10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

[X]        QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2013

or

  [  ]        TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from              to             

Commission file No. 1-6908

AMERICAN EXPRESS CREDIT CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	11-1988350
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
World Financial Center 200 Vesey Street New York, New  York	10285
(Address of principal executive offices)	(Zip Code)
Registrant’s telephone number including area code:                     (866) 572-4944
None

(Former name, former address and former fiscal year, if changed since last report.)

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND HAS THEREFORE OMITTED CERTAIN ITEMS FROM THIS REPORT IN ACCORDANCE WITH THE REDUCED DISCLOSURE FORMAT PERMITTED UNDER GENERAL INSTRUCTION H(2).

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes   X              No             

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes   X              No             

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ¨	Accelerated filer  ¨
Non-accelerated filer x	Smaller reporting company  ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes                 No   X        

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at November 5, 2013
Common Stock (par value $.10 per share)	1,504,938 Shares

AMERICAN EXPRESS CREDIT CORPORATION

FORM 10-Q

INDEX

Part I.	Financial Information		Page No.
	Item 1.	Financial Statements
		Consolidated Statements of Income and Retained Earnings – Three and Nine Months Ended September  30, 2013 and 2012	1
		Consolidated Statements of Comprehensive Income – Three and Nine Months Ended September 30, 2013 and 2012	2
		Consolidated Balance Sheets – September 30, 2013 and December 31, 2012	3
		Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2013 and 2012	4
		Notes to Consolidated Financial Statements	5
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
	Item 4.	Controls and Procedures	29
Part II.	Other Information
	Item 1A.	Risk Factors	30
	Item 6.	Exhibits	30
	Signatures		31
	Exhibit Index		E-1

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

AND RETAINED EARNINGS

(Unaudited)

		Three Months Ended September 30,						Nine Months Ended September 30,
(Millions)		2013			2012			2013		2012
Revenues
Discount revenue earned from purchased Card Member receivables and loans	$	136		$	149		$	433		$               405
Interest income from affiliates		98			124			316		381
Interest income from investments		—			2			2		6
Finance revenue		12			11			34		32
Total revenues		246			286			785		824
Expenses
Provisions for losses		32			43			108		106
Interest expense		139			187			460		555
Interest expense to affiliates		2			7			6		16
Other, net		(19	)		(8	)		(72	)	(68)
Total expenses		154			229			502		609
Pretax income		92			57			283		215
Income tax provision (benefit)		1			(14	)		(85	)	(51)
Net income		91			71			368		266
Retained earnings at beginning of period		3,092			3,031			2,999		3,028
Dividends		(166	)		(105	)		(350	)	(297)
Retained earnings at end of period	$	3,017		$	2,997		$	3,017		$            2,997

See Notes to Consolidated Financial Statements.

1

AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

		Three Months Ended September 30,				Nine Months Ended September 30,
(Millions)		2013		2012		2013		2012
Net income	$	91	$	71	$	368		$                266
Other comprehensive income (loss):
Net unrealized derivative gains, net of tax of: 2013, nil and nil; 2012, nil and nil		—		—		—		1
Foreign currency translation adjustments, net of tax of: 2013, $(11) and nil; 2012, $(34) and $(41)		49		164		(326	)	106
Other comprehensive income (loss)		49		164		(326	)	107
Comprehensive income	$	140	$	235	$	42		$                373

See Notes to Consolidated Financial Statements.

2

AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Millions, except share data)		September 30, 2013		December 31, 2012
Assets
Cash and cash equivalents	$	85		$                   275
Card Member receivables, less reserves: 2013, $85; 2012, $83		16,920		15,279
Card Member loans, less reserves: 2013, $5; 2012, $5		464		457
Loans to affiliates		9,907		13,178
Deferred charges and other assets		184		430
Due from affiliates		3,259		4,176
Total assets	$	30,819		$              33,795
Liabilities and Shareholder’s Equity
Liabilities
Short-term debt	$	34		$                     18
Short-term debt to affiliates		4,626		4,096
Long-term debt		21,984		23,986
Total debt		26,644		28,100
Due to affiliates		883		2,022
Accrued interest and other liabilities		432		505
Total liabilities		27,959		30,627
Shareholder’s Equity
Common stock, $0.10 par value, authorized 3 million shares; issued and outstanding 1.5 million shares		—		—
Additional paid-in capital		161		161
Retained earnings		3,017		2,999
Accumulated other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax of: 2013, $(43); 2012, $(43)		(318	)	8
Total accumulated other comprehensive (loss) income		(318	)	8
Total shareholder’s equity		2,860		3,168
Total liabilities and shareholder’s equity	$	30,819		$              33,795

See Notes to Consolidated Financial Statements.

3

AMERICAN EXPRESS CREDIT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Nine Months Ended September 30 (Millions)		2013		2012
Cash Flows from Operating Activities
Net income	$	368		$               266
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Provisions for losses		108		106
Amortization and other		16		19
Deferred taxes		(6	)	7
Changes in operating assets and liabilities:
Interest, taxes and other amounts due from affiliates, net		(157	)	(11)
Other operating assets and liabilities		(432	)	86
Net cash (used in) provided by operating activities		(103	)	473
Cash Flows from Investing Activities
Net increase in Card Member receivables and loans		(1,728	)	(4,647)
Net decrease (increase) in loans to affiliates		2,804		(1,006)
Net (increase) decrease in due from affiliates		(69	)	2,689
Net cash provided by (used in) investing activities		1,007		(2,964)
Cash Flows from Financing Activities
Net increase in short-term debt to affiliates		529		26
Net increase (decrease) in short-term debt		13		(243)
Issuance of long-term debt		3,549		4,244
Principal payments on long-term debt		(4,829	)	(1,560)
Dividends paid		(350	)	(297)
Net cash (used in) provided by financing activities		(1,088	)	2,170
Effect of exchange rate changes on cash and cash equivalents		(6	)	19
Net decrease in cash and cash equivalents		(190	)	(302)
Cash and cash equivalents at beginning of period		275		480
Cash and cash equivalents at end of period	$	85		$               178

See Notes to Consolidated Financial Statements.

4

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Basis of Presentation

American Express Credit Corporation (Credco), together with its subsidiaries, is a wholly owned subsidiary of American Express Travel Related Services Company, Inc. (TRS), which is a wholly owned subsidiary of American Express Company (American Express). American Express charge cards and American Express credit cards are collectively referred to herein as the card.

Credco is engaged in the business of financing non-interest-earning Card Member receivables arising from the use of the American Express^® Card, the American Express^® Gold Card, Platinum Card^®, Corporate Card and other American Express cards issued in the United States and in certain countries outside the United States. Credco also finances certain interest-earning and discounted revolving loans generated by Card Member spending on American Express credit cards issued in non-U.S. markets, although interest bearing and revolving loans are primarily funded by subsidiaries of TRS other than Credco.

Credco executes material transactions with its affiliates. The agreements between Credco and its affiliates provide that the parties intend that the transactions thereunder be conducted on an arm’s length basis; however, there can be no assurance that the terms of these arrangements are the same as would be negotiated between independent, unrelated parties.

American Express provides Credco with financial support with respect to maintenance of its minimum overall 1.25 fixed charge coverage ratio, which is achieved by charging appropriate discount rates on the purchases of receivables Credco makes from, and the interest rates on the loans Credco provides to, TRS and other American Express subsidiaries. Each monthly period, the discount and interest rates are determined to generate income for Credco that is sufficient to maintain its minimum fixed charge coverage ratio.

The accompanying Consolidated Financial Statements should be read in conjunction with the financial statements incorporated by reference in the Credco Form 10-K for the year ended December 31, 2012.

The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim period consolidated financial information, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year.

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expense. These accounting estimates reflect the best judgment of management, but actual results could differ.

Certain reclassifications of prior period amounts have been made to conform to the current period presentation. These reclassifications did not have a material impact on Credco’s financial position, results of operations or cash flows.

2. Fair Values

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on Credco’s principal or, in the absence of a principal, most advantageous market for the specific asset or liability.

GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows:

• Level 1 — Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access.

• Level 2 — Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including:

- Quoted prices for similar assets or liabilities in active markets;

- Quoted prices for identical or similar assets or liabilities in markets that are not active;

- Inputs other than quoted prices that are observable for the asset or liability; and

- Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

5

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

• Level 3 — Inputs that are unobservable and reflect Credco’s own estimates about the estimates market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows). Credco did not measure any financial instruments presented on the Consolidated Balance Sheets at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2013 or during the year ended December 31, 2012, although the disclosed fair value of certain assets that are not carried at fair value, as presented later in this Note, are classified within Level 3.

Credco monitors the market conditions and evaluates the fair value hierarchy levels at least quarterly. For any transfers in and out of the levels of the fair value hierarchy, Credco discloses the fair value measurement at the beginning of the reporting period during which the transfer occurred.

Financial Assets and Financial Liabilities Carried at Fair Value

The following table summarizes Credco’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by GAAP’s valuation hierarchy as Level 2 (as described in the preceding paragraphs), as of September 30, 2013 and December 31, 2012:

(Millions)		2013	2012
Assets:
Derivatives(a)	$	262	$                432
Total assets	$	262	$                432
Liabilities:
Derivatives(a)	$	67	$                  79
Total liabilities	$	67	$                  79

(a) Refer to Note 5 for the fair values of derivative assets and liabilities, on a further disaggregated basis.

Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Fair Value

For the financial assets and liabilities measured at fair value on a recurring basis (categorized in the valuation hierarchy table above), Credco applies the following valuation techniques:

Derivative Financial Instruments

The fair value of Credco’s derivative financial instruments is estimated by third-party valuation services that use proprietary pricing models or by internal pricing models, where the inputs to those models are readily observable from actively quoted markets. The pricing models used are consistently applied and reflect the contractual terms of the derivatives as described below. Credco reaffirms its understanding of the valuation techniques used by the third-party valuation services at least annually. Credco’s derivative instruments are classified within Level 2 of the fair value hierarchy.

The fair value of Credco’s interest rate swaps is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the swap such as the notional amount, fixed coupon rate, floating coupon rate (based on interbank rates consistent with the frequency and currency of the interest cash flows) and tenor, as well as discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated.

The fair value of foreign exchange forward contracts is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the forward contracts such as the notional amount, maturity dates and contract rate, as well as relevant foreign currency forward curves, and discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated.

Credit valuation adjustments are necessary when the market parameters, such as a benchmark curve used to value derivatives, are not indicative of the credit quality of Credco or its counterparties. Credco considers the counterparty credit risk by applying an observable forecasted default rate to the current exposure. Refer to Note 5 for additional fair value information.

6

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Financial Assets and Financial Liabilities Carried at Other Than Fair Value

The following table discloses the estimated fair value for Credco’s financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of September 30, 2013 and December 31, 2012:

		Carrying Value		Corresponding Fair Value Amount
2013 (Billions)				Total		Level 2	Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	$	20.3	$	20.3	$	20.3	$                  —
Financial assets carried at other than fair value
Card Member loans	$	0.5	$	0.5	$	—	$                 0.5
Loans to affiliates	$	9.9	$	10.0	$	6.7	$                 3.3
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	$	5.9	$	5.9	$	5.9	$                  —
Financial liabilities carried at other than fair value
Long-term debt	$	22.0	$	22.3	$	22.3	$                  —
		Carrying Value		Corresponding Fair Value Amount
2012 (Billions)				Total		Level 2	Level 3
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	$	19.8	$	19.8	$	19.8	$                  —
Financial assets carried at other than fair value
Card Member loans	$	0.5	$	0.5	$	—	$                 0.5
Loans to affiliates	$	13.2	$	13.2	$	9.5	$                 3.7
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	$	6.5	$	6.5	$	6.5	$                  —
Financial liabilities carried at other than fair value
Long-term debt	$	24.0	$	24.5	$	24.5	$                  —

The fair values of these financial instruments are estimates based upon the market conditions and perceived risks as of September 30, 2013 and December 31, 2012, and require management judgment. These figures may not be indicative of future fair values. The fair value of Credco cannot be reliably estimated by aggregating the amounts presented.

Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Other Than Fair Value

For the financial assets and liabilities that are not required to be carried at fair value on a recurring basis (categorized in the valuation hierarchy table above), Credco applies the following valuation techniques to measure fair value:

Financial Assets for Which Carrying Values Equal or Approximate Fair Value

Financial assets for which carrying values equal or approximate fair value include cash and cash equivalents, Card Member receivables, due from affiliates, accrued interest and certain other assets. For these assets, the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate.

7

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Financial Assets Carried at Other Than Fair Value

Card Member loans

Card Member loans are recorded at historical cost, less reserves, on the Consolidated Balance Sheets. In estimating the fair value for Credco’s Card Member loans, Credco uses a discounted cash flow model. Due to the lack of a comparable whole loan sales market for similar credit card receivables and the lack of observable pricing inputs thereof, Credco uses various inputs derived from an equivalent securitization market to estimate fair value. Such inputs include projected income (inclusive of future interest payments), estimated pay-down rates, discount rates and relevant credit costs.

Loans to affiliates

Loans to affiliates are recorded at historical cost on the Consolidated Balance Sheets. In estimating the fair value for Credco’s loans to affiliates, Credco uses discounted cash flow models. For loans to affiliates collateralized by Card Member loans, Credco derives the value of the loans based on the fair value of the underlying collateral used to finance the loans using a discounted cash flow model with inputs as detailed above (Card Member loans), and as such is classified as Level 3. For the remaining loans to affiliates, the models use market observable interest rates and adjust those rates for necessary risks.

Financial Liabilities for Which Carrying Values Equal or Approximate Fair Value

Financial liabilities for which carrying values equal or approximate fair value include short-term debt, short-term debt to affiliates, accrued interest and certain other liabilities for which the carrying values approximate fair value because they are short term in duration, have no defined maturity or have a market-based interest rate.

Financial Liabilities Carried at Other Than Fair Value

Long-term debt

Long-term debt is recorded at historical issuance cost on the Consolidated Balance Sheets adjusted for the impact of fair value hedge accounting on certain fixed-rate notes and current translation rates for foreign-denominated debt. The fair value of Credco’s long-term debt is measured using quoted offer prices when quoted market prices are available. If quoted market prices are not available, the fair value is determined by discounting the future cash flows of each instrument at rates currently observed in publicly-traded debt markets for debt of similar terms and credit risk. For long-term debt, where there are no rates currently observable in publicly-traded debt markets of similar terms and comparable credit risk, Credco uses market interest rates and adjusts those rates for necessary risks, including its own credit risk. In determining an appropriate spread to reflect its credit standing, Credco considers credit default swap spreads, bond yields of other long-term debt offered by Credco, and interest rates currently offered to Credco for similar debt instruments of comparable maturities.

Nonrecurring Fair Value Measurements

Credco did not have any assets that were measured at fair value for impairment on a nonrecurring basis during the nine months ended September 30, 2013 or during the year ended December 31, 2012.

8

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3. Card Member Receivables and Loans

As described below, American Express’ charge and lending payment card products result in the generation of Card Member receivables and Card Member loans, respectively.

Card Member Receivables

Card Member receivables represent amounts due from customers of American Express and certain American Express joint venture charge card products. For American Express, the Card Member receivables are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant. Each charge card transaction is authorized based on its likely economics reflecting a Card Member’s most recent credit information and spend patterns. Additionally, global spend limits are established to limit the maximum exposure for American Express.

Charge card customers generally must pay the full amount billed each month.

Credco records these Card Member receivables at the time they are purchased from TRS and certain of its subsidiaries and American Express joint ventures that issue the card (card issuers). The total volume of Card Member receivables purchased during the nine months ended September 30, 2013 and 2012 was approximately $161 billion and $149 billion, respectively. Card Member receivable balances are presented on the Consolidated Balance Sheets, net of reserves for losses (refer to Note 4). Card Member receivables also include participation interests purchased from an affiliate. Participation interests in Card Member receivables represent undivided interests in the cash flows of the non-interest-earning Card Member receivables. In conjunction with TRS’ securitization program, Credco, through its wholly owned subsidiary, Credco Receivables Corporation (CRC), purchases participation interests from American Express Receivables Financing Corporation VIII LLC (RFC VIII), a wholly owned subsidiary of TRS that receives undivided, pro rata interests in Card Member receivables transferred to the American Express Issuance Trust II (the Charge Trust II)¹, by TRS. The Charge Trust II is a special purpose entity that is consolidated by TRS. As of September 30, 2013 and December 31, 2012, CRC owned approximately nil and $1.7 billion, respectively, of participation interests in Card Member receivables purchased without recourse from American Express Receivables Financing Corporation V LLC (RFC V)². As of September 30, 2013 and December 31, 2012, CRC owned approximately $5 billion and $2.9 billion, respectively, of participation interests in Card Member receivables purchased without recourse from RFC VIII.

Card Member receivables as of September 30, 2013 and December 31, 2012 consisted of:

(Millions)		2013	2012
U.S. Consumer and Small Business Services	$	4,987	$             4,464
International and Global Commercial Services(a)		12,018	10,898
Card Member receivables		17,005	15,362
Less: Reserve for losses		85	83
Card Member receivables, net(b)	$	16,920	$           15,279

(a) International is comprised of consumer and small business services.

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

Card Member Loans

Card Member loans represent amounts due from customers of American Express and certain American Express joint venture lending card products. For American Express, these Card Member loans are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant, as well as amounts due from charge card product customers when a Card Member enters into an extended payment arrangement with American Express. American Express’ lending portfolios primarily include revolving loans to Card Members obtained through either their credit card accounts or the lending on charge feature of their charge card accounts. 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. The amounts that Card Members choose to revolve are subject to finance charges.

¹ During the third quarter of 2013, TRS transferred Card Member receivables from the American Express Issuance Trust (the Charge Trust) to the Charge Trust II, collectively referred to as the Charge Trusts. As of September 30, 2013, the Charge Trust was dissolved, and TRS will utilize the Charge Trust II for securitization of Card Member receivables.

² RFC V is a wholly owned subsidiary of TRS that received undivided, pro rata interests in Card Member receivables transferred to the Charge Trust prior to its dissolution. As a result of dissolution of the Charge Trust, CRC’s Card Member receivables balance as of September 30, 2013 represents purchases of the participation interests from RFC VIII only.

9

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Credco records these Card Member loans at the time they are purchased from TRS subsidiaries and certain American Express joint ventures. The total volume of Card Member loans purchased during the nine months ended September 30, 2013 and 2012 was $2.9 billion and $2.5 billion, respectively. Card Member loans are presented on the Consolidated Balance Sheets, net of reserves for losses (refer to Note 4), and include principal, accrued interest and fees receivable. Credco’s 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 Credco believes will not be collected.

