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Consumer Financial Protection Bureau To Cut Overdraft Fees To $3

The Consumer Financial Protection Bureau (CFPB) is working on a plan to lower overdraft fees. These are the fees Americans pay when their bank accounts run dry. As a part of the Biden Administration’s fee-reducing efforts, this could save Americans around $3.5 billion yearly.

Overdraft fees from banks and credit unions take billions from Americans each year. The proposed rule offers large financial bodies two choices. Either charge a flat fee for overdrafts matching the service cost or adhere to the same disclosures and protections required for credit cards and loans. The CFPB has yet to set a specific benchmark but could possibly lower it to $3. This initiative is designed to boost transparency and fairness in banks and shield consumers from overdraft fees.

CFPB To Cut Overdraft Fees – Key Takeaways

Cost Relief for Consumers: The CFPB’s choice to cap overdraft fees at a mere $3 is a big help for consumers. It might save more than $3.5 billion! The Biden administration’s goals to cut “extra” costs are aligned with this step. They’re especially concerned about overdraft fees, which have been demanding a lot from Americans’ pockets.

Addressing Long-Standing Loopholes: The latest rule is designed to plug a “loophole.” For a decade, this hole allowed overdraft lending to avoid consumer protection laws. This regulation is needed because big banks abuse this loophole. They made hefty profits by charging customers overdraft fees. Annually, these fees add up to billions. Plugging these “loopholes” is a way to make banking fair and clear.
Promoting Transparency and Fairness: This new rule encourages banks to charge a set fee or follow existing laws. These include making important information transparent. The CFPB wants to grow transparency and fairness in banking. This isn’t just about protecting people from high overdraft fees. It’s also about creating an equal financial burden.
Future Outlook and Potential Challenges: The public comment has until April 1 until the final ruling. The rule is scheduled for October 1, 2025. But, a potential challenge lies ahead as the Supreme Court is set to decide on the constitutionality of the CFPB’s funding structure. Despite this, consumer advocates applaud the initiative as a crucial step toward steering banks away from exploitative fees, emphasizing quality service over profit-centric practices.

Background

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The Biden Administration has launched several programs to curb high fees. In early 2022, the CFPB began to reduce these unnecessary charges to save Americans substantial amounts of money. This step has become widely popular since the very start, and over eighty thousand people responded, as most were upset about overdraft fees.

Recently, the CFPB told Atlantic Union to pay $6.2 million. The bank had tricked customers into misleading overdraft programs. In 2022, Regions Bank also got in trouble. They had to pay $191 million for unfair overdraft fees on ATM and debit card use. Wells Fargo also had a big fine from the CFPB – over $200 million.

This work goes beyond just banks. In October, the FTC proposed rules to stop surprise fees. Businesses would have to tell customers about fees ahead of time and in a clear manner. This includes places that sell tickets like Ticketmaster – they’re known for service fees. Big companies like Airbnb would also be impacted. They charge cleaning and service fees. The proposal also includes hospital bills. Sometimes, there are hidden fees from doctors that aren’t in the hospital’s network.

The goal is to make things clear for consumers and protect them from unexpected fees in many sectors. In response to the CFPB’s push to cut high fees, a ton of banks changed their rules about overdrafts and minimum fund charges. These tweaks caused a big stir in the market. They saved people $3.5 billion a year just from lower overdraft fees. Plus, they saved an extra $2 billion on “non-sufficient balance” fees.

CFPB’s Overdraft Fee Crackdown – Closing Gaps and Ensuring Transparency

Recently, the CFPB introduced a rule to tackle high overdraft fees charged by big banks across the country. This rule aims to seal a more than a decade-long “loophole.” The loophole lets overdraft lending bypass certain rules like the Truth in Lending Act (TILA). This step comes ahead as a protection against these charges, as for years, these banks have made lots of money from overdraft loans. They earn billions each year from only this!

With this new rule, these big banks can still offer overdraft loans. But, they must follow existing loan laws. This means they must tell people about all interest rates, for example. Other things include overdraft service charges, which can cost about $35 each time and can sometimes equal an APR of a staggering 16,000%!

Now, if banks opt to charge a fee to cover costs, it should be under the set benchmark, which is expected to be anywhere from $14, $7, $6, or even $3. Or they can calculate their own cost, but they have to be transparent and share this data with the customers. This idea supports both openness and fairness in banking. It also makes room for sensible overdraft strategies.

Rohit Chopra, the Director of the Consumer Financial Protection Bureau, highlighted that overdraft loans received special treatment decades ago to assist banks in covering paper checks, commonly sent through the mail. In the present day, the CFPB is putting forward rules to address a longstanding loophole that has allowed numerous large banks to turn overdrafts into a substantial and exploitative fee-generating system.

Regulations are being suggested that will affect banks and credit unions holding more than $10 billion in assets. This includes roughly 175 of the biggest financial firms nationwide. These firms could continue to charge genuine overdraft costs to their clients, but they would be less able to make large profits from this service.

President Biden pointed out that some banks apply ultra-high overdraft fees that can hit $30 or more. These steep fees hit the most underprivileged Americans very hard. Meanwhile, these banks build their wealth. They call it a service, but Biden sees it as an act of taking advantage.

What Can You Expect In The Future?

The public comment period on the CFPB proposal wraps up on April 1. The official start of the final rule is slated for October 1, 2025. It’s expected this fall after satisfying TILA mandates.

But to make the matter a little over the edge, a threat of legal issues looms over and might disrupt the proposal and its origin agency. This year, the Supreme Court will decide a case arguing over the CFPB’s funding structure. Should the court favor this argument, the fate of the bureau and its regulations hangs in the balance.

Yet, some consumer champions applaud the proposal. They say that bank charges, seen more as a cash grab than a real service, typically hurt less wealthy customers most. This change urges banks to focus on excellent service, not on hitting customers with fees.

About The Consumer Financial Protection Bureau

The CFPB is a government body aimed at protecting the public. Its task is to oversee financial products and firms for safety. The CFPB’s goal is to ensure honesty and clarity in consumer finance, especially in areas like mortgages and credit cards.

Its job is to supervise various financial offerings available to the public. The CFPB includes several parts: operations, public relations and education, supervision, legal issues, fair lending and enforcement, monitoring, studies, and rules. These parts work together to protect and teach the public about different financial products and services. The CFPB plays an important part in applying and upholding Federal financial laws. Their aim is for markets to have openness, competitiveness, and justness.

Conclusion

By tackling overdraft charges, the CFPB plays a key role in lessening the financial stress for Americans. Their actions match those of the current Biden government, which aims to cut down high costs that might save individuals billions yearly. The CFPB’s plan? Limit overdraft fees to $3. It should make banks more open and fair. It’s not a standalone effort but part of a wider move to shield people from harsh fees.

