2. Net Sales

The Company disaggregates its net sales by major source as follows:


	Three Months Ended September 30, 2019
	Products		Services		Total
U.S. Debit and Credit	$	34,218	$	17,284	$	51,502
U.S. Prepaid Debit		—		20,452		20,452
Intersegment eliminations		(255)		(18)		(273)
Total	$	33,963	$	37,718	$	71,681

	Nine Months Ended September 30, 2019
	Products		Services		Total
U.S. Debit and Credit	$	100,338	$	51,179	$	151,517
U.S. Prepaid Debit		—		53,162		53,162
Other		397		1,282		1,679
Intersegment eliminations		(890)		(20)		(910)
Total	$	99,845	$	105,603	$	205,448

	Three Months Ended September 30, 2018
	Products		Services		Total
U.S. Debit and Credit	$	34,176	$	13,826	$	48,002
U.S. Prepaid Debit		—		21,190		21,190
Other		549		1,371		1,920
Intersegment eliminations		(52)		(73)		(125)
Total	$	34,673	$	36,314	$	70,987

	Nine Months Ended September 30, 2018
	Products		Services		Total
U.S. Debit and Credit	$	88,340	$	40,652	$	128,992
U.S. Prepaid Debit		—		52,128		52,128
Other		3,549		4,050		7,599
Intersegment eliminations		(978)		(443)		(1,421)
Total	$	90,911	$	96,387	$	187,298

Products Net Sales

“Products” net sales are recognized when obligations under the terms of a contract with a customer are satisfied. In most instances, this occurs over time as cards are manufactured for specific customers, have no alternative use, and the Company has an enforceable right to payment for work performed. For work performed but not completed and unbilled, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts. Items included in “Products” revenue are the design and production of Financial Payment Cards, including contact-EMV®, Dual-Interface EMV®, metal, contactless and magnetic stripe cards, private label credit cards and retail gift cards. Card@Once® printers and consumables are also included in “Products” net sales, and their associated revenues are recognized at the time of shipping.

The Company includes gross shipping and handling revenue and cost in net sales and cost of sales, respectively.

Services Net Sales

Revenue is recognized for “Services” as the services are performed. Items included in “Services” net sales include the personalization and fulfillment of Financial Payment Cards, providing tamper-evident secure packaging and fulfillment services to Prepaid Debit Card program managers, and software as a service personalization of instant issuance debit cards. The Company also generates “Service” revenue click-fees from the Company’s patented card design software, known as MYCA, which provides customers and cardholders the ability to design cards on the internet and customize cards with individualized digital images. “Services” revenue is also generated from personalizing retail gift cards historically in Canada prior to disposition. As applicable, for work performed but not completed and unbilled, the Company estimates revenue by taking actual costs incurred and applying historical margins for similar types of contracts.

Customer Contracts

The Company often enters into Master Services Agreements (“MSAs”) with its customers. Generally, enforceable rights and obligations for goods and services occur only when a customer places a purchase order or statement of work to obtain goods or services under an MSA. The contract term as defined by ASU 2014-09 is the length of time it takes to deliver the goods or services promised under the purchase order or statement of work. As such, the Company's contracts are generally short term in nature.