Card Member loans as of September 30, 2013 and December 31, 2012 consisted of:

(Millions)		2013	2012
International Card Services	$	469	$                462
Less: Reserve for losses		5	5
Card Member loans, net(a)	$	464	$                457

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

Card Member Receivables and 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 represents the aging of Card Member receivables and loans as of September 30, 2013 and December 31, 2012:

2013 (Millions)		Current			30-59 Days Past Due			60-89 Days Past Due			90+ Days Past Due	Total
Card Member Receivables:
U.S. Consumer and Small Business Services	$	4,932		$	27		$	9		$	19	$       4,987
International and Global Commercial Services(a)		(b	)		(b	)		(b	)	$	100	$     12,018
Card Member Loans:
International Card Services(c)	$	461		$	3		$	2		$	3	$          469

2012 (Millions)		Current			30-59 Days Past Due			60-89 Days Past Due			90+ Days Past Due	Total
Card Member Receivables:
U.S. Consumer and Small Business Services	$	4,420		$	15		$	9		$	20	$       4,464
International and Global Commercial Services(a)		(b	)		(b	)		(b	)	$	90	$     10,898
Card Member Loans:
International Card Services(c)	$	454		$	3		$	2		$	3	$          462

(a) For Card Member receivables in International and Global Commercial Services, 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 Credco initiates collection procedures on an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is considered 90 days past billing. These amounts are shown above as 90+ Days Past Due for presentation purposes.

(b) Data for periods prior to 90 days past billing are not available due to financial reporting system constraints. Therefore, it has not been relied upon 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) Card Member loans over 90 days past due continue to accrue interest.

10

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Credit Quality Indicators for Card Member Receivables and Loans

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

	2013				2012
	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:
U.S. Consumer and Small Business Services	1.08	%	1.10	%	1.34	%	1.24%
Card Member Loans:
International Card Services	0.86	%	1.71	%	0.63	%	1.65%
	2013				2012
	Net Loss Ratio as a % of Charge Volume(b)		90 Days Past Billing as a % of Receivables		Net Loss Ratio as a % of Charge Volume(b)		90 Days Past Billing as a % of Receivables
Card Member Receivables:
International and Global Commercial Services	0.06	%	0.83	%	0.07	%	0.71%

(a) Credco’s write-offs, net of recoveries, represent the amount of Card Member receivables or Card Member loans owned by Credco that are written off, expressed as a percentage of the average Card Member receivables or Card Member loans balances during the period.

(b) Credco’s write-offs, net of recoveries, represent the amount of Card Member receivables owned by Credco that are written off, expressed as a percentage of the volume of Card Member receivables purchased by Credco during the period.

Refer to Note 4 for additional indicators, including external environmental qualitative factors, management considers in its monthly evaluation process for reserves for losses.

4. Reserves for Losses

Reserves for losses relating to Card Member receivables and loans represent management’s best estimate of the probable inherent losses in Credco’s outstanding portfolio of loans and receivables, as of the balance sheet date. Management’s evaluation process requires certain estimates and judgments.

Reserves for losses are primarily based upon statistical models that analyze portfolio performance and reflect management’s judgment regarding the quantitative components of the reserve. The models take into account several factors, including loss migration rates and average losses and recoveries over an appropriate historical period. Management considers whether to adjust the models for specific qualitative factors such as increased risk in certain portfolios, impact of risk management initiatives on portfolio performance and concentration of credit risk based on factors such as vintage, industry or geographic regions. In addition, management may increase or decrease the reserves for losses on Card Member loans for other external environmental qualitative factors, including various indicators related to employment, spend, sentiment, housing and credit, as well as the legal and regulatory environment. Generally, due to the short-term nature of Card Member receivables, the impact of additional external qualitative factors on the probable losses inherent within the Card Member receivables portfolio is not significant. As part of this evaluation process, management also considers various reserve coverage metrics, such as reserves as a percentage of past-due amounts, reserves as a percentage of Card Member receivables or loans and net write-off coverage.

Card Member loans and receivables balances are written-off when management considers amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due. Card Member loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification and recoveries are recognized as they are collected.

11

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Changes in Card Member Receivables Reserve for Losses

The following table presents changes in the Card Member receivables reserve for losses for the nine months ended September 30:

(Millions)		2013		2012
Balance, January 1	$	83		$              71
Additions:
Provisions(a)		105		105
Other credits(b)		41		37
Deductions:
Net write-offs(c)		(116	)	(114)
Other debits(d)		(28	)	—
Balance, September 30	$	85		$              99

(a) Provisions resulting from authorized transactions.

(b) Primarily reserve balances applicable to participation interests in Card Member receivables purchased from an affiliate. Credco purchases Card Member receivables at fair value but due to system constraints, records the gross receivable amount and the corresponding reserve balance, which are included in its fair value estimate. Specifically, Credco’s systems do not have the ability to track multiple accounting bases for Card Member receivables. Participation interests in Card Member receivables purchased from an affiliate totaled $7.7 billion and $4.9 billion for the nine months ended September 30, 2013 and 2012, respectively.

(c) Net write-offs include recoveries of $87 million and $81 million for the nine months ended September 30, 2013 and 2012, respectively.

(d) Primarily reserves for losses attributable to participation interests in Card Member receivables sold to an affiliate. Participation interests in Card Member receivables sold to an affiliate totaled $5.7 billion and nil for the nine months ended September 30, 2013 and 2012, respectively.

Changes in Card Member Loans Reserve for Losses

The following table presents changes in the Card Member loans reserve for losses for the nine months ended September 30:

(Millions)		2013		2012
Balance, January 1	$	5		$                   5
Additions:
Provisions(a)		3		1
Deductions:
Net write-offs(b)		(3	)	(2)
Balance, September 30	$	5		$                   4

(a) Provisions resulting from authorized transactions.

(b) Net write-offs include recoveries of $4 million for both the nine months ended September 30, 2013 and 2012.

5. Derivatives and Hedging Activities

Credco uses derivative financial instruments (derivatives) to manage exposures to various market risks. Derivatives derive their value from an underlying variable or multiple variables, including interest rate and foreign exchange rate. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of Credco’s market risk management. Credco does not engage in derivatives for trading purposes.

Market risk is the risk to earnings or value resulting from movements in market prices. Credco’s market risk exposure is primarily generated by:

• Interest rate risk in its funding activities; and

• Foreign exchange risk in its operations outside the United States and the associated funding of such operations.

American Express centrally monitors market risks using market risk limits and escalation triggers as defined in its Asset/Liability Management Policy.

12

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Interest rate exposure within Credco’s charge card and fixed-rate lending products is managed by varying the proportion of total funding provided by short-term and variable-rate debt compared to fixed-rate debt. In addition, interest rate swaps are used from time to time to economically convert fixed-rate debt obligations to variable-rate obligations or to convert variable-rate debt obligations to fixed-rate obligations. Credco may change the mix between variable-rate and fixed-rate funding based on changes in business volumes and mix, among other factors.

Foreign exchange risk is generated by (i) funding foreign currency Card Member receivables and loans with U.S. dollars and (ii) foreign subsidiary equity and foreign currency earnings in entities outside the United States. Credco hedges market exposure to the extent it is economically justified through various means, including the use of derivatives such as foreign exchange forwards and cross-currency swap contracts, which can help mitigate Credco’s exposure to specific currencies. Exposures from foreign subsidiary equity in Credco’s entities outside the United States are hedged through various means, including the use of foreign currency debt and foreign exchange forwards executed either by Credco or TRS.

Derivatives may give rise to counterparty credit risk, which is the risk that a derivative counterparty will default on, or otherwise be unable to perform pursuant to, an uncollateralized derivative exposure. Credco manages this risk by considering the current exposure, which is the replacement cost of contracts on the measurement date, as well as estimating the maximum potential value of the contracts over the next 12 months, considering such factors as the volatility of the underlying or reference index. To mitigate derivative credit risk, counterparties are required to be pre-approved by American Express and rated as investment grade. Counterparty risk exposures are centrally monitored by American Express. Additionally, in order to mitigate the bilateral counterparty credit risk associated with derivatives, Credco has in certain instances entered into master netting agreements with its derivative counterparties, which provide a right of offset for certain exposures between the parties. A significant portion of Credco’s derivative assets and liabilities as of September 30, 2013 and December 31, 2012 is subject to such master netting agreements with its derivative counterparties. There are no instances where management makes an accounting policy election to not net assets and liabilities subject to an enforceable master netting agreement on Credco’s Consolidated Balance Sheets. To further mitigate bilateral counterparty credit risk, Credco exercises its rights under executed credit support agreements with certain of its derivative counterparties. These agreements require that, in the event the fair value change in the net derivatives position between the two parties exceeds certain dollar thresholds, the party in the net liability position posts collateral to its counterparty. All derivative contracts cleared through a central clearinghouse are collateralized to the full amount of the fair value of the contracts.

In relation to Credco’s credit risk, under the terms of the derivative agreements it has with its various counterparties, Credco is not required to either immediately settle any outstanding liability balances or post collateral upon the occurrence of a specified credit risk-related event. Based on the assessment of credit risk of Credco’s derivative counterparties as of September 30, 2013 and December 31, 2012, Credco does not have derivative positions that warrant credit valuation adjustments.

Credco’s derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments’ intended use and the resulting hedge designation, if any, as discussed below. Refer to Note 2 for a description of Credco’s methodology for determining the fair value of derivatives.

13

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of September 30, 2013 and December 31, 2012:

		Deferred Charges and Other Assets Fair Value						Accrued Interest and Other Liabilities Fair Value
(Millions)		2013			2012			2013		2012
Derivatives designated as hedging instruments:
Interest rate contracts
Fair value hedges	$	216		$	406		$	—		$                 —
Cash flow hedges		—			—			—		—
Foreign exchange contracts
Net investment hedges		11			6			6		6
Total derivatives designated as hedging instruments	$	227		$	412		$	6		$                   6
Derivatives not designated as hedging instruments:
Foreign exchange contracts	$	35		$	20		$	61		$                 73
Total derivatives not designated as hedging instruments	$	35		$	20		$	61		$                 73
Total derivatives, gross	$	262		$	432		$	67		$                 79
Cash collateral netting(a)		(203	)		(160	)		—		—
Derivative asset and derivative liability netting(b)		(11	)		(7	)		(11	)	(7)
Total derivatives, net(c)	$	48		$	265		$	56		$                 72

(a) Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement. Additionally, Credco received noncash collateral in the form of security interest in U.S. Treasury securities with a fair value of nil and $242 million as of September 30, 2013 and December 31, 2012, respectively, none of which was sold or repledged. Such noncash collateral effectively further reduces Credco’s risk exposure to $48 million and $23 million as of September 30, 2013 and December 31, 2012, respectively, but does not reduce the net exposure on Credco’s Consolidated Balance Sheet. Additionally, Credco posted $33 million and nil as of September 30, 2013 and December 31, 2012, respectively, as initial margin on its centrally cleared interest rate swaps, not netted against the derivative balances.

(b) Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.

(c) Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and net derivative liabilities are presented within Deferred Charges and Other Assets and Accrued Interest and Other Liabilities on Credco’s Consolidated Balance Sheets.

Derivative Financial Instruments that Qualify for Hedge Accounting

Derivatives executed for hedge accounting purposes are documented and designated as such when Credco enters into the contracts. In accordance with its risk management policies, Credco structures its hedges with terms similar to that of the item being hedged. Credco formally assesses, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting the fair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, Credco will discontinue the application of hedge accounting.

Fair Value Hedges

A fair value hedge involves a derivative designated to hedge Credco’s exposure to future changes in the fair value of an asset or a liability, or an identified portion thereof that is attributable to a particular risk. Credco is exposed to interest rate risk associated with its fixed-rate long-term debt. Credco uses interest rate swaps to economically convert certain fixed-rate long-term debt obligations to floating-rate obligations at the time of issuance. As of September 30, 2013 and December 31, 2012, Credco hedged $12.4 billion and $14.4 billion, respectively, of its fixed-rate debt to floating-rate debt using interest rate swaps.

14

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

To the extent the fair value hedge is effective, the gain or loss on the hedging instrument offsets the loss or gain on the hedged item attributable to the hedged risk. Any difference between the changes in the fair value of the derivative and the hedged item is referred to as hedge ineffectiveness and is reflected in earnings as a component of other expenses. Hedge ineffectiveness may be caused by differences between the debt’s interest coupon and the benchmark rate, primarily due to credit spreads at inception of the hedging relationship that are not reflected in the valuation of the interest rate swap. Furthermore, hedge ineffectiveness may be caused by changes in the relationship between 3-month LIBOR and 1-month LIBOR, as well as between the overnight indexed swap (OIS) and 1-month LIBOR, as basis spreads may impact the valuation of the interest rate swap without causing an offsetting impact in the value of the hedged debt. If a fair value hedge is de-designated or no longer considered to be effective, changes in fair value of the derivative continue to be recorded through earnings but the hedged asset or liability is no longer adjusted for changes in fair value resulting from changes in interest rates. The existing basis adjustment of the hedged asset or liability is amortized or accreted as an adjustment to yield over the remaining life of that asset or liability.

The following table summarizes the impact on the Consolidated Statements of Income and Retained Earnings associated with Credco’s hedges of its fixed-rate long-term debt for the three and nine months ended September 30:

For the Three Months Ended September 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract							Hedged item							Net hedge ineffectiveness
Derivative Relationship	Income Statement Line Item		Amount					Income Statement Line Item		Amount
			2013			2012				2013		2012			2013		2012
Interest rate contracts	Other, net expenses	$	(8	)	$	(7	)	Other, net expenses	$	4	$	(15	)	$	(4	)	$     (22)

For the Nine Months Ended September 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract							Hedged item							Net hedge ineffectiveness
Derivative Relationship	Income Statement Line Item		Amount					Income Statement Line Item		Amount
			2013			2012				2013		2012			2013		2012
Interest rate contracts	Other, net expenses	$	(187	)	$	(11	)	Other, net expenses	$	185	$	(18	)	$	(2	)	$     (29)

Credco also recognized a net reduction in interest expense of $53 million and $73 million for the three months ended September 30, 2013 and 2012, respectively, primarily related to the net settlements (interest accruals) on Credco’s interest rate derivatives designated as fair value hedges. For the nine months ended September 30, 2013 and 2012, the impact on interest expense was a net reduction of $193 million and $214 million, respectively.

Cash Flow Hedges

A cash flow hedge involves a derivative designated to hedge Credco’s exposure to variable future cash flows attributable to a particular risk. Such exposures may relate to either an existing recognized asset or liability, or a forecasted transaction. Credco hedges existing long-term variable-rate debt, the rollover of short-term borrowings and the anticipated forecasted issuance of additional funding through the use of derivatives, primarily interest rate swaps. These derivative instruments economically convert floating-rate debt obligations to fixed-rate obligations for the duration of the instrument. As of September 30, 2013 and December 31, 2012, Credco did not hedge any of its floating-rate debt using interest rate swaps.

For derivatives designated as cash flow hedges, the effective portion of the gain or loss on the derivatives is recorded in AOCI and reclassified into earnings when the hedged cash flows are recognized in earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income in the same line item in which the hedged instrument or transaction is recognized, primarily in interest expense. Any ineffective portion of the gain or loss on the derivatives is reported as a component of other expenses. If a cash flow hedge is de-designated or terminated prior to maturity, the amount previously recorded in AOCI is recognized into earnings over the period that the hedged item impacts earnings. If a hedge relationship is discontinued because it is probable that the forecasted transaction will not occur according to the original strategy, any related amounts previously recorded in AOCI are recognized into earnings immediately. No ineffectiveness or other amounts were reclassified from AOCI into income for the three and nine months ended September 30, 2013 and three months ended September 30, 2012. For the nine months ended September 30, 2012, an amount of $(1) million loss was reclassified from AOCI into income.

15

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

In the normal course of business, as the hedged cash flows are recognized into earnings, Credco does not expect to reclassify any amount of net pretax losses on derivatives from AOCI into earnings during the next 12 months.

Net Investment Hedges

A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation. Credco primarily designates foreign currency derivatives, typically foreign exchange forwards, and on occasion foreign currency denominated debt, as hedges of net investments in certain foreign operations. These instruments reduce exposure to changes in currency exchange rates on Credco’s investments in non-U.S. subsidiaries. The effective portion of the gain (loss) on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment, was $(19) million and $(58) million for the three months ended September 30, 2013 and 2012, respectively. For the nine months ended September 30, 2013 and 2012, the effective portion of the gain (loss) on net investment hedges, net of taxes, was nil and $(70) million, respectively. Any ineffective portion of the gain or (loss) on net investment hedges is recognized in other expenses during the period of change. No ineffectiveness or other amounts were reclassified from AOCI into income for the nine months ended September 30, 2013 or 2012.

Derivatives Not Designated as Hedges

Credco has derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes. Foreign currency transactions and non-U.S. dollar cash flow exposures from time to time may be partially or fully economically hedged through foreign currency contracts, primarily foreign exchange forwards. These hedges generally mature within one year. Foreign currency contracts involve the purchase and sale of a designated currency at an agreed upon rate for settlement on a specified date. The changes in the fair value of the derivatives effectively offset the related foreign exchange gains or losses on the underlying balance sheet exposures. From time to time, Credco may enter into interest rate swaps to specifically manage funding costs related to American Express’ proprietary card business.

For derivatives that are not designated as hedges, changes in fair value are reported in current period earnings.

The following table summarizes the impact on pretax earnings of derivatives not designated as hedges, as reported on the Consolidated Statements of Income and Retained Earnings for the three and nine months ended September 30:

For the Three Months Ended September 30: (Millions)
	Pretax gains (losses)
Description	Income Statement Line Item		Amount
			2013	2012
Foreign exchange contracts	Other, net expenses	$	21	$                  10
Total		$	21	$                  10

For the Nine Months Ended September 30: (Millions)
	Pretax gains (losses)
Description	Income Statement Line Item		Amount
			2013	2012
Foreign exchange contracts	Other, net expenses	$	71	$                  10
Total		$	71	$                  10

16

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

6.    Variable Interest Entity

Credco has established a variable interest entity (VIE), American Express Canada Credit Corporation (AECCC), used primarily to loan funds to affiliates. AECCC has a shelf registration in Canada for a medium-term note program providing for the issuance of notes by AECCC. All notes issued under this program are fully guaranteed by Credco. These medium-term note issuances are the primary source of financing loans to the Canadian affiliate. Credco is considered the primary beneficiary of the entity and owns all of the outstanding voting interests and therefore, consolidates the entity in accordance with accounting guidance governing consolidation of VIEs. Total assets as of September 30, 2013 and December 31, 2012, were $2.3 billion and $2.4 billion, respectively, the majority of which were eliminated in consolidation. Total liabilities as of September 30, 2013 and December 31, 2012, were $2.3 billion and $2.4 billion, respectively, and were primarily recorded in long-term debt. As of September 30, 2013 and December 31, 2012, nil and $76 million, respectively, of liabilities were eliminated in consolidation. The assets of the VIE are not used solely to settle the obligations of the VIE. The note holders of the VIE have recourse to Credco.

