Annual report pursuant to Section 13 and 15(d)

Funds Held for Others

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Funds Held for Others
12 Months Ended
Dec. 31, 2014
Funds Held for Others [Abstract]  
Funds Held for Others
Funds Held for Others
In connection with our payment processing services, we collect tenant funds and subsequently remit these tenant funds to our customers after varying holding periods. These funds are settled through our Originating Depository Financial Institution (“ODFI”) custodial accounts at major banks. The ODFI custodial account balances were $83.7 million and $70.1 million at December 31, 2014 and 2013, respectively. The ODFI custodial account balances are included in our consolidated balance sheets as restricted cash. The corresponding liability for these custodial balances is reflected as customer deposits. In connection with the timing of our payment processing services, we are exposed to credit risk in the event of nonperformance by other parties, such as returned checks. We utilize credit analysis and other controls to manage the credit risk exposure. We have not experienced any credit losses to date. Any expected losses are included in our accounts receivable allowances on our consolidated balance sheet.
The ODFI custodial accounts are in the name of, RealPage Payment Processing Services, Inc. (“RPPS”), a bankruptcy-remote, special-purpose entity, that is a wholly owned subsidiary of the Company. We provide processing and administrative services to RPPS through a services agreement.
The obligations of RPPS under the ODFI custodial account agreement are guaranteed by us.
In connection with our renter insurance products, we collect premiums from policy holders and subsequently remit the premium, net of our commission, to the underwriter. We maintain separate accounts for these transactions. We had $1.7 million and $1.5 million in restricted cash for the periods ended December 31, 2014 and 2013, respectively, and $1.7 million and $1.5 million in customer deposits related to these insurance products for periods ended December 31, 2014 and 2013, respectively. We had $0.1 million and $0.4 million in restricted cash and 0.1 million and $0.4 million in customer deposits relating to our utility management solution at December 31, 2014 and 2013.