Significant Customer Concentrations

6 Months Ended

Jun. 30, 2011

Significant Customer Concentrations [Abstract]

Concentration Risk Disclosure

A credit concentration may exist if customers are involved in similar industries, economic sectors, and geographic regions. Our retail distributors operate in similar economic sectors but diverse domestic geographic regions. The loss of a significant retail distributor could have a material adverse effect upon our card sales, profitability, and revenue growth.

Revenues derived from our products sold at our four largest retail distributors represented the following percentages of our total operating revenues:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Walmart	60	%	63	%	59	%	63	%
Three other largest retail distributors, as a group	14	%	20	%	17	%	21	%

Excluding stock-based retailer incentive compensation of $4.4 million and $2.5 million for the three-month periods ended June 30, 2011 and 2010, respectively, and $10.2 million and $2.5 million for the six-month periods ended June 30, 2011 and 2010, respectively, revenues derived from our products sold at our four largest retail distributors represented the following percentages of our total operating revenues:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Walmart	62	%	64	%	61	%	64	%
Three other largest retail distributors, as a group	14	%	19	%	16	%	20	%

In determining the customer concentration, we attributed new card fees and cash transfer revenues to the retail distributor where the sale of the new cards and cash transfer products occurred.

The concentration of GPR cards activated (in units) for Walmart and our three other largest retail distributors, in the aggregate, was 79% and 86% for the three-month periods ended June 30, 2011 and 2010, respectively, and 74% and 81% for the six-month periods ended June 30, 2011 and 2010, respectively. The concentration of sales of cash transfer products (in units) for these retail distributors, in the aggregate, was 90% and 93% for the three-month periods ended June 30, 2011 and 2010, respectively, and 90% and 93% for the six-month periods ended June 30, 2011 and 2010, respectively.

Settlement assets attributable to Walmart and our three other largest retail distributors, as a group, comprised 32% and 38%, respectively, of the settlement assets recorded on our consolidated balance sheet as of June 30, 2011 and 26% and 31%, respectively, as of December 31, 2010.

During the six-month periods ended June 30, 2011 and 2010, the majority of the customer funds underlying our products were held in bank accounts at two card issuing banks. These funds are held in trust for the benefit of the customers, and we have no legal rights to the customer funds or deposits at the card issuing banks. Additionally, we have receivables due from these card issuing banks included in accounts receivable, net, on our consolidated balance sheets. The failure of either of these card issuing banks could result in significant business disruption, a potential material adverse affect on our ability to service our customers, potential contingent obligations by us to customers and material write-offs of uncollectible receivables due from these card issuing banks.