Several banks have faced penalties for sneaky tactics lately, highlighting the need for change. With the cutoff for public opinion nearing its end, people are waiting for the final rule, which is due in October.

Truist Closing 72 Branches by March 2024

Truist Financial plans to reduce its branch network by March as part of its cost-saving strategy. According to recently released data, Truist Financial operated a total of 2006 branches across 17 states and Washington, DC, as of December 29, 2023, and Truist closing branches could amount to around 4% of it.

Although TFC has not disclosed the branch locations that will be closed, recent applications submitted to the North Carolina Commission of Banks indicate that closures are expected in states such as Kentucky, Georgia, Maryland, Alabama, West Virginia, and North Carolina.

The spokesperson for Truist Financial stated that lower branch traffic and transaction volume are the factors behind these closures. Furthermore, they mentioned that nine branches in North Carolina and seven in the Washington, DC, area are scheduled for shutdown by March.

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Truist Closing Branches: Key Takeaways

Strategic Cost-Cutting Initiative: Truist Financial’s decision to close 72 branches by March 2024 is a significant move aligned with its broader cost-cutting initiative of $750 million. This measure is part of the company’s strategic reset and expense reduction plan, reflecting the dynamic adjustments needed to navigate the evolving financial market.
Geographic Impact: While specific branch locations remain undisclosed, recent closure applications in several states, including Kentucky, Georgia, Maryland, Alabama, West Virginia, and North Carolina, indicate the geographic scope of Truist’s branch closures. The move reflects a nationwide strategy to optimize the branch network based on factors such as declining branch traffic and transaction volumes.
Operational Streamlining: Truist’s plan involves consolidating commercial and community banking regions, merging consumer and wholesale payments businesses, establishing a unified commercial real estate business, and resizing its board of directors. These measures indicate a comprehensive effort to streamline operations and enhance efficiency as part of the cost-cutting initiative.
Financial Impact and Timeline: Truist’s cost-cutting plan, led by CEO Bill Rogers, aims to limit the expense rise to no more than 1% in 2024. The $750 million initiative is set to be implemented over twelve to eighteen months, potentially concluding in the first quarter of 2025. The financial impact includes $300 million from job cuts, $250 million from organizational restructuring, and $200 million from reducing expenditures on technology, reflecting a focused approach to achieving financial goals.

Truist Financial’s Strategic Branch Closures: A Staggering $750 Million Cost-Cutting Initiative

Truist Financial has informed customers about its plan to close 72 branches in March as part of its broader cost-cutting initiative. The North Carolina-based company aims to close nearly 4% of its branch network around the States. As of December 29, 2023, Truist operated 2,006 branches across 17 states.

These closures align with Truist’s previously announced $750 million cost-cutting initiative, initiated four months ago. In response to the need for a strategic reset and expense reduction, the 543 billion dollar company has implemented various measures, including consolidating commercial and community banking regions, merging consumer and wholesale payments businesses, establishing a unified commercial real estate business, resizing its board of directors, expanding its executive management team, appointing a new chief operating officer, and hiring a new chief legal officer.

But which branches is Truist closing?

Truist, based in North Carolina, hasn’t yet provided a comprehensive list of upcoming branch closures in response to requests. However, recent closure applications submitted to the North Carolina Commission of Banks indicate impending shutdowns in various states, including Georgia, Alabama, Maryland, Kentucky, West Virginia, and North Carolina.

According to a Truist spokesperson via email, 7 branches are set to close in Washington, DC, and 9 branches are slated for closure in North Carolina. Truist plans to close 8 branches in Georgia, with 4 in Atlanta. These closures are attributed to declining branch traffic and transaction volume. On average, the locations earmarked for closure are about 2.5 miles away from another Truist branch. In the Washington area, the proximity is even smaller, with affected branches situated less than one mile away, on average, from another branch.

After the closures, Truist will maintain operations with over 1,900 branches and 2,900 ATMs. The company has not revealed the number of jobs affected by the shutdowns. Currently the seventh-largest US commercial bank by assets, Truist originated from the merger of equals between North Carolina, SunTrust Banks, and BB&T in December 2019, with headquarters in Winston-Salem and Atlanta.

Initially aiming for annual cost savings of $1.6 billion by the end of 2022, the expenses continued to rise. In July, executives projected a 7% YOY expense increase for 2023, marking one of the highest anticipated upticks among major banks. However, the current cost-cutting plan aims to limit the expense rise to no more than 1% in 2024.

Truist CEO Bill Rogers has outlined that the $750 million cost-cutting initiative will be implemented over twelve to eighteen months, potentially concluding in the first quarter of 2025. The major component, around $300 million, is anticipated to result from job cuts, with an additional $250 million stemming from organizational restructuring. The remaining $200 million will be achieved by reducing expenditures on technology.

About Truist

Truist is a company that offers banking and trust services, operating across three main segments: Consumer Wealth and Banking, Insurance Holdings, and Commercial and Corporate Banking. The Wealth and Consumer Banking segment provides various solutions, including borrowing, banking, insurance, investing, payments and consumer finance, mortgage, and wealth management.

The Commercial and Corporate Banking segment specializes in strategic advisory, risk management, capital raising, investment and liquidity, financing, deposits, lending, and cash management. The Insurance Holdings segment provides casualty and property, life insurance, employee benefits, and other solutions. Truist was formed through the merger of SunTrust and BB&T.

Conclusion

Ttruist branch closing amounting to a staggering 72 branches by March 2024 serves as a pivotal step in its comprehensive $750 million cost-cutting initiative. This strategic move, aligning with the need for a reset and expense reduction, reflects the company’s commitment to adapting to evolving market dynamics.

While specific branch locations remain undisclosed, pending closure applications in multiple states indicate the broad impact. Truist attributes these closures to declining branch traffic and transaction volumes. Post-closure, the company will operate over 1,900 branches and 2,900 ATMs. The cost-cutting plan, led by CEO Bill Rogers, aims to limit the expense rise to no more than 1% in 2024, focusing on job cuts, organizational restructuring, and technology expenditure reduction.

Visa Cracks Down On Businesses Using Surcharge Programs

Visa, the largest global payment system, is making changes to its approach towards surcharges in order to be more stringent towards merchants who impose additional fees on customers using credit cards. In recent months, Visa has reduced the amount that retailers can charge customers when they use Visa cards. Additionally, the company has started conducting on-site inspections to ensure that stores are following its guidelines when implementing these surcharges.

Visas adjustments are in response to concerns raised by businesses that are facing financial strains due to the fees associated with accepting electronic payments from banks. As a result, many of these businesses have resorted to implementing interchange fees on card transactions as a way to offset these expenses. Let us understand how this Visa surcharge crackdown will impact small businesses.

