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Cardholder Agreement Law & Legal Definition

A contract in which the credit card company or through an agent, usually a bank, sets out the terms, conditions, responsibilities and liabilities in connection with the credit card. A cardholder agreement usually lists some of these standard terms:

  • Cancellation of credit card is at the credit card company’s discretion as it belongs to the credit card company;
  • Credit limit shall not exceed a specific amount;
  • Statement of interest on owing amounts, when payable and application of exchange rates for use of credit cards in foreign jurisdictions;
  • Liability of cardholder for misuse of the card including misuse by third-parties;
  • Minimum monthly amount payable as shown in the monthly bill;
  • To keep the cardholder’s personal identification number confidential; and
  • Election of a jurisdiction in case of any disputes or a dispute resolution process.




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