CSIMarket


Terms Beginning with C
       
       
 

Cardmember Receivables

Financial Term


Cardmember receivables refer to the outstanding balances that credit card customers owe to a credit card issuer. It includes charges for purchases, fees, interest, cash advances, and other transactions that have not been paid in full on the due date. Credit card issuers generate revenue from cardmember receivables through interest charges and fees.

Cardmember receivables are a critical measure of a credit card issuer's financial health and are closely monitored by investors, analysts, and credit rating agencies. The management of cardmember receivables is a key focus for credit card issuers in the financial industry.

There are two types of cardmember receivables: securitized and held on the issuer's balance sheet. Securitized receivables are packaged into securities and sold to investors, while held receivables are kept on the issuer's balance sheet.

The securitization of cardmember receivables enables issuers to raise capital by selling off future cash flows from credit card payments. It provides liquidity, reduces risks, and lowers funding costs. However, securitization also exposes issuers to the risk of investor demand, credit ratings, and interest rate fluctuations.

Overall, the management and monitoring of cardmember receivables are crucial for credit card issuers as they impact their financial performance and creditworthiness.


   
     

Cardmember Receivables

Financial Term


Cardmember receivables refer to the outstanding balances that credit card customers owe to a credit card issuer. It includes charges for purchases, fees, interest, cash advances, and other transactions that have not been paid in full on the due date. Credit card issuers generate revenue from cardmember receivables through interest charges and fees.

Cardmember receivables are a critical measure of a credit card issuer's financial health and are closely monitored by investors, analysts, and credit rating agencies. The management of cardmember receivables is a key focus for credit card issuers in the financial industry.

There are two types of cardmember receivables: securitized and held on the issuer's balance sheet. Securitized receivables are packaged into securities and sold to investors, while held receivables are kept on the issuer's balance sheet.

The securitization of cardmember receivables enables issuers to raise capital by selling off future cash flows from credit card payments. It provides liquidity, reduces risks, and lowers funding costs. However, securitization also exposes issuers to the risk of investor demand, credit ratings, and interest rate fluctuations.

Overall, the management and monitoring of cardmember receivables are crucial for credit card issuers as they impact their financial performance and creditworthiness.


Related Financial Terms


Help

About us

Advertise