“This has been one of the best business decisions I have ever made.” - Jonathan Vargas, owner of Quality Moving. Member since January 2005.
FAQ
| BIZX FINANCIAL How do I get a line of credit on my account? How do I use my BizX credit line? What happens if my account carries a negative BizX balance? |
| ECONOMICS What are fixed costs? What are variable costs? Why should I buy through BizXchange when I can pay less with cash? |
| IRS AND TAXATION Are there any tax advantages or disadvantages to BizXchange? How do I handle sales tax? |
| SUB ACCOUNTS What is a sub account? For whom can I open a sub account? How do I open a sub account? |
ABOUT BIZXCHANGE
BizXchange is a trade exchange in which members sell products and/or services to other exchange members for BizX (trade) dollars. BizX dollars can then be used to purchase products and services instead of using cash. A BizX dollar’s value is equivalent to a US dollar and is used to record the value of every transaction which results in a transfer of products or services between exchange members. Transactions are posted to member accounts as debits or credits (purchases and sales) and are recorded pursuant to the Trading Procedures, Policies, Rules and Regulations of BizXchange and IRS regulations.
BizXchange is not meant to change how you do business or to replace your cash sales. BizXchange is an additional sales channel by which you can augment existing cash sales. A satisfied BizX customer is as valuable as a satisfied cash customer, and both can refer new cash business to you. You can use BizX to:
• Increase sales.
• Expand ways to conduct your business and increase buying and selling opportunities.
• Open new markets and gain market share.
• Increase cash flow.
• Move idle inventory and use idle capacity.
• Gain advantages over your competition.
• Gain access to new sources of financing.
• Gain new networking opportunities, which can in turn lead to more cash business.
• Boost staff performance and morale with employee incentives.
• Improve the quality of your professional and personal life.
According to the International Reciprocal Trade Association (IRTA), almost half a million small businesses use commercial barter exchanges like BizXchange each year. Currently, commercial barter is more than a $16 billion a year industry in the United States and can include anything and everything — from “you mow my lawn and I’ll do your taxes” to Pepsi accepting shipments of vodka in exchange for distribution rights because they did not want to be paid in rubles. In a USA Today article, small business expert Steven Strauss says that it is not uncommon for businesses who regularly barter to receive 10% of their income from barter sales.
BizXchange is a member of the International Reciprocal Trade Association (IRTA) and the National Association of Trade Exchanges (NATE) and abides by IRTA values, standards, and Code of Ethics. Contact your BizX Account Executive to learn more about the many opportunities gained through BizXchange!
How does BizXchange work for me?
BizXchange fulfills many roles for you and your business. At the simplest level, we:
• Act as an external sales force and bring you new business.
• Act as your purchasing agent.
• Record and track all transactions.
• Leverage excess inventory and idle capacity and turn them into another form of currency.
How do I benefit from BizXchange?
BizXchange members use a private currency, BizX dollars, to finance purchases of things they need. By selling spare inventory or unutilized capacity or their own product or service for BizX dollars, they are able to spend those earned BizX dollars on business or personal products and services on BizX.com.
BizX.com is a member’s number one resource for making the most of their BizX dollars. The searchable marketplace feature products, services and gift certificates and highlights Featured, Limited and Popular items throughout the site.
By regularly logging into BizX.com members are able to find ways to spend their BizX dollars and can easily market their products and services to the rest of the network. Members use BizX.com to:
- Search for business and personal products and services
- Post business needs and wants in the member request section
- Market their products and services to the rest of the network
- Keep you informed on special offers and promotional items
- Connect and communicate with other members of the network to complete BizX jobs
There are many, many ways to use your BizX dollars. Some of the most effective ways to spend through the exchange include:
- General business expenses, such as office furniture, phone systems, bookkeeping services, security systems and janitorial services.
- Advertising, marketing and promotions, including print, broadcast, outdoor media, multimedia applications and point of sale merchandising, all of which can attract new cash customers.
- Employee benefits and bonuses, including dentists, acupuncture, massage and vision care providers, health club benefits, childcare providers and special bonuses.
- A cash-free line of credit.
- Travel and entertainment.
- Gift certificates to award or gift friends, family and employees.
- Personal use, for example painting services, automotive repair, childcare, home cleaning and maintenance services, salon services and clothing.
These are only a few of the many possibilities. Log on to BizX.com to find places to spend BizX.
How do I refer a new member to BizXchange?
