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Acquired Card Receivables
 12 Months Ended
Jun. 30, 2025
Acquired Card Receivables [Abstract]  
Acquired Card Receivables ACQUIRED CARD RECEIVABLES
As of June 30, 2025, approximately $221.7 million of the acquired card receivables balance served as collateral for the Company’s borrowings from the Revolving Credit Facilities (as defined below, see Note 9).
The Company incurred losses related to card transactions disputed by spending businesses. The amounts were not material during the years ended June 30, 2025 and 2024.
The acquired card receivables balances do not include purchases of participation interests in card receivables from the Company's card issuing partner banks (Issuing Banks) that have not cleared at the end of the reporting period. Purchases of participation interests in card receivables that have not cleared as of June 30, 2025 totaled $76.0 million. The Company recognized an immaterial amount of expected credit losses on the card receivables that have not cleared yet as of each of June 30, 2025 and 2024.
Credit Quality Information
The Company regularly reviews collection experience, delinquencies, and net charge-offs in determining allowance for expected credit losses related to acquired card receivables. Historical collections rates have shown that days past due is the primary indicator of the likelihood of loss. The Company uses the delinquency trends or past due status of the acquired card receivables as the credit quality indicator. Acquired card receivables are considered past due if full payment is not received on the bill date or within a grace period, which is generally limited to five days. Below is a summary of the acquired card receivables by class (i.e., past due status) as of the dates presented (in thousands):
June 30,
20252024
Current and less than 30 days past due$686,070 $706,026 
30 ~ 59 days past due6,173 4,277 
60 ~ 89 days past due5,312 3,393 
90 ~ 119 days past due2,562 4,093 
Over 119 days past due11 310 
Total$700,128 $718,099 
Allowance for Expected Credit Losses
Below is a summary of the changes in allowance for expected credit losses (in thousands):
June 30,
20252024
Balance, beginning
$20,883 $15,498 
Provision for expected credit losses45,326 52,327 
Charge-off amounts(59,265)(51,805)
Recoveries collected8,076 4,863 
Balance, ending
$15,020 $20,883 
During the year ended June 30, 2025, the Company refined its methodology used to reserve for credit losses. The refinements include incorporating credit limit size into the attributes used to segment the portfolio as well as updating how economic assumptions are applied. The refinements to the methodology maintain the timeliness and accuracy of the Company's estimate of expected credit losses on the acquired card receivables, supporting the continuous evolution of the acquired card receivable portfolio. As a result, the provision for expected credit losses for the year ended June 30, 2025 included a release of $5.7 million.
Card receivables acquired from the Issuing Banks were $21.7 billion and $17.6 billion during the years ended June 30, 2025 and 2024, respectively. The provision for expected credit losses related to acquired card receivables decreased during the year ended June 30, 2025 compared to prior year due to refinements in methodology used to reserve for credit losses described above and improvements in delinquency performance, which were offset by growth in cards receivables acquired. The charged-off amounts related to acquired card receivables increased during the year ended June 30, 2025 compared to June 30, 2024 due to growth in cards receivables acquired offset by improvements in delinquency performance. The decrease in allowance for expected credit losses as of June 30, 2025 compared to June 30, 2024, was primarily due to the refinements in methodology