E-Commerce Gateways

[Chatmaster]

Now this is one person that should have joined a looooong time ago! You have no idea just how welcome you are NETCASH!

[daveob]

Welcome Netcash - My super hero debit order processing and credit card gateway provider !!

[eitai2001]

I wish I could use a Super Merchant ... but its not going to happen. From my research, it takes from 7 - 14 days to get the money that has been paid to you by credit card (Whereas I need it immediately to buy the products and send them). Also, I will be marking up some items such as laptops as low as 4%, so I will be making a loss (I do not want to show the higher price and then discount for cash, because then I will seem expensive). If you have an online computer or electronic business, and you don't have a brick and mortar store ... then I think a super merchant is a bad idea for you. If you are selling non-physical goods, or you keep the goods in stock, then it should be fine.

[NETCASH]

Hi there all !

I am going to try and answer all in one post.

There is no problem with giving discount for i.e. cash payment. The issue comes in where some merchants advertise a price lets say R 10.00 for a pen. Then if you pay by credit card they want to charge you x% extra for paying by Credit Card...
The rules state that what ever price you are advertising - you have to charge that price... Thus you may not charge MORE is someone pays by credit card.
The flip side of the coin is that some merchants increase all the prices by ie. 3% and offer discount if you are paying by EFT/CASH. Nothing wrong with that. You must just not increase an advertised price if someone pays by credit card to cover your costs. Remember that unless you have 'cash turnover' you might also incur cash deposit fees...

There are no 'rules' WRT minimum amounts - some guys prefer to not allow purchases for smaller amounts (ie. less than R50 must be cash) only to cover their costs WRT the credit card transaction. This (in my personal opinion) is a bit unfair towards the consumer though. The cost per transaction is usually a per transaction fee and a percentage fee - sometimes only the one or the other (mostly the % value as commission). All depends on how you have negotiated...

eitai2001 - I agree but all depends on how you negotiate - industry standard is 10 days but depending on volumes and values you can be settled even the next working day...

Thanks to Chatmaster and daveob - hope that we can make some positive contribution here.

Kind regards

Donovan @ NETCASH

[Dave A]

Thanks, Donovon. That certainly cleared up my queries very well.

BTW - Do you guys also handle debit orders?

[IanF]

Donovan
Thanks for explaining to us these things. Just on the minimum purchase I shall try and defend my stand. In my shop we probably do 6 transactions a week. So when someone wants to spend R20 and put it on the card it is not worth the hassle ITO filing and keeping slips for future queries. We have a minimum charge of R35 for credit cards. If the bank says this is not allowed I will change to a minimum sale amount which is waived for cash. We mainly serve companies and not consumers.

There are no 'rules' WRT minimum amounts - some guys prefer to not allow purchases for smaller amounts (ie. less than R50 must be cash) only to cover their costs WRT the credit card transaction. This (in my personal opinion) is a bit unfair towards the consumer though. The cost per transaction is usually a per transaction fee and a percentage fee - sometimes only the one or the other (mostly the % value as commission). All depends on how you have negotiated...

[SilverNodashi]

Hi there all !

I am going to try and answer all in one post.

There is no problem with giving discount for i.e. cash payment. The issue comes in where some merchants advertise a price lets say R 10.00 for a pen. Then if you pay by credit card they want to charge you x% extra for paying by Credit Card...
Kind regards

Donovan @ NETCASH

Hi Donovan, and welcome to The Forum SA.

I have a query for you on this. IF you're not allowed to charge more than what you advertised, what about people who advertise their prices without VAT, and then billing with VAT added?

[Dave A]

Somehow, I don't see that as a payment method problem - more an advertising or tax issue.

Ultimately, if the advertiser doesn't have a notice pointing out that the price is excluding VAT, by default it means it is inclusive of VAT and you can insist they treat it as such.

[Karenwhe]

I have a query for you on this. IF you're not allowed to charge more than what you advertised, what about people who advertise their prices without VAT, and then billing with VAT added?

I believe that one must by law advertise if it is EXCL or INCL Vat. Of course I can be corrected on this. I think you can show the number with and without VAT, but state clearly and not mislead in any way in the advertising.

[IanF]

VAT

You must either advertise with VAT or with both with and without VAT See ASA Ruling

I believe that one must by law advertise if it is EXCL or INCL Vat. Of course I can be corrected on this. I think you can show the number with and without VAT, but state clearly and not mislead in any way in the advertising.

[NETCASH]

Yes DaveA
We do handle debit orders against bank- and credit card accounts as well..
I am not an expert on tax law and VAT - better get an expert in that field to explain the finer detail...
As far as I know : You can advertise a price without VAT as long as you include "excl VAT or PRICE EXCLUDES VAT" etc. Wholesalers usually advertise "ex Vat" pricing. Retailers on the other hand advertise pricing including VAT. It's much of a muchness - as long as you stipulate the terms (incl / excl).

[Dave A]

I've taken a closer look at sections 64 and 65 now.

65 Prices advertised or quoted to include tax

Any price advertised or quoted by any vendor in respect of any taxable supply of goods or services shall include tax and the vendor shall in his advertisement or quotation state that the price includes tax, unless the total amount of the tax chargeable under section 7 (1) (a), the price excluding tax and the price inclusive of tax for the supply are advertised or quoted by the vendor: Provided that-

(i) where the price inclusive of tax and the price excluding tax for a supply are advertised or quoted, both prices shall be advertised or quoted with equal prominence and impact;

(ii) price tickets on goods need not state that the prices include tax if this is stated by way of a notice prominently displayed at all entrances to the premises in which the enterprise is carried on and at all points in such premises where payments are effected;

(iii) the Commissioner may in the case of any vendor or class of vendors approve any other method of displaying prices of goods or services by such vendor or class of vendors during a period approved by the Commissioner which commences before and ends after the commencement date or, where the rate of tax is increased or reduced, the date on which the increased or reduced rate of tax takes effect;

(iv) a vendor may not state or imply that any form of trade, cash or any other form of discount or refund is in lieu of the tax chargeable in terms of section 7 (1) (a).

That seems clear enough.

Frankly, I don't see that Section 64 has any relevance to advertising. That is about how prices are disclosed on the tax invoice. And we have to submit a pro-forma tax invoice to SARS when making application for registration as a VAT vendor. Essentially, acceptance of the pro-forma by SARS makes the format you presented legally acceptable.

Perhaps the only note on that point is if you change the format of your tax invoices, it might be an idea to submit an updated sample to SARS for approval - just to CYA.

[Chatmaster]

Yes DaveA
We do handle debit orders against bank- and credit card accounts as well.

Can you perhaps explain in more detail how the debit orders work? I am planning a new venture that will include debit orders.

[NETCASH]

Debit Orders and EFTS

Can you perhaps explain in more detail how the debit orders work? I am planning a new venture that will include debit orders.

I will send you a PM with the details - do not want to 'spam' the forum. Anyone else want info please visit http://www.debitorder.co.za/moredetail

[Snoopy_inc]

I see that noone has mentioned the all going question.... What happens when there is fraud.... granted the monies are insured but what is the procedure with Netcash and how do you handle claims.... take Eitai for instance... he says he cant wait for monies.... what happens when there is fraud? Does the company pay out? and what kind of waiting period are you looking at?