Key Takeaways On Visa Surcharge Crack Down On Businesses

Visa’s Surcharge Regulations: Visa, a known credit card company is introducing rigorous policies regarding surcharges. This decision comes after businesses expressed their concerns about the burden of interchange fees. Visa is committed to maintaining limits on surcharges to ensure an experience for consumers amidst debates about interchange fees.
Enforcement Challenges for Merchants: The increased enforcement of surcharge regulations by Visa has met resistance from merchants and processing companies alike. While some merchants initially implemented surcharges many have reconsidered due to the impact it had on customer experience.
Legislative Landscape: Pending state and national surcharge legislation spans Kansas, Minnesota, New York, and Massachusetts. New Jersey and New York have enacted laws limiting surcharges, compelling merchants to disclose total credit card usage costs. Non-compliance can result in penalties, indicating a shifting regulatory landscape affecting businesses.
Impact of Interchange Fees and Surcharges: Interchange fees have been increasing significantly with Visa and Mastercard setting the rates while banks collect the fees. Although these costs may seem small per transaction they have doubled over time reaching $160.7 billion annually. Surcharges have become a practice for businesses across different industries as they help offset the expenses related to credit card transactions. By implementing surcharges according to practices merchants can effectively navigate the challenges presented by the evolving payment industry.

Visa’s Surcharge Regulations And Enforcement: A Look At The Implications For Merchants

Visa is widely recognized as among the most popular and accepted credit cards worldwide. Cardholders appreciate its reliability and secure payment transactions. And like any other card network, Visa charges interchange fees for each transaction made with their cards. This fee can vary depending on the type of card, data level, merchant category code, and more.

To ensure a more affordable experience for consumers Visa is encouraging merchants who accept Visa credit cards to adhere to a limit on surcharges. This move by Visa comes amidst a disagreement over interchange fees referred to as swipe fees. While merchants strive to keep these fees in control, Visa asserts its right to increase them. Surcharges come into play when merchants aim to recover the costs associated with interchange fees by adding a charge for customers using credit cards. Visa emphasizes the importance for merchants to abide by this surcharge limit in order to safeguard the consumers’ experience.

Last year, Ryan McInerney, Visa’s CEO, acknowledged that they are not thrilled about customers facing surcharges. However, he pointed out that merchants have the authority to impose such charges in specific US jurisdictions and other places worldwide, and some opt to do so. He further said that many merchants initially adopted this practice but later retracted it due to its negative impact on the customer experience, even though they must adhere to Visa’s rules regarding additional charges.

This alteration did not sit well with numerous sales agents and processing companies providing intermediary services for merchants processing credit card transactions. Some have gone on with legal action on this matter. However, many small businesses admit to having limited options when it comes to opposing Visa, the largest card network company in the U.S.

To expand its reach, a memo from the Priority Payment Systems division, which handles credit card payments in partnership with ISOs, highlighted Visas’s commitment to enforcing credit card surcharge regulations. Payment processors were explicitly informed that adherence to these guidelines would be closely monitored, and failure to comply could lead to fines ranging from $500,000 to $1 million.

The memo has conveyed that Priority and its sponsor banks follow card brand regulations. It has been noted that Visa is increasing its efforts to tighten its grip on the Surcharge Rules. To shield your affiliated merchants from fines imposed by card brands for non-compliance, conducting a comprehensive review of existing and new surcharge programs linked with your merchants is strongly recommended.

A Closer Look At Pending Legislation And Recent State-Level Developments

Throughout the country, state and national legislation concerning the surcharges merchants can levy on card transactions from Washington to North Carolina are pending. The organization responsible for tracking state legislation has identified six states where such legislation is currently marked as “pending” this year. However, much of it consists of bills introduced in the previous year, now carried over into the current legislative session. These states include Kansas, Minnesota, New York, and Massachusetts.

At the state level, New Jersey and New York have recently enacted laws compelling merchants to limit surcharges, ensuring that these charges do not surpass merchants’ costs for processing transactions.

Kathy Hochul, Governor of New York, recently approved the new law that restricts merchants in the state from imposing credit card surcharges exceeding the amount charged by the credit card company for each transaction. The law mandates merchants to disclose the total price for credit card usage, explicitly and prominently stating the surcharge amount. Non-compliance with these regulations can result in merchants facing a penalty of $500 per violation.

Surge In Interchange Fees And The Pervasive Adoption of Surcharges: Impacts on Businesses and Consumers

The focal point of the discussion revolves around interchange fees. While Visa and other processors like Mastercard establish the rates for these fees, the banks issuing the cards retain the majority of the fees. Despite often being just a few cents per transaction, these costs have increased in recent years due to the growing use of credit cards, which generally carry higher interchange fees than debit cards. The combined debit and credit card swipe fees have more than doubled in the past decade, reaching $160.7 billion annually. These fees translate to an average cost of over $1,000 annually for the typical American family.

The reliance on surcharges is not limited to small businesses; an expanding number of enterprises that traditionally received payments via checks or direct bank transfers, such as general contractors, lawn care, and consultant providers, are now implementing surcharges to offset the expenses associated with accepting credit cards.

For many merchants, the option to surcharge has become a prerequisite for accepting cards. When executed following established best practices, surcharging can serve as a viable means for numerous merchants to start accepting cards for the first time.

About Visa

Visa Inc. is a payment technology company in the United States and internationally. The company oversees VisaNet, a network that processes transactions by authorizing, clearing, and settling payment activities. In addition to providing debit, credit, and prepaid card products, Visa offers services like contactless (NFC), click-to-pay, and tokenization. Visa Direct, another solution by the company, facilitates the efficient delivery of funds to eligible cards, digital wallets, and deposit accounts.

Visa Inc. extends its reach with services like Visa B2B Connect, a multilateral cross-border payments network for businesses, and Cross-Border service, focusing on consumer payments across borders. The company’s DPS (Data Processing Services) arm offers various value-added services, including dispute management, fraud mitigation, campaign management, data analytics, digital solutions, and contact center services.

Visa Inc. operates under various brand names, such as Visa, Interlink, Visa Electron, PLUS, and V PAY. Its clientele includes merchants, financial institutions, and government entities. Established in 1958, Visa Inc. is headquartered in California.

Conclusion

Visa’s recent crackdown on businesses implementing surcharge programs reflects the ongoing challenges within the payment industry. As Visa, a global credit card giant, tightens its policies and conducts on-site inspections, merchants grapple with the financial strain of interchange fees. The critical takeaway emphasizes Visa’s commitment to maintaining a positive consumer experience, urging merchants to adhere to set limits on surcharges. However, this move has faced resistance from some merchants and processing companies, who are also grappling with the profits and are tied to imposing the charge onto the customers.

