Our lending and charge payment card products result in the generation of Card Member loans and Card Member receivables. We also extend credit to consumer and commercial customers through non-card financing products, resulting in Other loans. Reserves for reporting periods beginning after January 1, 2020 are presented using the CECL methodology, while comparative information continues to be reported in accordance with the incurred loss methodology in effect for prior periods.

Card Member loans are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent revolving amounts due on lending card products, as well as amounts due from charge Card Members who utilize the Pay Over Time features on their account and revolve a portion of the outstanding balance by entering into a revolving payment arrangement with us. These loans have a range of 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 Members holding revolving loans are typically required to make monthly payments based on pre-established amounts and the amounts that Card Members choose to revolve are subject to finance charges.

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.


(Millions)	2020		2019
Global Consumer Services Group(a)	$	60,084	$	73,266
Global Commercial Services	13,289		14,115
Card Member loans	73,373		87,381
Less: Reserve for credit losses	5,344		2,383
Card Member loans, net	$	68,029	$	84,998
Other loans, net(b)	$	2,614	$	4,626

(b)Other loans represent consumer and commercial non-card financing products, and Small Business Administration Paycheck Protection Program (PPP) loans. There were $0.6 billion of gross PPP loans outstanding as of December 31, 2020. Other loans are presented net of reserves for credit losses of $238 million and $152 million as of December 31, 2020 and 2019, respectively.

Card Member receivables are also recorded at the time a Card Member enters into a point-of-sale transaction with a merchant and represent amounts due on charge card products. Each charge card transaction is authorized based on its likely economics, a Card Member’s most recent credit information and spend patterns.

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.


(Millions)	2020		2019
Global Consumer Services Group (a)	$	18,685	$	22,844
Global Commercial Services (b)	25,016		34,569
Card Member receivables	43,701		57,413
Less: Reserve for credit losses	267		619
Card Member receivables, net	$	43,434	$	56,794

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 loans and receivables as of December 31, 2020 and 2019:


2020 (millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Global Consumer Services Group	$	59,442	$	177	$	148	$	317	$	60,084
Global Commercial Services
Global Small Business Services	13,132		27		20		47		13,226
Global Corporate Payments(a)	(b)		(b)		(b)		—		63
Card Member Receivables:
Global Consumer Services Group	18,570		33		26		56		18,685
Global Commercial Services
Global Small Business Services	$	14,023	$	37	$	21	$	38	$	14,119
Global Corporate Payments(a)	(b)		(b)		(b)		$	60	$	10,897


2019 (millions)	Current		30-59 Days Past Due		60-89 Days Past Due		90+ Days Past Due		Total
Card Member Loans:
Global Consumer Services Group	$	72,101	$	322	$	253	$	590	$	73,266
Global Commercial Services
Global Small Business Services	13,898		56		40		85		14,079
Global Corporate Payments(a)	(b)		(b)		(b)		—		36
Card Member Receivables:
Global Consumer Services Group	22,560		86		58		140		22,844
Global Commercial Services
Global Small Business Services	$	17,113	$	99	$	58	$	134	$	17,404
Global Corporate Payments(a)	(b)		(b)		(b)		$	136	$	17,165

(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 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.


	2020						2019
	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:
Global Consumer Services Group	2.5	%	3.0	%	1.1	%	2.3	%	2.8	%	1.6	%
Global Small Business Services	2.1	%	2.4	%	0.7	%	1.9	%	2.2	%	1.3	%
Card Member Receivables:
Global Consumer Services Group	1.7	%	1.9	%	0.6	%	1.7	%	1.9	%	1.2	%
Global Small Business Services	2.1	%	2.3	%	0.7	%	1.9	%	2.1	%	1.7	%
Global Corporate Payments	(b)		1.9	%	(c)		(b)		(d)		(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, because we consider uncollectible interest and/or fees in estimating our reserves for credit losses, a net write-off rate including principal, interest and/or fees is also presented.

(c)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 was 0.6% and 0.8% for the years ended December 31, 2020 and 2019, respectively.

(d)Net loss ratio was the credit quality indicator for GCP Card Member receivables for prior periods and represents the ratio of GCP Card Member receivables write-offs, consisting of principal (resulting from authorized transactions) and fee components, less recoveries, on Card Member receivables expressed as a percentage of gross amounts billed to corporate Card Members. The net loss ratio for the year ended December 31, 2019 was 0.08%.

Impaired loans and receivables are individual larger balance or homogeneous pools of smaller balance loans and receivables for which it is probable that we will be unable to collect all amounts due according to the original contractual terms of the customer agreement. We consider impaired loans and receivables to include (i) loans over 90 days past due still accruing interest, (ii) nonaccrual loans and (iii) loans and receivables modified as troubled debt restructurings (TDRs).

In instances where the customer is experiencing financial difficulty, we may modify, through various financial relief programs, loans and receivables with the intention to minimize losses and improve collectability, while providing customers with temporary or permanent financial relief. We have classified loans and receivables in these modification programs as TDRs and continue to classify customer accounts that have exited a modification program as a TDR, with such accounts identified as “Out of Program TDRs.”