Referring new members to BizX helps to grow the exchange, generates additional channels for you to buy and sell within the exchange and creates additional opportunities for you to save cash. If you know someone that you believe would benefit from joining BizXchange or have a vendor with whom you would like to conduct BizX business, send them an email through the referral tool on BizX.com.
You can also give them BizX dollars by clicking Share BizX on BizX.com. If you Share BizX, simply enter the amount you would like to send and the email address of the recipient. Recipients will receive an email with the amount you are sharing and a link to sign up for BizXchange. They can then sign up for a BizX account and instantly retrieve the BizX dollars to spend on business or personal expenses.
What happens if someone I refer to BizXchange becomes a new member?
You will receive a bonus for every referral that joins BizXchange.
How does BizXchange make their money?
Members pay a one-time membership fee to join BizXchange, monthly account administrative/maintenance fees and transactions fees on every transaction that takes place on their account. However, remember every transaction on an account represents new sales that BizXchange brings to that business. We collect transaction fees only when we bring you new customers or when you find areas within the exchange to spend your BizX dollars.
IRTA, the International Reciprocal Trade Association, is a trade group representing the worldwide barter industry and was created to govern member exchanges internationally. IRTA was founded in 1979 to advance the barter industry worldwide, raise the value of barter to the business community and economy and to uphold high standards of ethical business practices. IRTA is recognized as an industry spokesman and watchdog and requires that all member exchanges adhere to an established self-regulating process and code of ethics to sustain an ethical climate and to build public and business confidence in the barter industry. Currently, IRTA is partnering with the IRS to “design, develop, and deliver educational products and services that meet the diverse needs of the Bartering Community” and “to provide customer focused products, services, and assistance to educate customers and help them meet their taxpayer obligations.”
BizXchange has been an IRTA member since its inception. Members of BizX management have served on the IRTA board for several years and have been recognized as leaders in the barter industry.
To learn more about IRTA, visit their website at www.irta.com.
SELLING
The BizX dollar is just another form of currency and a BizX sale should be processed just as a cash sale. All sales must be 100% BizX. All sales taxes should be included in your trade transaction amount. Gratuities are not included in BizX transactions and must be paid in cash, generally a minimum of 15%.
Keeping your business listing up-to-date and posting and promoting your product and service offers is the best way to make a BizX sale.
You can enter transactions online, by using the Enter a Transaction feature, you will be prompted to choose whether you are the buyer or the seller.
If you are the seller, you will use the feature Debit a Card. You will need to enter the buyer’s name, BizX card number, expiration date and the amount. The BizX dollars will automatically be transferred from their account to yours.
How does BizXchange promote me to other members of the exchange?
Your BizX Account Executive will work with you to understand you, your business, your personal interests and your trading patterns. And our Account Executives are constantly interacting with exchange members, reviewing and assessing member needs, monitoring supply and demand of products and services within the exchange, evaluating seasonal and special interests and analyzing the BizX market as a whole. By developing individual relationships with our members, BizX Account Executives can anticipate your needs and wants and they can effectively market your products and services to other exchange members through phone calls, emails, special promotions, our directory and Hot Item listings on our website.
Can I use BizX to sell my products and services outside of my geographic area?
BizX has offices in Washington and California, has members in different parts of the United States and Canada and has partnerships with other national and international exchanges. If appropriate, you can choose to market your products and services throughout to these different areas.
When posting your offers on BizX.com, you will choose where your product is available, by checking the boxes next to the location you will like to have your offer promoted.
What if I have an unusual item or a one-time product or service to sell?
In the course of your relationship with BizXchange, you may have products or services to sell that fall outside of the typical scope of your business offerings. For instance, you may have a car, a piece of furniture, a piece of property or jewelry that you would like to sell.
Members can post any product or service available from your company or personal products they would like to sell, including unusual or one-time products or services. These offers have the option of being enhanced with photos and videos, giving sellers the best opportunity to promote products and services and giving buyers the most information about available items.
Updating and maintaining these offers will help bring members the exact amount of business you want to receive.
How do I record a sales transaction?
All sales transactions should be recorded on a BizX Transaction Slip and should include:
• The purchasing member’s account number and buyer number (the first seven digits of the BizX Membership Card), and company name.
• The seller’s (your) account number and company name.
• The date of the transaction.
• A description of purchased products or services.
• The transaction total, including sales tax. (Gratuities must be paid in cash.)
• An authorization number.
• The authorized buyer’s signature. If the buyer is not present, write “Signature on File” or “Phone Order” in the signature field of the BizX Transaction Slip. Transactions without a valid signature or proof of acceptance of delivery can be reversed up to six months after the transaction date.