Meanwhile, the surge in interchange fees continues to impact businesses and consumers alike, with fees doubling in the past decade. The reliance on surcharges, once limited to small businesses, has expanded to various enterprises seeking to offset the rising costs of credit card transactions. As the industry grapples with these changes, merchants must carefully navigate the evolving regulations to ensure compliance and protect their businesses from potential fines.

Nuvei Integrates AR Automation And EPR Payments In Microsoft Dynamics 365

Canadian fintech company Nuvei recently revealed its most recent connection with Dynamics 365, an ERP (Enterprise Resource Planning) system supplier designed specifically for small and medium-sized enterprises. Through this partnership, businesses globally may easily incorporate a range of payment options into their current Dynamics 365 Business Central division, including credit card payments, immediate bank transfers, and ACH transactions. Let us understand the dynamics of Nuvie Dynamics 365 Integration and how it will be useful for Nuvei in the long run.

The main goals of this integration are to increase the effectiveness of finance departments in industries including distribution, manufacturing, construction, and wholesale by streamlining accounting workflows and enhancing back-office reconciliation procedures.

With Nuvei’s connection, businesses may take advantage of features like exclusive cash acceleration and invoice matching capabilities designed to shorten the Day Sale Outstanding (DSO) cycle. Furthermore, it provides near-real-time payment information, speeding up and improving decision-making quality by enabling more effective financial data reconciliation across systems.

Key Takeaways Of Nuvie Dynamics 365 Integration

Seamless Integration of Advanced Payment Solutions: Nuvei’s collaboration with Microsoft Dynamics 365 enables businesses globally to effortlessly integrate various payment methods, including instant bank transfers, card payments (including ACH transactions in the US), and disbursement services into their existing Dynamics 365 segment. This integration eliminates friction in accounting workflows and streamlines performance for finance departments in distribution, manufacturing, construction, and wholesale.
Efficiency Enhancement through Cutting-Edge Technology: Nuvei’s integration introduces robust features such as exclusive cash acceleration devices and invoice matching, empowering businesses to achieve shorter receivables or DSO cycles. Accessibility to “almost” immediate payment data is made possible by technology, which speeds up and improves decision-making by enabling the effective reconciling of financial information across systems.
Strategic Alignment with Nuvei’s Growth Initiatives: This initiative aligns with Nuvei’s strategic plan to broaden its portfolio of ERP integrations, contributing to the global payments collaboration between Microsoft and Nuvei. The announcement reflects Nuvei’s commitment to encouraging customer growth and diversifying its range of ERP integrations, tapping into the expansive $120 trillion B2B payments market.
Nuvei’s Ongoing Collaboration with Microsoft: The partnership signifies a significant achievement for Nuvei, leveraging its over two decades of experience in the B2B payments sector. Integrating with Dynamics 365 Business Central is the latest step in the global payments collaboration with Microsoft, showcasing Nuvei’s commitment to ongoing collaboration across various geographies and use cases. The endorsement by Microsoft’s Vice President of Dynamics 365 underscores the importance of combining AR automation in enhancing the ERP user experience.

Nuvei’s Advanced Payment Solutions in Microsoft Dynamics 365 Facilitating Seamless Integration

Businesses worldwide can now seamlessly incorporate various payment methods, including instant bank transfers, card payments (including ACH transactions in the US), and disbursement services, into their existing Dynamics 365 segment. Leveraging Nuvei’s profound expertise in embedded ERP payments and top-notch accounts receivable automation software, this integration aims to eliminate friction in accounting workflows and back-office reconciliation, streamlining performance for finance departments within Dynamics 365 Business Central customers in sectors like distribution, manufacturing, construction, and wholesale.

Nuvei’s robust integration and cutting-edge technology include exclusive cash acceleration devices and invoice matching, empowering businesses to achieve shorter receivables or DSO cycles. Furthermore, companies gain access to “almost” real-time payment information, facilitating more efficient reconciliation of financial data across systems and supporting faster, more informed decision-making.

This integration empowers SMBs to seamlessly integrate a range of payment methods into their current ERP modules. This initiative aligns with Nuvei’s strategic plan to broaden its portfolio of ERP integrations and contributes to the global payments collaboration between Microsoft and Nuvei. This announcement also mirrors Nuvei’s commitment to encouraging customer growth and diversifying its range of ERP integrations, capitalizing on the expansive $120 trillion B2B payments market.

According to Nuvei CEO and Chair Philip Fayer, their objective is to empower customers to enhance their growth by fostering improved engagement with their clientele. Leveraging their technological proficiency in business-to-business payments and Enterprise Resource Planning systems, they facilitate businesses in providing integrated commerce platform payments, aiding them in reaching customers and optimizing internal efficiencies and working capital.

Fayer further explained that by combining their payment technology with the top ERP market, they can reach millions of people worldwide and thousands of organizations in a market with a sizeable TAM. As they progress with growing their developing payments channel, this is a significant strategic milestone.

This announcement signifies another significant achievement for Nuvei as it leverages over two decades of experience in the B2B payments sector. During a phase of rapid industry growth, Nuvei is expanding its substantial portfolio of ERP integrations. The integration of Nuvei with Dynamics 365 Business Central, revealed last month, represents the latest step in the collaboration of global payments with Microsoft. Nuvei expresses its commitment to ongoing collaboration with Microsoft across various use cases and geographies as part of this partnership.

Mike Morton, Vice President of Dynamics 365 at Microsoft Payments, emphasized combining AR automation as a crucial element in the ERP user experience. He expressed enthusiasm about Nuvei’s integration of their payment platform with Microsoft Dynamics 365, enhancing the overall offering for their customers.

At the outset, this partnership saw Microsoft utilizing Nuvei’s payments technology in Africa and the Middle East to enhance individual transactions and recurring billing for Xbox and Office customers. Both entities have indicated their plans to broaden this collaboration to additional markets and investigate further use cases, including enhanced integration with Microsoft Dynamics 365 Business Central.

About Nuvei

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Nuvei or Nuvei Corp is a financial service provider specializing in payment processing solutions. Their services include payment processing, handling payment transactions, merchant services, payment software development, agent programs, transaction processing solutions, industry-leading services, and more. Nuvei is committed to providing dedicated chargeback resolution management, effective relationship management, telephone support services, advanced fraud protection consulting, POS service and support, cash advance services, and real-time online reporting.

Pivotal Payments, a subsidiary of Nuvei, offers cost-effective payment processing, multi-currency processing, payment server development, currency conversion, retail payment solutions, payment gateway services, business card processing, retail solutions, gateway services, and direct selling, among other services. Operating in the United States and Canada, Nuvei has its headquarters in Montreal, Canada.