17

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

7. Changes In Accumulated Other Comprehensive (Loss) Income

AOCI is a balance sheet item in the Shareholder’s Equity section of Credco’s Consolidated Balance Sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component of AOCI for the three and nine months ended September 30, 2013 and 2012 were as follows:

For the Three Months Ended September 30, 2013 (Millions), net of tax		Net Unrealized Gains (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
Balances as of June 30, 2013	$	—	$	(367	)	$                (367)
Net unrealized losses		—		—		—
Reclassification for realized losses into earnings		—		—		—
Foreign currency translation adjustments		—		68		68
Net losses related to hedges of investment in foreign operations		—		(19	)	(19)
Net change in accumulated other comprehensive income		—		49		49
Balances as of September 30, 2013	$	—	$	(318	)	$                (318)

For the Nine Months Ended September 30, 2013 (Millions), net of tax		Net Unrealized Gains (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
Balances as of December 31, 2012	$	—	$	8		$                        8
Net unrealized losses		—		—		—
Reclassification for realized losses into earnings		—		—		—
Foreign currency translation adjustments		—		(326	)	(326)
Net losses related to hedges of investment in foreign operations		—		—		—
Net change in accumulated other comprehensive (loss)		—		(326	)	(326)
Balances as of September 30, 2013	$	—	$	(318	)	$                (318)

For the Three Months Ended September 30, 2012 (Millions), net of tax		Net Unrealized Gains (Losses) on Cash Flow Hedges		Foreign Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
Balances as of June 30, 2012	$	—	$	(116	)	$                  (116)
Net unrealized losses		—		—		—
Reclassification for realized losses into earnings		—		—		—
Foreign currency translation adjustments		—		222		222
Net losses related to hedges of investment in foreign operations		—		(58	)	(58)
Net change in accumulated other comprehensive income		—		164		164
Balances as of September 30, 2012	$	—	$	48		$                      48

18

AMERICAN EXPRESS CREDIT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

For the Nine Months Ended September 30, 2012 (Millions), net of tax		Net Unrealized Gains (Losses) on Cash Flow Hedges			Foreign Currency Translation Adjustments		Accumulated Other Comprehensive (Loss) Income
Balances as of December 31, 2011	$	(1	)	$	(58	)	$                      (59)
Net unrealized losses		—			—		—
Reclassification for realized losses into earnings		1			—		1
Foreign currency translation adjustments		—			176		176
Net losses related to hedges of investment in foreign operations		—			(70	)	(70)
Net change in accumulated other comprehensive income		1			106		107
Balances as of September 30, 2012	$	—		$	48		$                         48

No amounts were reclassified out of AOCI into the Consolidated Statements of Income and Retained Earnings for the three and nine months ended September 30, 2013.

8. Income Taxes

The results of operations of Credco are included in the consolidated U.S. federal income tax return of American Express. Under an agreement with American Express, provision for income taxes is recognized on a separate company basis. If benefits for net operating losses, future tax deductions and foreign tax credits cannot be recognized on a separate company basis, such benefits are then recognized based upon a share, derived by formula, of those deductions and credits that are recognizable on an American Express consolidated reporting basis.

American Express is under continuous examination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which American Express has significant business operations. The tax years under examination and open for examination vary by jurisdiction. The IRS has completed its field examination of American Express’ federal tax returns for years through 2007; however, refund claims for certain years continue to be reviewed by the IRS. In addition, American Express is currently under examination by the IRS for the years 2008 through 2011.

Credco believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 months by as much as $517 million principally as a result of potential resolutions of prior years’ tax items with various taxing authorities. The prior years’ tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $517 million of unrecognized tax benefits, approximately $504 million relates to amounts that if recognized would be recorded to shareholder’s equity and would not impact the effective tax rate. With respect to the remaining $13 million, it is not possible to quantify the impact that the decrease could have on the effective tax rate and net income due to the inherent complexities and the number of tax years open for examination in multiple jurisdictions. Resolution of the prior years’ items that comprise this remaining amount could have a material impact on the effective tax rate and on net income, either favorably (principally as a result of settlements that are less than the liability for unrecognized tax benefits) or unfavorably (if such settlements exceed the liability for unrecognized tax benefits).

The effective tax rates were 1.1 percent and (30.0) percent for the three and nine months ended September 30, 2013, respectively, and (24.4) percent and (23.7) percent for the three and nine months ended September 30, 2012, respectively. The tax rate in each of the periods reflects the geographic mix of expenses in the United States attracting a 35 percent statutory benefit and foreign earnings taxed at lower rates, which are indefinitely reinvested. The tax rates for the nine months ended September 30, 2013 reflect the impact of certain prior years’ tax items.

The tax rates in all periods reflect the favorable impact of the tax benefit related to Credco’s ongoing funding activities outside the United States. Credco’s provision for income taxes for interim financial periods is not based on an estimated annual effective rate due to volatility in certain components of revenues and expenses which prevent Credco from projecting a reliable estimate of full year pretax income. A discrete calculation of the provision for income taxes is calculated for each interim period.

19

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

American Express Credit Corporation (Credco), together with its subsidiaries, is a wholly owned subsidiary of American Express Travel Related Services Company, Inc. (TRS), which is a wholly owned subsidiary of American Express Company (American Express). American Express charge cards and American Express credit cards are collectively referred to herein as the card.

Credco is engaged in the business of financing non-interest-earning Card Member receivables arising from the use of the American Express^® Card, the American Express^® Gold Card, Platinum Card^®, Corporate Card and other American Express cards issued in the United States and in certain countries outside the United States. Credco also finances certain interest-earning and discounted revolving loans generated by Card Member spending on American Express credit cards issued in non-U.S. markets, although interest-earning and revolving loans are primarily funded by subsidiaries of TRS other than Credco.

Certain of the statements in this Form 10-Q report are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Refer to the “Forward-Looking Statements” section.

Current Economic Environment/Outlook

American Express’ results for third quarter of 2013 reflect continued healthy spending growth, excellent credit quality and a strong capital position. During the quarter, Card Member spending volumes grew both in the United States and internationally, and across all of American Express’ businesses.

Competition remains extremely intense across American Express’ businesses. In addition, the global economic environment remains uneven. While American Express’ business is diversified, any impact of potential U.S. income tax law changes and continued budget and debt ceiling discussions in Washington remains uncertain.

Results of Operations for the Nine Months Ended September 30, 2013 and 2012

Pretax income depends primarily on the volume of Card Member receivables and loans purchased, the discount factor used to determine purchase price, interest earned, interest expense and collectability of Card Member receivables and loans purchased.

Credco’s consolidated net income increased $102 million or 38 percent for the nine months ended September 30, 2013 as compared to the same period in 2012. The year-over-year increase is primarily due to higher discount revenues earned from purchased Card Member receivables and loans, lower interest expense and higher income tax benefit, partially offset by lower interest income from affiliates and a higher provision for losses.

20

The following table summarizes the changes attributable to the increase (decrease) in key revenue and expense accounts for the nine months ended September 30:

(Millions)		2013		2012
Discount revenue earned from purchased Card Member receivables and loans:
Volume of receivables and loans purchased	$	33		$                  53
Discount rates		(5	)	31
Total	$	28		$                  84
Interest income from affiliates:
Average loans to affiliates	$	17		$                  21
Interest rates		(82	)	(16)
Total	$	(65	)	$                    5
Interest income from investments:
Average investments outstanding	$	(3	)	$                   (2)
Interest rates		(1	)	4
Total	$	(4	)	$                    2
Finance revenue:
Average Card Member loans outstanding	$	3		$                    3
Interest rates		(1	)	1
Total	$	2		$                    4
Interest expense:
Average debt outstanding	$	2		$                  74
Interest rates		(97	)	(29)
Total	$	(95	)	$                  45
Interest expense to affiliates:
Average debt outstanding	$	1		$                  —
Interest rates		(11	)	7
Total	$	(10	)	$                    7

Discount revenue earned from purchased Card Member receivables and loans

Discount revenue increased 7 percent or $28 million to $433 million for the nine months ended September 30, 2013, as compared to $405 million for the same period in 2012. This change was primarily driven by an 8 percent increase in the volume of receivables purchased to $164 billion for the nine months ended September 30, 2013 from $152 billion for the same period in 2012. Discount rates, which vary over time due to changes in market interest rates or changes in the collectability of Card Member receivables, remained relatively flat year over year.

Interest income from affiliates

Interest income from affiliates decreased 17 percent or $65 million to $316 million for the nine months ended September 30, 2013, as compared to $381 million for the same period in 2012. This change was primarily driven by a decrease of 92 basis points in the annualized effective interest rate charged to affiliates to 3.53 percent for the nine months ended September 30, 2013 as compared to 4.45 percent for the same period in 2012, partially offset by a 5 percent increase in the average loan with affiliates balance to $12 billion for the nine months ended September 30, 2013 from $11.4 billion for the same period in 2012.

Interest income from investments

Interest income from investments decreased by 67 percent or $4 million to $2 million for the nine months ended September 30, 2013 as compared to $6 million for the same period in 2012. The change was primarily driven by lower average investment balances during 2013.

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Finance revenue

Finance revenue increased 6 percent or $2 million to $34 million for the nine months ended September 30, 2013, as compared to $32 million for the same period in 2012. This change was primarily driven by an increase in the average Card Member loan balance outstanding during 2013.

Provisions for losses

Provisions for losses increased 2 percent or $2 million to $108 million for the nine months ended September 30, 2013, as compared to $106 million for the same period in 2012. This change was primarily driven by an increase in the volume of Card Member receivables and loans purchased.

Interest expense

Interest expense decreased 17 percent or $95 million to $460 million for the nine months ended September 30, 2013, as compared to $555 million for the same period in 2012. This change was primarily driven by a decrease in annualized effective interest rates of 57 basis points to 2.71 percent for the nine months ended September 30, 2013, from 3.28 percent for the same period in 2012, while average debt outstanding remained relatively flat year over year.

Interest expense to affiliates

Interest expense to affiliates decreased 63 percent or $10 million to $6 million for the nine months ended September 30, 2013, as compared to $16 million for the same period in 2012. This change was primarily driven by a decrease in the effective annualized interest rate on average debt outstanding to affiliates by 32 basis points to 16 basis points for the nine months ended September 30, 2013 from 48 basis points for the same period in 2012, while average debt outstanding to affiliates remained relatively flat year over year.

Other, net expenses

The benefit recorded in Other, net expenses increased $4 million to a benefit of $72 million for the nine months ended September 30, 2013, from a benefit of $68 million for the same period in 2012. This change was primarily driven by a decrease in fair value hedge ineffectiveness loss of $27 million, partially offset by a $22 million decrease in the forward points gain generated by foreign exchange forward contracts. Credco uses foreign exchange forward contracts to manage foreign exchange risk for certain cross currency funding activities. At inception, the difference between the spot rate and the contractual forward rate, referred to as the forward points, generates gains (or losses) as a component of the derivative contract’s valuations.

Income taxes

The effective tax rates for the nine months ended September 30, 2013 and 2012 were (30.0) percent and (23.7) percent, respectively. The tax rate in each of the periods primarily reflects the favorable impact of the tax benefit related to Credco’s ongoing funding activities outside the United States as well as the impact of certain prior years’ tax items.

Card Member Receivables and Card Member Loans

As of September 30, 2013 and December 31, 2012, Credco owned $17.0 billion and $15.4 billion, respectively, of gross Card Member receivables. Card Member receivables represent amounts due from charge card customers and are recorded at the time they are purchased from the seller. Included in Card Member receivables are Credco Receivable Corporation’s (CRC) purchases of the participation interests from American Express Receivables Financing Corporation V LLC (RFC V) and American Express Receivables Financing Corporation VIII LLC (RFC VIII) in conjunction with TRS’ securitization program. During the third quarter of 2013, TRS transferred Card Member receivables from the American Express Issuance Trust (the Charge Trust) to the American Express Issuance Trust II (the Charge Trust II), collectively referred to as the Charge Trusts. As of September 30, 2013, the Charge Trust was dissolved, and TRS will continue to utilize the Charge Trust II for securitization of Card Member receivables. As a result, CRC’s Card Member receivables balance as of September 30, 2013 represents purchases of the participation interests from RFC VIII only. As of September 30, 2013 and December 31, 2012, CRC owned approximately $5.0 billion and $4.6 billion, respectively, of such participation interests.

Gross Card Member receivables owned as of September 30, 2013 increased approximately $1.6 billion from December 31, 2012, primarily as a result of an increase in Card Member receivables purchased driven by an increase in the seller’s interest in the Charge Trust II.

As of September 30, 2013 and December 31, 2012, Credco owned gross Card Member loans totaling $469 million and $462 million, respectively. These loans consist of certain interest-earning receivables comprising American Express and American Express joint venture credit card receivables.

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The following table summarizes selected information related to the Card Member receivables portfolio as of or for the nine months ended September 30:

(Millions, except percentages)		2013		2012
Total gross Card Member receivables	$	17,005		$        17,386
Loss reserves – Card Member receivables	$	85		$               99
Loss reserves as a % of receivables		0.50	%	0.57%
Average life of Card Member receivables (# in days)(a)		29		29
U.S. Consumer and Small Business gross Card Member receivables	$	4,987		$          6,516
30 days past due as a % of total		1.10	%	1.24%
Average receivables	$	5,426		$          4,474
Write-offs, net of recoveries	$	44		$               45
Net write-off rate(b)		1.08	%	1.34%
International and Global Commercial gross Card Member receivables	$	12,018		$        10,870
90 days past billing as a % of total		0.83	%	0.71%
Write-offs, net of recoveries	$	72		$               69
Net loss ratio(c)		0.06	%	0.07%

(a) Represents the average life of Card Member receivables owned by Credco, based upon the ratio of the average amount of both billed and unbilled receivables owned by Credco at the end of each month, during the years indicated, to the volume of Card Member receivables purchased by Credco.

(b) Credco’s write-offs, net of recoveries, are expressed as a percentage of the average amount of Card Member receivables owned by Credco at the beginning of the year and at the end of each month in each of the nine-month periods indicated.

(c) Credco’s write-offs, net of recoveries, are expressed as a percentage of the volume of Card Member receivables purchased by Credco in each of the periods indicated.

Loans to Affiliates

Credco’s loans to affiliates represent floating-rate interest-bearing intercompany borrowings by other wholly owned subsidiaries of TRS.

The components of loans to affiliates as of September 30, 2013 and December 31, 2012 were as follows:

(Millions)		2013	2012
American Express Australia Limited	$	3,175	$             3,791
American Express Services Europe Limited		3,080	3,040
Amex Bank of Canada		2,604	3,000
American Express Company		—	2,316
American Express Co. (Mexico) S.A. de C.V.		534	516
American Express Bank (Mexico) S.A.		415	401
American Express International, Inc.		99	114
Total(a)	$	9,907	$           13,178

(a) As of September 30, 2013, Credco had $9.9 billion of outstanding loans to affiliates, of which approximately $5.8 billion were collateralized by the underlying Card Member receivables transferred with recourse and the remaining $4.1 billion were uncollateralized loans primarily with affiliated banks. As of December 31, 2012, Credco had $13.2 billion of outstanding loans to affiliates, of which approximately $6.5 billion were collateralized by the underlying Card Member receivables transferred with recourse and the remaining $6.7 billion were uncollateralized loans primarily with affiliated banks and American Express Company.

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Due from/to Affiliates

As of September 30, 2013 and December 31, 2012, amounts due from affiliates were $3.3 billion and $4.2 billion, respectively. As of September 30, 2013 and December 31, 2012, amounts due to affiliates were $0.9 billion and $2.0 billion, respectively. These amounts relate primarily to timing differences from the purchase of Card Member receivables, net of remittances from TRS, as well as from operating activities.

Short-term Debt to Affiliates

Short-term debt to affiliates consists primarily of master note agreements for which there is no stated term. Credco does not expect any changes to its short-term funding strategies with affiliates.

Components of short-term debt to affiliates as of September 30, 2013 and December 31, 2012 were as follows:

(Millions)		2013	2012
AE Exposure Management Ltd.	$	2,612	$             2,535
American Express Company		180	—
American Express Europe Limited		1,025	648
American Express Swiss Holdings		388	335
American Express Holdings (Netherlands) C.V.		226	226
National Express Company, Inc.		110	108
Other		85	244
Total	$	4,626	$             4,096

Service Fees to Affiliates

Certain affiliates do not explicitly charge Credco a servicing fee for the servicing of receivables purchased. Instead Credco receives a lower discount rate on the receivables sold to Credco than would be the case if servicing fees were charged. If a servicing fee had been charged by these affiliates from which Credco purchases receivables, servicing fees to affiliates would have been higher by approximately $100 million and $104 million for the nine months ended September 30, 2013 and 2012, respectively. Correspondingly, discount revenue would have increased by approximately the same amounts in these periods.

Consolidated Capital Resources and Liquidity

Credco’s balance sheet management objectives are to maintain:

• A broad, deep and diverse set of funding sources to finance its assets and meet operating requirements; and

• Liquidity programs that enable Credco to continuously meet expected future financing obligations and business requirements for at least a 12-month period even in the event it is unable to continue to raise new funds under its traditional funding programs during a substantial weakening in economic conditions.

Funding Strategy

American Express has in place an enterprise-wide funding policy. The principal funding objective is to maintain broad and well-diversified funding sources to allow American Express, including Credco, to meet its maturing obligations, cost-effectively finance current and future asset growth in its global business and maintain a strong liquidity profile. The diversity of funding sources by type of debt instrument, by maturity and by investor base, among other factors, provides additional insulation from the impact of disruptions in any one type of debt, maturity or investor. The mix of Credco’s funding in any period will seek to achieve cost-efficiency consistent with both maintaining diversified sources and achieving its liquidity objectives. Credco’s funding strategy and activities are integrated into its asset-liability management activities.

Credco, like many financial services companies, has historically relied on the debt capital markets to fulfill a substantial amount of its funding needs. It has a variety of funding sources available to access the debt capital markets, including senior unsecured debentures and commercial paper. One of the principal tenets of Credco’s funding strategy is to issue debt with a wide range of maturities to distribute its refinancing requirements across future periods. Credco continues to assess its funding needs and investor demand and could change the mix of its existing sources as well as add new sources to its funding mix. Credco’s funding plan is subject to various risks and uncertainties, such as the disruption of financial markets or market capacity and demand for securities offered by Credco as well as any regulatory changes or changes in its long-term or short-term credit ratings. Many of these risks and uncertainties are beyond Credco’s control.

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Credco’s funding strategy for 2013 is to raise funds to meet short-term borrowings outstanding, which includes seasonal and other working capital needs and changes in receivables and other asset balances, while seeking to maintain access to a sufficient amount of its own and its affiliates’ cash and readily marketable securities that are easily convertible to cash, in order to meet the scheduled maturities of all long-term funding obligations for a 12-month period. Credco has $2.4 billion of unsecured long-term debt that will mature during the next 12 months.

Credco’s funding strategy is designed, among other things, to maintain appropriate and stable unsecured debt ratings from the major credit rating agencies: Moody’s Investors Services (Moody’s), Standard & Poor’s (S&P), Fitch Ratings (Fitch) and Dominion Bond Rating Service (DBRS). Such ratings help support Credco’s access to cost-effective unsecured funding as part of its overall funding strategy.