When making a sale, always get an authorization number (see How do I get an authorization number for a sales transaction?). The authorization number is your proof of sales, verifies that the account making the purchase is in good standing with BizX, and indicates that your sale has been successfully posted to your account. An authorization number guarantees payment to you.
Transaction Slips with an authorization number do not need to be submitted to BizXchange. However, you should retain a copy of and archive all transaction slips in the event that a transaction is questioned or disputed.
Transaction Slips without an authorization number must be submitted to BizXchange, and we will post transactions to the appropriate accounts upon receipt of the Transaction Slips. Bear in mind that some accounts may be on standby or a member’s trading privileges may have been suspended. In these cases, we may be unable to authorize purchases by those accounts. Therefore, you should always obtain a valid authorization number for all sales before transferring products or services whenever possible.
When processing a restaurant sale, complete a BizX Transaction Slip, and have the buying member sign the slip. Remember that gratuities cannot be included in a BizX transaction and must be paid in cash. Call your BizX Account Executive or our authorization line, (800) 705-BIZX (2499), the next business day to get a valid authorization number.
BizXchange reserves the right to reverse disputed transactions without a BizX Transaction Slip with a valid signature or proof of acceptance of delivery and a valid authorization number at management discretion.
What do I do if a transaction is declined?
A declined authorization does not necessarily mean that a particular account is in bad standing. If you are unable to get an authorization through our automated service, contact your BizX Account Executive immediately. If the BizX offices are closed, take a valid credit card number as backup for payment until you can talk to your BizX Account Executive the next business day.
How do I get more BizX Transaction Slips?
Call or email your BizX Account Executive to request additional Transaction Slips.
What if I am not receiving enough sales?
If you would like to be processing more BizX sales, make sure your listing on BizX.com is up-to-date and as detailed as possible, photos, videos and a company brochure will help attract potential customers. Make sure you are listing product and service offers as well as your company listing. The easier you make it for BizX members to purchase your products and services, the more sales you will receive.
What if I start to have more sales than I can handle?
Ideally you are selling and purchasing at somewhat of a balance. However, if you find that you are earning more BizX dollars than expected, use BizX.com to help you locate products and services that you can purchase to balance your account. There are endless ways to spend your BizX dollars instead of cash once you get in the habit of buying with BizX!
If, after searching BizX.com, you still have a high BizX dollar surplus, you may delist your listings and products and services on BizX.com, by checking the “Make Active. You can also request that your account be put on standby. To request that your account be put on standby, you must provide us with 30 days written notice, and your BizX account must have a positive trade balance. Remember, check BizX.com before you spend cash on anything! Chances are that if you’re buying with cash, you could be buying through BizX.
What happens when my account is on standby?
If your account is on standby, your online listings will be deactivated though you will still be able to access the member website and to spend your BizX dollars. If your account is on standby for nonpayment of fees, BizXchange may remove your listings from our directory, revoke your access to our member website and may decline transactions on your account.
Why do accounts go on standby?
Occasionally, members cannot accept new or additional BizX sales for a period of time because it is a peak time for that member company’s cash business, and they can’t handle additional sales at that time. A member may have a trade balance that they have not had the time to spend and do not wish to accumulate more BizX dollars until they’ve spent what they have. Or they may already be generating enough existing business through BizX. Under these circumstances and with pre-approval from BizXchange, an account can be put on standby. To request that your account be put on standby, you must provide us with 30 day written notice and your account must have a positive trade balance.
BUYING
How can I find what I need through BizXchange?
Logging in regularly to BizX.com is the best way for members to find the products and services they would like to purchase. The BizX marketplace has listings, products, services and gift certificates and new items are constantly being posted to BizX.com.
With BizX.com, you can search for the product you want, select the quantity and add it to your shopping cart, just like on any other e-commerce website.
Regularly, review your business and personal needs and purchases, whether they are one-time purchases, such as equipment, remodeling, furniture, phone systems, security services or recurrent expenses like office space rental, travel, advertising and office supplies, and regularly search BizX.com to see if these offers are available.
Consider everything! The more products and services you are willing to purchase through BizX, the more likely you will be able to find the products and services you need. Out of every ten requests, we can confidently say that BizX can fulfill three to four of the requested items. Over a year of 100 requests, that’s 30-40 products and services purchased through BizX!
If you can’t find something on BizX.com, you can fill out an online Member Request, which is searchable by the entire BizX community. If someone is looking to earn more BizX dollars they can search the Member Request list to see if there is a request they could fulfill.
