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Loans and Card Member Receivables | 12 Months Ended
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Dec. 31, 2023
Receivables [Abstract] |
Loans and Card Member Receivables | LOANS AND CARD MEMBER RECEIVABLES Our lending and charge payment card products that we offer to consumer, small business and corporate customers result in the generation of Card Member loans and Card Member receivables. We also extend credit to customers through non-card financing products, resulting in Other loans. CARD MEMBER AND OTHER LOANS Card Member loans are generally recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent revolve-eligible transactions on our card products, as well as any finance charges and associated card-related fees. Card Members with outstanding revolving loans are required to make a minimum monthly payment, and the balances that Card Members choose to revolve are subject to finance charges. These loans have varying terms such as credit limits, interest rates, fees and payment structures, which can be revised over time based on new information about Card Members and in accordance with applicable regulations and the respective product’s terms and conditions. Card Member loans are presented on the Consolidated Balance Sheets net of reserves for credit losses (refer to Note 3), and include principal and any related accrued interest and fees. Our policy generally is to cease accruing interest on a Card Member loan at the time the account is written off, and establish reserves for interest that we believe will not be collected. Other loans are recorded at the time any extension of credit is provided to consumer and commercial customers for non-card financing products. These loans have a range of fixed terms such as interest rates, fees and repayment periods. Borrowers are typically required to make pre-established monthly payments over the term of the loan. Non-card financing products are not associated with a Card Member agreement, and instead are governed by a separate borrowing relationship. Other loans are presented on the Consolidated Balance Sheets net of reserves for credit losses and include principal and any related accrued interest and fees. Card Member and Other loans as of December 31, 2023 and 2022 consisted of:
(Millions) |  | 2023 |  | 2022
Consumer (a) |  | $ | 98,111 |  |  | $ | 84,964 |
Small Business |  | 27,833 |  |  | 22,947 |
Corporate |  | 51 |  |  | 53 |
Card Member loans |  | 125,995 |  |  | 107,964 |
Less: Reserves for credit losses |  | 5,118 |  |  | 3,747 |
Card Member loans, net |  | $ | 120,877 |  |  | $ | 104,217 |
Other loans, net (b) |  | $ | 6,960 |  |  | $ | 5,357 |
(a)Includes approximately $28.6 billion and $28.5 billion of gross Card Member loans available to settle obligations of a consolidated VIE as of December 31, 2023 and 2022, respectively. (b)Other loans are presented net of reserves for credit losses of $126 million and $59 million as of December 31, 2023 and 2022, respectively. CARD MEMBER RECEIVABLES Card Member receivables are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on our card products and card-related fees that need to be paid in full on or before the Card Member’s payment due date. Charge Card Members generally must pay the full amount billed each month. Card Member receivable balances are presented on the Consolidated Balance Sheets net of reserves for credit losses (refer to Note 3), and include principal and any related accrued fees. Card Member receivables as of December 31, 2023 and 2022 consisted of:
(Millions) |  | 2023 |  | 2022
Consumer |  | $ | 25,578 |  |  | $ | 22,885 |
Small Business |  | 19,286 |  |  | 19,629 |
Corporate(a) |  | 15,547 |  |  | 15,099 |
Card Member receivables |  | 60,411 |  |  | 57,613 |
Less: Reserves for credit losses |  | 174 |  |  | 229 |
Card Member receivables, net |  | $ | 60,237 |  |  | $ | 57,384 |
(a)Includes $4.6 billion and $5.2 billion of gross Card Member receivables available to settle obligations of a consolidated VIE as of December 31, 2023 and 2022, respectively. CARD MEMBER LOANS AND RECEIVABLES AGING Generally, a Card Member account is considered past due if payment due is not received within 30 days after the billing statement date. The following table presents the aging of Card Member loans and receivables as of December 31, 2023 and 2022:
2023 (Millions) |  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90+ Days Past Due |  | Total |  | 90+ Days Past Due and Still Accruing Interest (c) |  | Non-Accruals(d)
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | $ | 96,779 |  |  | $ | 420 |  |  | $ | 298 |  |  | $ | 614 |  |  | $ | 98,111 |  |  | $ | 393 |  |  | $ | 344 |
Small Business |  | 27,444 |  |  | 133 |  |  | 85 |  |  | 171 |  |  | 27,833 |  |  | 109 |  |  | 95 |
Corporate (a) |  | (b) |  | (b) |  | (b) |  | — |  |  | 51 |  |  | — |  |  | — |
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | 25,355 |  |  | 70 |  |  | 47 |  |  | 106 |  |  | 25,578 |  |  | — |  |  | — |
Small Business |  | $ | 19,020 |  |  | $ | 104 |  |  | $ | 62 |  |  | $ | 100 |  |  | $ | 19,286 |  |  | $ | — |  |  | $ | — |
Corporate (a) |  | (b) |  | (b) |  | (b) |  | $ | 67 |  |  | $ | 15,547 |  |  | $ | — |  |  | $ | — |
2022 (Millions) |  | Current |  | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90+ Days Past Due |  | Total
Card Member Loans: |  |  |  |  |  |  |  |  |  |
Consumer |  | $ | 84,102 |  |  | $ | 281 |  |  | $ | 198 |  |  | $ | 383 |  |  | $ | 84,964 |
Small Business |  | 22,731 |  |  | 81 |  |  | 49 |  |  | 86 |  |  | 22,947 |
Corporate (a) |  | (b) |  | (b) |  | (b) |  | — |  |  | 53 |
Card Member Receivables: |  |  |  |  |  |  |  |  |  |
Consumer |  | 22,634 |  |  | 83 |  |  | 56 |  |  | 112 |  |  | 22,885 |
Small Business |  | $ | 19,330 |  |  | $ | 120 |  |  | $ | 69 |  |  | 110 |  |  | 19,629 |
Corporate (a) |  | (b) |  | (b) |  | (b) |  | $ | 85 |  |  | $ | 15,099 |
(a)For 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 we initiate collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member loan or 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. (c)Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. (d)Non-accrual loans primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. CREDIT QUALITY INDICATORS FOR CARD MEMBER LOANS AND RECEIVABLES The following tables present the key credit quality indicators as of or for the years ended December 31:
|  | 2023 |  | 2022
|  | Net Write-Off Rate |  |  |  | Net Write-Off Rate |  |
|  | Principal Only (a) |  | Principal, Interest & Fees (a) |  | 30+ Days Past Due as a % of Total |  | Principal Only (a) |  | Principal, Interest & Fees (a) |  | 30+ Days Past Due as a % of Total
Card Member Loans: |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | 1.8 | % |  | 2.2 | % |  | 1.4 | % |  | 0.9 | % |  | 1.2 | % |  | 1.0 | %
Small Business |  | 1.7 | % |  | 1.9 | % |  | 1.4 | % |  | 0.7 | % |  | 0.8 | % |  | 0.9 | %
Card Member Receivables: |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | 1.5 | % |  | 1.6 | % |  | 0.9 | % |  | 0.8 | % |  | 0.9 | % |  | 1.1 | %
Small Business |  | 2.2 | % |  | 2.4 | % |  | 1.4 | % |  | 1.1 | % |  | 1.2 | % |  | 1.5 | %
Corporate |  | (b) |  | 0.6 | % |  | (c) |  | (b) |  | 0.4 | % |  | (c)
(a)We present a net write-off rate based on principal losses only (i.e., excluding interest and/or fees) to be consistent with industry convention. In addition, as our practice is to include uncollectible interest and/or fees as part of our total provision for credit losses, a net write-off rate including principal, interest and/or fees is also presented. (b)Net write-off rate based on principal losses only is not available due to system constraints. (c)For corporate 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 was 0.4% and 0.6% as of December 31, 2023 and 2022, respectively. Refer to Note 3 for additional indicators, including external qualitative factors, management considers in its evaluation process for reserves for credit losses. LOANS AND RECEIVABLES RESTRUCTURINGS FOR BORROWERS EXPERIENCING FINANCIAL DIFFICULTY Effective January 1, 2023, we prospectively adopted the new guidance that eliminated the recognition and measurement of TDRs. Following the adoption of this guidance, we evaluate all loans and receivables restructurings according to the accounting guidance for loan refinancing and restructuring to determine whether such loan modification should be accounted for as a new loan or a continuation of the existing loan. Our loans and receivables restructurings for borrowers experiencing financial difficulty are generally accounted for as a continuation of the existing loan, which reflects the ongoing effort to support our customer and recover our investment in the existing loan. We offer several types of loans and receivables modification programs to customers experiencing financial difficulty. In such instances, we may modify loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief. Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (reducing interest rates to as low as zero percent, in which case the loan is characterized as non-accrual) and/or (ii) placing the customer on a fixed payment plan not to exceed 60 months. Upon entering the modification program, the customer’s ability to make future purchases is limited, canceled or, in certain cases, suspended until the customer successfully exits from the modification program. As of December 31, 2023, we had $83 million of unused credit available to customers with loans and receivables modified during the year ended December 31, 2023. In accordance with the modification agreement with the customer, loans and/or receivables may revert to the original contractual terms (including the contractual interest rate where applicable) when the customer exits the modification program, which is either (i) when all payments have been made in accordance with the modification agreement or (ii) when the customer defaults out of the modification program. The following table provides information relating to loans and receivables modifications for borrowers experiencing financial difficulty during the year ended December 31, 2023:
|  | As of December 31, 2023
2023 (Millions) |  | Account Balances (Millions) (a) |  | % of Total Class of Financing Receivables |  | Weighted Average Interest Rate Reduction (% points) |  | Weighted Average Payment Term Extensions (# of months)
Interest Rate Reduction |  |  |  |  |  |  |  |
Card Member Loans |  |  |  |  |  |  |  |
Consumer |  | $ | 1,572 |  |  | 1.6 | % |  | 16.4 | % |  | (b)
Small Business |  | 550 |  |  | 2.0 | % |  | 15.9 | % |  | (b)
Corporate |  | — |  |  | — |  |  | — |  |  | (b)
Term Extension |  |  |  |  |  |  |  |
Card Member Receivables |  |  |  |  |  |  |  |
Consumer |  | 346 |  |  | 1.4 | % |  | (c) |  | 27
Small Business |  | 543 |  |  | 2.8 | % |  | (c) |  | 28
Corporate |  | 13 |  |  | 0.1 | % |  | (c) |  | 9
Other Loans |  | 23 |  |  | 0.3 | % |  | — |  |  | 18
Interest Rate Reduction and Term Extension |  |  |  |  |  |  |  |
Other Loans |  | $ | 42 |  |  | 0.6 | % |  | 2.1 | % |  | 20
Total |  | $ | 3,089 |  |  |  |  |  |  |
(a)Represents the outstanding balances as of December 31, 2023 of all modifications undertaken in the last year for loans and receivables that remain in modification programs as of, or that defaulted on or before, December 31, 2023. The outstanding balances include principal, fees and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance. (b)For Card Member loans, there have been no payment term extensions. (c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. The following table provides information with respect to loans and receivables modified on or after January 1, 2023 that subsequently defaulted in the period presented. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program.
|  | As of December 31, 2023
Account Balance (Millions) (a) |  | Interest Rate Reduction |  | Term Extension |  | Interest Rate Reduction and Term Extension |  | Total
Card Member Loans |  |  |  |  |  |  |  |
Consumer |  | $ | 53 |  |  | (b) |  | $ | — |  | $ | 53 |
Small Business |  | 20 |  |  | (b) |  | — |  | 20 |
Corporate |  | — |  |  | (b) |  | — |  | — |
Card Member Receivables |  |  |  |  |  |  |  |
Consumer |  | (c) |  | 9 |  |  | — |  |  | 9 |
Small Business |  | (c) |  | 14 |  |  | — |  |  | 14 |
Corporate |  | (c) |  | — |  |  | — |  |  | — |
Other Loans |  | — |  |  | — |  |  | 1 |  |  | 1 |
Total |  | $ | 73 |  |  | $ | 23 |  |  | $ | 1 |  |  | $ | 97 |
(a)Represents the outstanding balances as of December 31, 2023 of all modifications undertaken on or after January 1, 2023 and subsequently defaulted in the past year. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. (b)For Card Member loans, there have been no payment term extensions. (c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. The following table provides information relating to the performance of loans and receivables that were modified on or after January 1, 2023.
