Are You Taking All Your Merchant Deductions on Your Taxes?

 

Keep Track of Your Credit Card Fees, Chargebacks, & Refunds 

The law requires that banks and merchant processing service companies report GROSS REVENUE RECEIVED by the merchant. These entities DO NOT take into consideration the following: 

• Refunds - Merchants issue refunds days or weeks after a sale (the original sale is still counted in your Annual or Monthly Gross Sales
• Monthly processing fees (Your Annual Processing Fees only reports you TOTAL Sales without the Cost!)
• Chargebacks - Chargebacks are costly. Not only is the monthly pulled from your account during the arbitration period and if you lose, it is returned to the customer's credit card! But you also incur Arbitration Fees ($15 - $60) per incident! 
• Cost of Technology - Software and Hardware (either one-time purchase, monthly subscription fees or annual fees)

Are you overpaying the IRS on Credit Card Revenue?

Your Business needs to have accounting procedures in place to keep track of not only your sales revenue but your sales cost (which are NOT REPORTED IN THE MERCHANT SERVICES ANNUAL IRS REPORT) these separate items and YOU need to keep track of them! In other words, don't count on your Accountant or CPA to ask you for this information or actually find them in your paperwork. If your not TRACKING YOUR COSTS, you are losing a lot of money! 

It's simple, create a spreadsheet and then each month look at your monthly statement.    Record the following each month: 

• Total Revenue (found on first page of statement)
• Total Fees (found on the first page or at the end of the statement)
• The Fees will include any monthly fees, the rates paid for each transaction, any per item fees, authorization fees, Brand Assessment fees, any return/refund fees or chargebacks fees and PCI Compliance or Penalty fees. (Pay close attention to your fees)
• Check for any Chargebacks - Record that amount
• Chargebacks are sent to you from your processor by mail or email. Some companies have a BackOffice where you can find a section for NOTIFICATIONS, check there as well! Be sure to answer these chargebacks them in a timely manner!  
• Total Refunds/Returns given back to customers. 

Here's the difference between Merchant Processing Solutions and other processors:

1. We make sure you are PCI Compliant so you are not charged a high NON-Compliance Fee monthly!
2. We make sure you rates are low (interchange plus pricing) 
3. No minimum monthly payments
4. We get notified, along with you, when a Chargeback Dispute has been lodged. We make you aware of this issue and help your collect documentation necessary to win the chargeback.
5. We help you understand your statement and learn how to calculate you fees quickly and easily! 

If you would like to work with a professional team call 
Merchant Processing Solutions today! 
954-938-2420