Card Member Receivables and Card Member Loans

6 Months Ended

Jun. 30, 2021

Card Member Receivables and Card Member Loans

American Express’ charge and lending payment card products result in the generation of Card Member receivables and Card Member loans.

Card Member receivables as of June 30, 2021 and December 31, 2020 consisted of:


(Millions)	2021		2020
Global Consumer Services Group (a)	$	2,169	$	2,157
Global Commercial Services	10,699		10,000
Card Member receivables (b)	12,868		12,157
Less: Reserves for credit losses	(4)		70
Card Member receivables, net (c)	$	12,872	$	12,087

(a)Comprised of International Consumer Services.

(b)Net of deferred discount revenue totaling $20 million and $19 million as of June 30, 2021 and December 31, 2020, respectively.

(c)Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

Card Member loans as of June 30, 2021 and December 31, 2020 consisted of:


(Millions)	2021		2020
Global Consumer Services Group (a)	$	479	$	500
Less: Reserves for credit losses	21		20
Card Member loans, net (b)	$	458	$	480

(a)Comprised of International Consumer Services.

(b)Card Member loans modified in a TDR program were immaterial.

Card Member Receivables and Card Member Loans Aging

Generally, a Card Member account is considered past due if payment is not received within 30 days after the billing statement date. The following table presents the aging of Card Member receivables and Card Member loans as of June 30, 2021 and December 31, 2020:


2021 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Receivables:
Global Consumer Services Group	$	2,157	$	3	$	2	$	7	$	2,169
Global Commercial Services
Global Small Business Services	1,101		3		1		4		1,109
Global Corporate Payments (a)	(b)		(b)		(b)		24		9,590
Card Member Loans:
Global Consumer Services Group	$	474	$	1	$	1	$	3	$	479


2020 (Millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Receivables:
Global Consumer Services Group	$	2,139	$	5	$	4	$	9	$	2,157
Global Commercial Services
Global Small Business Services	1,047		3		2		5		1,057
Global Corporate Payments (a)	(b)		(b)		(b)		32		8,943
Card Member Loans:
Global Consumer Services Group	$	493	$	2	$	1	$	4	$	500

(a)Global Corporate Payments (GCP) reflects global, large and middle market corporate accounts. Delinquency data is tracked based on days past billing status rather than days past due. A Card Member account is considered 90 days past billing if payment has not been received within 90 days of the Card Member’s billing statement date. In addition, if collection procedures are initiated on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is classified as 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes. See also (b).

(b)Delinquency data for periods other than 90+ days past billing is not available due to system constraints. Therefore, such data has not been utilized for risk management purposes. The balances that are current to 89 days past due can be derived as the difference between the Total and the 90+ Days Past Due balances.

Credit Quality Indicators for Card Member Receivables and Card Member Loans

The following tables present the key credit quality indicators as of or for the six months ended June 30:


	2021				2020
	Net Write-Off Rate (a)		30+ Days Past Due as a % of Total		Net Write-Off Rate (a)		30+ Days Past Due as a % of Total
Card Member Receivables:
Global Consumer Services Group	0.84	%	0.55	%	1.45	%	1.89	%
Global Small Business Services	1.34	%	0.72	%	2.13	%	1.39	%
Global Corporate Payments	0.31	%	(b)		1.26	%	(b)
Card Member Loans:
Global Consumer Services Group	3.07	%	1.04	%	2.03	%	2.18	%

(a)Represents the amount of Card Member receivables or Card Member loans owned by Credco that are written off, net of recoveries, expressed as a percentage of the average Card Member receivable or Card Member loan balances in each of the periods indicated.

(b)For GCP Card Member receivables, delinquency data is tracked based on days past billing status rather than days past due. Delinquency data for periods other than 90+ days past billing is not available due to system constraints. 90+ Days Past Billing as a % of total is 0.25% and 1.98% as of June 30, 2021 and 2020, respectively.

Refer to Note 3 for additional indicators, including external environmental qualitative factors, American Express considers in its evaluation process for reserves for credit losses.

AMERICAN EXPRESS CREDIT CORP 10-Q