Credit Card Revenues The following is a summary of our Credit card revenues: Credit card revenues include finance charges, interchange fees, late fees and other revenue. Finance charges represent interest earned on  unpaid balances while interchange fees are earned from the use of Nordstrom Visa credit cards at merchants outside of Nordstrom. Late  fees are assessed when a credit card account becomes past due. We consider an account delinquent if the minimum payment is not  received by the payment due date. Credit card revenues are recorded net of estimated uncollectible finance charges and fees.  Credit card revenues increased $22 in 2014 compared with 2013 primarily due to an increase in the average accounts receivable balance,  slightly decreased payment rates and a 6.5% increase in total volume during 2014. Credit expenses are summarized in the following table: Credit card revenues were flat in 2013 compared with 2012. This was due to growth in total volume that was offset by continued  improvement in cardholder payment rates.  Total Credit expenses increased $8 in 2014 compared with 2013, due to higher operational expenses resulting from increased volume in  2014 and lower operational expenses in 2013 resulting from the conversion of our Nordstrom Rewards travel benefits into Nordstrom Notes  during that year. The increase in operational expenses was partially offset by a reduction in bad debt expense, which resulted in a reduction  of our allowance for credit losses by $5 and recoveries from the sale of bad debt during 2014. We experienced continued improvement in our  portfolio delinquencies and write-off results during 2014, which are further discussed below.  Total Credit expenses decreased $4 in 2013 compared with 2012, due to lower operational and marketing expenses resulting primarily from  the conversion of our Nordstrom Rewards travel benefit into Nordstrom Notes during 2013. Bad debt expense was lower in 2012 due to the  $30 reduction of our allowance for credit losses in 2012 compared with a $5 reduction in 2013. We experienced continued improvement in  our portfolio delinquencies and write-off results during 2013. Credit Expenses (2013 vs. 2012) Credit Expenses (2014 vs. 2013) Credit Card Revenues (2013 vs. 2012) Credit Expenses Credit Card Revenues (2014 vs. 2013) Fiscal year 2014 2013 2012 Finance charge revenue $253 $244 $246 Interchange — third-party 89 86 84 Late fees and other revenue 54 44 42 Total Credit card revenues $396 $374 $372 Fiscal year 2014 2013 2012 Operational expenses $148 $129 $143 Bad debt expense 41 52 42 Occupancy expenses 5 5 5 Total Credit expenses $194 $186 $190 22