Conclusion

Nuvei’s integration with Microsoft Dynamics 365 significantly advances ERP payments and accounts receivable automation. This strategic alliance enables businesses worldwide, especially those in the distribution, manufacturing, construction, and wholesale sectors, to effortlessly incorporate diverse payment methods and streamline accounting workflows. Leveraging Nuvei’s expertise, this integration facilitates shorter receivables cycles and provides real-time payment information, enabling more efficient reconciliation and informed decision-making.

As part of Nuvei’s commitment to customer growth, this initiative aligns with their broader plan to diversify ERP integrations, contributing to the expansive B2B payments market. With a focus on collaboration and ongoing advancements, Nuvei solidifies its position as a leader in the B2B payments sector, promising continued innovation and enhanced user experiences within Microsoft Dynamics 365 Business Central.

Mastercard And The Clearing House Announce Extended Collaboration For Real-Time Payments

In keeping with their goal to transform the digital economy by implementing real-time payments (RTP) on the RTP network, Mastercard and TCH, or The Clearing House, have decided to prolong their multi-year relationship. With the help of this Mastercard TCH partnership, businesses, governments, and consumers will be able to navigate and prosper in the quickly changing digital landscape by utilizing cutting-edge instant payment use cases for various payment procedures.

Notably, Mastercard will continue to serve as TCH’s exclusive supplier of immediate payment software for its RTP network, allowing the integration of new instant payments for various uses across different entities. In 2017, both companies joined forces to introduce the RTP Network, marking the first new payments rail framed by Mastercard in four decades. Presently, the ongoing collaboration focuses on advancing real-time account-to-account technologies. These innovations facilitate the seamless transmission of data within the network, not only across the US but also on a global scale.

Mastercard TCH Partnership - Driving Next-Gen Instant Payment Capabilities

Key Takeaways

Enhanced Digital Economy Commitment: The extended partnership between Mastercard and The Clearing House reaffirms their dedication to transforming the digital economy by implementing real-time payment systems. This collaboration aims to introduce innovative instant payment use cases, providing advanced capabilities for businesses, governments, and consumers in the fast-moving world of payments.
Mastercard’s Exclusive Role: Mastercard continues to serve as the exclusive instant payments software provider for TCH’s RTP network, solidifying its position in advancing real-time account-to-account technologies. The collaboration focuses on integrating new instant payment not only within the US but also globally.
Real-Time Payments Impact Across Sectors: The partnership highlights the critical role of instant payments in elevating the value and efficiency of financial transactions across diverse sectors. RTP ensures immediate access and confidence in payment receipt for consumers, streamlines process for businesses, and activates local economies for governments through efficient disbursement and settlement processes.
Competition and Industry Recognition: The collaboration builds upon TCH’s efforts to expand its RTP network amidst competition from FedNow. The RTP network’s significant milestones, such as surpassing one million daily payments, reflect industry recognition of the advantages offered by real-time transactions. Financial institutions’ increasing usage of the RTP network demonstrates its effectiveness in addressing real-world challenges and innovation in payment processes.

Mastercard TCH Partnership – Driving Next-Gen Instant Payment Capabilities

Mastercard has recently declared the extension of its partnership with TCH, emphasizing the enhancement of user capabilities. In a multi-year collaboration initiated by Mastercard and TCH, the two entities are working jointly to introduce improved features for businesses, governments, and consumers. The primary goal is to facilitate the adoption of the digital economy through the implementation of RTP on the RTP network. Additionally, this partnership solidifies Mastercard’s exclusive role as the provider of instant payment software for TCH’s RTP network, enabling both entities to integrate additional instant payment.

RTP guarantees customers instant access and assurance that their payments will always be received. It promotes timely wage disbursements, optimizes capital workflows, improves liquidity management, and streamlines payment operations for enterprises. Governments might also gain from stimulating local economies by ensuring that settlement and distribution procedures are effective. The expanded collaboration emphasizes how important real-time payments are to improving the effectiveness and value of financial transactions in a variety of industries.

Mastercard TCH Partnership - Next-Gen Instant Payment

The Federal Reserve’s immediate payments system, FedNow, introduced last year, is a competitor to TCH’s RTP network expansion efforts. This partnership with Mastercard strengthens TCH’s present efforts in this regard. The year 2017 saw TCH, which is owned by significant US banks, launch its instant payment network services, RTP. In the United States, financial institutions that hold around 90% of the demand deposit accounts have access to the RTP network.

Linda Kirkpatrick, who is the President, of North America at Mastercard, highlighted the key role of advanced technology in offering businesses and consumers increased flexibility in payment methods. The enduring collaboration with TCH contributes to expanding payment options by enabling contemporary and widely accessible real-time channels for bank transactions. Kirkpatrick expressed satisfaction in extending and reinforcing their commitment to TCH and its owner banks, emphasizing the shared objectives of ensuring the dependability, efficiency, and security of instant payments.

The RTP network, TCH’s instant payments system accessible to all insured depository financial institutions in the US, achieved a significant milestone last September by surpassing one million daily payments. This milestone reflects the growing recognition among the institutions and their customers of the advantages offered by real-time transactions, such as payment confirmation, enhanced control over payment schedules, and immediate fund availability.

With over 60 million transactions processed each quarter, the RTP network is experiencing increased usage as financial institutions leverage its real-time payment capabilities to address real-world challenges in innovative ways.

FedNow is a real-time payment system that competes with the growing RTP network. Interest in the RTP network appears to have increased with the release of FedNow. FedNow and RTP are competing with each other for the business of financial institutions. Regarding the Fed’s fast payments system, Mastercard has taken a cautious position. Previously, despite the FedNow system’s early acceptance by significant corporations like Fiserv and JPMorgan Chase, Mastercard CEO Michael Miebach noted that it lacks capabilities and a consumer platform.

Lee Alexander, Executive Vice President and CIO at TCH mentioned that TCH and Mastercard collaborated on the creation of the RTP network, recognized as the leading instant payment platform in the US. With a robust history of successful collaboration in delivering scalable, secure, and innovative products, the extended partnership aims to facilitate the development of the next generation of real-time payment capabilities for financial institutions and their customers.

All in all, the RTP network was designed to cater to institutions of various sizes, providing a stage for innovation that enables them to introduce new services and products to their customers. Financial institutions have the flexibility to connect to the RTP network directly, utilize third-party providers, and collaborate with corporate credit unions and bankers’ banks.

