Credit Cards Online Information

The money in your wallet...the change in your pocket...they are all on the verge of becoming obsolete - relics of a past where a person had to actually hold tangible currency that equaled a specific value set by a government. The jar of coins you now have in your home will become a collector's item or a conversation piece; much like stone beads or gold doubloons are now.

Some outrageous statements? Perhaps. Impossible you say? Perhaps not.

Smart cards and electronic cash are the future whether we are ready for it or not. Some proof? How about the increasing use of credit cards for purchasing goods and services, the increasing availability and use of long-distance phone cards that hold a specific value (money and time), the increasing use of student IDs on campuses for purchasing everything from books to lunch to beer, and the creation of the debit/credit card? Several European countries are using smart cards on a regular basis. Companies such as Quicken and CheckFree that allow you to pay bills and conduct other transactions electronically are becoming increasingly available. I could go on and on.

The Internet is pushing this need/demand for electronic payments. The desire is to have the safe, secure, and anonymous ability to make purchases online or in a real store as if you were using hard currency. Some factors to consider: credit cards leave a paper trail for marketers to follow (not to mention the interest rates), currency can be stolen and used by anyone, and paper checks are inefficient.

# posted by Medical Information : 11:39 PM  0 Comments

Taxes are an inevitable part of doing business. But card-based payment technologies can assist with some of the administrative headaches.

E-business may be making companies more efficient and productive, but that hasn't relieved them of one of their more onerous chores: complying with numerous local, state and federal tax rules.

If anything, it raises new challenges. As companies buy online from more geographically dispersed vendors, the job of tracking state sales and use tax liabilities and IRS compliance is evolving. Even though Congress has imposed a moratorium on new Internet sales taxes, more than 7,000 state and local jurisdictions, some overlapping, already tax most retail purchases at various rates. The move from paper to electronic record keeping has other tax implications, most notably in how companies document deductions for travel, entertainment and office supplies.

Fortunately, technology is creating solutions to its own opportunities. Advanced corporate procurement systems, coupled with payment card solutions such as the MasterCard Corporate Purchasing [Card.sup.TM], can simplify the tracking of sales and use taxes. And card-based expense-reporting systems generate loads of data that can not only slash administrative costs and strengthen management controls, but also enhance tax record keeping.

Sales and Use Taxes: Untangling the Data

When companies buy supplies and equipment, they, like consumers, are taxed on the value of the purchases. Depending on the state and the nature of the transaction, vendors may add on the tax and remit it to the appropriate government agencies. When buying from out-of-state suppliers, purchasers may need to pay a use tax in lieu of a sales tax to the states and localities where the products or services are used. In any case, corporate buyers are obliged to pay tax at the time of the transaction -- and prove it if necessary. Failure to do so can result in stiff penalties.

Traditionally, authorities have accepted paper invoices as evidence that tax obligations have been met. But most e-purchases don't generate such documents. Sophisticated electronic procurement software from companies like Captura Software, Clarus Corp. and CommerceOne do a good job of estimating sales and use taxes, but they don't prove that they have been paid. However, corporate purchasing cards, which are often used in conjunction with such systems, can help.

# posted by Medical Information : 11:37 PM  0 Comments