|  | As of December 31, 2023
Account Balances (Millions) (a) |  | Current |  | 30-89 Days Past Due |  | 90+ Days Past Due
Card Member Loans |  |  |  |  |  |
Consumer |  | $ | 1,433 |  |  | $ | 103 |  |  | $ | 36 |
Small Business |  | 489 |  |  | 45 |  |  | 16 |
Corporate |  | — |  |  | — |  |  | — |
Card Member Receivables: |  |  |  |  |  |
Consumer |  | 314 |  |  | 25 |  |  | 7 |
Small Business |  | 479 |  |  | 52 |  |  | 12 |
Corporate |  | 11 |  |  | 2 |  |  | — |
Other Loans |  | 59 |  |  | 4 |  |  | 2 |
Total |  | $ | 2,785 |  |  | $ | 231 |  |  | $ | 73 |
(a)Represents the outstanding balances as of December 31, 2023 of all modifications undertaken on or after January 1, 2023 for loans and receivables that remain in modification programs as of, or that defaulted on or before, December 31, 2023. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables TROUBLED DEBT RESTRUCTURING DISCLOSURES PRIOR TO ADOPTION OF THE NEW LOAN MODIFICATION GUIDANCE Prior to adoption of the new loan modification guidance, we accounted for a modification to the contractual terms of a loan that resulted in granting a concession to a borrower experiencing financial difficulties as a TDR. Loans that were classified as a TDR prior to adoption will continue to be accounted for under the historical TDR accounting until the loan is entirely paid off or written off. The following tables provide additional information with respect to our impaired loans and receivables as of December 31, 2022 and 2021:
|  | As of December 31, 2022
|  |  |  |  |  | Accounts Classified as a TDR (c) |  |  |  |
2022 (Millions) |  | Over 90 days Past Due & Accruing Interest (a) |  | Non- Accruals (b) |  | In Program (d) |  | Out of Program (e) |  | Total Impaired Balance |  | Reserve for Credit Losses- TDRs
Card Member Loans |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | 252 |  |  | 155 |  |  | 781 |  |  | 1,098 |  |  | 2,286 |  |  | 335 |
Small Business |  | 54 |  |  | 34 |  |  | 267 |  |  | 380 |  |  | 735 |  |  | 108 |
Corporate |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Card Member Receivables |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | — |  |  | — |  |  | 257 |  |  | 179 |  |  | 436 |  |  | 20 |
Small Business |  | — |  |  | — |  |  | 403 |  |  | 402 |  |  | 805 |  |  | 40 |
Corporate |  | — |  |  | — |  |  | 6 |  |  | 7 |  |  | 13 |  |  | 1 |
Other Loans |  | 3 |  |  | 2 |  |  | 19 |  |  | 2 |  |  | 26 |  |  | — |
Total |  | 309 |  |  | $ | 191 |  |  | 1,733 |  |  | $ | 2,068 |  |  | $ | 4,301 |  |  | $ | 504 |
|  | As of December 31, 2021
|  |  |  |  |  | Accounts Classified as a TDR (c) |  |  |  |
2021 (Millions) |  | Over 90 days Past Due & Accruing Interest (a) |  | Non- Accruals (b) |  | In Program (d) |  | Out of Program (e) |  | Total Impaired Balance |  | Reserve for Credit Losses- TDRs
Card Member Loans |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | 149 |  |  | 82 |  |  | 708 |  |  | 997 |  |  | 1,936 |  |  | 415 |
Small Business |  | 19 |  |  | 14 |  |  | 176 |  |  | 332 |  |  | 541 |  |  | 132 |
Corporate |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Card Member Receivables |  |  |  |  |  |  |  |  |  |  |  |
Consumer |  | — |  |  | — |  |  | 133 |  |  | 130 |  |  | 263 |  |  | 9 |
Small Business |  | — |  |  | — |  |  | 247 |  |  | 297 |  |  | 544 |  |  | 39 |
Corporate |  | — |  |  | — |  |  | 1 |  |  | 6 |  |  | 7 |  |  | — |
Other Loans |  | 1 |  |  | — |  |  | 67 |  |  | 2 |  |  | 70 |  |  | 1 |
Total |  | 169 |  |  | $ | 96 |  |  | 1,332 |  |  | $ | 1,764 |  |  | $ | 3,361 |  |  | $ | 596 |