Credco’s short-term ratings, long-term ratings and outlook as disclosed by the four major credit rating agencies are as follows:

Credit Agency	Short-Term Ratings	Long-Term Ratings	Outlook
DBRS	R-1 (middle)	A (high)	Stable
Fitch	F1	A+	Stable
Moody’s	Prime-1	A2	Stable
S&P	A-2	A-	Stable

Downgrades in the ratings of Credco’s unsecured debt could result in higher funding costs, as well as higher fees related to borrowings under its unused lines of credit. Declines in credit ratings could also reduce Credco’s borrowing capacity in the unsecured term debt and commercial paper markets. The overall level of the funding provided by Credco to other American Express affiliates is impacted by a variety of factors, among them Credco’s ratings. To the extent Credco is subject to a higher cost of funds, whether due to an adverse ratings action or otherwise, the affiliates could continue to use, or could increase their use of, alternative sources of funding for their receivables that offer better pricing. Downgrades to certain of Credco’s unsecured debt ratings in the last several years have not materially impacted Credco’s borrowing costs or resulted in a reduction in its borrowing capacity.

Short-term Funding Programs

Credco’s issuance and sale of commercial paper is utilized for working capital needs. The amount of short-term borrowings issued in the future will depend on Credco’s funding strategy, its needs and market conditions. As of September 30, 2013 and December 31, 2012, Credco had no commercial paper outstanding. The average commercial paper outstanding was nil and $0.4 billion during the nine months ended September 30, 2013 and the year ended December 31, 2012, respectively. During the year ended December 31, 2012, the maximum commercial paper outstanding was $1.0 billion and the minimum amount outstanding was nil.

Credco’s total back-up liquidity coverage, which consists of its undrawn committed bank facilities, was 64 percent and 73 percent of net short-term borrowings, including short-term debt to affiliates, as of September 30, 2013 and December 31, 2012, respectively. The undrawn committed bank credit facilities were $3.0 billion as of both September 30, 2013 and December 31, 2012.

Long-term Debt Programs

Long-term debt is raised through the offering of debt securities in the United States and capital markets outside the United States. Long-term debt is generally defined as any debt with an original maturity greater than 12 months.

Credco had the following long-term debt outstanding as of September 30, 2013 and December 31, 2012:

(Billions)		2013	2012
Long-term debt outstanding	$	22.0	$               24.0
Average long-term debt	$	22.5	$               22.4

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Credco has the ability to issue debt securities under shelf registrations filed with the Securities and Exchange Commission (SEC). The latest shelf registration statement filed with the SEC is for an unspecified amount of debt securities to be issued. As of September 30, 2013 and December 31, 2012, Credco had $14.2 billion and $15.5 billion, respectively, of debt securities outstanding, issued under the SEC registration statement. During the third quarter ended September 30, 2013, Credco issued $3.0 billion of multi-tranche senior unsecured notes consisting of $1.2 billion of three year floating rate notes at a rate of 3 month-LIBOR plus 51 basis points, $1.0 billion of three year fixed-rate notes with a coupon of 1.3 percent and $800 million of five year fixed-rate notes with a coupon of 2.125 percent.

Credco has established a program for the issuance of debt instruments outside the United States, which is listed on the Luxembourg Stock Exchange. The prospectus for this program expired in February 2013. Credco expects to renew the prospectus as management deems appropriate. During the nine months ended September 30, 2013, no notes were issued under this program. As of both September 30, 2013 and December 31, 2012, $1.2 billion of debt instruments were outstanding under this program.

Credco has also established a program in Australia for the issuance of debt securities of up to approximately $5.6 billion (AUD $6.0 billion). During the nine months ended September 30, 2013, no notes were issued under this program. As of September 30, 2013 and December 31, 2012, the entire amount of approximately $5.6 billion and $6.2 billion, respectively, of notes were available for issuance under this program and the outstanding notes were nil for both periods.

Credco has also established a medium-term note program in Canada providing for the issuance, when necessary, of up to approximately $3.4 billion (CAD $3.5 billion) of notes by American Express Canada Credit Corporation (AECCC), an indirect wholly owned subsidiary of Credco. All notes issued by AECCC under this shelf registration are guaranteed by Credco. During the nine months ended September 30, 2013, AECCC issued CAD $575 million of senior unsecured debt with a maturity of five years and a coupon of 2.31 percent. As of both September 30, 2013 and December 31, 2012, AECCC had $2.2 billion of medium-term notes outstanding under this program. The financial results of AECCC are included in the consolidated financial results of Credco.

The covenants of debt instruments issued by Credco impose the requirement that Credco maintain a minimum consolidated net worth of $50 million, which limits the amount of dividends Credco could pay to its parent. As of September 30, 2013, management believed Credco was in compliance with all restrictive covenants contained in its debt agreements. During the nine months ended September 30, 2013 and 2012, Credco paid $350 million and $297 million, respectively, of cash dividends to TRS. The increase in the amount of dividends is primarily driven by higher levels of net income from periods prior to the third quarter of 2013 as compared to net income from comparable periods prior to the third quarter of 2012. When considering the amount of dividends it pays, Credco takes into account the amount of capital required to maintain capital strength, support business growth, and meet the expectations of debt investors. To the extent excess capital is available, it may be distributed to TRS, Credco’s parent company, via dividends. There are no significant restrictions on the ability of Credco to obtain funds from its subsidiaries by dividend or loan. Additionally, there are no limitations on the amount of debt that can be issued by Credco, provided it maintains the minimum required fixed charge coverage ratio of 1.25.

Liquidity Strategy

General principles and the overall framework for managing liquidity risk across American Express on an enterprise-wide basis are set out in American Express’ Liquidity Risk Policy. The liquidity objective is to maintain access to a diverse set of cash, readily marketable securities and contingent sources of liquidity, so that American Express and its subsidiaries, including Credco, can continuously meet their business requirements and expected future financing obligations for at least a 12-month period, even in the event they are unable to raise new funds under their regular funding programs during a substantial weakening in economic conditions.

Credco manages this objective by regularly accessing capital through its various funding programs, as well as by maintaining a variety of contingent sources of cash and financing, such as access to securitizations of Card Member receivables through sales of receivables to TRS for securitization by RFC VIII and the Charge Trust II, as well as committed bank facilities.

Credco incurs and accepts liquidity risk arising in the normal course of its activities. The liquidity risks that American Express, including Credco, is exposed to can arise from a variety of sources, and thus the enterprise-wide liquidity management strategy includes a variety of parameters, assessments and guidelines, including, but not limited to:

• Maintaining a diversified set of funding sources (refer to Funding Strategy section for more detail);

• Maintaining unencumbered liquid assets and off-balance sheet liquidity sources; and

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• Projecting cash inflows and outflows from a variety of sources and under a variety of scenarios.

Credco’s current liquidity target is to maintain adequate liquidity in the form of cash as well as access to additional liquidity through intercompany borrowing arrangements, to satisfy all maturing funding obligations for a period of 12 months, while continuing to maintain access to significant additional contingency liquidity sources. As of September 30, 2013, Credco had $2.4 billion of unsecured long-term debt that will mature within 12 months.

As of September 30, 2013, Credco had cash and cash equivalents of approximately $85 million. In addition to its actual holdings of cash and cash equivalents, Credco maintains access to additional liquidity, in the form of cash and cash equivalents held by certain affiliates, through intercompany loan agreements.

The yield Credco receives on its cash and cash equivalents is generally less than the interest expense on the sources of funding for these balances. Thus, Credco incurs interest costs on these amounts. The level of net interest costs are dependent on the amount of Credco’s cash and cash equivalents, as well as the difference between its cost of funding these amounts and their investment yields.

Committed Bank Credit Facilities

Credco maintained $7.2 billion of committed syndicated bank credit facilities as of September 30, 2013, of which the amount outstanding (drawn) was $4.2 billion.

Credco’s committed bank credit facilities expire as follows:

(Billions)
2015(a)	$            4.9
2016	2.3
Total	$            7.2

(a) On July 19, 2013, Credco extended its current three-year Australian dollar credit facility scheduled to mature on August 3, 2014 by one year to mature on August 3, 2015.

The availability of the credit lines is subject to Credco’s compliance with certain financial covenants that require maintenance of a 1.25 ratio of earnings to fixed charges. The ratio of earnings to fixed charges for Credco was 1.61 for the nine months ended September 30, 2013. The ratio of earnings to fixed charges for American Express for the nine months ended September 30, 2013 was 4.80.

Credco’s committed bank credit facilities do not contain material adverse change clauses, which might otherwise preclude borrowing under the credit facilities, nor are they dependent on Credco’s credit rating.

In consideration of all its funding sources, Credco expects it would have access to liquidity to satisfy all maturing obligations for at least a 12-month period in the event that access to the secured and unsecured fixed income capital markets is completely interrupted for that length of time. These events are not considered likely to occur.

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Cautionary Note Regarding Forward-Looking Statements

Various statements have been made in this Quarterly Report on this Third Quarter 2013 Form 10-Q that may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may also be made in Credco’s other reports filed with or furnished to the SEC and in other documents. In addition, from time to time, Credco, through its management, may make oral forward-looking statements. Forward-looking statements are subject to risks and uncertainties, including those identified above and below, which could cause actual results to differ materially from such statements. The words “believe,” “expect,” “estimate,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely” and similar expressions are intended to identify forward-looking statements. Credco cautions you that the risk factors described above and in Credco’s Annual Report on Form 10-K for the year ended December 31, 2012 and other factors described below are not exclusive. There may also be other risks that Credco is unable to predict at this time that may cause actual results to differ materially from those in forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Credco undertakes no obligation to update or revise any forward-looking statements.

Factors that could cause actual results to differ materially from Credco’s forward-looking statements include, but are not limited to:

• credit trends, which will depend in part on the economic environment, including, among other things, the housing market and the rates of bankruptcies, which can affect spending on card products and debt payments by individual and corporate customers;

• the effectiveness of Credco’s risk management policies and procedures, including Credco’s ability to accurately estimate the provisions for losses in Credco’s outstanding portfolio of Card Member receivables and loans, and operational risk;

• fluctuations in foreign currency exchange rates;

• negative changes in Credco’s credit ratings, which could result in decreased liquidity and higher borrowing costs;

• the effect of fluctuating interest rates, which could affect Credco’s borrowing costs;

• the impact on American Express’ business resulting from continuing geopolitical uncertainty; and

• Credco’s ability to satisfy its liquidity needs and execute on its funding plans, which will depend on, among other things, Credco’s future business growth, the impact of global economic, political and other events on market capacity, Credco’s credit ratings, demand for securities offered by Credco, performance by Credco’s counterparties under its bank credit facilities and other lending facilities, and regulatory changes.

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ITEM 4. CONTROLS AND PROCEDURES

Credco’s management, with the participation of Credco’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of Credco’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) as of the end of the period covered by this report. Based on such evaluation, Credco’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, Credco’s disclosure controls and procedures are effective and designed to ensure that the information required to be disclosed in Credco’s reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the requisite time periods specified in the applicable rules and forms, and that it is accumulated and communicated to Credco’s management, including Credco’s Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

There have not been any changes in Credco’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during Credco’s fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, Credco’s internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1A. RISK FACTORS

For a discussion of Credco’s risk factors, see Part I, Item 1A. “Risk Factors” of Credco’s Annual Report on Form 10-K for the year ended December 31, 2012 (the 2012 Form 10-K). There are no material changes from the risk factors set forth in the 2012 Form 10-K. However, the risks and uncertainties that Credco faces are not limited to those set forth in the 2012 Form 10-K. Additional risks and uncertainties not presently known to Credco or that it currently believes to be immaterial may also adversely affect Credco’s business.

ITEM 6. EXHIBITS

The exhibits required to be filed with this report are listed on page E-1 hereof, under “Exhibit Index,” which is incorporated herein by reference.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AMERICAN EXPRESS CREDIT CORPORATION (Registrant)
Date: November 5, 2013	By	/s/ David L. Yowan
		David L. Yowan
		Chief Executive Officer
Date: November 5, 2013	By	/s/ Kimberly R. Scardino
		Kimberly R. Scardino
		Senior Vice President and Chief Accounting Officer

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EXHIBIT INDEX

Pursuant to Item 601 of Regulation S-K

Exhibit No.	Description	How Filed
Exhibit 12.1	Computation in Support of Ratio of Earnings to Fixed Charges of American Express Credit Corporation.	Electronically filed herewith.
Exhibit 12.2	Computation in Support of Ratio of Earnings to Fixed Charges of American Express Company.	Electronically filed herewith.
Exhibit 31.1	Certification of David L. Yowan, Chief Executive Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.	Electronically filed herewith.
Exhibit 31.2	Certification of Anderson Y. Lee, Chief Financial Officer, pursuant to Rule 13a-14(a) promulgated under the Securities Exchange Act of 1934, as amended.	Electronically filed herewith.
Exhibit 32.1	Certification of David L. Yowan, Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Electronically filed herewith.
Exhibit 32.2	Certification of Anderson Y. Lee, Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Electronically filed herewith.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

E-1

EX-12.1

EXHIBIT 12.1

AMERICAN EXPRESS CREDIT CORPORATION

COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

		Nine Months Ended September 30, 2013			Years Ended December 31,
					2012			2011			2010			2009	2008
Earnings:
Net income	$	368		$	339		$	397		$	348		$	362	$         864
Income tax (benefit) provision		(85	)		(51	)		(48	)		(24	)		8	132
Interest expense		466			749			707			598			629	1,618
Total earnings	$	749		$	1,037		$	1,056		$	922		$	999	$      2,614
Fixed charges — Interest expense	$	466		$	749		$	707		$	598		$	629	$      1,618
Ratio of earnings to fixed charges		1.61			1.38			1.49			1.54			1.59	1.62

EX-12.2

EXHIBIT 12.2

AMERICAN EXPRESS COMPANY

COMPUTATION IN SUPPORT OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in millions)

		Nine Months Ended September 30, 2013		Years Ended December 31,
				2012		2011		2010		2009	2008
Earnings:
Pretax income from continuing operations	$	5,908	$	6,451	$	6,956	$	5,964	$	2,841	$      3,581
Interest expense(a)		1,495		2,226		2,320		2,423		2,208	3,628
Other adjustments(b)		104		117		124		126		129	144
Total earnings	$	7,507	$	8,794	$	9,400	$	8,513	$	5,178	$      7,353
Fixed charges:
Interest expense	$	1,495	$	2,226	$	2,320	$	2,423	$	2,208	$      3,628
Other adjustments(c)		70		102		94		85		121	114
Total fixed charges	$	1,565	$	2,328	$	2,414	$	2,508	$	2,329	$      3,742
Ratio of earnings to fixed charges		4.80		3.78		3.89		3.39		2.22	1.96

(a) Included in interest expense is interest expense related to the Card Member lending activities, international banking operations, and charge card and other activities in the Consolidated Statements of Income. Interest expense does not include interest on liabilities recorded under GAAP governing accounting for uncertainty in income taxes. American Express’ policy is to classify such interest in income tax provision in the Consolidated Statements of Income.

(b) For purposes of the “earnings” computation, “other adjustments” include adding the amortization of capitalized interest, the net loss of affiliates accounted for under the equity method whose debt is not guaranteed by American Express, the noncontrolling interest in the earnings of majority-owned subsidiaries with fixed charges, and the interest component of rental expense, and subtracting undistributed net income of affiliates accounted for under the equity method.

(c) For purposes of the “fixed charges” computation, “other adjustments” include capitalized interest costs and the interest component of rental expense.

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, David L. Yowan, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of American Express Credit Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2013

/s/ David L. Yowan

David L. Yowan

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Anderson Y. Lee, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of American Express Credit Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2013

/s/ Anderson Y. Lee

Anderson Y. Lee

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of American Express Credit Corporation (the “Company”) for the quarterly period ended September 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), David L. Yowan, as Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ David L. Yowan

Name: David L. Yowan

Title: Chief Executive Officer

Date: November 5, 2013

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-Q or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.1 is expressly and specifically incorporated by reference in any such filing.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report on Form 10-Q of American Express Credit Corporation (the “Company”) for the quarterly period ended September 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Anderson Y. Lee, as Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Anderson Y. Lee

Name: Anderson Y. Lee

Title: Chief Financial Officer

Date: November 5, 2013

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-Q or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.2 is expressly and specifically incorporated by reference in any such filing.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Fair Values (Tables)

9 Months Ended

Sep. 30, 2013

Fair Values (Tables) [Abstract]

Fair value assets and liabilities measured on recurring basis

The following table summarizes Credco's financial assets and financial liabilities measured at fair value on a recurring basis,categorized by GAAP's valuation hierarchy as Level 2 (as described in the preceding paragraphs), as of September 30, 2013 and December 31, 2012:

(Millions)		2013		2012
Assets:
Derivatives(a)	$	262	$	432
Total assets	$	262	$	432
Liabilities:
Derivatives(a)	$	67	$	79
Total liabilities	$	67	$	79

Estimated fair value of financial assets and financial liabilities

The following table discloses the estimated fair value for Credco's financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of September 30, 2013 and December 31, 2012:

				Carrying		Corresponding Fair Value Amount
2013 (Billions)				Value		Total		Level 2		Level 3
Financial Assets:
	Financial assets for which carrying values equal or approximate
		fair value		$	20.3	$	20.3	$	20.3	$	―
	Financial assets carried at other than fair value
			Card Member loans	$	0.5	$	0.5	$	―	$	0.5
			Loans to affiliates	$	9.9	$	10.0	$	6.7	$	3.3
Financial Liabilities:
	Financial liabilities for which carrying values equal or
		approximate fair value		$	5.9	$	5.9	$	5.9	$	―
	Financial liabilities carried at other than fair value
			Long-term debt	$	22.0	$	22.3	$	22.3	$	―
				Carrying		Corresponding Fair Value Amount
2012 (Billions)				Value		Total		Level 2		Level 3
Financial Assets:
	Financial assets for which carrying values equal or approximate
		fair value		$	19.8	$	19.8	$	19.8	$	―
	Financial assets carried at other than fair value
			Card Member loans	$	0.5	$	0.5	$	―	$	0.5
			Loans to affiliates	$	13.2	$	13.2	$	9.5	$	3.7
Financial Liabilities:
	Financial liabilities for which carrying values equal or
		approximate fair value		$	6.5	$	6.5	$	6.5	$	―
	Financial liabilities carried at other than fair value
			Long-term debt	$	24.0	$	24.5	$	24.5	$	―

XML

Statement of Comprehensive Income (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Other Comprehensive Income Loss (Textuals) [Abstract]
Net unrealized derivative gains, tax	$ 0	$ 0	$ 0	$ 0
Foreign currency translation adjustment, tax	$ (11)	$ (34)	$ 0	$ (41)

XML

Card Member Receivables and Loans

9 Months Ended

Sep. 30, 2013

Card Member Receivables and Loans [Abstract]

Card Member Receivables and Loans

3. Card Member Receivables and Loans

As described below, American Express' charge and lending payment card products result in the generation of Card Member receivables and Card Member loans, respectively.

Card Member Receivables

Card Member receivables represent amounts due from customers of American Express and certainAmerican Express joint venturechargecard products. For American Express, the Card Member receivables are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant. Each charge card transaction is authorized based on its likely economics reflecting a Card Member's most recent credit information and spend patterns. Additionally, global spend limits are established to limit the maximum exposure for American Express.

Charge card customers generally must pay the full amount billed each month.

