Commercial Charge Cardholder Agreement Template

Description

Our Commercial Charge Cardholder Agreement Template is designed to serve businesses looking to implement or manage a commercial charge card program. This template provides a robust framework that covers various crucial aspects of the charge card agreement, including but not limited to:

• Introduction to the Agreement: The template begins by defining the agreement’s scope, including the responsibilities of the card-issuing bank, the program manager, and the cardholder. It sets the stage for a comprehensive understanding of the charge card program’s operational framework.
• Key Definitions and Terms: Detailed explanations of the key terms such as “Account,” “Card,” “Charges,” and “Billing Cycle” are provided to ensure clarity and prevent misunderstandings.
• Card and Account Management: Instructions on how to manage the card and account, including account opening procedures, card issuance, credit limits, and the promise to pay, are covered comprehensively. This section ensures businesses are equipped to handle the administrative aspects of their charge card program effectively.
• Use of the Card: Guidelines on the acceptable use of the card, highlighting the conditions under which the card can be used for business transactions, alongside the responsibilities of the cardholder in managing and securing the card.
• Payment Terms and Conditions: Detailed information on payment schedules, how payments will be processed, and the implications of failing to make payments on time. This section also covers the designated account details and the process of dealing with disputed charges.
• Fees, Charges, and Limits: A breakdown of any applicable fees associated with the card’s use, including annual fees, late fees, and charges for foreign transactions. It also outlines the spending limits and restrictions on the use of the card.
• Legal and Regulatory Compliance: Emphasis on compliance with laws, including those related to money laundering and terrorism financing. It underlines the importance of providing accurate information and the consequences of any changes in the cardholder’s business circumstances.
• Electronic Transactions and Communication: The agreement specifies how electronic transactions and communications will be handled, ensuring both parties understand the methods and protocols for digital interactions.
• Default, Remedies, and Dispute Resolution: Conditions under which a cardholder may be considered in default, the remedies available to the issuing bank and program manager, and the agreement’s arbitration clause for dispute resolution.
• Miscellaneous Provisions: Additional provisions covering indemnification, reporting to credit bureaus, notices, and the general legal framework governing the agreement.