2.4.0.8060100 - Disclosure - NATURE OF OPERATIONS AND BASIS OF PRESENTATIONtruefalsefalse1false falsefalsec20121001to20130630http://www.sec.gov/CIK0001045150duration2012-10-01T00:00:002013-06-30T00:00:001true 1us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0NATURE OF OPERATIONS AND BASIS OF PRESENTATION [Abstract]2false 2us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalselabel1falsefalsefalse00<div style="font-family: Arial; font-size: 10pt;"><div style="text-align: left; font-family: Arial; color: #000000; font-size: 10pt; font-weight: bold;">NOTE 1—NATURE OF OPERATIONS AND BASIS OF PRESENTATION</div><div style="text-align: justify; font-style: italic; margin-top: 6pt; font-family: Arial; color: #000000; font-size: 10pt;">NATURE OF OPERATIONS</div><div style="text-align: justify; margin-top: 6pt; font-family: Arial; color: #000000; font-size: 10pt;">Official Payments Holdings, Inc., or Official Payments (formerly known as Tier Technologies, Inc.) primarily provides electronic payment solutions ("Payment Solutions"), which are provided by our wholly owned subsidiary Official Payments Corporation, or OPC.  We provide payment solutions to the following types of Clients:</div><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="margin-top: 6pt; width: 100%; font-family: Arial; font-size: 10pt;"><tr><td style="width: 36pt; vertical-align: top; align: right;"><div style="text-align: left; margin-top: 6pt; font-family: Arial; color: #000000; margin-left: 18pt; font-size: 10pt;">·</div></td><td style="width: auto; vertical-align: top;"><div style="text-align: justify; margin-top: 6pt; font-family: Arial; color: #000000; font-size: 10pt;">Federal, State and Local governments—which includes federal and state income and business tax payments, and local real property tax payments;</div></td></tr></table></div><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="margin-top: 6pt; width: 100%; font-family: Arial; font-size: 10pt;"><tr><td style="width: 36pt; vertical-align: top; align: right;"><div style="text-align: left; margin-top: 6pt; font-family: Arial; color: #000000; margin-left: 18pt; font-size: 10pt;">·</div></td><td style="width: auto; vertical-align: top;"><div style="text-align: justify; margin-top: 6pt; font-family: Arial; color: #000000; font-size: 10pt;">Higher Education—which consists of payments to post-secondary educational institutions;</div></td></tr></table></div><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="margin-top: 6pt; width: 100%; font-family: Arial; font-size: 10pt;"><tr><td style="width: 36pt; vertical-align: top; align: right;"><div style="text-align: left; margin-top: 6pt; font-family: Arial; color: #000000; margin-left: 18pt; font-size: 10pt;">·</div></td><td style="width: auto; vertical-align: top;"><div style="text-align: justify; margin-top: 6pt; font-family: Arial; color: #000000; font-size: 10pt;">Utility—which includes payments to private and public utilities;</div></td></tr></table></div><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="margin-top: 6pt; width: 100%; font-family: Arial; font-size: 10pt;"><tr><td style="width: 36pt; vertical-align: top; align: right;"><div style="text-align: left; margin-top: 6pt; font-family: Arial; color: #000000; margin-left: 18pt; font-size: 10pt;">·</div></td><td style="width: auto; vertical-align: top;"><div style="text-align: justify; margin-top: 6pt; font-family: Arial; color: #000000; font-size: 10pt;">Charitable organizations; and</div></td></tr></table></div><div><table cellpadding="0" cellspacing="0" class="DSPFListTable" style="margin-top: 6pt; width: 100%; font-family: Arial; font-size: 10pt;"><tr><td style="width: 36pt; vertical-align: top; align: right;"><div style="text-align: left; margin-top: 6pt; font-family: Arial; color: #000000; margin-left: 18pt; font-size: 10pt;">·</div></td><td style="width: auto; vertical-align: top;"><div style="text-align: justify; margin-top: 6pt; font-family: Arial; color: #000000; font-size: 10pt;">Other—which includes rent, insurance, and K-12 education meal payments and fee payments.</div></td></tr></table></div><div style="text-align: justify; margin-top: 6pt; font-family: Arial; margin-bottom: 3pt; color: #000000; font-size: 10pt;">We also operate in one other business area, our Voice and Systems Automation, or VSA, business. We expect to wind down our VSA business during fiscal year 2014, because we do not believe the services are compatible with our long-term strategic direction.  VSA provides call center interactive voice response systems and support services, including customization, installation and maintenance.</div><div style="text-align: justify; margin-top: 6pt; font-family: Arial; color: #000000; font-size: 10pt;">For additional information about our Payment Solutions and VSA operations, see Note 10—Segment Information.</div><div><br /></div><div style="text-align: justify; font-style: italic; font-family: Arial; color: #000000; font-size: 10pt;">BASIS OF PRESENTATION</div><div><br /></div><div style="text-align: justify; font-family: Arial; color: #000000; font-size: 10pt;">Our Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in the United States of America, or US GAAP, for interim financial information and in accordance with Regulation S-X, Article 10, under the Securities Exchange Act of 1934, as amended.  Our Consolidated Financial Statements are unaudited and exclude certain disclosures required for annual financial statements.  We believe we have made all necessary adjustments so that our Consolidated Financial Statements are presented fairly and that all such adjustments are of a normal recurring nature.</div><div><br /></div><div style="text-align: justify; font-family: Arial; color: #000000; font-size: 10pt;">Preparing financial statements requires management to make estimates and assumptions that affect the amounts reported on our Consolidated Financial Statements and accompanying notes. We believe that near-term changes could reasonably affect the following estimates: collectability of receivables; share- based compensation; valuation of goodwill, intangibles and investments; contingent liabilities; effective tax rates; and deferred taxes and the associated valuation allowance. Although we believe the estimates and assumptions used in preparing our Consolidated Financial Statements and notes thereto are reasonable in light of known facts and circumstances, actual results could differ materially.</div><div><br /></div></div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 46R -Paragraph 4, 14, 15 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. 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