Credco records these Card Member receivables at the time they are purchased from TRS and certain of its subsidiaries and American Express joint ventures that issue the card (card issuers). The total volume of Card Memberreceivables purchased during the nine months endedSeptember 30, 2013 and 2012 wasapproximately $161billion and $149 billion, respectively.Card Member receivable balances are presented on the Consolidated Balance Sheets, net of reserves for losses (refer to Note 4). Card Member receivables also include participation interests purchased from an affiliate. Participation interests in Card Member receivables represent undivided interests in the cash flows of the non-interest-earningCard Memberreceivables. In conjunction with TRS' securitization program, Credco, through its whollyowned subsidiary, Credco Receivables Corporation (CRC), purchases participation interests fromAmerican Express Receivables Financing Corporation VIII LLC (RFC VIII),a whollyowned subsidiary of TRS that receivesundivided, pro rata interests inCard Member receivables transferred to the American Express Issuance Trust II (the Charge Trust II)During the third quarter of 2013, TRS transferred Card Member receivables from the American Express Issuance Trust (the Charge Trust) to the Charge Trust II, collectively referred to as the Charge Trusts. As of September 30, 2013,the Charge Trust was dissolved, and TRSwill utilize the Charge Trust II for securitization of Card Member receivables.2RFC V is a wholly owned subsidiary of TRS that received undivided, pro rata interests in Card Member receivables transferred to the Charge Trust prior to its dissolution. As a result of dissolution of the Charge Trust, CRC's Card Member receivables balance as of September 30, 2013 represents purchases of the participation interests from RFC VIII only., by TRS.The Charge Trust II is a special purpose entity that is consolidated by TRS. As of September 30,2013and December 31, 2012, CRC owned approximately niland $1.7billion, respectively, of participation interests in Card Member receivables purchased without recoursefrom American Express Receivables Financing Corporation V LLC (RFCV)2. As of September 30, 2013 and December 31, 2012, CRC owned approximately $5 billion and $2.9 billion, respectively, of participation interests in Card Member receivables purchased without recourse from RFC VIII.

Card Member receivables as ofSeptember 30, 2013and December 31, 2012consisted of:

(Millions)			2013		2012
U.S. Consumer and Small Business Services		$	4,987	$	4,464
International and Global Commercial Services(a)			12,018		10,898
Card Member receivables			17,005		15,362
Less: Reserve for losses			85		83
	Card Member receivables, net(b)	$	16,920	$	15,279

• International is comprised of consumer and small business services.
• Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

Card Member Loans

Card Member loans represent amounts due from customers of American Express and certain American Express joint venturelending card products. For American Express, these Card Member loansare recorded at the time a Card Member enters into a point-of-sale transaction with a merchant,as well as amounts due from charge card product customers when a Card Member enters into an extended payment arrangement with American Express. American Express' lending portfolios primarily include revolving loans to Card Members obtained through either their credit card accounts or the lendingoncharge feature of their charge card accounts. 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. The amounts that Card Members choose to revolve are subject to finance charges.

Credco records these Card Member loans at the time they are purchased from TRS subsidiaries and certain American Express joint ventures. The total volume of Card Memberloans purchased during the nine months endedSeptember 30, 2013 and 2012was $2.9 billion and $2.5 billion, respectively.Card Member loans are presented on the Consolidated Balance Sheets, net of reserves for losses (refer to Note 4), and include principal, accrued interest and fees receivable. Credco's 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 Credco believes will not be collected.

Card Member loansas ofSeptember 30, 2013 and December 31, 2012consisted of:

(Millions)			2013		2012
International Card Services		$	469	$	462
Less: Reserve for losses			5		5
	Card Member loans, net(a)	$	464	$	457

• Card Member loans modified in a TDR program were immaterial.

Card Member Receivables and 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 represents the aging of Card Member receivables andloansas of September 30,2013 and December 31, 2012:

					30-59		60-89
					Days		Days		90+ Days
2013 (Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Consumer and Small Business Services	$	4,932	$	27	$	9	$	19	$	4,987
	International and Global Commercial Services(a)		(b)		(b)		(b)	$	100	$	12,018
Card Member Loans:
	International Card Services(c)	$	461	$	3	$	2	$	3	$	469
					30-59		60-89
					Days		Days		90+ Days
2012 (Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Consumer and Small Business Services	$	4,420	$	15	$	9	$	20	$	4,464
	International and Global Commercial Services(a)		(b)		(b)		(b)	$	90	$	10,898
Card Member Loans:
	International Card Services(c)	$	454	$	3	$	2	$	3	$	462

• For Card Member receivables in International and Global Commercial Services, 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, ifCredco initiates collection procedureson an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is considered 90 days past billing. These amounts are shown above as 90+Days Past Due for presentation purposes.
• Data for periods prior to 90 days past billing are not available due to financial reporting system constraints. Therefore, it has not been relied upon 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.
• Card Member loans over 90 days past due continue to accrue interest.

Credit Quality Indicators forCard Member Receivables andLoans

The following tables present the key credit quality indicators as of or for the nine months endedSeptember 30:

		2013				2012
				30 Days				30 Days
		Net		Past Due		Net		Past Due
		Write-off		as a % of		Write-off		as a % of
		Rate	(a)	Total		Rate	(a)	Total
Card Member Receivables:
	U.S. Consumer and Small Business Services	1.08	%	1.10	%	1.34	%	1.24	%
Card Member Loans:
	International Card Services	0.86	%	1.71	%	0.63	%	1.65	%
		2013				2012
		Net Loss		90 Days		Net Loss		90 Days
		Ratio as a		Past		Ratio as a		Past
		% of		Billing		% of		Billing
		Charge		as a % of		Charge		as a % of
		Volume	(b)	Receivables		Volume	(b)	Receivables
Card Member Receivables:
	International and Global Commercial Services	0.06	%	0.83	%	0.07	%	0.71	%

• Credco's write-offs, net of recoveries, represent the amount of Card Member receivables or Card Member loans owned by Credco that are written off, expressed as a percentage of the average Card Member receivables or Card Member loans balances during the period.
• Credco's write-offs, net of recoveries, represent the amount of Card Member receivables owned by Credco that are written off, expressed as a percentage of the volume of Card Member receivables purchased by Credco during the period.

Refer to Note 4 for additional indicators, including external environmental qualitative factors, management considers in its monthly evaluation process for reserves for losses.

XML

Fair Value (Details 2) (Fair Value, Measurements, Nonrecurring [Member], USD $)	Sep. 30, 2013	Dec. 31, 2012
Fair Value, Measurements, Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value for impairment	$ 0	$ 0

XML

Card Member Receivables and Loans (Tables)

9 Months Ended

Sep. 30, 2013

Accounts Receivable And Loans Tables [Abstract]

Card Member receivables detail

Card Member receivables as ofSeptember 30, 2013and December 31, 2012consisted of:

(Millions)			2013		2012
U.S. Consumer and Small Business Services		$	4,987	$	4,464
International and Global Commercial Services(a)			12,018		10,898
Card Member receivables			17,005		15,362
Less: Reserve for losses			85		83
	Card Member receivables, net(b)	$	16,920	$	15,279

• International is comprised of consumer and small business services.
• Card Member receivables modified in a troubled debt restructuring (TDR) program were immaterial.

Card Member loans detail

Card Member loansas ofSeptember 30, 2013 and December 31, 2012consisted of:

(Millions)			2013		2012
International Card Services		$	469	$	462
Less: Reserve for losses			5		5
	Card Member loans, net(a)	$	464	$	457

• Card Member loans modified in a TDR program were immaterial.

Aging of Card Mmember loans and receivables

The following table represents the aging of Card Member receivables andloansas of September 30,2013 and December 31, 2012:

					30-59		60-89
					Days		Days		90+ Days
2013 (Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Consumer and Small Business Services	$	4,932	$	27	$	9	$	19	$	4,987
	International and Global Commercial Services(a)		(b)		(b)		(b)	$	100	$	12,018
Card Member Loans:
	International Card Services(c)	$	461	$	3	$	2	$	3	$	469
					30-59		60-89
					Days		Days		90+ Days
2012 (Millions)			Current		Past Due		Past Due		Past Due		Total
Card Member Receivables:
	U.S. Consumer and Small Business Services	$	4,420	$	15	$	9	$	20	$	4,464
	International and Global Commercial Services(a)		(b)		(b)		(b)	$	90	$	10,898
Card Member Loans:
	International Card Services(c)	$	454	$	3	$	2	$	3	$	462

• For Card Member receivables in International and Global Commercial Services, 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, ifCredco initiates collection procedureson an account prior to the account becoming 90 days past billing, the associated Card Member receivable balance is considered 90 days past billing. These amounts are shown above as 90+Days Past Due for presentation purposes.
• Data for periods prior to 90 days past billing are not available due to financial reporting system constraints. Therefore, it has not been relied upon 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.
• Card Member loans over 90 days past due continue to accrue interest.

Credit quality indicators for loans and receivables

The following tables present the key credit quality indicators as of or for the nine months endedSeptember 30:

		2013				2012
				30 Days				30 Days
		Net		Past Due		Net		Past Due
		Write-off		as a % of		Write-off		as a % of
		Rate	(a)	Total		Rate	(a)	Total
Card Member Receivables:
	U.S. Consumer and Small Business Services	1.08	%	1.10	%	1.34	%	1.24	%
Card Member Loans:
	International Card Services	0.86	%	1.71	%	0.63	%	1.65	%
		2013				2012
		Net Loss		90 Days		Net Loss		90 Days
		Ratio as a		Past		Ratio as a		Past
		% of		Billing		% of		Billing
		Charge		as a % of		Charge		as a % of
		Volume	(b)	Receivables		Volume	(b)	Receivables
Card Member Receivables:
	International and Global Commercial Services	0.06	%	0.83	%	0.07	%	0.71	%

• Credco's write-offs, net of recoveries, represent the amount of Card Member receivables or Card Member loans owned by Credco that are written off, expressed as a percentage of the average Card Member receivables or Card Member loans balances during the period.
• Credco's write-offs, net of recoveries, represent the amount of Card Member receivables owned by Credco that are written off, expressed as a percentage of the volume of Card Member receivables purchased by Credco during the period.

XML

Changes in Accumulated Other Comprehensive (Loss) Income (Details) (USD $) In Millions, unless otherwise specified			3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013 Accumulated Other Comprehensive Income (Loss) [Member]	Sep. 30, 2012 Accumulated Other Comprehensive Income (Loss) [Member]	Sep. 30, 2013 Accumulated Other Comprehensive Income (Loss) [Member]	Sep. 30, 2012 Accumulated Other Comprehensive Income (Loss) [Member]	Sep. 30, 2013 Net Unrealized Gains (Losses) on Cash Flow Hedges [Member]	Sep. 30, 2012 Net Unrealized Gains (Losses) on Cash Flow Hedges [Member]	Sep. 30, 2013 Net Unrealized Gains (Losses) on Cash Flow Hedges [Member]	Sep. 30, 2012 Net Unrealized Gains (Losses) on Cash Flow Hedges [Member]	Sep. 30, 2013 Foreign Currency Translation Adjustment [Member]	Sep. 30, 2012 Foreign Currency Translation Adjustment [Member]	Sep. 30, 2013 Foreign Currency Translation Adjustment [Member]	Sep. 30, 2012 Foreign Currency Translation Adjustment [Member]
Changes in other comprehensive income
Balances as of start of period	$ (318)	$ 8	$ (367)	$ (116)	$ 8	$ (59)	$ 0	$ 0	$ 0	$ (1)	$ (367)	$ (116)	$ 8	$ (58)
Net unrealized (losses)			0	0	0	0	0	0	0	0	0	0	0	0
Reclassification for realized losses into earnings			0	0	0	1	0	0	0	1	0	0	0	0
Foreign currency translation adjustments			68	222	(326)	176	0	0	0	0	68	222	(326)	176
Net losses related to hedges of investment in foreign operations			(19)	(58)	0	(70)	0	0	0	0	(19)	(58)	0	(70)
Net change in accumulated other comprehensive income			49	164	(326)	107	0	0	0	1	49	164	(326)	106
Balances as of end of period	$ (318)	$ 8	$ (318)	$ 48	$ (318)	$ 48	$ 0	$ 0	$ 0	$ 0	$ (318)	$ 48	$ (318)	$ 48

XML

Card Member Receivables and Loans (Details 2) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
US Consumer and Small Business Services [Member] | Card Member Receivables [Member]
Financing receivable recorded investment aging
Current	$ 4,932	$ 4,420
30 to 59 days past due	27	15
60 to 89 days past due	9	9
90+ days past due	19	20
Total aging	4,987	4,464
International and Global Commercial Services [Member] | Card Member Receivables [Member]
Financing receivable recorded investment aging
90+ days past due	100	90
Total aging	12,018	10,898
International Card Services [Member] | Card Member Loans [Member]
Financing receivable recorded investment aging
Current	461	454
30 to 59 days past due	3	3
60 to 89 days past due	2	2
90+ days past due	3	3
Total aging	$ 469	$ 462

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Card Member Receivables and Loans (Details 1) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
Card Member loans
Less: Reserve for losses	$ 5	$ 5	$ 4	$ 5
Card Member loans, net	464	457
International Card Services [Member]
Card Member loans
Card Member loans	$ 469	$ 462

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Derivatives and Hedging Activities (Details 1) (Other Expense [Member], Interest Rate Contract [Member], Fair Value Hedging [Member], USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Other Expense [Member] | Interest Rate Contract [Member] | Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Derivative contract	$ (8)	$ (7)	$ (187)	$ (11)
Hedged item	4	(15)	185	(18)
Net hedge ineffectiveness	$ (4)	$ (22)	$ (2)	$ (29)

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Income Tax (Details Textuals) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Taxes (Textuals) [Abstract]
Unrecognized tax benefits as a result of potential resolutions of prior years' tax	$ 517		$ 517
Unrecognized tax benefits, amounts recorded to equity	504		504
Unrecognized tax benefits impact not possible to quantify	$ 13		$ 13
Effective tax rate	1.10%	(24.40%)	(30.00%)	(23.70%)
U.S. statutory federal income tax rate			35.00%
Internal Revenue Service IRS [Member] | Earliest Year [Member]
Income Tax Contingency [Line Items]
Open tax years by major tax jurisdiction			2008
Internal Revenue Service IRS [Member] | Latest Year [Member]
Income Tax Contingency [Line Items]
Open tax years by major tax jurisdiction			2011

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Reserves (Details 1) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Changes in the Card Member loans reserve for losses
Balance, January 1	$ 5	$ 5
Additions:
Provisions	3	1
Deductions:
Net write-offs	(3)	(2)
Balance, September 30	$ 5	$ 4

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Card Member Receivables and Loans (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012	Dec. 31, 2011
Accounts Receivable [Abstract]
Card Member receivables	$ 17,005	$ 15,362
Less: Reserve for losses	85	83	99	71
Card Member receivables, net	16,920	15,279
US Consumer and Small Business Services [Member]
Accounts Receivable [Abstract]
Card Member receivables	4,987	4,464
International and Global Commercial Services [Member]
Accounts Receivable [Abstract]
Card Member receivables	$ 12,018	$ 10,898

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Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Per Share data, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Assets
Card Member receivables, reserves	$ 85	$ 83
Card Member loans, reserves	5	5
Shareholder's Equity
Common stock, par value	$ 0.10	$ 0.10
Common stock, authorized	3	3
Common stock, issued	1.5	1.5
Common stock, outstanding	1.5	1.5
Accumulated other comprehensive (loss) income:
Foreign currency translation adjustments, tax	$ (43)	$ (43)

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Basis of Presentation

9 Months Ended

Sep. 30, 2013

Disclosure Text Block [Abstract]

Basis of Presentation

1. Basis of Presentation

American Express Credit Corporation (Credco), together with its subsidiaries, is a wholly owned subsidiary of American Express Travel Related Services Company, Inc. (TRS), which is a whollyowned subsidiary of American Express Company (American Express). American Express charge cards and American Express credit cards are collectively referred to herein as the card.

Credco is engaged in the business of financing non-interest-earning Card Member receivables arising from the use of the American Express® Card, the American Express® Gold Card, Platinum Card®, Corporate Card and other American Express cards issued in the United States and in certain countries outside the United States. Credco also finances certain interest-earning and discounted revolving loans generated by Card Member spending on American Express credit cards issued in non-U.S. markets, although interest bearing and revolving loans are primarily funded by subsidiaries of TRS other than Credco.

Credco executes material transactions with its affiliates. The agreements between Credco and its affiliates provide that the parties intend that the transactions thereunder be conducted on an arm's length basis; however, there can be no assurance that the terms of these arrangements are the same as would be negotiated between independent, unrelated parties.

American Express provides Credco with financial support with respect to maintenance of its minimum overall 1.25 fixed charge coverage ratio, which is achieved by charging appropriate discount rates on the purchases of receivables Credco makes from, and the interest rates on the loans Credco provides to, TRS and other American Express subsidiaries. Each monthly period, the discount and interest rates are determined to generate income for Credco that is sufficient to maintain its minimum fixed charge coverage ratio.

The accompanying Consolidated Financial Statements should be read in conjunction with the financial statements incorporated by reference in the CredcoForm 10-K for the year ended December 31,2012.

The interim consolidated financial information in this report has not been audited. In the opinion of management, all adjustments, which consist of normal recurring adjustments necessary for a fair statement of the interim period consolidated financial information, have been made. Results of operations reported for interim periods are not necessarily indicative of results for the entire year.

The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expense. These accounting estimates reflect the best judgment of management, but actual results could differ.

Certain reclassifications of prior period amounts have been made to conform to the current period presentation. These reclassifications did not have a material impact on Credco's financial position, results of operations or cash flows.

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Reserves for Losses

9 Months Ended

Sep. 30, 2013

Reserves for Losses [Abstract]

Reserves for Losses

4. Reserves for Losses

Reserves for losses relating to Card Member receivables and loans represent management's best estimate of the probable inherent losses in Credco's outstanding portfolio of loans and receivables, as of the balance sheet date. Management's evaluation process requires certain estimates and judgments.

Reserves for losses are primarily based upon statistical models that analyze portfolio performance and reflect management's judgment regarding the quantitativecomponents of the reserve. The models take into account several factors, including loss migration rates and average losses and recoveries over an appropriate historical period. Management considers whether to adjust the models for specific qualitative factors such as increased risk in certain portfolios, impact of risk management initiatives on portfolio performance and concentration of credit risk based on factors such as vintage, industry or geographic regions. In addition, management may increase or decrease the reserves for losses on Card Member loans for other external environmental qualitative factors,includingvarious indicators related to employment, spend,sentiment, housingand credit, as well as the legal and regulatory environment. Generally, due to the short-term nature of Card Member receivables, the impact of additionalexternal qualitative factors on the probable losses inherent within the Card Memberreceivablesportfolio is not significant. As part of this evaluation process, management also considers various reserve coverage metrics, such as reserves as a percentage of past-due amounts, reserves as a percentage of Card Member receivables or loans and net write-off coverage.

Card Member loans and receivablesbalances are written-off when management considers amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due. Card Member loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification and recoveries are recognized as they are collected.

