Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"), generally applies to the sales of any good or service for which no other specific accounting guidance is provided. ASC 606 defines a principles-based model under which revenue from a contract is allocated to the distinct performance obligations within the contract and recognized in income as each performance obligation is satisfied. The Company's revenue that is subject to this model includes discount and interchange, protection products fees, transaction processing revenue and amounts classified as other income.

The following table presents revenue from contracts with customers disaggregated by business segment and reconciles revenue from contracts with customers to total other income (dollars in millions):

	Direct Banking		Payment Services		Total
For the Three Months Ended March 31, 2020
Other income subject to ASC 606
Discount and interchange revenue, net⁽¹⁾	$	197	$	19	$	216
Protection products revenue	47		—		47
Transaction processing revenue	—		44		44
Other income	3		25		28
Total other income subject to ASC 606⁽²⁾	247		88		335
Other income not subject to ASC 606
Loan fee income	119		—		119
Gains on equity investments	—		36		36
Total other income not subject to ASC 606	119		36		155
Total other income by operating segment	$	366	$	124	$	490

For the Three Months Ended March 31, 2019
Other income subject to ASC 606
Discount and interchange revenue, net⁽¹⁾	$	217	$	14	$	231
Protection products revenue	49		—		49
Transaction processing revenue	—		46		46
Other income	2		26		28
Total other income subject to ASC 606⁽²⁾	268		86		354
Other income not subject to ASC 606
Loan fee income	104		—		104
Total other income not subject to ASC 606	104		—		104
Total other income by operating segment	$	372	$	86	$	458


(1)	Net of rewards, including Cashback Bonus rewards, of $478 million and $446 million for the three months ended March 31, 2020 and 2019, respectively.


(2)	Excludes $1 million of deposit product fees that are reported within net interest income for the three months ended March 31, 2020 and 2019.

For a detailed description of the Company's significant revenue recognition accounting policies, see Note 2: Summary of Significant Accounting Policies to the consolidated financial statements of the Company's annual report on Form 10-K for the year ended December 31, 2019.