Accounts Payable and Accrued Expenses

9 Months Ended

Sep. 30, 2013

Accounts Payable and Accrued Expenses

(6) Accounts Payable and Accrued Expenses

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

	September 30,		December 31,
	2013		2012
	(unaudited)
Accounts payable	$	2,837	$	1,076
Accrued processing and disbursement costs		1,679		1,055
Accrued marketing expense		864		708
Other accrued expenses		3,794		4,311
	$	9,174	$	7,150

The Company is exposed to transaction losses due to fraud, as well as nonperformance of third parties and customers. The Company establishes reserves for such losses based on historical trends and any specific risks identified in processing customer transactions. Recoveries are reflected as a reduction in the reserve for transaction losses when the recovery occurs. This reserve is included in other accrued expenses in the table above. The following table summarizes the Company’s reserve for transaction losses for the following period (in thousands, unaudited):

Balance at December 31, 2012		Additions to Expense		Losses Incurred			Balance at September 30, 2013
$	547	$	10,175	$	(10,276	)	$	446