Frequently asked questions
The Bartercard concept uses an alternative, electronic currency (Trade Dollars) that is exchanged between members to pay for goods and services to improve cash flow (cash be conserved for other business expenses), reduce cash expenses (by using Trade instead) and attract new customers. Trade Dollars are a well-recognised and accepted method of payment in New Zealand. One Trade Dollar is equivalent to one New Zealand Dollar for all accounting and taxation purposes.
Bartercard is a registered Financial Services Provider and operates in a similar way as a credit card or another bank account. When it comes to accounting, there is no difference between cash and Trade Dollars, with sales being recorded as income and purchases being recorded as an expense or asset.
There are two main types of membership; our Online Business or Premium Business. Each attracts a monthly membership fee and transaction fee. Membership starts from just $295.
A full description of each package and the benefits are available on our website.
Cash fees are payable to service our administration costs. Not all aspects of running a business can be paid for using Trade and we wouldn’t encourage anyone to solely run their business using trade dollars.
There are approximately 10,000 cardholders across New Zealand, trading approximately $100 million worth of goods and services outside the cash economy each year. There are a broad range of members across almost every industry, for example, accountants, web developers, restaurants, suppliers and wholesalers, advertising/media, logistics, as well as lifestyle categories. Have a browse through our member categories to see who you can do business with.
When you join Bartercard, you will be given access to the member directory listings on Marketplace – our one stop shop for all members, their products and services, property and travel.
Bartercard Search also allows you to search for members around you regardless of where you are in New Zealand or our Island holiday destinations while you’re on the go. It’s quick, simple and easy to use – you can even use it to rate other members!
Yes, you can control the amount of trading you do. Bartercard members usually trade up to 10% to 15% of their total business turnover. We understand there are times when you may be operating at full cash capacity for a period or seasonally at your peak. A good example of this would be a restaurant that may only accept Bartercard business Monday to Thursday because Friday and Saturday they’re at capacity with their cash-paying customers. Working with your Account Specialist you will work out a plan for the amount of trading that best suits you and your business, as we understand every business is different. You can start slowly and as we work with you to bring on more suppliers of your choice, you can increase the amount of new Bartercard business you take on.
When you join, a comprehensive business analysis is conducted with you so we can identify potential suppliers already available in the Bartercard community. If there are insufficient suppliers available to suit your business requirements, we will work with you to bring on additional new suppliers to satisfy your needs. Many of Bartercard’s top trading members have successfully improved their business profitability by being proactive in their recommendation and referral of new suppliers to provide them with the products and services they need to run a successful business.
We don’t claim to be able to provide all members with everything they need. We do find that when members are engaged and communicate with their Bartercard Branch, appropriate spends can be identified.
Bartercard is often seen as an excellent way to reward high performing staff in service firms. Some businesses even give staff their own Bartercard cards, which is credited each quarter based on performance so staff can draw upon it as they wish. It’s a great opportunity for individuals to make lifestyle purchases.
You can learn some other useful tips and tricks on how to incentivise staff with Trade Dollars in our blog ‘How to incentivise and reward your staff’.
Just like you would normally, we recommend that you get quotes from a variety of businesses before you decide to make a purchase. To manage any form of overpricing, Fair Trading plays an important role in the ethos of Bartercard. We advocate that prices must be consistent with that of a cash purchase; just because a transaction is being done in Trade Dollars, it shouldn’t be more expensive than a cash transaction.
Our Fair Trading under NEW ZEALAND Law guide helps our network to understand New Zealand law for the sale of goods and services, and how the law applies within the Bartercard exchange.
Transactions are assessable and deductible for income tax purposes to the same extent as other cash or credit transactions. Therefore, the advantages and disadvantages are similar to normal cash revenue or expenses.
When an entity that is a member of a trade exchange makes a taxable supply to another member there is a tax liability, including goods and services tax (GST).
GST is paid and received by members in Trade Dollars. For the purposes of the tax laws, payments such as GST and income tax must be remitted to the IRD in New Zealand currency. Please consult your accountant for further advice or download our free eBook The Accountants Guide to Bartercard which explains how Bartercard will work for your accounting systems.
Why not check out our blog: ‘How does Bartercard work with your accounting system’.