About MasterCard

Mastercard, Inc. is a technology company deeply involved in the payments industry, serving as a vital link connecting consumers, financial institutions, merchants, governments, and businesses. Established in November 1966 and headquartered in Purchase, NY, Mastercard provides innovative payment solutions encompassing credit, debit, prepaid, commercial, and payment programs.

The company acts as a crucial network, facilitating transactions between issuing banks and acquiring banks to ensure authentication and fund transfers. Its role extends to enabling payments for various purposes, including shopping, travel, business operations, financial management, and more. Mastercard specializes in global digital payments and commerce, offering cutting-edge mobile payment processing solutions.

In the fiscal year 2022, Mastercard achieved notable financial success, recording annual revenues of $22.23 billion and a net profit of $9.93 billion. As a technology-driven entity, Mastercard continues to play a significant role in shaping the face of modern payment solutions.

About The Clearing House

Founded in 1853, TCH stands as the oldest banking association and payments company in the United States. It is collectively owned by the world’s largest commercial banks, employing over two million individuals and holding more than half of all US deposits.

TCH Payments Company LLC plays a pivotal role by providing payment, clearing, and settlement services to its member banks and other financial institutions. Daily, it handles the clearing of almost $2 trillion, representing nearly half of the funds-transfer, ACH payments, and check-image payments made in the US.

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On the advocacy front, TCH Association LLC operates as a nonpartisan organization, championing the interests of its owner banks. This is accomplished through regulatory comment letters, amicus briefs, and white papers, addressing a spectrum of systemically important banking issues.

Conclusion

The extended collaboration between Mastercard and The Clearing House marks a significant stride towards enhancing digital economy capabilities. Their commitment to RTP underscores a shared objective to propel businesses, governments, and consumers into a dynamic digital era. Mastercard’s role as the exclusive instant payments software provider for TCH’s RTP network positions them at the forefront of advancing real-time A2A technologies.

This partnership not only ensures immediate access for consumers and streamlined processes for businesses but also holds promise for efficient disbursement and settlement processes for governments. Amidst growing competition in the real-time payments realm, the enduring collaboration between Mastercard and TCH exemplifies a commitment to reliability, efficiency, and security in the evolving world of financial transactions.

IRS Unveils Withdrawal Procedure for ERC Claims

The IRS has repeatedly cautioned taxpayers about a rise in aggressive marketing related to questionable or fraudulent claims for the Employee Retention Credit (ERC). Initially, the IRS addressed ERC claims by including them in their Dirty Dozen list. Later, on September 14, 2023, the IRS took immediate action by placing a moratorium on processing new claims, which will continue at least until 2023.

The IRS is now providing a solution for taxpayers who have fallen prey to ERC scams and have yet to receive their refunds. On October 19, 2023, the IRS introduced an ERC withdrawal procedure. This initiative aims to assist businesses concerned about the eligibility of their claims.

The IRS instituted a “withdrawal process” for specific small businesses that submitted ERC claims during the Covid and now think they might not be qualified. Once presented as a relief plan, this procedure is intended for small firms that legitimately applied for financial aid but were later approached by the Internal Revenue Service to question the validity of their claims. These companies now have to deal with interest, fines, or payback. Company owners that submit ERC claims need to be fully aware of the qualifying requirements and the possible repercussions of making inaccurate, fraudulent, or inappropriate claims.

Key Takeaways:

Introduction of a Targeted Solution: The IRS has responded to the surge in fraudulent Employee Retention Credit (ERC) claims by unveiling a withdrawal process on October 19, 2023. This targeted initiative is specifically designed to aid businesses that have fallen victim to ongoing scams and have concerns about the eligibility of their ERC claims.
Shielding Businesses from Audits and Penalties: The withdrawal procedure protects businesses influenced by third parties or misled into filing ineligible ERC claims. Businesses can shield themselves from potential audits and penalties by retracting these claims. Withdrawn claims will be treated as if they were never submitted, offering a means of rectification.
Eligibility Criteria for ERC Withdrawal: Businesses eligible for the ERC withdrawal process include those who have claimed the credit on specific employment tax return forms but have yet to receive a refund or have not cashed the refund. The withdrawal applies to businesses that filed adjusted returns solely for ERC claims without any other modifications.
Irreversible Nature of ERC Withdrawal: While the ERC withdrawal process benefits eligible businesses, it comes with a crucial caveat – once requested, the withdrawal is irreversible. The IRS emphasizes the importance of businesses approaching reputable tax providers for guidance before initiating a withdrawal, highlighting the permanent nature of this decision.

The Necessity Of ERC Withdrawal Procedure

In light of the financial difficulties posed by COVID-19, the ERC was created to support qualified small enterprises in keeping their workforces on board. Unfortunately, several tax consultants have abused the credit by using aggressive marketing strategies. These advisors lured small companies into making illegal tax credit claims and amending payroll tax forms. The IRS decided to halt assessing new ERC applications until the end of 2023 as an outcome of this misuse, which led to an increase in invalid filings.

The purpose of the unique withdrawal procedure is to enable companies that other people have influenced to withdraw their ERC claims. This move aims to protect them against more audits and fines. Claims that are withdrawn will be handled as though they were never filed. It is crucial to remember that the law does not shield companies who intentionally submitted false ERC claims or colluded to do this from possible criminal inquiries and legal action.

The IRS press release states that certain employers who submitted an ERC claim but have not received a refund yet can withdraw their application thanks to this recently added withdrawal option. They can avoid penalties, interest, and future payback by doing this. To avoid the possibility of getting an ineligible reimbursement, employers have the option to withdraw an ERC claim while it is still being processed.

The statement highlights that the IRS created the withdrawal option to support small company owners and other individuals who were duped or coerced into filing claims not eligible by ERC advertisers or promoters. Claims that are withdrawn will be regarded as never submitted, and the IRS won’t charge interest or penalties in these situations. It went on to say that it’s important to remember that anyone who intentionally made a bogus claim or who assisted or conspired to engage in such behavior should be informed that they could still face a criminal inquiry and prosecution if they decide to withdraw their fraudulent claim.

Who Is Eligible For The ERC Withdrawal Process?

Businesses are eligible to utilize the ERC withdrawal process under the following conditions:

They filed a payroll return form for the employees (Form 941X, 943X, 944X, CT1X) claiming the ERC, but they have not received a refund, or if they have, they have not cashed the refund.
With no other changes, they filed an updated return only to claim ERC.
They plan to give up the ERC claim in its entirety.

Businesses can benefit from this unique ERC withdrawal method, but there’s a big catch and that is ERC removal is irreversible once requested.

IRS advises businesses who suspect the invalidity or inaccuracy of their claims to seek guidance from a trusted service provider with expertise in incentives and credits before initiating a withdrawal. This step ensures a thorough reassessment of refunds before making the irreversible decision to withdraw.

