The Electronic Transactions Association (ETA) has joined 7 other financial trade groups in opposing a bill that was backed by Republicans. According to the bill, those making cross-border money transfers would be charged a 5%-tax fee. The money would be used for the purpose of funding the border wall proposed by President Trump. Let’s move forward and discover more about this money-transfer fee.
Electronic Transactions: Money-Transfer Tax for Merchants
Forget about the times when cash was the king of consumer payments. Electronic payments methods are increasingly taking the market share, and that’s with good reason. Electronic payments enable consumers and merchants to enjoy fast and secure experiences.
If you’re running a business that sells goods/services to consumers, no matter online or in person, you should choose the right payment form to accept. Since consumers are more and more often opting to process payments online, businesses can’t sit without stirring a finger. It’s important to expand your payment options to include next generation technologies.
What about the Electronic Transactions Association or ETA? Well, ETA serves as the hub of activity for financial institutions, networks, payments companies, FinTech, and technology innovators. This is the very place where the payments technology world does business, gets the necessary info, becomes engaged in policy advocacy, and shapes the future of commerce.
Given all the changes in the money-transfer world, it’s crucial for merchants to work only with a reputable processor for reliable payment transactions. This is how you can be sure to pay the lowest possible rates and fees in the industry. So, look for a trustworthy credit card processing company, better a BBB-accredited one that specializes in your field, and knows the ins and outs of your business better than anyone else.
ETA Joins Financial Trade Groups
In January 2019, US Rep. Andy Biggs, R-Ariz., introduced H.R. 85 that would require money-transfer providers to charge a 5% “remittance fee” from the sender if the recipient isn’t in the US.
According to Scott Talbott, senior vice president of government affairs at the Washington, D.C.-based ETA, it’s not good to tax consumers transferring money. Talbott further notes that the payments trade group would be against state bills aimed at taxing money transfers.
The ETA isn’t alone. Other organizations having the same opinion include the American Bankers Association, the Consumer Bankers Association, the Bank Policy Institute, the Independent Community Bankers of America, the Money Services Business Association, the Money Services Round Table, and the National Money Transmitters Association.
In fact, the wall-financing issue became more complicated after Biggs introduced H.R. 85. When the 35-day partial government shutdown was over, Congress passed a funding bill appropriating less than the $5.7 billion Trump wanted for the wall. Trump declared a national emergency to get the necessary funds, which was an unacceptable measure for Democrats and some Republicans as well.
To sum up, it’s critical to keep your finger on the pulse so to know what steps you should take to achieve success in your business. In a world where electronic payments and money transfers are taking the lead, working with a true professional is just a must.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker that can help you with money-transfer tax and provide you with exceptional merchant services in the industry. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.