Such modifications to the loans and receivables primarily include (i) temporary interest rate reductions (possibly as low as zero percent, in which case the loan is characterized as non-accrual in our TDR disclosures), (ii) placing the customer on a fixed payment plan not to exceed 60 months and (iii) suspending delinquency fees until the customer exits the modification program. Upon entering the modification program, the customer’s ability to make future purchases is either limited, canceled, or in certain cases suspended until the customer successfully exits from the modification program. In accordance with the modification agreement with the customer, loans and/or receivables may revert back to the original contractual terms (including the contractual interest rate where applicable) when the customer exits the modification program, which is (i) when all payments have been made in accordance with the modification agreement or (ii) when the customer defaults out of the modification program.

Reserves for modifications deemed TDRs are measured individually and incorporate a discounted cash flow model. All changes in the impairment measurement are included within provisions for credit losses.

In response to the COVID-19 pandemic, the United States enacted legislation that provided the option to temporarily suspend (i) certain requirements under U.S. GAAP for loan modifications related to the COVID-19 pandemic that would otherwise be treated as TDRs and (ii) any determination that a loan modified as a result of the COVID-19 pandemic is a TDR (including impairment for accounting purposes). Based on the nature of our programs, we have not elected the accounting and reporting relief afforded by this legislation and continue to report modifications as TDRs.

In the first quarter of 2020, we created a Customer Pandemic Relief (CPR) program for customers who have been impacted by the COVID-19 pandemic to provide a concession in the form of payment deferrals and waivers of certain fees and interest. We assessed the CPR program and determined that eligible loan modifications were temporary in nature, for example, less than three months, and not considered TDRs. Our short-term CPR programs are no longer widely available with immaterial balances remaining in the program as of December 31, 2020.


	As of December 31, 2020
					Accounts Classified as a TDR (c)
(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:
Global Consumer Services Group	$	203	$	146	$	1,586	$	248	$	2,183	$	782
Global Commercial Services	21		29		478		67		595		285
Card Member Receivables:
Global Consumer Services Group	—		—		240		34		274		60
Global Commercial Services	—		—		534		75		609		139
Other Loans(f)	2		1		248		6		257		80
Total	$	226	$	176	$	3,086	$	430	$	3,918	$	1,346


	As of December 31, 2019
					Accounts Classified as a TDR (c)
(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:
Global Consumer Services Group	$	384	$	284	$	500	$	175	$	1,343	$	137
Global Commercial Services	44		54		97		38		233		22
Card Member Receivables:
Global Consumer Services Group	—		—		56		16		72		3
Global Commercial Services	—		—		109		30		139		6
Total	$	428	$	338	$	762	$	259	$	1,787	$	168


	As of December 31, 2018
					Accounts Classified as a TDR (c)
(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:
Global Consumer Services Group	$	344	$	236	$	313	$	131	$	1,024	$	80
Global Commercial Services	43		43		59		29		174		14
Card Member Receivables:
Global Consumer Services Group	—		—		29		13		42		2
Global Commercial Services	—		—		61		25		86		5
Total	$	387	$	279	$	462	$	198	$	1,326	$	101

(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 $32 million, $26 million and $17 million that are over 90 days past due and accruing interest and $11 million, $10 million and $6 million that are non-accruals as of December 31, 2020, 2019 and 2018, respectively.

(e)Out of Program TDRs include $316 million, $188 million and $148 million of accounts that have successfully completed a modification program and $114 million, $72 million and $50 million of accounts that were not in compliance with the terms of the modification programs as of December 31, 2020, 2019 and 2018, respectively.


2020	Number of Accounts (thousands)	Outstanding Balances (millions) (a)		Average Interest Rate Reduction (% points)	Average Payment Term Extensions (# of months)
Troubled Debt Restructurings:
Card Member Loans	272	$	2,347	14	(b)
Card Member Receivables	47	1,202		(c)	19
Other Loans(d)	9	$	345	3	16
Total	328	$	3,894


2019	Number of Accounts (thousands)	Outstanding Balances (millions) (a)		Average Interest Rate Reduction (% points)	Average Payment Term Extensions (# of months)
Troubled Debt Restructurings:
Card Member Loans	78	$	602	13	(b)
Card Member Receivables	9	210		(c)	26
Total	87	$	812


2018	Number of Accounts (thousands)	Outstanding Balances (millions) (a)		Average Interest Rate Reduction (% points)	Average Payment Term Extensions (# of months)
Troubled Debt Restructurings:
Card Member Loans	51	$	377	12	(b)
Card Member Receivables	6	110		(c)	28
Total	57	$	487

(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.

The following table provides information with respect to loans and receivables modified as TDRs that subsequently defaulted within 12 months of modification for the years ended December 31, 2020, 2019 and 2018. A customer can miss up to three payments before being considered in default, depending on the terms of the modification program. For all customers that defaulted from a modification program, the probability of default is factored into the reserves for loans and receivables.


2020	Number of Accounts (thousands)	Aggregated Outstanding Balances Upon Default(a) (millions)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	17	$	127
Card Member Receivables	3	55
Other Loans(b)	3	$	6
Total	23	$	188


	Number of Accounts	Aggregated Outstanding Balances Upon Default(a)
2019	(thousands)	(millions)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	12	$	86
Card Member Receivables	4	20
Total	16	$	106


	Number of Accounts	Aggregated Outstanding Balances Upon Default(a)
2018	(thousands)	(millions)
Troubled Debt Restructurings That Subsequently Defaulted:
Card Member Loans	8	$	46
Card Member Receivables	4	11
Total	12	$	57