Once you have found something you would like to buy on BizX.com, put the item in your shopping cart.
After you have added the products, services and gift certificates you would like to purchase to your shopping cart, simply click submit and your transaction will be finalized—there’s no need to enter payment information.
The seller will then will be prompted to process the order. You and the seller will then be in communication to fulfill all the details regarding delivery.
The seller will not receive payment until you have received the product or they have fulfilled the service agreement. The BizX dollars will be held in escrow until the transaction is finalized.
If you find a company who provides a product or service though BizX, but it isn’t listed on BizX.com, contact the company representative indicated in the listing information, identify yourself as a BizX member, identify the product or service you would like to purchase and provide valid payment information (your entire BizX account number, expiration date and buyer number).
Often, you can call a member directly. However, there are instances in which you will need to contact a BizX Account Executive to initiate a transaction, including most media, printing and construction purchases, purchases over $10,000 and all travel arrangements.
Gratuities are not included in a BizX transaction and must be paid in cash, generally a minimum of 15%.
Purchases made with gift certificates are final and cannot not be reversed after they have been signed and submitted for payment.
Can I use BizXchange to purchase personal items?
Absolutely! Many members regularly use their business BizX account to purchase personal products and services and this is great and very cost effective way to use your BizX dollars to improve your personal life. Using BizX for personal expenses also allows you to leave cash in your business which increases your cash flow. Generally, members use their BizX account to purchase personal items and then:
• Reimburse their business from the costs to the full value of the purchase.
• Include a BizX allowance or the cost of the purchase as part of their compensation package.
One of the benefits to purchasing personal items through your business BizX account is that you typically need to reimburse or account for these expenses at your variable cost or cost of goods (see What are variable costs?). This represents significant savings to you and, on top of that, you are paying for purchases with new sales brought to you through BizXchange!
We encourage you to consult a CPA or experienced professional to learn how to best record and account for business and personal BizX use.
Member companies can create significant cash savings by purchasing broadcast media, outdoor media, large print projects and other media through BizX. Buying media advertising is a great way to use your BizX dollars and a very effective way to turn your BizX dollars into cash!
Media trades must be pre-approved by media vendors and vendors must verify that potential BizX clients are new account business and not current cash customers. Therefore, most media trades must be arranged through BizX. Fill out a Media Placement Form on BizX.com and a BizX representative will help create a media plan for your business.
Media requests are subject to approval by the advertiser and availability is not guaranteed.
How do I book travel with BizX?
BizXchange can help you plan for and book business and pleasure travel worldwide. All travel arrangements must be booked through the BizX Travel Department. Complete a Travel Request form at BizX.com. You must accept the terms and conditions of the Travel Request form before BizX will confirm reservations.
Our Travel Department will make every reasonable effort to fill travel requests within your specified budget. However, as with cash travel, travel availability and arrangements cannot be guaranteed and certain restrictions and blackout dates may apply. Booked travel reservations must be guaranteed with a valid credit or debit card. Once confirmed, cancelled travel arrangements may be subject to cancellation fees.
Travel arrangements within BizX and through members with whom we have a direct relationship are easier and therefore faster to book. Travel arrangements made through other exchange networks can take significantly more effort to book and will require a longer lead time. To most effectively fulfill Travel Request, we encourage you to submit your request to the BizX Travel Broker:
- One (1) week prior to departure for travel and accommodations in the Bay Area and in Seattle.
- Two (2) weeks prior to departure for travel and accommodations in other parts of the United States.
- Three (3) weeks prior to departure for international travel and accommodations.
The BizX Travel Department will make all reasonable efforts to fulfill requests received on short notice. However, they will not be given priority over other responsibilities within the BizX Travel Department.
Travel may be billed to your account either upon reservation guarantee or after travel is completed, depending on accommodation stipulations. In some cases, you are also able to bill food, beverage and other amenities to your BizX account and you should verify this possibility with the BizX Travel Department prior to departure.
Remember, all travel arrangements must be booked through the BizX Travel Department with a Travel Request Form. Reservations made directly by a member may be considered a cash booking and may not be later converted to a BizX transaction.
What if I have an unusual item or a one-time product or service I would like to buy?
Search BizX.com for the unusual or one-time product or service. If you can’t find it you can always fill out a Member Request form.
What do I do if I lose my BizXchange Membership Card or need additional Membership Cards?
