Understanding the role of cc processors
 

Everyone I speak to has a slightly different answer to this one so I thought I'd see what you guys think. Basically, for tax purposes, does my card processor (iBill, ccbill, etc.) count as my customer or do my individual site members count as my customers? Do I treat the money from the processor as coming from one big customer in the US, or do they merely pass on money earned from my members in all sorts of countries around the globe?

If the latter, does anyone here charge local site members the applicable local taxes?

bump

If using quickbooks... put CCBill on the Other Names List.

When making deposits, choose ccbill from the drop down and put it under account 501.00(Sales)... it's as simple as that.

If you want it under the customer list, that should be fine as well, but the checks you get from them should be the bottom line for tax purposes. Add the check to your deposits and that should be all.

-Xinnov

Perhaps it would be better phrased this way - Do my members pay CCBill and CCBill pay me a %, or do my members pay me, via CCBill, and I pay CCBill a %?

May I suggest two options here.

1. Read your contract it should clearly define the roles

2. Call your processor and ask them.

I thought of those too! :)

But the contract seems to be capable of being interpreted in different ways depending on which lawyer/tax adviser looks at it, and my processor rarely gives me information that I would 100% rely on.

The answer to this will make a six figure difference to my tax bill so I want to be sure I get it right. I'm taking professional advice too, of course, but I wondered what other people's experience was. I can't be the only one who's had to answer this question.