Concentration of credit risk

3 Months Ended

Mar. 31, 2013

Concentration of credit risk

Concentration of credit risk

4. Concentration of credit risk

The Company’s assets that are exposed to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash and receivables from clients. The Company places its cash, cash equivalents, and restricted cash with financial banking institutions that are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. The Company also maintains cash balances at foreign banking institutions, which are not insured by the FDIC. As of March 31, 2013 and December 31, 2012 the Company’s uninsured cash balances totaled $4.5 million and $5.3 million, respectively.

The Company maintains an allowance for uncollectible accounts receivable based on expected collectability and performs ongoing credit evaluations of customers’ financial condition.

The Company’s accounts receivable concentrations of 10% and greater are as follows:

	As of March 31, 2013		As of December 31, 2012
Customer A	23	%	26	%
Customer B (*)	14		14
Customer C	12		11
Customer D	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.

The Company’s revenue concentrations of 10% and greater are as follows:

	Three months ended March 31,
	2013		2012
Customer A	20	%	23	%
Customer C	17		20