All members are issued a BizXchange Membership Card when they join BizXchange and members often request additional cards for spouses, family members, business partners and employees. BizX Membership Cards should be used like a standard credit card and should be presented when making a purchase within the exchange.
Contact BizX immediately if you lose your BizX Membership Card. As with a credit card, we will cancel the card immediately and order a replacement card.
To request additional cards go to the Manage Cardholders under Business Profile on BizX.com. You may request additional cards for anyone you wish as well as a general company card. However, as the account holder, you will be responsible for all charges made on cards issued to your account.
BizX Membership Cards are ordered on a weekly basis and can take up to five business days to be processed and mailed. Cards are valid for two years. Please note that replacement cards for expired BizX Membership Cards will be ordered automatically by BizXchange, you will not need to fill out a request online.
MARKETPLACE
How do I purchase gift certificates?
As a convenience to members, BizXchange holds varying amounts of gift certificates in-house for easy distribution upon member purchase. The gift certificate inventory is constantly changing and some gift certificates are available only seasonally. BizXchange maintains a list of available gift certificates on BizX.com.
How do I sell gift certificates?
BizXchange must approve a member request to deal in gift certificates, approve gift certificate denominations and approve any gift certificate restrictions before BizXchange will endorse and distribute gift certificates for a member. Contact BizXchange if you would like to sell gift certificates through the network.
At BizXchange, we refer to gift certificates as scrip. Gift certificates make great gifts and can be used as customer and employee incentives, employee benefits, to celebrate birthdays, anniversaries, company parties and other special occasions, rewards for your children’s school events and prizes for contests.
Gift certificates come in set denominations, for example in $20, $50, and $100 amount and should be treated and used like cash. Gift certificates are considered legal tender and, once purchased, are non-returnable and non-refundable. BizXchange is not responsible for and will not refund the value of lost or stolen scrip.
RULES AND REGULATIONS
Are BizX prices and cash prices always the same?
As with cash transactions, different companies may offer the same or similar products and services for significantly different prices. However, as part of the membership application and agreement, BizX members agree to provide their products and services at everyday selling prices and to treat other exchange members with the same courtesy and priority extended to any other customer of their business. BizXchange is committed to fair trade. BizXchange will not tolerate any overcharging. Overcharging is a violation of the Trading Procedures, Policies, Rules and Regulations of BizXchange.
What do I do if I think I am being overcharged?
Products and/or services are to be traded at fair market value or everyday selling prices. Before committing to a purchase, research market pricing standards. Also, be sure that you are assessing charges accurately. For example, you might request a price quote for a print job through the exchange and through a cash vendor. The cash vendor may quote a price $200 lower than the BizX vendor. But, the BizX vendor may be using 80# paper while the cash vendor is using 40# paper and the BizX vendor may be quoting a price for 1000 units, while the cash vendor is quoting a price for 500 units.
If you still feel that you are being overcharged, contact your BizX Account Executive immediately! BizXchange will not tolerate any type of overcharging. Overcharging is a violation of the Trading Procedures, Policies, Rules and Regulations of BizXchange. We will take whatever steps are necessary to ensure that all members are treated fairly through the exchange. Violation of this policy may result in adjustment to the transaction(s) involved and companies found to be overpricing or overcharging for products and services may have trading privileges suspended or may be asked to leave the exchange.
Members must act in good faith in dealing with each other so that all reap the benefits of trading through the exchange, and each member must treat other exchange members with the same courtesy and priority extended to any other customer of their business. We require that our members inform us of situations where other members are not following trading policies and procedures.
What do I do if someone in the exchange wants to charge me cash?
BizXchange is most equitable for all participants when sales are made at 100% BizX and, as part of the membership agreement with BizXchange, we ask that all our members provide their products and services at standard market price on 100% BizX. Occasionally, however, circumstances may dictate that a particular transaction be structured as a part cash/part trade agreement.
All part cash/part trade agreements must be pre-approved and managed by BizXchange. Part cash/part trade transactions will be considered non-typical trade and should be considered a one-time trade transaction. BizXchange will charge the seller transaction fees on the gross amount of the transaction and the transaction fees for the cash portion of the transaction will appear on the seller’s monthly account statement as a charge for New Cash Business.
If you are asked to pay cash on any portion of a trade transaction that is not a pre-approved part cash/part trade transaction, call BizX immediately. Do not commit to any cash transactions within the exchange before talking a BizX representative.
When are part cash/part trade transactions permitted?
Typically we ask that selling members furnish all materials, labor and services at 100% trade. Occasionally, however, circumstances may dictate that a particular transaction be structured as a part cash/part trade agreement.
