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Tax Free Merchant Services

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They have: 384 posts

Joined: Sep 2000

I'm currently compiling a list of merchant services for a report. Does anyone know of any credit card processors that are setup so that merchants do not have to pay sales tax (similar to CCNow)?

Much thanks!

Adam Oberdorfer – TWF Moderator
AIS Internet Solutions – Owner/Lead Developer
ScriptsDev.com – Enterprise E-Commerce Development and Consulting

They have: 1,589 posts

Joined: Mar 1999

ccnow is the only one i know of

Jaiem's picture

They have: 1,192 posts

Joined: Apr 1999

I don't get it. What CC processor makes you pay or charge sales tax? All the CC processor knows is what the merchant enters.

If you're referring to a services that acts as both CC processor and shopping cart seems to me they all should allow items to be marked as taxable or not.

Jaiem
Ocean View Host - FREE domain name, 1 month FREE hosting!

They have: 384 posts

Joined: Sep 2000

Certain merchant services that act as a retailer and are located in no tax states are tax exempt. So for example if I used a normal credit card processing and shipped a product to California I'd have to collect and pay 8.5% sales tax. On the other hand if I use CCNow the order is legally going through Delaware, which is a no sales tax state. See http://www.ccnow.com/faq.html#tax for a complete explanation.

Adam Oberdorfer – TWF Moderator
AIS Internet Solutions – Owner/Lead Developer
ScriptsDev.com – Enterprise E-Commerce Development and Consulting

They have: 50 posts

Joined: Feb 2000

i use authorize net to process my credit card transactions and i use the just add commerce software shopping cart which gives you the option to apply taxes to a sale.Authorize net then settles the transaction and sends the funds to another reseller novus.i have been having problems with novus as of late when i changed my business account now my funds are not transmitted to my business account right away and they have lost some of them and are researching where the money went. so im very mad about that i almost don't want to sell anything until this is straightened out.

http://www.authorizenet.com

They have: 384 posts

Joined: Sep 2000

Geo, Unfortunately that happens more frequently then most credit processors would like to admit. The best thing you can do is keep accurate record of all sales and match them up with your merchant/business account frequently. It can also help to have a separate account just for your credit card deposits. This makes it a lot simpler to balance. Some credit card companies provide web-based management solutions. These are very helpful. You can track all orders processed at the end of the day and match them up with your e-commerce software reports or accounting records. Many banks now offer on-line management as well. This can allow you to view accurate balances and a list of transactions for the day. Much easier then making since of everything at the end of the month when you receive your statement.

Adam Oberdorfer – TWF Moderator
AIS Internet Solutions – Owner/Lead Developer
ScriptsDev.com – Enterprise E-Commerce Development and Consulting