Changes in Card Member Receivables Reserve for Losses

The following table presents changes in the Card Member receivables reserve for losses for the nine months endedSeptember 30:

(Millions)		2013		2012
Balance, January 1		$	83	$	71
Additions:
	Provisions(a)		105		105
	Other credits(b)		41		37
Deductions:
	Net write-offs(c)		(116)		(114)
	Other debits(d)		(28)		―
Balance, September 30		$	85	$	99

• Provisions resulting from authorized transactions.
• Primarily reserve balances applicable to participation interests in Card Member receivables purchased from an affiliate. Credco purchases Card Member receivables at fair value but due to system constraints, records the gross receivable amount and the corresponding reserve balance, which are included in its fair value estimate. Specifically, Credco's systems do not have the ability to track multiple accounting bases for Card Member receivables.Participation interests in Card Member receivables purchased from an affiliate totaled $7.7 billionand $4.9billion for thenine months endedSeptember 30,2013 and 2012, respectively.
• Net write-offs includerecoveries of $87 million and $81million for the nine months endedSeptember 30, 2013 and 2012, respectively.
• Primarily reserves for losses attributable to participation interests in Card Member receivables sold to an affiliate. Participation interests in Card Member receivables sold to an affiliate totaled $5.7billion and nil for the nine months endedSeptember 30, 2013 and 2012, respectively.

Changes in Card Member Loans Reserve for Losses

The following table presents changes in the Card Member loans reserve for losses for the nine months endedSeptember 30:

(Millions)		2013		2012
Balance, January 1		$	5	$	5
Additions:
	Provisions(a)		3		1
Deductions:
	Net write-offs(b)		(3)		(2)
Balance, September 30		$	5	$	4

• Provisions resulting from authorized transactions.
• Net write-offs include recoveries of $4 millionforboth the nine months endedSeptember 30, 2013 and 2012.

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Fair Values

9 Months Ended

Sep. 30, 2013

Fair Value Disclosures [Abstract]

Fair Values

2. Fair Values

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on Credco's principal or,in the absence of a principal, most advantageous market for the specific asset or liability.

GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows:

• Level 1―Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access.
• Level 2 ― Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including:

-Quoted prices for similar assets or liabilities in active markets;

-Quoted prices for identical or similar assets or liabilities in markets that are not active;

-Inputs other than quoted prices that are observable for the asset or liability; and

-Inputs that are derived principally from or corroborated by observable market data by correlation orother means.

• Level 3 ―Inputs that are unobservable and reflect Credco's own estimates about the estimates market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows).Credco did not measure any financial instruments presented on the Consolidated Balance Sheets at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months endedSeptember 30, 2013 or during the year ended December 31, 2012, although the disclosed fair value of certain assets that are not carried at fair value, as presented later in this Note, are classified within Level 3.

Credco monitors the market conditions and evaluates the fair value hierarchy levels at least quarterly. For any transfers in and out of the levels of the fair value hierarchy, Credcodiscloses the fair value measurement at the beginning of the reporting period during which the transfer occurred.

Financial Assets and Financial Liabilities Carried at Fair Value

The following table summarizes Credco's financial assets and financial liabilities measured at fair value on a recurring basis,categorized by GAAP's valuation hierarchy as Level 2 (as described in the preceding paragraphs), as of September 30, 2013 and December 31, 2012:

(Millions)		2013		2012
Assets:
Derivatives(a)	$	262	$	432
Total assets	$	262	$	432
Liabilities:
Derivatives(a)	$	67	$	79
Total liabilities	$	67	$	79

• Refer to Note 5 for the fair values of derivative assets and liabilities,on a further disaggregated basis.

Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Fair Value

For the financial assets and liabilities measured at fair value on a recurring basis (categorized in the valuation hierarchy table above),Credco applies the following valuation techniques:

Derivative Financial Instruments

The fair value of Credco's derivative financial instrumentsis estimated bythird-party valuation services that use proprietary pricing models or by internal pricing models, where the inputs to those models are readily observable from actively quoted markets. The pricing models used are consistently applied and reflect the contractual terms of the derivativesas described below. Credco reaffirms its understanding of the valuation techniques used by the third-party valuation services at least annually.Credco's derivative instruments are classified within Level 2 of the fair value hierarchy.

The fair value of Credco's interestrate swaps is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the swap such as the notional amount, fixed coupon rate, floating coupon rate (based on interbank rates consistent with the frequency and currency of the interest cash flows) and tenor, as well as discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated.

The fair value of foreign exchange forward contracts is determined based on a discounted cash flow method using the following significant inputs: the contractual terms of the forward contracts such as the notional amount, maturity dates and contract rate, as well as relevant foreign currency forward curves, and discount rates consistent with the underlying economic factors of the currency in which the cash flows are denominated.

Credit valuation adjustments are necessary when the market parameters,such as a benchmark curve used to value derivatives, are not indicative of the credit quality of Credco or its counterparties. Credco considers the counterparty credit risk by applying an observable forecasted default rate to the current exposure. Refer to Note 5 for additional fair value information.

Financial Assets and Financial Liabilities Carried at Other Than Fair Value

The following table discloses the estimated fair value for Credco's financial assets and financial liabilities that are not required to be carried at fair value on a recurring basis, as of September 30, 2013 and December 31, 2012:

				Carrying		Corresponding Fair Value Amount
2013 (Billions)				Value		Total		Level 2		Level 3
Financial Assets:
	Financial assets for which carrying values equal or approximate
		fair value		$	20.3	$	20.3	$	20.3	$	―
	Financial assets carried at other than fair value
			Card Member loans	$	0.5	$	0.5	$	―	$	0.5
			Loans to affiliates	$	9.9	$	10.0	$	6.7	$	3.3
Financial Liabilities:
	Financial liabilities for which carrying values equal or
		approximate fair value		$	5.9	$	5.9	$	5.9	$	―
	Financial liabilities carried at other than fair value
			Long-term debt	$	22.0	$	22.3	$	22.3	$	―
				Carrying		Corresponding Fair Value Amount
2012 (Billions)				Value		Total		Level 2		Level 3
Financial Assets:
	Financial assets for which carrying values equal or approximate
		fair value		$	19.8	$	19.8	$	19.8	$	―
	Financial assets carried at other than fair value
			Card Member loans	$	0.5	$	0.5	$	―	$	0.5
			Loans to affiliates	$	13.2	$	13.2	$	9.5	$	3.7
Financial Liabilities:
	Financial liabilities for which carrying values equal or
		approximate fair value		$	6.5	$	6.5	$	6.5	$	―
	Financial liabilities carried at other than fair value
			Long-term debt	$	24.0	$	24.5	$	24.5	$	―

The fair values of these financial instrumentsare estimates based upon the market conditions and perceived risks as ofSeptember 30, 2013 and December 31, 2012,and require management judgment. These figures may not be indicative of future fair values. The fair value of Credco cannot be reliably estimated by aggregating the amounts presented.

Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities Carried at Other Than Fair Value

For the financial assets and liabilities that are not required to be carried at fair value on a recurring basis (categorized in the valuation hierarchy table above), Credco applies the following valuation techniques to measure fair value:

Financial Assets for Which Carrying Values Equal or Approximate Fair Value

Financial assets for which carrying values equal or approximate fair value include cash and cash equivalents, Card Member receivables, due from affiliates, accrued interest and certain other assets. For these assets, the carrying values approximate fair value because they are shortterm in duration, have no defined maturity or have a market-based interest rate.

Financial Assets Carried at Other Than Fair Value

Card Member loans

Card Member loans are recorded at historical cost, less reserves, on the Consolidated Balance Sheets. In estimating the fair value for Credco'sCard Member loans,Credco uses a discounted cash flow model. Due to the lack of a comparable whole loan sales market for similar credit card receivables and the lack of observable pricing inputs thereof, Credco uses various inputs derived from an equivalent securitization market to estimate fair value. Such inputs include projected income (inclusive of future interest payments), estimated pay-down rates, discount rates and relevant credit costs.

Loans to affiliates

Loans to affiliates are recorded at historical cost on the Consolidated Balance Sheets. In estimating the fair value for Credco's loans to affiliates, Credco uses discounted cash flow models. For loans to affiliates collateralized by Card Member loans, Credco derives the value of the loans based on the fair value of the underlying collateral used to finance the loans using a discounted cash flow model with inputs as detailed above (Card Member loans), and as such is classified as Level 3. For the remaining loans to affiliates, the models use market observable interest rates and adjust those rates for necessary risks.

Financial Liabilities for Which Carrying Values Equal or Approximate Fair Value

Financial liabilities for which carrying values equal or approximate fair value include short-term debt, short-term debt to affiliates, accrued interest and certain other liabilities for which the carrying values approximate fair value because they are shortterm in duration, have no defined maturity or have a market-based interest rate.

Financial Liabilities Carried at Other Than Fair Value

Long-term debt

Long-term debt is recorded at historical issuance cost on the Consolidated Balance Sheets adjusted for the impact of fair value hedge accounting on certain fixed-rate notes and current translation rates for foreign-denominated debt. The fair value of Credco's long-term debt is measured using quoted offer prices when quoted market prices are available. If quoted market prices are not available, the fair value is determined by discounting the future cash flows of each instrument at rates currently observed in publicly-traded debt markets for debt of similar terms and credit risk. For long-term debt, where there are no rates currently observable in publicly-traded debt markets of similar terms and comparable credit risk, Credco uses market interest rates and adjusts those rates for necessary risks, including its own credit risk. In determining an appropriate spread to reflect its credit standing, Credco considers credit default swap spreads, bond yields of other long-term debt offered by Credco, and interest rates currently offered to Credco for similar debt instruments of comparable maturities.

Nonrecurring Fair Value Measurements

Credco did not have any assets that were measured at fair value for impairment on a nonrecurring basis during the nine months endedSeptember 30, 2013 or during the year ended December 31, 2012.

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Card Member Receivables and Loans (Details 3)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
US Consumer and Small Business Services [Member] | Card Member Receivables [Member]
Credit Quality Indicator for Loans and Receivables
Net Write-off Rate	1.08%	1.34%
30 Days Past Due as a % of Total	1.10%	1.24%
International Card Services [Member] | Card Member Loans [Member]
Credit Quality Indicator for Loans and Receivables
Net Write-off Rate	0.86%	0.63%
30 Days Past Due as a % of Total	1.71%	1.65%
International and Global Commercial Services [Member] | Card Member Receivables [Member]
Credit Quality Indicator for Loans and Receivables
Net Loss Ratio as a % of Charge Volume	0.06%	0.07%
90 Days Past Billing as a % of Receivables	0.83%	0.71%

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Reserves (Details Textuals) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Reserves For Losses (Textuals) [Abstract]
Participation interest in Card Member receivables purchased from an affiliate	$ 7,700,000,000	$ 4,900,000,000
Recoveries, Card Member receivables	87,000,000	81,000,000
Participation interest in Card Member receivables sold to an affiliate	5,700,000,000	0
Recoveries, Card Member loans	$ 4,000,000	$ 4,000,000

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Variable Interest Entity (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Variable Interest Entity [Line Items]
Total assets	$ 30,819	$ 33,795
Total liabilities	27,959	30,627
Variable Interest Entity, Primary Beneficiary [Member] | American Express Canada Credit Corporation Member [Member]
Variable Interest Entity [Line Items]
Total assets	2,300	2,400
Total liabilities	2,300	2,400
Liabilities eliminated in consolidation	$ 0	$ 76

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Statement of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statement of Income and Comprehensive Income [Abstract]
Net income	$ 91	$ 71	$ 368	$ 266
Other comprehensive income (loss):
Net unrealized derivative gains, net of tax:	0	0	0	1
Foreign currency translation adjustments, net of tax:	49	164	(326)	106
Other comprehensive income (loss)	49	164	(326)	107
Comprehensive income	$ 140	$ 235	$ 42	$ 373

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Changes in Accumulated Other Comprehensive (Loss) Income (Loss)

9 Months Ended

Sep. 30, 2013

Changes In Accumulated Other Comprehensive Loss Income Disclosure [Abstract]

Changes In Accumulated Other Comprehensive (Loss) Income

7. Changes In Accumulated Other Comprehensive (Loss) Income

AOCI is a balance sheet item in the Shareholder's Equity section of Credco's Consolidated Balance Sheets. It is comprised of items that have not been recognized in earnings but may be recognized in earnings in the future when certain events occur. Changes in each component of AOCI for the three and nine months endedSeptember 30, 2013and 2012were as follows:

		Net Unrealized		Foreign		Accumulated
		Gains (Losses)		Currency		Other
For the Three Months Ended September 30, 2013 (Millions), net		on Cash		Translation		Comprehensive
of tax		Flow Hedges		Adjustments		(Loss) Income
Balances as of June 30, 2013	$	―	$	(367)	$	(367)
Net unrealized losses		―		―		―
Reclassification for realized losses into earnings		―		―		―
Foreign currency translation adjustments		―		68		68
Net losses related to hedges of investment in foreign operations		―		(19)		(19)
Net change in accumulated other comprehensive income		―		49		49
Balances as of September 30, 2013	$	―	$	(318)	$	(318)
		Net Unrealized		Foreign		Accumulated
		Gains (Losses)		Currency		Other
For the Nine Months Ended September 30, 2013 (Millions), net		on Cash		Translation		Comprehensive
of tax		Flow Hedges		Adjustments		(Loss) Income
Balances as of December 31, 2012	$	―	$	8	$	8
Net unrealized losses		―		―		―
Reclassification for realized losses into earnings		―		―		―
Foreign currency translation adjustments		―		(326)		(326)
Net losses related to hedges of investment in foreign operations		―		―		―
Net change in accumulated other comprehensive (loss)		―		(326)		(326)
Balances as of September 30, 2013	$	―	$	(318)	$	(318)
		Net Unrealized		Foreign		Accumulated
		Gains (Losses)		Currency		Other
For the Three Months Ended September 30, 2012 (Millions), net		on Cash		Translation		Comprehensive
of tax		Flow Hedges		Adjustments		(Loss) Income
Balances as of June 30, 2012	$	―	$	(116)	$	(116)
Net unrealized losses		―		―		―
Reclassification for realized losses into earnings		―		―		―
Foreign currency translation adjustments		―		222		222
Net losses related to hedges of investment in foreign operations		―		(58)		(58)
Net change in accumulated other comprehensive income		―		164		164
Balances as of September 30, 2012	$	―	$	48	$	48
		Net Unrealized		Foreign		Accumulated
		Gains (Losses)		Currency		Other
For the Nine Months Ended September 30, 2012 (Millions), net		on Cash		Translation		Comprehensive
of tax		Flow Hedges		Adjustments		(Loss) Income
Balances as of December 31, 2011	$	(1)	$	(58)	$	(59)
Net unrealized losses		―		―		―
Reclassification for realized losses into earnings		1		―		1
Foreign currency translation adjustments		―		176		176
Net losses related to hedges of investment in foreign operations		―		(70)		(70)
Net change in accumulated other comprehensive income		1		106		107
Balances as of September 30, 2012	$	―	$	48	$	48

No amounts were reclassified out of AOCI into the Consolidated Statements of Income and Retained Earnings for the three and nine months ended September 30, 2013.

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Consolidated Balance Sheets (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Assets
Cash and cash equivalents	$ 85	$ 275
Card Member receivables, less reserves	16,920	15,279
Card Member loans, less reserves	464	457
Loans to affiliates	9,907	13,178
Deferred charges and other assets	184	430
Due from affiliates	3,259	4,176
Total assets	30,819	33,795
Liabilities
Short-term debt	34	18
Short-term debt to affiliates	4,626	4,096
Long-term debt	21,984	23,986
Total debt	26,644	28,100
Due to affiliates	883	2,022
Accrued interest and other liabilities	432	505
Total liabilities	27,959	30,627
Shareholder's Equity
Common stock, $0.10 par value, authorized 3 million shares; issued and outstanding 1.5 million shares	0	0
Additional paid-in-capital	161	161
Retained earnings	3,017	2,999
Accumulated other comprehensive (loss) income:
Foreign currency translation adjustments, net of tax	(318)	8
Total accumulated other comprehensive (loss) income	(318)	8
Total shareholder's equity	2,860	3,168
Total liabilities and shareholder's equity	$ 30,819	$ 33,795

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Consolidated Statements of Income and Retained Earnings (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues
Discount revenue earned from purchased Card Member receivables and loans	$ 136	$ 149	$ 433	$ 405
Interest income from affiliates	98	124	316	381
Interest income from investments	0	2	2	6
Finance revenue	12	11	34	32
Total revenues	246	286	785	824
Expenses
Provisions for losses	32	43	108	106
Interest expense	139	187	460	555
Interest expense to affiliates	2	7	6	16
Other, net	(19)	(8)	(72)	(68)
Total expenses	154	229	502	609
Pretax income	92	57	283	215
Income tax provision (benefit)	1	(14)	(85)	(51)
Net income	91	71	368	266
Retained earnings at beginning of period	3,092	3,031	2,999	3,028
Dividends	(166)	(105)	(350)	(297)
Retained earnings at end of period	$ 3,017	$ 2,997	$ 3,017	$ 2,997

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Card Member Receivables and Loans (Details Textuals) (USD $) In Billions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013 RFC V [Member]	Dec. 31, 2012 RFC V [Member]	Sep. 30, 2013 RFC VIII [Member]	Dec. 31, 2012 RFC VIII [Member]
Accounts Receivable and Loans Textuals [Abstract]
Total volume of Card Member receivables purchased	$ 161	$ 149
Total volume of Card Member loans purchased	2.9	2.5
Related Party Transaction [Line Items]
Participation interests in Card Member receivables purchased without recourse			$ 0	$ 1.7	$ 5.0	$ 2.9

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Fair Value (Details1) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	$ 464,000,000	$ 457,000,000
Loans to affiliates	9,907,000,000	13,178,000,000
Financial liabilities carried at other than fair value [Abstract]
Long-term Debt	21,984,000,000	23,986,000,000
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	20,300,000,000	19,800,000,000
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	5,900,000,000	6,500,000,000
Level 2 [Member]
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	20,300,000,000	19,800,000,000
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	0	0
Loans to affiliates	6,700,000,000	9,500,000,000
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	5,900,000,000	6,500,000,000
Financial liabilities carried at other than fair value [Abstract]
Long-term Debt	22,300,000,000	24,500,000,000
Level 3 [Member]
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	0	0
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	500,000,000	500,000,000
Loans to affiliates	3,300,000,000	3,700,000,000
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	0	0
Financial liabilities carried at other than fair value [Abstract]
Long-term Debt	0	0
Estimate of Fair Value, Fair Value Disclosure [Member]
Financial Assets:
Financial assets for which carrying values equal or approximate fair value	20,300,000,000	19,800,000,000
Financial assets carried at other than fair value [Abstract]
Card Member loans, less reserves	500,000,000	500,000,000
Loans to affiliates	10,000,000,000	13,200,000,000
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value	5,900,000,000	6,500,000,000
Financial liabilities carried at other than fair value [Abstract]
Long-term Debt	$ 22,300,000,000	$ 24,500,000,000

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Changes in Accumulated Other Comprehensive (Loss) Income (Details Textuals) (USD $) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Accumulated Other Comprehensive Loss Income (Textuals) [Abstract]
Amount of gain loss reclassified from accumulated other comprehensive income to income	$ 0	$ 0

