Appendix E to Part 1026 - Rules for Card Issuers That Bill on a Transaction-by-Transaction Basis
12:9.0.1.1.1.9.1.1.5 : Appendix E
Appendix E to Part 1026 - Rules for Card Issuers That Bill on a
Transaction-by-Transaction Basis
The following provisions of Subpart B apply if credit cards are
issued and the card issuer and the seller are the same or related
persons; no finance charge is imposed; consumers are billed in full
for each use of the card on a transaction-by-transaction basis, by
means of an invoice or other statement reflecting each use of the
card; and no cumulative account is maintained which reflects the
transactions by each consumer during a period of time, such as a
month. The term “related person” refers to, for example, a
franchised or licensed seller of a creditor's product or service or
a seller who assigns or sells sales accounts to a creditor or
arranges for credit under a plan that allows the consumer to use
the credit only in transactions with that seller. A seller is not
related to the creditor merely because the seller and the creditor
have an agreement authorizing the seller to honor the creditor's
credit card.
1. Section 1026.6(a)(5) or § 1026.6(b)(5)(iii).
2. Section 1026.6(a)(2) or § 1026.6(b)(3)(ii)(B), as
applicable. The disclosure required by § 1026.6(a)(2) or §
1026.6(b)(3)(ii)(B) shall be limited to those charges that are or
may be imposed as a result of the deferral of payment by use of the
card, such as late payment or delinquency charges. A tabular format
is not required.
3. Section 1026.6(a)(4) or § 1026.6(b)(5)(ii).
4. Section 1026.7(a)(2) or § 1026.7(b)(2), as applicable; §
1026.7(a)(9) or § 1026.7(b)(9), as applicable. Creditors may
comply by placing the required disclosures on the invoice or
statement sent to the consumer for each transaction.
5. Section 1026.9(a). Creditors may comply by mailing or
delivering the statement required by § 1026.6(a)(5) or §
1026.6(b)(5)(iii) (see appendix G-3 and G-3(A) to this part) to
each consumer receiving a transaction invoice during a one-month
period chosen by the card issuer or by sending either the statement
prescribed by § 1026.6(a)(5) or § 1026.6(b)(5)(iii), or an
alternative billing error rights statement substantially similar to
that in appendix G-4 and G-4(A) to this part, with each invoice
sent to a consumer.
6. Section 1026.9(c). A tabular format is not
required.
7. Section 1026.10.
8. Section 1026.11(a). This section applies when a card
issuer receives a payment or other credit that exceeds by more than
$1 the amount due, as shown on the transaction invoice. The
requirement to credit amounts to an account may be complied with by
other reasonable means, such as by a credit memorandum. Since no
periodic statement is provided, a notice of the credit balance
shall be sent to the consumer within a reasonable period of time
following its occurrence unless a refund of the credit balance is
mailed or delivered to the consumer within seven business days of
its receipt by the card issuer.
9. Section 1026.12 including § 1026.12(c) and (d), as
applicable. Section 1026.12(e) is inapplicable.
10. Section 1026.13, as applicable. All references to
“periodic statement” shall be read to indicate the invoice or other
statement for the relevant transaction. All actions with regard to
correcting and adjusting a consumer's account may be taken by
issuing a refund or a new invoice, or by other appropriate means
consistent with the purposes of the section.
11. Section 1026.15, as applicable.