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Acquired Card Receivables
 6 Months Ended
Dec. 31, 2023
Acquired Card Receivables [Abstract]  
Acquired Card Receivables ACQUIRED CARD RECEIVABLES
Acquired Card Receivables
As of December 31, 2023, approximately $191.4 million of the acquired card receivable balance served as collateral for the Company’s borrowings from the Revolving Credit Facility (see Note 6).
The Company incurred losses related to card transactions disputed by spending businesses. The amounts were not material during the three and six months ended December 31, 2023 and 2022.
The acquired card receivable balances do not include purchases of 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 card receivables that have not cleared as of December 31, 2023 totaled $15.8 million. The Company recognized an immaterial amount of expected credit losses on the purchased card receivables that have not cleared yet as of December 31, 2023.
Credit Quality Information
The Company regularly reviews collection experience, delinquencies, and net charge-offs in determining allowance for 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):
December 31,
2023		June 30,
2023
Current and less than 30 days past due$524,440 $463,704 
30 ~ 59 days past due5,570 2,507 
60 ~ 89 days past due5,584 4,544 
90 ~ 119 days past due2,511 3,196 
Over 119 days past due384 197 
Total$538,489 $474,148 
The outstanding balance of acquired card receivables that were (i) 90 days or more past due that continued to accrue fees and had an allowance for outstanding balance and fees and (ii) not classified as non-accrual was not material as of each of December 31, 2023 and June 30, 2023.
Unused Credit Arrangements
As of December 31, 2023, the Company, in partnership with the Issuing Banks, had approximately $2.1 billion in unused credit available to spending businesses. While this balance represents the total unused credit available, historical trends and current expectations indicate that the unused credit will likely not be fully utilized by spending businesses at any one time.

The Company manages credit risk exposure by limiting total credit for each spending business. The Company periodically reviews credit lines to assess different factors, including account usage and customer creditworthiness. The credit lines can be terminated by the Company at any time, and they do not necessarily represent future cash requirements. The Company does not record a liability for expected credit losses for unused lines of credit as they are unconditionally cancellable.
Allowance for Credit Losses
Below is a summary of the changes in allowance for credit losses presented (in thousands):
Three Months Ended
December 31,		Six Months Ended
December 31,
2023202220232022
Balance, beginning$18,513 $7,541 $15,498 $5,414 
Initial allowance for credit losses on purchased card receivables with credit deterioration
— — — 10 
Provision for expected credit losses14,354 8,520 26,329 15,103 
Charge-off amounts(12,118)(4,379)(21,908)(9,412)
Recoveries collected760 266 1,590 833 
Balance, end of period$21,509 $11,948 $21,509 $11,948 
Card receivables acquired from the Issuing Banks and held for investment were $4.3 billion and $8.3 billion during the three and six months ended December 31, 2023, respectively, and $3.3 billion and $6.0 billion during the three and six months ended December 31, 2022, respectively. The provision for expected credit losses and charge-off amounts increased during the three and six months ended December 31, 2023 due to portfolio growth and increase in delinquencies during the period.