Accounts Payable and Accrued Expenses

6 Months Ended

Jun. 30, 2014

(7) Accounts Payable and Accrued Expenses

The following is a summary of accounts payable and accrued expenses (in thousands):


	June 30,		December 31,
	2014		2013
		(unaudited)

Accounts payable	$	1,690	$	711
Accrued processing and disbursement costs		2,103		2,120
Accrued marketing expense		1,189		1,940
Other accrued expenses		5,230		3,574
	$	10,212	$	8,345

Other accrued expenses in the table above include the reserve for transaction losses. The Company is exposed to transaction losses due to fraud, as well as nonperformance of third parties and customers. The Company establishes a reserve for such losses based on historical trends and any specific risks identified in processing customer transactions. The following table summarizes the activities of the Company’s reserve for transaction losses during the period presented (in thousands, unaudited):


Balance as of December 31, 2013	$	223
Additions to expense		6,717
Losses incurred, net of recoveries		(6,603)
Balance as of June 30, 2014	$	337