Litigation and Contingencies (Note)

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

LITIGATION AND CONTINGENCIES

Contingencies

Computer Security Breach - A unit of the Company's European processing business was the subject of a criminal security breach in late 2011. The affected business represents less than 5% of the Company's revenues, profits and transactions. Euronet took immediate steps to remediate the breach and ensure its impact was contained.

Certain claims arising from such breach have been asserted against us, and we expect that additional claims may be asserted in the future. However, we maintain insurance to cover the financial exposure for response costs, losses by the card issuer and fines of penalties from incidents of this nature. We expect the aggregate amount of expenses incurred and losses asserted against us for which we ultimately bear liability to be within the limits of our insurance. Consequently, the Company does not expect the net financial impact of such expenses or loss from the breach, after insurance recovery, if any, to be material.

Bank card association rules provide a process by which loss and expense arising from such breaches is allocated among card issuers, acquirers and service providers such as Euronet. Expenses related to the breach were $0.7 million during 2012, net of $1.8 million in amounts recovered from our insurance carrier. During 2011, the Company incurred $0.4 million in related expenses.

Antitrust Investigation - In the second quarter of 2009, the Antitrust Division of the United States Department of Justice (the “DOJ”) served Continental Exchange Solutions, Inc. d/b/a Ria Financial Services (“CES”), an indirect, wholly owned subsidiary of the Company, with a grand jury subpoena requesting documents from CES and its affiliates in connection with an investigation into possible price collusion related to money transmission services to the Dominican Republic (“D.R.”) during the period from January 1, 2004 to the date of the subpoena. The Company acquired all of the stock of Ria Envia, Inc., the parent of CES, in April 2007.

On September 26, 2012, the Company received notification from the DOJ that its investigation was completed. The Company believes this brings the matter to a close without any further implications for CES. The Company incurred no significant legal fees related to this investigation and related matters, during 2012

Litigation

During 2010, CES was served with a class action lawsuit filed by a former employee for alleged wage and hour violations related to overtime and meal and rest period requirements under California law. This lawsuit was dismissed on October 12, 2011 in consideration of the payment of a nominal amount to the plaintiff.

During 2012, the Company was served with a class action lawsuit filed by another former employee alleging wage and hour violations relating to meal and rest period requirements.  We are vigorously defending this suit.  Due to the preliminary nature of the litigation, we are not able to estimate or predict any possible loss or range of loss associated with the litigation.

In addition, from time to time, the Company is a party to litigation arising in the ordinary course of its business. Currently, there are no legal proceedings that management believes, either individually or in the aggregate, would have a material adverse effect upon the consolidated results of operations or financial condition of the Company. In accordance with U.S. GAAP, the Company records a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel, and other information and events pertaining to a particular case.