How To Initiate An ERC Withdrawal?

The IRS has specific instructions for withdrawing Employee Retention Credit (ERC) claims. The withdrawal method depends on the status of your ERC claim; for instance, for those who haven’t received a refund and haven’t been informed your claim/application is under an audit, here are some steps you can take:

Create a duplicate of the adjusted return (e.g., 941X) containing the claim you intend to withdraw.
On the first page, inscribe “Withdrawn” in the left margin.
An authorized person should sign and date the right margin of the first page. Additionally, they should write their name and title next to their signature.
Fax the duly signed return to the IRS’s ERC claim dedicated withdrawal fax line at 8557387609. For those without access to a fax, the adjusted return can be mailed to the address specified in the return instructions.

If you have yet to receive a refund and have been informed that your ERC application is under audit, the withdrawal steps remain the same as outlined for Status 1. However, there is a requirement to mail or fax the request to a different location. Here’s a detailed breakdown:

Follow the same procedures as outlined for Status 1, which include copying the amended return containing the withdrawn claim, writing “Withdrawn” on the first page’s left margin, and having an authorized individual sign and date the right margin while putting their name and title next to the signature.
If your case has been assigned to an examiner, ask them how to mail or fax your withdrawal request directly to them.
If you would still like to be assigned an examiner, reply to the audit notice with your request to withdraw using the format specified.

In the scenario where you have received a rebate check but haven’t deposited or cashed it, follow these steps for the claim withdrawal:

Prepare the claim withdrawal request by following the procedures listed in Status 1. But please do not fax the request.
Mark “Void” in the endorsing section on the reverse of the return check.
With the voided check, include a message that reads “ERC Withdrawal” and explains why you returned the refund check.
Keep copies of all pertinent paperwork for your tax records, such as the signed and dated withdrawal request form, the explanation notes, and the front and reverse of the canceled check.
The voided check should not be bent, paper-clipped, or stapled. Enclose it with your request to withdraw your claim and send the package to the IRS through certified mail.

After reviewing your request, the IRS will notify you by letter regarding the acceptance or rejection of your request. It’s important to note that an approved request is only effective once the IRS has officially notified you of its acceptance.

If you have accepted a rebate check and have already deposited or cashed it, the withdrawal option is currently unavailable for claims associated with deposited or cashed refund checks. However, the IRS has indicated the possibility of implementing a program to address this scenario shortly.

Conclusion

The IRS has introduced a targeted withdrawal process for businesses ensnared by fraudulent or questionable claims related to the Employee Retention Credit (ERC). Recognizing the surge in misuse of the ERC, particularly by unscrupulous tax consultants, the IRS implemented a moratorium on new ERC claims and has now unveiled this withdrawal initiative.

This unique withdrawal process allows eligible businesses to retract their ERC claims, shielding them from potential audits and penalties. Emphasizing the irreversible nature of the withdrawal, the IRS urges caution and certainty in decision-making. Eligible businesses facing interest, penalties, or repayment concerns can initiate withdrawal following specific instructions provided by the IRS.

As the IRS strives to protect businesses from ERC scams, it underscores the importance of seeking guidance from reputable tax providers before making irreversible decisions. This tailored withdrawal process is crucial for rectifying inadvertent or coerced ERC claims, ensuring a fair and just resolution for affected businesses.

The IRS Moratorium on Employee Retention Credit: What’s Your Next Move?

The Employee Retention Credit (ERC) provided crucial support for businesses navigating the challenges of the COVID-19 pandemic and its aftermath. Refund claims for 2020 must be submitted by April 15, 2024, while claims for 2021 have a deadline of April 15, 2025. However, the future of this widely used yet problematic credit is still being determined amid the IRS moratorium on ERC, as it might expire earlier than initially scheduled due to a combination of fraudulent claims, limited IRS resources, and competing priorities for tax legislation funding.

Key Takeaways:

Moratorium Background and Proactive Measures: The IRS moratorium on processing ERC claims, initiated on September 14, responds to rising concerns about fraudulent filings. This pause aims to safeguard funds allocated for COVID-19 economic relief. Businesses and taxpayers must navigate this pause, considering the significance of the ERC program in their relief strategy.
Relief Measures for Businesses with ERC Claims: Businesses that submitted ERC claims before the moratorium will see continued processing but with heightened scrutiny. Delays in the processing pipeline and additional scrutiny may lead to prolonged waiting periods for ERC refunds. Accurate and well-documented records are crucial, focusing on key ERC eligibility criteria, categorization, PPP loans, and proper exclusion of owners and relatives.
IRS Vigilance and Compliance Reviews: The IRS faces a backlog of over 1 million pending ERC claims, leading to a commitment to continued processing for claims submitted before September 14, 2023. Compliance reviews and potential changes in future procedures underscore the IRS’s commitment to enhancing ERC distribution accuracy and integrity. Taxpayers should anticipate evolving procedures and be prepared for potential audits.
Withdrawal Options, Scrutiny, and Settlement Programs: The withdrawal program and ERC VDP allow businesses to rectify erroneous claims and ensure compliance. IRS vigilance includes scrutiny of claims with potential errors and fraud detection efforts. Businesses that identify inaccuracies in their claims, including those related to specific criteria, can proactively address discrepancies through the withdrawal option or participate in settlement programs, avoiding penalties and legal consequences.

Background On The IRS Moratorium

The IRS decided to stop processing ERC claims in response to growing worries about fraudulent files made under the program. This ban, which takes effect on September 14, is a component of a larger plan to protect the money set aside for COVID-19 economic aid. To maintain the integrity of the initiative, the IRS has been forced to take aggressive steps due to the appearance of individuals who appear to be dishonest and the use of deceptive techniques when submitting ERC claims; taxpayers and businesses requesting relief under the ERC program now must take into account several factors before submitting their claims.

As of October 19, 2023, the IRS had also introduced a withdrawal program. This program allows ineligible taxpayers who have not received or negotiated ERC-related refund checks to withdraw claims for refunds they are not entitled to. Furthermore, on December 21, 2023, the IRS launched the ERC Voluntary Disclosure Program (VDP). This initiative enables taxpayers who have deposited checks to voluntarily return 80% of the refund, protecting IRS audits, penalty assessments, or accruing interest.

Considerations For Businesses With ERC Claims

IRS Audit The Employee Retention Credit Claims

Businesses/organizations who have already submitted their ERC applications to the IRS feel slightly more at ease. The IRS also promised to keep processing the ERC claims submitted before the moratorium’s implementation (i.e. before 14th September). On the other hand, claims that are presently being processed will be examined more closely. There were frequent delays throughout the ERC process prior to the moratorium. Now that there is more monitoring, taxpayers waiting on ERC refunds should expect more delays. Additionally, claimers may get asked for further supporting paperwork to confirm the veracity of taxpayers’ claims.

