Capital Merchant Services

March 22nd, 2023

KEEP THE CHANGE

A Payments Newsletter

Business transactions are changing fast and we help business owners stay ahead of the curve to meet the evolving needs of customers.

In this newsletter we highlight

The changes happening due to the Credit Card Competition Act.
How digital payments become more crucial to drive cash flow wins.
Traditional auto repair shops are becoming less common, why?
Common Employee Retention Credit questions answered.

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The Credit Card Competition Act: What Is It, and Why Should You Care?

The Credit Card Competition Act may be considered by Congress, aiming to increase competition by requiring cards from large banks to be routed over at least one competing network in addition to Visa or Mastercard, allowing merchants to choose networks with lower fees and better services.

Potential Consequences: Reducing fees could significantly benefit merchants, but may also impact credit card companies' profitability, potentially leading to increased late fees and reduced rewards for customers. This could also create a reduction in credit availability during times of high inflation and economic uncertainty.

B2B Payments Go Digital — or Go to Die

MangoPay, an online marketplace payment technology solution, sees a growing demand for B2B platforms to adopt a digitally native approach, with digitally native platforms being highly receptive to further digitizing their processes.

The wholesale sector is experiencing increased demand for digitization, with businesses seeking digital wallet capabilities and flexible payment platforms to adapt to their specific needs and regulatory requirements.

“I think the overarching theme is platforms are looking to bring in financial operating systems that make it so it’s completely seamless where the buyer doesn’t need to go to a different site just to make a payment … that kind of embeddedness is a big trend we are seeing.” - Luke Trayfoot

Read the full Article

Read the full article

High-Tech Cars Are Killing the Auto Repair Shop

In 2021 alone, 327 independent shops were acquired by owners of multiple shops, according to Focus Advisors, a mergers and acquisition advisory firm that tracks the industry.

The mom-and-pop auto shop, in other words, is going the way of the dodo.

Agree or Disagree?

Yes

As an owner do my wages, or the wages of any family member I employ qualify?

Maybe. Wages of owners who have majority ownership, defined as over 50%, do not qualify, nor do the W2 wages of any immediate family members of the owner. In the case an owner has less than 50% ownership, their W2 wages qualify,

as do the W2 wages paid to immediate family members.

Will the ERC funds run out?

This is not a lending program - tax refunds are issued by the US Treasury. Therefore, all eligible employers will receive the funds.

Can I get ERC Funds if I already took the PPP?

Yes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, modified the ERC credit rules. One of the modifications included allowing a company to have a PPP loan and still take advantage of the ERC credit. However, you can't use the same dollar for dollar funds. We take this into account when processing your ERC credit.

Are you looking to get the most out of your payment processing but not sure where to start?

About the Author

I have 14 years of experience in payments and specialize in helping local businesses stay competitive with Payment systems that grow sales and minimize costs.

At CMS we offer faster funding, local service, and more payment options for your customers. Let’s connect and improve your bottom line. I'm happy to be a resource for you!

Nathan Ralls

Capital Merchant Services

(512) 906-0856

nathan@capitalmerchantservicestx.com

Let's Talk!

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