardholder statement posting date.
RENEWAL AND REPLACEMENT CARDS: The Card is issued with an expiration date. We may issue a renewal Card from time to time, unless otherwise instructed by Company. We are, however, under no obligation to issue a renewal Card and may elect, in our sole discretion, not to reissue the Card. Company and Cardholder agree to notify us immediately upon learning of the loss, theft or possible unauthorized use of the Card or the Account. Once we are notified, we may issue a replacement Card to Cardholder, Authorized Officer or Company.
ADDITIONAL PROVISIONS: Each provision of this Agreement must be considered as part of the total Agreement and cannot, in any way, be severed from it. However, Company also agrees that should any part of the Agreement be found invalid, it will in no way affect the remainder of the Agreement. Company understands the validity, construction and enforcement of this Agreement shall be governed by the laws of the state where Credit Union has its headquarters to the extent not preempted by federal law.
This Agreement is the final expression of the understanding between Company, the Authorized Officer and Cardholder and us concerning the Card and the Account and may not be contradicted by any alleged oral agreement. Any representation, promise, modification, or amendment to this Agreement shall not be binding upon us unless in writing and signed by us.
Neither Company, the Authorized Officer nor Cardholder may assign the Account, the Card, or the privilege of using the Account or the Card to any person. We may assign the Account, this Agreement and/or any of our interests or rights hereunder to any person without prior notice.
The Credit Union does not warrant any merchandise or services purchased by Company or Cardholder with the Card. All purchases and cash advances are extended at the option of the merchant or cash advancing financial institution and the Credit Union is not responsible for refusal of any merchant or financial institution to honor Company’s Card.
The Card remains our property at all times and Company agrees to immediately surrender the Card at our demand. Company agrees to pay all reasonable costs of collection, including court costs and attorney’s fees, and any costs incurred in the recovery of the Card. We can accept late payment(s) or partial payment(s) or check(s) or money order(s) marked “payment in full” without losing any of our rights under this Agreement. We can also delay enforcing any of our rights under this Agreement without losing them. Company and Authorized Officer agree to notify us in writing within ten (10) days following any change in name, residence or mailing address.
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. What this means to you: When you open an account, we will ask for your name, address, date of birth and identification number, such as social security number and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.
AGREEMENT AND ACKNOWLEDGMENT: By signing the application for a Card, or by using the Card, Company, Authorized Officer and Cardholder agree to all the terms and conditions and promise to perform all the obligations, requirements and duties set forth in this Agreement. The Company and Authorized Officer applying for a Card who signed the application acknowledge receipt of a copy of this Agreement.