Circumstances that might dictate the necessity for a part cash/part trade agreement may include:
• Large, one-time transactions.
• Ongoing wholesale relationships in which a member is regularly buying wholesale product from another member at wholesale pricing (which usually entails a much lower gross margin.)
• Real estate sales transactions.
• Transactions involving extremely low margin goods, for example electronics, computers, and vehicles.
• Transactions involving subcontractors that must be paid in cash.
• Transactions that involve delivery costs that must be paid in cash, when shipping and receiving is not a part of the seller’s business.
All part cash/part trade transactions must be pre-approved by BizXchange and must be managed by a BizX Account Executive. In the event that a transaction is approved for part cash/part trade payment, BizXchange will charge the seller transaction fees on the gross amount of the transaction and the transaction fees for the cash portion of the transaction will appear on the seller’s monthly account statement as a charge for New Cash Business. If you have questions about a potential part cash/part trade transaction, contact your BizX Account Executive.
What if I’m dissatisfied with the quality of a product or service received through BizX?
As with any cash transaction, instances may arise in which you are dissatisfied with the quality of a product or service purchased through the network. Likewise, as with a cash transaction, we suggest that you do not sign for or authorize payment for a product or service until you are satisfied with the product or level of service. And, as you would with a cash transaction, inform the seller of the disputed product or service and why you are dissatisfied with the purchase. Most issues can be resolved quickly and easily simply by bringing your concerns to the seller’s attention.
If you are dissatisfied with the quality of products and services purchased, missed appointments or the seller’s failure to deliver products and services as agreed at the time of sale, contact BizX Priority Service at priorityservice@bizx.com.
Some members have restrictions on the circumstances under which they will accept BizX dollars and may have times when their BizX account is on standby. All such restrictions must be pre-approved by BizXchange and will be up-to-date on BizX.com. If you are refused a BizX sale outside of any published restrictions, contact BizX immediately. They may be able to find another source of the product or service you seek. Also, we rely on your feedback to keep the exchange fair, honest and advantageous to all members. We will not tolerate unfair business practices. Members refusing sales will be asked to correct the situation immediately. If a member continues to decline BizX sales, they may have their account status changed by BizXchange, have their trading privileges suspended or may be asked to leave the exchange.
Items available through BizX should be offered at fair, prevailing, or standard market prices at 100% trade. Fair trade and prevailing prices are defined as the most commonly offered price for a product or service, whether it is being sold for cash or for trade, and should reflect current market values for that particular product or service.
ACCOUNT STATEMENTS AND PAYMENTS
When do I receive my Account Statement?
Account Statements are processed at end-of-business on the last day of the month and are mailed through the USPS to members no later than the second day of the following month. You can also find all of your past Account Statements online under the Summary field.
Cash fees include monthly account maintenance fees and transaction fees on sales and purchases. Cash fees may also include any mail or delivery fees and late fees for past due cash fees.
Account Statements detailing account activity for the month and cash fees due are mailed by the second day of the billing month. Payment for cash fees is due to BizXchange by the 15th day of the billing month.
Accounts on automatic payment will be billed on the 15th day of the billing month. Accounts not on automatic payment should remit payment by the 15th day of the billing month online using the Make a Payment feature or to BizXchange, 3600 136th Place SE, Suite 270, Bellevue, WA 98006. Credit and debit card payments may be faxed to (425) 998-5056 or called in to (425) 998-5055.
Accounts with payments that are returned for insufficient funds will be charged a $35.00 service fee. BizXchange reserves the right to put accounts with past due cash fees balances on standby
You may pay cash fees by:
- Enrolling in an automatic payment plan. Currently, BizX accepts debit and credit cards and checking account information for automatic payment. Enroll using the Manage Auto-Pay feature at BizX.com.
- Using the Make a Payment feature on BizX.com
- Remitting a valid check or money order to BizXchange at 3600 136th Place SE, Suite 270, Bellevue, WA 98006.
- Calling BizXchange at (425) 998-5055 with valid credit card or debit card information.
What happens if I pay my cash fees late?
Cash fees are due to BizXchange by the 15th day of the billing month. BizXchange allows member accounts a grace period that lasts until the end of the month to pay cash fees without incurring late charges. After the end of the month, accounts with a positive cash fee balance will be charged a late fee for funds due. Late fees will be no less than $5 and up to 1.5% of the balance due per month (18% annually.)
Accounts with a cash fee balance more than 30 days past due may be put on standby and purchases to that account may be declined.
