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