Summary of significant accounting policies (Tables)

12 Months Ended

Dec. 31, 2012

Concentration of credit risk

Schedule of computation of basic and diluted net (loss) income per share

	Year ended December 31,
	2012			2011			2010
Numerator:
Net (loss) income	$	(4,452,305	)	$	2,384,729		$	(3,064,787	)
Amounts allocated to participating preferred stockholders under the two-class method	—			(283,154		)	—
Net (loss) income applicable to common stockholders (basic and dilutive)	$	(4,452,305	)	$	2,101,575		$	(3,064,787	)
Denominator:
Weighted average common stock outstanding (basic)	52,187,144			49,348,033			40,431,073
Common equivalent shares from options and warrants to purchase common stock	—			2,819,459			—
Weighted average common stock outstanding (diluted)(1)	52,187,144			52,167,492			40,431,073
Basic net (loss) income per share applicable to common stockholders	$	(0.09	)	$	0.04		$	(0.08	)
Diluted net (loss) income per share applicable to common stockholders(1)	$	(0.09	)	$	0.04		$	(0.08	)

(1) In accordance with ASC 260-10-45-48 for the year ended December 31, 2012 and 2011, the Company has excluded 915,000 contingently issued restricted shares from diluted weighted average common stock outstanding as the contingent compensation (a) have not been satisfied at the reporting date nor (b) would have been satisfied if the reporting date was at the end of the contingency period.

Schedule of weighted securities outstanding that have been excluded from the diluted net (loss) income per share calculation because the effect would have been anti-dilutive

	Year ended December 31,
	2012	2011	2010
Stock options	8,528,816	170,543	7,264,204
Warrants	2,055,722	182,539	3,661,083
Convertible debt(1)	—	1,316,071	4,049,776
Convertible preferred stock(1)	6,851,144	6,851,144	6,851,144
Total antidilutive securities	17,435,682	8,520,297	21,826,207

(1) Diluted net income per share increases when the convertible debt and convertible preferred stock are included in the required sequence in the diluted earnings per share computation. As such both the convertible debt and convertible preferred stock are excluded from the computation of diluted earnings per share for the year ended December 31, 2011.  In April 2011, the convertible debt holders converted their entire holdings.

Summary of stock-based expense recognized by income statement classification

	Year ended December 31,
	2012		2011		2010
Processing and service costs	$	262,775	$	135,444	$	211,582
Selling, general and administrative expenses	872,272		435,366		618,151
Total stock-based expense	$	1,135,047	$	570,810	$	829,733

Summary of stock-based expense recognized by type

	Year ended December 31,
	2012		2011		2010
Stock options	$	1,135,047	$	555,882	$	739,992
Warrants(1)	—		14,928		89,741
Total stock-based expense	$	1,135,047	$	570,810	$	829,733

(1) For the periods indicated in the table above, the Company issued warrants as a partial payment for legal services rendered.

Summary of the unamortized stock-based expense and associated weighted average remaining amortization periods for stock options and warrants

	As of December 31, 2012			As of December 31, 2011
	Unamortized stock-based expense		Weighted average remaining amortization period (in years)	Unamortized stock-based expense		Weighted average remaining amortization period (in years)
Stock options	$	1,383,725	1.80	$	786,668	1.69
Warrants	—		—	—		—

Schedule of valuation assumptions used for the estimated fair market value of each option and warrant granted on the grant date using the Black-Scholes Option Pricing Model

	Year ended December 31,
	2012	2011	2010
Expected life (in years)	5.25 — 6.00	5.0 - 6.32	5.0 - 6.0
Expected volatility (percentage)	45.13 — 47.36	27.80 - 36.68	28.20 - 36.23
Risk-free interest rate (percentage)	0.91 — 1.39	1.58 - 2.72	1.59 - 3.04
Expected dividend yield	—	—	—

Schedule of valuation assumptions used for estimated fair value of the market condition award on the grant date using a binomial lattice-based valuation pricing model

	July 26, 2011
Expected life (in years)	5.3
Expected volatility (percentage)	31.68
Risk-free interest rate (percentage)	2.04
Expected dividend yield	—

Accounts Receivable

Concentration of credit risk

Schedule of concentrations of 10% and greater

	As of December 31,
	2012		2011
Customer A	26	%	35	%
Customer B*	14		20
Customer C	11		14

* Customer B is a sponsoring bank for certain merchants within the Company’s payment processing services. Customer B serves as an aggregator of merchant transactions and therefore, there is a concentration risk relating to receivables. However, revenues are generated from individual merchants that individually do not exceed 10% of the Company’s revenue.

Revenue

Concentration of credit risk

Schedule of concentrations of 10% and greater

	Year ended December 31,
	2012		2011		2010
Customer A	23	%	28	%	30	%
Customer C	17		12