(a)Our policy is generally to accrue interest through the date of write-off (typically 180 days past due). We establish reserves for interest that we believe will not be collected. Amounts presented exclude loans classified as a TDR. (b)Non-accrual loans not in modification programs primarily include certain loans placed with outside collection agencies for which we have ceased accruing interest. Amounts presented exclude loans classified as TDRs. (c)Accounts classified as a TDR include $48 million and $41 million that were over 90 days past due and accruing interest and $17 million and $19 million that were non-accruals as of December 31, 2022 and 2021, respectively. (d)In Program TDRs include accounts that are currently enrolled in a modification program. (e)Out of Program TDRs include $1,922 million and $1,621 million of accounts that have successfully completed a modification program and $146 million and $143 million of accounts that were not in compliance with the terms of the modification programs as of December 31, 2022 and 2021, respectively. LOANS AND RECEIVABLES MODIFIED AS TDRs PRIOR TO ADOPTION OF THE NEW LOAN MODIFICATION GUIDANCE The following tables provide additional information with respect to loans and receivables that were modified as TDRs during the years ended December 31, 2022 and 2021:
2022 |  | Number of Accounts (Thousands) |  | Account Balances (Millions) (a) |  | Average Interest Rate Reduction (% points) |  | Average Payment Term Extensions (# of months)
Troubled Debt Restructurings: |  |  |  |  |  |  |  |
Card Member Loans |  | 149 |  |  | $ | 1,002 |  |  | 14 |  |  | (b)
Card Member Receivables |  | 27 |  |  | 900 |  |  | (c) |  | 20
Other Loans (d) |  | 4 |  |  | $ | 8 |  |  | 2 |  |  | 17
Total |  | 180 |  |  | $ | 1,910 |  |  |  |  |
2021 |  | Number of Accounts (Thousands) |  | Account Balances (Millions) (a) |  | Average Interest Rate Reduction (% points) |  | Average Payment Term Extensions (# of months)
Troubled Debt Restructurings: |  |  |  |  |  |  |  |
Card Member Loans |  | 112 |  |  | $ | 789 |  |  | 13 |  |  | (b)
Card Member Receivables |  | 21 |  |  | 437 |  |  | (c) |  | 18
Other Loans (d) |  | 4 |  |  | $ | 13 |  |  | 3 |  |  | 16
Total |  | 137 |  |  | $ | 1,239 |  |  |  |  |
(a)Represents the outstanding balance immediately prior to modification. The outstanding balance includes principal, fees and accrued interest on loans and principal and fees on receivables. Modifications did not reduce the principal balance. (b)For Card Member loans, there have been no payment term extensions. (c)We do not offer interest rate reduction programs for Card Member receivables as the receivables are non-interest bearing. (d)Other loans primarily represent consumer and commercial non-card financing products. LOANS AND RECEIVABLES MODIFIED AND SUBSEQUENTLY DEFAULTED PRIOR TO ADOPTION OF THE NEW LOAN MODIFICATION GUIDANCE The following tables provide information with respect to loans and receivables modified as TDRs that subsequently defaulted within twelve months of modification. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program.
2022 |  | Number of Accounts (Thousands) |  | Aggregated Outstanding Balances Upon Default (Millions) (a)
Troubled Debt Restructurings That Subsequently Defaulted: |  |  |  |
Card Member Loans |  | 14 |  |  | $ | 81 |
Card Member Receivables |  | 3 |  |  | 38 |
Other Loans (b) |  | 1 |  |  | 1 |
Total |  | 18 |  |  | $ | 120 |
2021 |  | Number of Accounts (Thousands) |  | Aggregated Outstanding Balances Upon Default (Millions) (a)
Troubled Debt Restructurings That Subsequently Defaulted: |  |  |  |
Card Member Loans |  | 24 |  |  | $ | 174 |
Card Member Receivables |  | 5 |  |  | 56 |
Other Loans (b) |  | 3 |  |  | 9 |
Total |  | 32 |  |  | $ | 239 |
(a)The outstanding balances upon default include principal, fees and accrued interest on loans, and principal and fees on receivables. (b)Other loans primarily represent consumer and commercial non-card financing products.

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