How does automatic payment work?
Automatic payment accounts are charged on the 15th day of the billing month. If billed to a credit or debit card, all current fees due are charged to the card. If on automatic checking, all current fees due are transferred from your checking account to BizX on the 16th day of the billing month.
Accounts are charged a $35 service fee for automatic payments returned for insufficient funds.
How do I enroll in automatic payment?
To enroll in automatic payment, use the Manage Auto-Pay feature on BizX.com or complete and sign the Pre-Authorized Payment Agreement Plan on the back of you monthly Account Statement. Mail the completed agreement to BizXchange, 3600 136th Place SE, Suite 270, Bellevue, WA 98006 or fax it to (425) 998-5056.
How do I read my monthly Account Statement?
Your Account Statement details all transactions completed within the previous month and lists summary information about your account. The items included on each statement are:
Your business legal name and mailing address. Please logon to www.bizx.com to update this information immediately if it has changed.
Client Account # is the number we use to track all of your activity, including buying and selling within the network.
Statement Date is the date that the statement was printed and is the last day for which trade activity on that statement is included.
Current Cash Due shows the cash fees due to BizX. This number is based on a percentage of all transactions completed within the period plus previous unpaid fees due.
Payment Due Date is the date that cash fees are due to BizX, typically the 15th of the month. Please pay promptly to avoid late fees, spending restrictions and other penalties.
Transaction Date is the date that each purchase, sale or payment is posted to your BizX account.
Card Number represents the BizX card that was used when purchasing. Multiple cards can be issued on each BizX Member account. This column of your statement allows you to track who within your company made the purchase.
Description contains notes about the transaction such as the member you purchased from or to whom you sold.
Purchases details all trade purchases made on your account for the statement period.
Sales details all trade sales made on your account for the statement period.
Authorization Number shows the authorization number for each purchase and sale. Fees, credits and payments do not have an authorization number.
Fees Due shows the total cash fees due to BizX for each purchase or sale.
Fees Paid shows all cash fee payments made to BizX for the statement period.
Credit Line shows your current line of credit with BizX. (See How do I get a line of credit on my account?)
Previous Trade Balance details the trade balance at the end of the previous month.
Current Purchases shows the sum of all of your purchases through BizX for the statement period.
Current Sales shows the sum of all of your sales through BizX for the statement period.
Current Trade Balance is your previous BizX balance, minus all purchases for the period, plus all sales for the period. It is current as of the statement date. Please logon to www.bizx.com for a current balance.
Past Due Balance shows the amount of outstanding cash fees due to BizX at the beginning of the statement period.
Payment Received shows all cash payments received during the statement period.
Current Fees shows all fees incurred during the statement period.
Current Cash Due is your past due balance, minus payments received, plus current fees. This amount should be paid to BizX by the 15th of the month to avoid late fees, spending restrictions and other penalties.
What do I do if I need a copy of a previous month’s Account Statement(s)?
Previous month’s Account Statements can be found online in Statements in the Summary category.
What do I do if I think that there is an error on my Account Statement?
We rely on you to review your Account Summary and to alert us of any discrepancies or errors. Your Account Summary will be considered accurate as printed unless you notify BizX of any discrepancy or disputed charges within 15 days of receiving the statement. BizX may debit or credit accounts without notice to correct verified discrepancies. Discrepancies not brought to our attention by the 15th day of the following month may or may not be credited at the discretion of BizX management.
BIZX FINANCIAL
How do I get a line of credit on my account?
All members may apply for a BizX Credit Line. Log on to www.bizx.com to obtain a credit line application. BizX management will decide what credit line, if any, will be extended and reserves the right to extend, revoke, increase, or decrease credit lines at their discretion and without notice. Amounts of and changes to your credit line will be based on considerations such as our expectations for your BizX business within the exchange, market demand for your product or service, your trading history within the exchange, and your cash fee payment history. BizX may also (at our sole discretion) run a credit rating to determine credit worthiness before granting a BizX Credit Line for both new and current member accounts. Based on the credit rating, BizX may also require a signed Personal Guarantee before awarding a BizX Credit Line. Members are permitted to spend up to but not exceed their line of credit. Contact BizX with questions regarding your credit line. (See What happens if my account carries a negative trade balance? for information on interest charges associated with your line of credit.)
How do I use my BizX credit line?
