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Guarantees | 12 Months Ended
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Dec. 31, 2016
Disclosure Text Block Abstract |
Guarantees | NOTE 16 Guarantees The Company provides Card Member protection plans that cover losses associated with purchased products, as well as certain other guarantees and indemnifications in the ordinary course of business. For the Company, guarantees primarily consist of card and travel protection programs, including: Return Protection — refunds the price of qualifying purchases made with the eligible cards where the merchant will not accept the return for up to 90 days from the date of purchase; and M erchant Protection — protects Card Members primarily against non-delivery of goods and services, usually in the event of bankruptcy or liquidation of a merchant. When this occurs, the Card Member may dispute the transaction for which the Company will gener ally credit the Card Member’s account. If the Company is unable to collect the amount from the merchant, it will bear the loss for the amount credited to the Card Member. The largest component of the maximum potential future payments relates to Card Member transactions associated with travel-related merchants, primarily through business arrangements where the Company has remitted payment to such merchants for a Card Member travel purchase that has not yet been used or “flown.” In relation to its maximum p otential undiscounted future payments as shown in the table that follows, to date the Company has not experienced any significant losses related to guarantees or indemnifications. The Company’s initial recognition of these instruments is at fair value. In addition, the Company establishes reserves when a loss is probable and the amount can be reasonably estimated. The following table provides information related to such guarantees and indemnifications as of December 31:
|  | Maximum potential undiscounted future payments (Billions)(a) |  | Related liability (Millions)(b)
Type of Guarantee |  | 2016 |  | 2015 |  | 2016 |  | 2015
Return and Merchant Protection |  | $ | 42 |  | $ | 42 |  | $ | 37 |  | $ | 49
Other(c) |  |  | 6 |  |  | 6 |  |  | 49 |  |  | 37
Total |  | $ | 48 |  | $ | 48 |  | $ | 86 |  | $ | 86
Represents the notional amounts that could be lost under the guarantees and indemnifications if there were a total default by the guaranteed or indemnified parties. The maximum potential undiscounted future payments for Merchant Protection are measured using management’s best estimate of the maximum exposure, which is based on all eligible claims in relation to annual billed business volumes. Inclu ded in Other liabilities on the Consolidated Balance Sheets. Primarily includes guarantees related to the Company’s purchase protection, real estate and business dispositions.

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- Definition The entire disclosure for each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties. + References No definition available. + Details
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