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Derivatives and Hedging Activities (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gains (losses)	$ 21	$ 10	$ 71	$ 10
Other Expense [Member] | Foreign Exchange Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Pretax gains (losses)	$ 21	$ 10	$ 71	$ 10

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Derivatives and Hedging Activities (Details Textuals) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Derivatives And Hedging Activities Textuals [Abstract]
Net reduction in interest expense	$ 53,000,000	$ 73,000,000	$ 193,000,000	$ 214,000,000
Net pretax losses on derivatives reclassified from AOCI into earnings			0
Derivative assets not offset	0		0		0
Derivative liabilities not offset	0		0		0
Derivative [Line Items]
Margin on interest rate swap not netted	33,000,000		33,000,000		0
Individually Significant Counterparties [Member]
Offsetting Assets [Line Items]
Total derivatives assets, net	0		0		0
Not Sold Or Repledged [Member]
Offsetting Assets [Line Items]
Securities received as collateral	0		0		242,000,000
Risk Exposure Low [Member]
Offsetting Assets [Line Items]
Total derivatives assets, net	48,000,000		48,000,000		23,000,000
Fair Value Hedging [Member]
Derivative [Line Items]
Notional amount of long-term debt	12,400,000,000		12,400,000,000		14,400,000,000
Cash Flow Hedging [Member]
Derivative [Line Items]
Notional amount of long-term debt	0		0		0
Amount reclassified from AOCI into income	0	0	0	(1,000,000)
Net Investment Hedging [Member]
Derivative [Line Items]
Effection portion of gain (loss) on hedges	(19,000,000)	(58,000,000)	0	(70,000,000)
Ineffectiveness reclassified from AOCI into income			0	0
Credit Valuation Adjustment [Member]
Derivative [Line Items]
Notional amount of long-term debt	$ 0		$ 0		$ 0

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Variable Interest Entity

9 Months Ended

Sep. 30, 2013

Variable Interest Entity [Abstract]

Variable Interest Entity

6. Variable Interest Entity

Credco has established a variable interest entity (VIE), American Express Canada Credit Corporation (AECCC), used primarily to loan funds to affiliates. AECCC has a shelf registration in Canada for a medium-term note program providing for the issuance of notes by AECCC. All notes issued under this program are fully guaranteed by Credco. These medium-term note issuances are the primary source of financing loans to the Canadian affiliate. Credco is considered the primary beneficiary of the entity and owns all of the outstanding voting interests and therefore, consolidates the entity in accordance with accounting guidance governing consolidation of VIEs. Total assets as ofSeptember 30, 2013 and December 31, 2012, were$2.3 billion and $2.4 billion, respectively,the majority of which were eliminated in consolidation. Total liabilities as ofSeptember 30, 2013 and December 31, 2012, were $2.3 billion and $2.4 billion, respectively,andwere primarily recorded in long-term debt. As of September 30, 2013 and December 31, 2012, niland $76 million, respectively, of liabilities were eliminated in consolidation. The assets of the VIE are not used solely to settle the obligations of the VIE. The note holders of the VIE have recourse to Credco.

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Reserves (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Changes in the Card Member receivable reserve for losses
Balance, January 1	$ 83	$ 71
Additions:
Provisions	105	105
Other credits	41	37
Deductions:
Net write-offs	(116)	(114)
Other debits	(28)	0
Balance, September 30	$ 85	$ 99

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Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2013

Fair Values [Abstract]

Fair Values

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on Credco's principal or,in the absence of a principal, most advantageous market for the specific asset or liability.

GAAP provides for a three-level hierarchy of inputs to valuation techniques used to measure fair value, defined as follows:

• Level 1―Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity can access.
• Level 2 ― Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability, including:

-Quoted prices for similar assets or liabilities in active markets;

-Quoted prices for identical or similar assets or liabilities in markets that are not active;

-Inputs other than quoted prices that are observable for the asset or liability; and

-Inputs that are derived principally from or corroborated by observable market data by correlation orother means.

• Level 3 ―Inputs that are unobservable and reflect Credco's own estimates about the estimates market participants would use in pricing the asset or liability based on the best information available in the circumstances (e.g., internally derived assumptions surrounding the timing and amount of expected cash flows).

Accounts Receivable And Loans and Reserves For Cardmember Losses [Abstract]

Card Member Receivables And Loans

Card Member Receivables

Card Member receivables represent amounts due from customers of American Express and certainAmerican Express joint venturechargecard products. For American Express, the Card Member receivables are recorded at the time a Card Member enters into a point-of-sale transaction with a merchant. Each charge card transaction is authorized based on its likely economics reflecting a Card Member's most recent credit information and spend patterns. Additionally, global spend limits are established to limit the maximum exposure for American Express.

Charge card customers generally must pay the full amount billed each month.

Card Member receivable balances are presented on the Consolidated Balance Sheets, net of reserves for losses (refer to Note 4). Card Member receivables also include participation interests purchased from an affiliate. Participation interests in Card Member receivables represent undivided interests in the cash flows of the non-interest-earningCard Memberreceivables.

Card Member Loans

Card Member loans represent amounts due from customers of American Express and certain American Express joint venturelending card products. For American Express, these Card Member loansare recorded at the time a Card Member enters into a point-of-sale transaction with a merchant,as well as amounts due from charge card product customers when a Card Member enters into an extended payment arrangement with American Express. American Express' lending portfolios primarily include revolving loans to Card Members obtained through either their credit card accounts or the lendingoncharge feature of their charge card accounts. 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. 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 losses (refer to Note 4), and include principal, accrued interest and fees receivable. Credco's 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 Credco believes will not be collected.

Reserves For Losses Policy [Abstract]

Reserves for Losses

Reserves for losses are primarily based upon statistical models that analyze portfolio performance and reflect management's judgment regarding the quantitativecomponents of the reserve. The models take into account several factors, including loss migration rates and average losses and recoveries over an appropriate historical period. Management considers whether to adjust the models for specific qualitative factors such as increased risk in certain portfolios, impact of risk management initiatives on portfolio performance and concentration of credit risk based on factors such as vintage, industry or geographic regions. In addition, management may increase or decrease the reserves for losses on Card Member loans for other external environmental qualitative factors,includingvarious indicators related to employment, spend,sentiment, housingand credit, as well as the legal and regulatory environment. Generally, due to the short-term nature of Card Member receivables, the impact of additionalexternal qualitative factors on the probable losses inherent within the Card Memberreceivablesportfolio is not significant. As part of this evaluation process, management also considers various reserve coverage metrics, such as reserves as a percentage of past-due amounts, reserves as a percentage of Card Member receivables or loans and net write-off coverage.

Card Member loans and receivablesbalances are written-off when management considers amounts to be uncollectible, which is generally determined by the number of days past due and is typically no later than 180 days past due. Card Member loans and receivables in bankruptcy or owed by deceased individuals are generally written off upon notification and recoveries are recognized as they are collected.

Derivatives And Hedging Activities Policy [Abstract]

Derivatives

Derivative Financial Instruments that Qualify for Hedge Accounting

Derivatives executed for hedge accounting purposes are documented and designated as such when Credco enters into the contracts. In accordance with its risk management policies, Credco structures its hedges with terms similar to that of the item being hedged. Credco formally assesses, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting thefair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, Credco will discontinue the application of hedge accounting.

Fair Value Hedges

A fair value hedge involves a derivative designated to hedge Credco's exposure to future changes in the fair value of an asset or a liability, or an identified portion thereof that is attributable to a particular risk.

Credco is exposed to interest rate risk associated with its fixed-rate long-term debt. Credco uses interest rate swaps to economicallyconvert certain fixed-rate long-term debt obligations to floating-rate obligations at the time of issuance. As ofSeptember 30,2013 and December 31, 2012, Credco hedged$12.4 billionand$14.4 billion, respectively, of its fixed-rate debt to floating-rate debt using interest rate swaps.

To the extent the fair value hedge is effective, the gain or loss on the hedging instrument offsets the loss or gain on the hedged item attributable to the hedged risk. Any difference between the changes in the fair value of the derivative and the hedged item is referred to as hedge ineffectiveness and is reflected in earnings as a component of other expenses. Hedge ineffectiveness may be caused by differences between the debt's interest coupon and the benchmark rate, primarily due to credit spreads at inception of the hedging relationship that are not reflected in the valuation of the interest rate swap. Furthermore, hedge ineffectiveness may be caused by changes in the relationship between 3-month LIBOR and 1-month LIBOR, as well as between the overnight indexed swap (OIS) and 1-month LIBOR, as basis spreads may impact the valuation of the interest rate swap without causing an offsetting impact in the value of the hedged debt. If a fair value hedge is de-designated or no longer considered to be effective, changes in fair value of the derivative continue to be recorded through earnings but the hedged asset or liability is no longer adjusted for changes in fair valueresulting from changes in interest rates. The existing basis adjustment of the hedged asset or liability is amortized or accreted as an adjustment to yield over the remaining life of that asset or liability

Cash Flow Hedges

A cash flow hedge involves a derivative designated to hedge Credco's exposure to variable future cash flows attributable to a particular risk. Such exposures may relate to either an existing recognized asset or liability, or a forecasted transaction. Credco hedges existing long-term variable-rate debt, the rollover of short-term borrowings and the anticipated forecasted issuance of additional funding through the use of derivatives, primarily interest rate swaps. These derivative instruments economically convert floating-rate debt obligations to fixed-rateobligations for the duration of the instrument. As of September 30, 2013 and December 31, 2012, Credcodid not hedge any of its floating-rate debt using interest rate swaps.

For derivatives designated as cash flow hedges, the effective portion of the gain or loss on the derivatives is recorded in AOCI and reclassified into earnings when the hedged cash flows are recognized in earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income in the same line item in which the hedged instrument or transaction is recognized, primarily in interest expense. Any ineffective portion of the gain or loss on the derivatives is reported as a component of otherexpenses. If a cash flow hedge is de-designated or terminated prior to maturity, the amount previously recorded in AOCI is recognized into earnings over the period that the hedged item impacts earnings. If a hedge relationship is discontinued because it is probable that the forecasted transaction will not occur according to the original strategy, any related amounts previously recorded in AOCI are recognized into earnings immediately.No ineffectiveness or other amounts were reclassified from AOCI into income for the three and nine months ended September 30, 2013 and three months ended September 30, 2012. For the nine months ended September 30, 2012, an amount of $(1) million loss was reclassified from AOCI into income.

In the normal course of business, as the hedged cash flows are recognized into earnings,Credco does not expect to reclassify any amount of net pretax losses on derivatives from AOCI into earnings during the next 12 months.

Net Investment Hedges

A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation. Credco primarily designates foreign currency derivatives, typically foreign exchange forwards, and on occasion foreign currency denominated debt, as hedges of net investments in certain foreign operations. These instruments reduce exposure to changes in currency exchange rates on Credco's investments in non-U.S. subsidiaries.

Any ineffective portion of the gain or (loss) on net investment hedges is recognized in other expenses during the period of change.

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Derivatives and Hedging Activities

9 Months Ended

Sep. 30, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and Hedging Activities

5. Derivatives and Hedging Activities

Credco uses derivative financial instruments (derivatives) to manage exposures to various market risks. Derivatives derive their value from an underlying variable or multiple variables, including interest rate and foreign exchange rate. These instruments enable end users to increase, reduce or alter exposure to various market risks and, for that reason, are an integral component of Credco's market risk management. Credco does not engage in derivatives for trading purposes.

Market risk is the risk to earnings or value resulting from movements in market prices. Credco's market risk exposure is primarily generated by:

• Interest rate risk in its funding activities; and
• Foreign exchange risk in its operations outside the United States and the associated funding of such operations.

American Express centrally monitors market risks using market risk limits and escalation triggers as defined in its Asset/Liability ManagementPolicy.

Interest rate exposure within Credco's charge card and fixed-rate lending products is managed by varying the proportion of total funding provided by short-term and variable-rate debt compared to fixed-rate debt. In addition, interest rate swaps are used from time to time to economically convert fixed-rate debt obligations to variable-rate obligations or to convert variable-rate debt obligations to fixed-rate obligations. Credco may change the mix between variable-rate and fixed-rate funding based on changes in business volumes and mix, among other factors.

Foreign exchange risk is generated by (i) funding foreign currency Card Member receivables and loans with U.S. dollars and (ii) foreign subsidiary equity and foreign currency earnings in entities outside the United States. Credco hedges market exposure to the extent it is economically justified through various means, including the use of derivatives such as foreign exchange forwards and cross-currency swap contracts, which can help mitigate Credco's exposure to specific currencies. Exposures from foreign subsidiary equity in Credco'sentities outside the United States are hedged through various means, including the use of foreign currency debt and foreign exchange forwards executed either by Credco or TRS.

Derivatives may give rise to counterparty credit risk, which is the risk that a derivative counterparty will default on, or otherwise be unable to perform pursuant to, an uncollateralized derivative exposure. Credco manages this risk by considering the current exposure, which is the replacement cost of contracts on the measurement date, as well as estimating the maximum potential value of the contracts over the next 12 months, considering such factors as the volatility of the underlying or reference index. To mitigate derivative credit risk, counterparties are required to be pre-approved by American Express and rated as investment grade. Counterparty risk exposures are centrally monitoredby American Express. Additionally, in order to mitigate the bilateral counterparty credit risk associated with derivatives, Credco has in certain instances entered into master netting agreements with its derivative counterparties, which provide a right of offset for certain exposures between the parties.A significant portion of Credco's derivative assets and liabilities as of September 30, 2013 and December 31, 2012 is subject to such master netting agreements with its derivative counterparties. There are no instances where management makes an accounting policy election to not net assets and liabilities subject to an enforceable master netting agreement on Credco's Consolidated Balance Sheets. To further mitigate bilateral counterparty credit risk, Credco exercises its rights under executed credit support agreements with certain of its derivative counterparties. These agreements require that, in the event the fair value change in the net derivatives position between the two parties exceeds certain dollar thresholds, the party in the net liability position posts collateral to its counterparty.All derivative contracts cleared through a central clearinghouse are collateralized to the full amount of the fair value of the contracts.

In relation to Credco's credit risk, under the terms of the derivative agreements it has with its various counterparties, Credco is not required to either immediately settle any outstanding liability balances or post collateral upon the occurrence of a specified credit risk-related event. Based on the assessment of credit risk of Credco's derivative counterparties as of September 30, 2013 and December 31, 2012, Credco does not have derivative positions that warrant credit valuation adjustments.

Credco's derivatives are carried at fair value on the Consolidated Balance Sheets. The accounting for changes in fair value depends on the instruments' intended use and the resulting hedge designation, if any, as discussed below. Refer to Note 2 for a description of Credco's methodology for determining the fair value of derivatives.

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of September 30,2013 and December 31, 2012:

			Deferred Charges and Other Assets				Accrued Interest and Other Liabilities
			Fair Value				Fair Value
(Millions)			2013		2012		2013		2012
Derivatives designated as hedging instruments:
	Interest rate contracts
		Fair value hedges	$	216	$	406	$	―	$	―
		Cash flow hedges		―		―		―		―
	Foreign exchange contracts
		Net investment hedges		11		6		6		6
Total derivatives designated as hedging instruments			$	227	$	412	$	6	$	6
Derivatives not designated as hedging instruments:
	Foreign exchange contracts		$	35	$	20	$	61	$	73
Total derivatives not designated as hedging instruments			$	35	$	20	$	61	$	73
Total derivatives, gross			$	262	$	432	$	67	$	79
Cash collateral netting(a)				(203)		(160)		―		―
Derivative asset and derivative liability netting(b)				(11)		(7)		(11)		(7)
Total derivatives, net(c)			$	48	$	265	$	56	$	72

• Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement. Additionally, Credco received noncash collateral in the form of security interest in U.S. Treasury securities with a fair value of nil and $242 million as of September 30, 2013 and December 31, 2012, respectively, none of which was sold or repledged. Such noncash collateral effectively further reduces Credco's risk exposure to $48 million and $23 million as of September 30, 2013 and December 31, 2012, respectively, but does not reduce the net exposure on Credco's Consolidated Balance Sheet. Additionally, Credco posted $33 million and nil as ofSeptember 30, 2013 and December 31, 2012, respectively, as initial margin on its centrally cleared interest rate swaps, not netted against the derivative balances.
• Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.
• Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and net derivative liabilities are presented within Deferred Charges and Other Assets and Accrued Interest and Other Liabilities on Credco's Consolidated Balance Sheets.

Derivative Financial Instruments that Qualify for Hedge Accounting

Derivatives executed for hedge accounting purposes are documented and designated as such when Credco enters into the contracts. In accordance with its risk management policies, Credco structures its hedges with terms similar to that of the item being hedged. Credco formally assesses, at inception of the hedge accounting relationship and on a quarterly basis, whether derivatives designated as hedges are highly effective in offsetting thefair value or cash flows of the hedged items. These assessments usually are made through the application of a regression analysis method. If it is determined that a derivative is not highly effective as a hedge, Credco will discontinue the application of hedge accounting.

Fair Value Hedges

A fair value hedge involves a derivative designated to hedge Credco's exposure to future changes in the fair value of an asset or a liability, or an identified portion thereof that is attributable to a particular risk. Credco is exposed to interest rate risk associated with its fixed-rate long-term debt. Credco uses interest rate swaps to economicallyconvert certain fixed-rate long-term debt obligations to floating-rate obligations at the time of issuance. As ofSeptember 30,2013 and December 31, 2012, Credco hedged$12.4 billionand$14.4 billion, respectively, of its fixed-rate debt to floating-rate debt using interest rate swaps.

To the extent the fair value hedge is effective, the gain or loss on the hedging instrument offsets the loss or gain on the hedged item attributable to the hedged risk. Any difference between the changes in the fair value of the derivative and the hedged item is referred to as hedge ineffectiveness and is reflected in earnings as a component of other expenses. Hedge ineffectiveness may be caused by differences between the debt's interest coupon and the benchmark rate, primarily due to credit spreads at inception of the hedging relationship that are not reflected in the valuation of the interest rate swap. Furthermore, hedge ineffectiveness may be caused by changes in the relationship between 3-month LIBOR and 1-month LIBOR, as well as between the overnight indexed swap (OIS) and 1-month LIBOR, as basis spreads may impact the valuation of the interest rate swap without causing an offsetting impact in the value of the hedged debt. If a fair value hedge is de-designated or no longer considered to be effective, changes in fair value of the derivative continue to be recorded through earnings but the hedged asset or liability is no longer adjusted for changes in fair valueresulting from changes in interest rates. The existing basis adjustment of the hedged asset or liability is amortized or accreted as an adjustment to yield over the remaining life of that asset or liability.