As a BizX member, you may be granted a line of credit with the exchange. Credit lines are a great way to meet your ongoing business needs while conserving vital cash flow. For example, you may need to complete a $10,000 print job as part of your new marketing campaign. Though you might not have yet accrued $10,000, you could use your BizX line of credit to purchase printing services through BizX saving your cash for other expenses. And you will apply new sales generated from the completed print piece toward your account debit at the same time that you will also be generating new cash business! (See How do I get a line of credit on my account?)
What happens if my account carries a negative BizX balance?
Accounts are permitted to carry a negative BizX balance up to their line of credit maximum. However, negative trade balances are charged trade interest at a rate of 1.5% on the trade balance due per month (18% annually.) Interest charges are paid in trade (not cash dollars) and are not a part of your cash fees.
DIBSPACE
ECONOMICS
Fixed costs, or overhead expenses, are those expenses a business incurs regardless of the amount of sales they are processing. For example, a restaurant must pay rent, insurance, business taxes, staffing expenses, etc whether it is operating to capacity or not.
Variable costs, or costs of goods, are incremental expenses that a business incurs as a direct result of selling a product or service and are usually a fraction of the selling cost. For example, a restaurateur’s variable cost is the cost of food he or she serves, approximately $.30 for every dollar of food sold.
Why should I buy through BizXchange when I can pay less with cash?
As a BizX member, you should expect to pay the same price for products or services as a cash customer. However, sometimes a business owner may offer cash discounts or have cheaper, wholesale cash pricing. Even so, consider that you are really buying BizX products and services for your cost of goods, or variable costs — which are usually still less expensive than the cost of cash, even at a discount. Further, remember that you are paying for BizX products and services with new sales gained through BizX.
Even when the cash price appears to be less, the trade price almost always costs you less because your actual cost is a fraction of the amount charged. Your actual cash cost is (your variable cost or % cost to earn a trade dollar) x (the cost of the goods you wish to purchase) + transaction fees, usually 12%. If your business operates with a 45% variable cost, you are accruing $1.00 for your $.45 cost, and, in that case, each BizX dollar is really only costing you $.45.
For example, you may find a product available through BizX and through a cash vendor. The item is priced at $1000 BizX dollars or $799 cash. Because your variable cost is 45%, buying through the exchange is actually only costing you 45% x $1000 + $120 transaction fees or $570. So, you’re really saving $229 by purchasing the item through BizX!
IRS AND TAXATION
Are there any tax advantages or disadvantages to BizXchange?
While BizXchange has many advantages, it is not a tax avoidance tool and has no inherent tax advantages or disadvantages for you and your business.
In 1982, the United States Congress passed the Tax Equity Fiscal Responsibility Act (TEFRA.) TEFRA recognizes trade exchanges, like BizXchange, as third party record keepers of barter transactions and stipulates that all trade revenue earned (sales made through the exchange) is to be treated as income and is taxable in the year in which products or services are sold. Barter exchanges are required to file Form 1099–B, Proceeds from Broker and Barter Exchange Transactions, summarizing all member transactions within the calendar year. Accordingly, BizXchange will issue a Form 1099–B for your account, summarizing the value of all sales made through the exchange during the year. The IRS will receive the same information.
Generally speaking, purchases made through the exchange during the year may be tax deductible and you may deduct costs you incurred to perform the work that was bartered so long as the expense is company-related.
We encourage you to consult a CPA or tax professional to determine how to best record and account for trade business. Additional examples of bartering and information on how to report the income are described in IRS Publication 525, Taxable and Nontaxable Income.
Sales tax, when applicable, is included in the total BizX transaction amount. When you make a purchase, you pay applicable sales tax in BizX. As the seller, you are responsible for remitting taxes to the US government in cash.
SUB-ACCOUNTS
Sub accounts are another great and very cost effective way for you to use BizX dollars and they can be used to reward or gift family, friends and employees. Sub accounts are separate from but appended to your primary account and allow others to reap the benefits of trade without opening their own business account.
Sub accounts can be opened for a one-time, $35 BizX fee per account. You will pay transaction fees (which will be charged to the primary account) on BizX dollars transferred into a sub account at the time of transfer; however, you will not be charged monthly maintenance fees or transaction fees on sub account purchases. A sub account is neither allowed to carry a negative balance nor is it eligible for a line of credit and the primary account is ultimately responsible for any and all balances due on sub accounts.
For whom can I open a sub account?
You may open a sub account for anyone you wish, but please remember that you are liable for any and all balances due on sub accounts.
Complete a Sub Account Request form and submit it to your BizX Account Executive. Sub Account Request forms can be found online or emailed to you by your BizX Account Executive.
