Credit card bad debts refer to receivables that the credit card issuing bank cannot recover or has a very low possibility of recovery. Losses caused by bad debts are called credit card bad debts.

Due to the great uncertainty of credit card holders, the accounts receivable of the credit card issuing bank may not be fully recovered in the end, that is, some or all of the bad debts may occur. The so-called bad debts refer to accounts receivable that cannot be collected. It is generally believed that if the debtor dies or goes bankrupt, the portion that cannot be recovered after being compensated with his remaining property and inheritance; accounts receivable that have been in arrears for more than two years can be recognized as bad debts.