|
|
 | | | |
- close
- close
- close
- close
These excerpts taken from the EBAY 10-K filed Feb 29, 2008. Allowances
for transaction losses
Our Payments segment is exposed to transaction losses due to
credit card and other payment misuse, as well as non-performance
of and credit losses from sellers who accept payment through
PayPal. We establish allowances for estimated losses arising
from processing customer transactions, such as chargebacks for
unauthorized credit card use and merchant related chargebacks
due to non-delivery of goods or services, Automated Clearing
House (“ACH”) returns, buyer protection program claims
and debit card overdrafts. These allowances represent an
accumulation of the estimated amounts necessary to provide for
transaction losses incurred as of the reporting date, including
those of which we have not yet been notified. The allowances,
which involve the use of actuarial techniques, are monitored
monthly and are updated based on actual claims data reported by
our claims processors. The allowances are based on known facts
and circumstances, internal factors including our experience
with similar cases, historical trends involving loss payment
patterns and the mix of transaction and loss types. Additions to
the
Table of Contents
eBay Inc.
NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
allowance, in the form of provisions, are reflected as a general
and administrative expense in our consolidated statement of
income. At December 31, 2006 and 2007, the allowance for
transaction losses totaled $79.5 million and
$80.1 million, respectively, and was included as an offset
to other current assets and accrued expenses and other current
liabilities in our consolidated balance sheet.
Allowances for transaction losses Our Payments segment is exposed to transaction losses due to credit card and other payment misuse, as well as non-performance of and credit losses from sellers who accept payment through PayPal. We establish allowances for estimated losses arising from processing customer transactions, such as chargebacks for unauthorized credit card use and merchant related chargebacks due to non-delivery of goods or services, Automated Clearing House (“ACH”) returns, buyer protection program claims and debit card overdrafts. These allowances represent an accumulation of the estimated amounts necessary to provide for transaction losses incurred as of the reporting date, including those of which we have not yet been notified. The allowances, which involve the use of actuarial techniques, are monitored monthly and are updated based on actual claims data reported by our claims processors. The allowances are based on known facts and circumstances, internal factors including our experience with similar cases, historical trends involving loss payment patterns and the mix of transaction and loss types. Additions to the
Table of ContentseBay Inc. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) allowance, in the form of provisions, are reflected as a general and administrative expense in our consolidated statement of income. At December 31, 2006 and 2007, the allowance for transaction losses totaled $79.5 million and $80.1 million, respectively, and was included as an offset to other current assets and accrued expenses and other current liabilities in our consolidated balance sheet. This excerpt taken from the EBAY 10-K filed Feb 28, 2007. Allowances
for transaction losses
Our Payments segment is exposed to transaction losses due to
fraud, as well as non-performance of customers. We establish
allowances for estimated losses arising from processing customer
transactions, such as charge-backs for unauthorized credit card
use and merchant related charge-backs due to non-delivery of
goods or services, Automated Clearing House, or ACH, returns,
and debit card overdrafts. These allowances represent an
accumulation of the estimated amounts necessary to provide for
transaction losses incurred as of the reporting date, including
those to which we have not yet been notified. The allowances,
which involve the use of actuarial techniques, are monitored
monthly and are updated based on actual claims data reported by
our claims processors. The allowances are based on known facts
and circumstances, internal factors including our experience
with similar cases, historical trends involving loss payment
patterns and the mix of transaction and loss types. Additions to
the
Table of Contents
eBay
Inc.
NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)
allowance, in the form of provisions, are reflected as a general
and administrative expense in our consolidated statement of
income. At December 31, 2005 and 2006, the allowance for
transaction losses totaled $50.3 million and
$79.5 million, respectively, and was included as an offset
to other current assets and accrued expenses and other current
liabilities in our consolidated balance sheet.
| EXCERPTS ON THIS PAGE:
RELATED TOPICS for EBAY: |
| |||||||
