How are the Balance and Interest charges calculated?

We use the Average Daily Balance Method (including current transactions). We figure the interest charge on your Account by multiplying" the "daily periodic rate" by the average daily balance for that transaction type and then multiplying that result by the number of days in the billing cycle. To get the “daily balance”, for each transaction type, we take the beginning balance of your Account each day, add any new transactions and the periodic interest charge on the previous day's balance, and subtract any payments and credits for the specific transaction types as of that day. This gives us the daily balance. Then, to get the average daily balance we add up all the daily balances for the billing cycle and divide the total by the number of days in the billing cycle. This gives us the “average daily balance.” Please refer to the Cardholder Agreement for more information.