The following table summarizes the impact on the Consolidated Statements of Income and Retained Earnings associated with Credco's hedgesof its fixed-rate long-term debt for the three and nine months endedSeptember 30:

For the Three Months Ended September 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract					Hedged item					Net hedge
		Amount					Amount				ineffectiveness
Derivative Relationship	Income Statement Line Item	2013		2012		Income Statement Line Item	2013		2012		2013		2012
Interest rate contracts	Other, net expenses	$	(8)	$	(7)	Other, net expenses	$	4	$	(15)	$	(4)	$	(22)
For the Nine Months Ended September 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract					Hedged item					Net hedge
		Amount					Amount				ineffectiveness
Derivative Relationship	Income Statement Line Item	2013		2012		Income Statement Line Item	2013		2012		2013		2012
Interest rate contracts	Other, net expenses	$	(187)	$	(11)	Other, net expenses	$	185	$	(18)	$	(2)	$	(29)

Credco also recognized a net reduction in interest expense of $53million and $73 million for the three months ended September 30, 2013 and 2012, respectively, primarily related to the net settlements (interest accruals) on Credco's interest rate derivatives designated as fair value hedges. For the nine months endedSeptember 30, 2013 and 2012, the impact on interest expense was a net reduction of $193 million and $214 million, respectively.

Cash Flow Hedges

A cash flow hedge involves a derivative designated to hedge Credco's exposure to variable future cash flows attributable to a particular risk. Such exposures may relate to either an existing recognized asset or liability, or a forecasted transaction. Credco hedges existing long-term variable-rate debt, the rollover of short-term borrowings and the anticipated forecasted issuance of additional funding through the use of derivatives, primarily interest rate swaps. These derivative instruments economically convert floating-rate debt obligations to fixed-rateobligations for the duration of the instrument. As of September 30, 2013 and December 31, 2012, Credcodid not hedge any of its floating-rate debt using interest rate swaps.

For derivatives designated as cash flow hedges, the effective portion of the gain or loss on the derivatives is recorded in AOCI and reclassified into earnings when the hedged cash flows are recognized in earnings. The amount that is reclassified into earnings is presented in the Consolidated Statements of Income in the same line item in which the hedged instrument or transaction is recognized, primarily in interest expense. Any ineffective portion of the gain or loss on the derivatives is reported as a component of otherexpenses. If a cash flow hedge is de-designated or terminated prior to maturity, the amount previously recorded in AOCI is recognized into earnings over the period that the hedged item impacts earnings. If a hedge relationship is discontinued because it is probable that the forecasted transaction will not occur according to the original strategy, any related amounts previously recorded in AOCI are recognized into earnings immediately.No ineffectiveness or other amounts were reclassified from AOCI into income for the three and nine months ended September 30, 2013 and three months ended September 30, 2012. For the nine months ended September 30, 2012, an amount of $(1) million loss was reclassified from AOCI into income.

In the normal course of business, as the hedged cash flows are recognized into earnings,Credco does not expect to reclassify any amount of net pretax losses on derivatives from AOCI into earnings during the next 12 months.

Net Investment Hedges

A net investment hedge is used to hedge future changes in currency exposure of a net investment in a foreign operation. Credco primarily designates foreign currency derivatives, typically foreign exchange forwards, and on occasion foreign currency denominated debt, as hedges of net investments in certain foreign operations. These instruments reduce exposure to changes in currency exchange rates on Credco's investments in non-U.S. subsidiaries.The effective portion of the gain(loss) on net investment hedges, net of taxes, recorded in AOCI as part of the cumulative translation adjustment, was $(19)million and $(58) million for the three months ended September 30, 2013 and 2012, respectively.For the nine months ended September 30, 2013 and 2012, the effective portion of the gain (loss) on net investment hedges, net of taxes, was nil and $(70) million, respectively. Any ineffective portion of the gain or (loss) on net investment hedges is recognized in other expenses during the period of change.No ineffectiveness or otheramounts were reclassified from AOCI into income for the nine months endedSeptember 30, 2013 or 2012.

Derivatives Not Designated as Hedges

Credco has derivatives that act as economic hedges, but are not designated as such for hedge accounting purposes. Foreign currency transactions and non-U.S. dollar cash flow exposures from time to time may be partially or fully economically hedged through foreign currency contracts, primarily foreign exchange forwards. These hedges generally mature within one year. Foreign currency contracts involve the purchase and sale of a designated currency at an agreed upon rate for settlement on a specified date. The changes in the fair value of the derivatives effectively offset the related foreign exchange gains or losses on the underlying balance sheet exposures. From time to time, Credco may enter into interest rate swaps to specifically manage funding costs related to American Express' proprietary card business.

For derivatives that are not designated as hedges, changes in fair value are reported in current period earnings.

The following table summarizes the impact on pretax earnings of derivatives not designated as hedges, as reported on the Consolidated Statements of Income and Retained Earningsfor the three and nine months endedSeptember 30:

For the Three Months Ended September 30: (Millions)
	Pretax gains (losses)
		Amount
Description	Income Statement Line Item	2013		2012
Foreign exchange contracts	Other, net expenses	$	21	$	10
Total		$	21	$	10
For the Nine Months Ended September 30: (Millions)
	Pretax gains (losses)
		Amount
Description	Income Statement Line Item	2013		2012
Foreign exchange contracts	Other, net expenses	$	71	$	10
Total		$	71	$	10

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Consolidated Statements of Cash Flows (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash Flows from Operating Activities
Net income	$ 368	$ 266
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Provisions for losses	108	106
Amortization and other	16	19
Deferred taxes	(6)	7
Changes in operating assets and liabilities:
Interest, taxes and other amounts due from affiliates, net	(157)	(11)
Other operating assets and liabilities	(432)	86
Net cash (used in) provided by operating activities	(103)	473
Cash Flows from Investing Activities
Net increase in Card Member receivables and loans	(1,728)	(4,647)
Net decrease (increase) in loans to affiliates	2,804	(1,006)
Net (increase) decrease in due from affiliates	(69)	2,689
Net cash provided by (used in) investing activities	1,007	(2,964)
Cash Flows from Financing Activities
Net increase in short-term debt to affiliates	529	26
Net increase (decrease) in short-term debt	13	(243)
Issuance of long-term debt	3,549	4,244
Principal payments on long-term debt	(4,829)	(1,560)
Dividends paid	(350)	(297)
Net cash (used in) provided by financing activities	(1,088)	2,170
Effect of exchange rate changes on cash and cash equivalents	(6)	19
Net decrease in cash and cash equivalents	(190)	(302)
Cash and cash equivalents at beginning of period	275	480
Cash and cash equivalents at end of period	$ 85	$ 178

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Derivatives and Hedging Activities (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Other Assets [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives assets	$ 262	$ 432
Cash collateral netting	(203)	(160)
Derivative asset and liability netting	(11)	(7)
Total derivatives assets, net	48	265
Other Assets [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives assets	227	412
Other Assets [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives assets	35	20
Other Assets [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives assets	35	20
Other Assets [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives assets	216	406
Other Assets [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives assets	0	0
Other Assets [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives assets	11	6
Accrued Interest And Other Liabilities Member [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives liabilties	67	79
Cash collateral netting	0	0
Derivative asset and liability netting	(11)	(7)
Total derivatives liabilities, net	56	72
Accrued Interest And Other Liabilities Member [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives liabilties	6	6
Accrued Interest And Other Liabilities Member [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives liabilties	61	73
Accrued Interest And Other Liabilities Member [Member] | Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives liabilties	61	73
Accrued Interest And Other Liabilities Member [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives liabilties	0	0
Accrued Interest And Other Liabilities Member [Member] | Cash Flow Hedging [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives liabilties	0	0
Accrued Interest And Other Liabilities Member [Member] | Net Investment Hedging [Member] | Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Total fair value of derivatives liabilties	$ 6	$ 6

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Reserves for Losses (Tables)

9 Months Ended

Sep. 30, 2013

Reserves For Losses Tables [Abstract]

Changes in the Card Member receivable reserve for losses

The following table presents changes in the Card Member receivables reserve for losses for the nine months endedSeptember 30:

(Millions)		2013		2012
Balance, January 1		$	83	$	71
Additions:
	Provisions(a)		105		105
	Other credits(b)		41		37
Deductions:
	Net write-offs(c)		(116)		(114)
	Other debits(d)		(28)		―
Balance, September 30		$	85	$	99

• Provisions resulting from authorized transactions.
• Primarily reserve balances applicable to participation interests in Card Member receivables purchased from an affiliate. Credco purchases Card Member receivables at fair value but due to system constraints, records the gross receivable amount and the corresponding reserve balance, which are included in its fair value estimate. Specifically, Credco's systems do not have the ability to track multiple accounting bases for Card Member receivables.Participation interests in Card Member receivables purchased from an affiliate totaled $7.7 billionand $4.9billion for thenine months endedSeptember 30,2013 and 2012, respectively.
• Net write-offs includerecoveries of $87 million and $81million for the nine months endedSeptember 30, 2013 and 2012, respectively.
• Primarily reserves for losses attributable to participation interests in Card Member receivables sold to an affiliate. Participation interests in Card Member receivables sold to an affiliate totaled $5.7billion and nil for the nine months endedSeptember 30, 2013 and 2012, respectively.

Changes in the Card Member loans reserve for losses

The following table presents changes in the Card Member loans reserve for losses for the nine months endedSeptember 30:

(Millions)		2013		2012
Balance, January 1		$	5	$	5
Additions:
	Provisions(a)		3		1
Deductions:
	Net write-offs(b)		(3)		(2)
Balance, September 30		$	5	$	4

• Provisions resulting from authorized transactions.
• Net write-offs include recoveries of $4 millionforboth the nine months endedSeptember 30, 2013 and 2012.

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Income Taxes

9 Months Ended

Sep. 30, 2013

Income Taxes [Abstract]

Income Taxes

8. Income Taxes

The results of operations of Credco are included in the consolidated U.S. federal income tax return of American Express. Under an agreement with American Express, provision for income taxes is recognized on a separate company basis. If benefits for net operating losses, future tax deductions and foreign tax credits cannot be recognized on a separate company basis, such benefits are then recognized based upon a share, derived by formula, of those deductions and credits that are recognizable on anAmerican Express consolidated reporting basis.

American Express is under continuousexamination by the Internal Revenue Service (IRS) and tax authorities in other countries and states in which American Express has significant business operations. The tax years under examination and open for examination vary by jurisdiction. The IRS has completed its field examination of American Express' federal tax returns for years through 2007;however,refund claims for certain years continue to be reviewed by the IRS. In addition, American Express is currently under examination by the IRS for the years 2008 through 2011.

Credco believes it is reasonably possible that its unrecognized tax benefits could decrease within the next 12 monthsby as much as $517 million principally as a result of potential resolutions of prior years' tax items with various taxing authorities. The prior years' tax items include unrecognized tax benefits relating to the deductibility of certain expenses or losses and the attribution of taxable income to a particular jurisdiction or jurisdictions. Of the $517 million of unrecognized tax benefits, approximately $504 million relates to amounts that if recognized would be recorded to shareholder's equity and would not impact the effective tax rate. With respect to the remaining $13 million, it is not possible to quantify the impact that the decrease could have on the effective tax rate and net income due to the inherent complexities and the number of tax years open for examination in multiple jurisdictions. Resolution of the prior years' items that comprise this remaining amount could have a material impact on the effective tax rate and on net income, either favorably (principally as a result of settlements that are less than the liability for unrecognized tax benefits) or unfavorably (if such settlements exceed the liability for unrecognized tax benefits).

The effective tax rates were1.1percent and (30.0) percent for the three and nine months endedSeptember 30,2013, respectively, and (24.4)percentand (23.7) percent for the three and nine months endedSeptember 30,2012, respectively. The tax rate in each of the periods reflects the geographic mix of expenses in the United States attracting a 35 percent statutory benefit and foreign earnings taxed at lower rates,which are indefinitely reinvested. The tax rates for thenine months endedSeptember 30,2013reflect the impact of certain prior years' tax items.

The tax rates in all periods reflect the favorable impact of the tax benefit related to Credco's ongoing funding activities outside the United States.Credco's provision for income taxes for interim financial periods is not based on an estimated annual effective rate due to volatility in certain components of revenues and expenses which prevent Credcofrom projecting a reliable estimate of full year pretax income. A discrete calculation of the provision for income taxes is calculated for each interim period.

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Fair Value (Details) (Level 2 [Member], USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Level 2 [Member]
Assets [Abstract]
Derivatives	$ 262	$ 432
Total assets	262	432
Liabilities [Abstract]
Derivatives	67	79
Total liabilities	$ 67	$ 79

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Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2013

Derivatives And Hedging Activities Tables [Abstract]

Schedule of derivative instruments in statement of financial position, fair value

The following table summarizes the total fair value, excluding interest accruals, of derivative assets and liabilities as of September 30,2013 and December 31, 2012:

			Deferred Charges and Other Assets				Accrued Interest and Other Liabilities
			Fair Value				Fair Value
(Millions)			2013		2012		2013		2012
Derivatives designated as hedging instruments:
	Interest rate contracts
		Fair value hedges	$	216	$	406	$	―	$	―
		Cash flow hedges		―		―		―		―
	Foreign exchange contracts
		Net investment hedges		11		6		6		6
Total derivatives designated as hedging instruments			$	227	$	412	$	6	$	6
Derivatives not designated as hedging instruments:
	Foreign exchange contracts		$	35	$	20	$	61	$	73
Total derivatives not designated as hedging instruments			$	35	$	20	$	61	$	73
Total derivatives, gross			$	262	$	432	$	67	$	79
Cash collateral netting(a)				(203)		(160)		―		―
Derivative asset and derivative liability netting(b)				(11)		(7)		(11)		(7)
Total derivatives, net(c)			$	48	$	265	$	56	$	72

• Represents the offsetting of derivative instruments and the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable) arising from derivative instrument(s) executed with the same counterparty under an enforceable master netting arrangement. Additionally, Credco received noncash collateral in the form of security interest in U.S. Treasury securities with a fair value of nil and $242 million as of September 30, 2013 and December 31, 2012, respectively, none of which was sold or repledged. Such noncash collateral effectively further reduces Credco's risk exposure to $48 million and $23 million as of September 30, 2013 and December 31, 2012, respectively, but does not reduce the net exposure on Credco's Consolidated Balance Sheet. Additionally, Credco posted $33 million and nil as ofSeptember 30, 2013 and December 31, 2012, respectively, as initial margin on its centrally cleared interest rate swaps, not netted against the derivative balances.
• Represents the amount of netting of derivative assets and derivative liabilities executed with the same counterparty under an enforceable master netting arrangement.
• Credco has no individually significant derivative counterparties and therefore, no significant risk exposure to any single derivative counterparty. The total net derivative assets and net derivative liabilities are presented within Deferred Charges and Other Assets and Accrued Interest and Other Liabilities on Credco's Consolidated Balance Sheets.

Effect of fair value hedges on results of operations

The following table summarizes the impact on the Consolidated Statements of Income and Retained Earnings associated with Credco's hedgesof its fixed-rate long-term debt for the three and nine months endedSeptember 30:

For the Three Months Ended September 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract					Hedged item					Net hedge
		Amount					Amount				ineffectiveness
Derivative Relationship	Income Statement Line Item	2013		2012		Income Statement Line Item	2013		2012		2013		2012
Interest rate contracts	Other, net expenses	$	(8)	$	(7)	Other, net expenses	$	4	$	(15)	$	(4)	$	(22)
For the Nine Months Ended September 30: (Millions)
	Gains (losses) recognized in income
	Derivative contract					Hedged item					Net hedge
		Amount					Amount				ineffectiveness
Derivative Relationship	Income Statement Line Item	2013		2012		Income Statement Line Item	2013		2012		2013		2012
Interest rate contracts	Other, net expenses	$	(187)	$	(11)	Other, net expenses	$	185	$	(18)	$	(2)	$	(29)

Derivative instruments gain (loss) recognized in income

The following table summarizes the impact on pretax earnings of derivatives not designated as hedges, as reported on the Consolidated Statements of Income and Retained Earningsfor the three and nine months endedSeptember 30:

For the Three Months Ended September 30: (Millions)
	Pretax gains (losses)
		Amount
Description	Income Statement Line Item	2013		2012
Foreign exchange contracts	Other, net expenses	$	21	$	10
Total		$	21	$	10
For the Nine Months Ended September 30: (Millions)
	Pretax gains (losses)
		Amount
Description	Income Statement Line Item	2013		2012
Foreign exchange contracts	Other, net expenses	$	71	$	10
Total		$	71	$	10

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Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 05, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	AMERICAN EXPRESS CREDIT CORPORATION
Entity Central Index Key	0000004969
Document Type	10-Q
Document Period End Date	Sep. 30, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		1,504,938

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Changes in Accumulated Other Comprehensive (Loss) Income (Tables)

9 Months Ended

Sep. 30, 2013

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Components of comprehensive income (loss), net of tax

Changes in each component of AOCI for the three and nine months endedSeptember 30, 2013and 2012were as follows:

		Net Unrealized		Foreign		Accumulated
		Gains (Losses)		Currency		Other
For the Three Months Ended September 30, 2013 (Millions), net		on Cash		Translation		Comprehensive
of tax		Flow Hedges		Adjustments		(Loss) Income
Balances as of June 30, 2013	$	―	$	(367)	$	(367)
Net unrealized losses		―		―		―
Reclassification for realized losses into earnings		―		―		―
Foreign currency translation adjustments		―		68		68
Net losses related to hedges of investment in foreign operations		―		(19)		(19)
Net change in accumulated other comprehensive income		―		49		49
Balances as of September 30, 2013	$	―	$	(318)	$	(318)
		Net Unrealized		Foreign		Accumulated
		Gains (Losses)		Currency		Other
For the Nine Months Ended September 30, 2013 (Millions), net		on Cash		Translation		Comprehensive
of tax		Flow Hedges		Adjustments		(Loss) Income
Balances as of December 31, 2012	$	―	$	8	$	8
Net unrealized losses		―		―		―
Reclassification for realized losses into earnings		―		―		―
Foreign currency translation adjustments		―		(326)		(326)
Net losses related to hedges of investment in foreign operations		―		―		―
Net change in accumulated other comprehensive (loss)		―		(326)		(326)
Balances as of September 30, 2013	$	―	$	(318)	$	(318)
		Net Unrealized		Foreign		Accumulated
		Gains (Losses)		Currency		Other
For the Three Months Ended September 30, 2012 (Millions), net		on Cash		Translation		Comprehensive
of tax		Flow Hedges		Adjustments		(Loss) Income
Balances as of June 30, 2012	$	―	$	(116)	$	(116)
Net unrealized losses		―		―		―
Reclassification for realized losses into earnings		―		―		―
Foreign currency translation adjustments		―		222		222
Net losses related to hedges of investment in foreign operations		―		(58)		(58)
Net change in accumulated other comprehensive income		―		164		164
Balances as of September 30, 2012	$	―	$	48	$	48
		Net Unrealized		Foreign		Accumulated
		Gains (Losses)		Currency		Other
For the Nine Months Ended September 30, 2012 (Millions), net		on Cash		Translation		Comprehensive
of tax		Flow Hedges		Adjustments		(Loss) Income
Balances as of December 31, 2011	$	(1)	$	(58)	$	(59)
Net unrealized losses		―		―		―
Reclassification for realized losses into earnings		1		―		1
Foreign currency translation adjustments		―		176		176
Net losses related to hedges of investment in foreign operations		―		(70)		(70)
Net change in accumulated other comprehensive income		1		106		107
Balances as of September 30, 2012	$	―	$	48	$	48