This advanced scrutiny highlights the significance of keeping precise and comprehensively documented papers to verify your ERC application. Because the IRS closely examines each claim, all of the data provided in the application must be accurate and verifiable. And if you are reviewing your claim, consider the following key points:

Review your ERC eligibility, focusing on your gross receipts calculation or partial shutdown due to government mandate criteria.
Ensure that you were appropriately categorized as a small or large business employee.
Confirm that you have correctly considered your PPP loan.
Ensure that owners and relatives are appropriately excluded from the employee calculations.
Recalculate and file an amended return if necessary.

Understanding The Moratorium – Processing Backlog, Compliance Reviews, And Future Procedures

The IRS is grappling with a backlog of over 1 million ERC claims which remains pending processing. To address this situation, the IRS has committed to continuing to process ERC claims submitted before September 14, 2023. It is essential to note that during the moratorium period, the issuance of refunds for these previously filed ERC claims will occur, but at a slower pace than before. This deceleration in the refund process is attributed to an extended review period by the IRS to ensure comprehensive compliance.

Furthermore, the IRS is set to undertake detailed compliance reviews for the ERC claims still awaiting issuance. Taxpayers who have filed for the ERC may be subject to additional scrutiny, as the IRS reserves the right to request supplementary documentation to validate the legitimacy of the claims. This approach aims to enhance the accuracy and integrity of the ERC distribution process.

Taxpayers must know that the IRS might introduce new procedures for future ERC claims. These adjustments are implemented to streamline the claims process and align with evolving regulations and guidelines.

For individuals who have filed for the but are still awaiting the corresponding refund, an important option is now available to you – the withdrawal option. This withdrawal process is designed to cater to those who, for various reasons, haven’t yet received their ERC refund.

Additionally, the IRS has identified a recurring issue involving businesses that incorrectly attribute ERC claims to supply chain challenges. Businesses invoking supply chain issues as grounds for an ERC claim when their circumstances rarely meet the eligibility criteria have drawn attention from the IRS. In response, the IRS emphasizes that eligibility for the ERC is contingent on specific criteria, and businesses should ensure that their claims align with the established guidelines.

In cases where a business has previously claimed the ERC and the IRS has not processed or paid the claim, there is an opportunity to rectify the situation. Even if the claim is already under or awaiting audit, businesses can withdraw it if they believe it was initially submitted improperly through VDP. This proactive approach allows businesses to address discrepancies and align their claims with the stipulated requirements.

IRS Vigilance: Scrutiny, Withdrawal Option, and the Upcoming Settlement Program for ERC Claims

Comprehensive compliance measures are in place to confirm the accuracy of all the claims. Expert auditors continually examine ERC claims with the greatest chance of error, and the criminal investigation department of the IRS is actively looking for cases of ERC scams and those who support false claims. Fraudulent cases may be reported for possible legal action. Even if businesses think their ERC claims are valid, they should be ready for any audits and investigations.

The withdrawal program is now at your disposal for ERC claims. If you’ve filed an ERC claim and now believe it was in error or wish to pursue it no longer, this provision enables taxpayers to withdraw their ERC claims still in the processing stage. Introducing this withdrawal option allows businesses to rectify any mistakes or reassess their eligibility for employee retention credit. It is a proactive measure, allowing businesses to ensure compliance with the program’s requirements.

To address businesses that have already received an ERC refund but later discovered inaccuracies in their claims, such as:

Claiming ERC for the fourth quarter of 2021 when the business was operational before 15th February 2020 (as it’s exclusively for Recovery Startup that commenced after this date).
If Form 941X is filed, discrepancies between the original Form 941 wages and ERC amounts could raise concerns.
Similarly, filing Form 941X without a deduction for salaries/wages on the originally submitted ITR (applicable to NEC contractors or Form 1099MISC only) is a potential red flag.
Claiming ERC for Q4 2021 with a three-year average gross receipt exceeding $1 million or basing the claim on general supply chain issues are also flagged.
Moreover, if ERC amounts for any employee surpass $5,000 in 2020 or a threshold of $21,000 in 2021, it may attract scrutiny.

IRS has launched a VDP program, which allows businesses to voluntarily repay erroneous ERC claims, helping them avoid penalties and future compliance actions. These settlement programs are valuable opportunities for businesses to rectify errors in their ERC claims. They provide a second chance to ensure compliance with IRS guidelines, ultimately helping businesses avoid potential legal consequences.

What Should Businesses Do?

If you submitted your ERC claim early, before the release of any IRS guidance, or if an employer has any concerns regarding any ERC refund claims submitted, the first step is to engage with a tax professional and review it again. This professional can assess whether the claims should be withdrawn or if the funds should be returned through the VDP program.

But, if you’ve submitted an ERC claim and now find it in error or decide not to pursue it, the IRS is currently finalizing details for a special withdrawal option. This provision will enable taxpayers to withdraw their ERC claims, which are still pending processing.

Additionally, prompt action is crucial for employers who have not yet filed ERC refund claims but suspect they might qualify as eligible employers. These businesses should promptly evaluate their eligibility with a trusted tax professional. If deemed eligible, the employer should ensure that all tax returns containing qualified wages are filed via certified mail as soon as possible. This proactive approach can help you prevent potential additional financial consequences by addressing any errors that may exist.

Conclusion

Understanding the moratorium and its implications imposed by the IRS on the ERC requires careful thought and proactive steps. This moratorium, put in place due to concerns about filings, presents a series of challenges for businesses seeking relief. Dealing with backlogs in processing, compliance reviews, and potential procedure changes requires businesses to remain vigilant.

For those who have pending ERC claims, there is some relief in knowing that the IRS is committed to processing claims submitted before September 14, 2023. However, heightened scrutiny and longer review periods mean that you have to have some patience with the current backlog of over 1 million ERC applications. Businesses must maintain accurate records to ensure their ERC claims are legitimate. To rectify any claims and align with guidelines while avoiding consequences, businesses can withdraw their claim or participate in the VDP program.

Seeking assistance from tax professionals for reviews and taking action is crucial to avoid getting into any trouble. Staying well-informed and compliant remains crucial as the IRS continues to refine its approach to handling ERC claims.

A Look At The Current State of ERC

The IRS is taking several measures in its ongoing efforts to address false and fraudulent ERC claims. These include an indefinite extension of the moratorium on processing claims, impacting the ERC withdrawal program. Additionally, a legislative deal in progress could conclude the ERC as early as 31st January as part of the 2024 federal budget. Many developments are unfolding concerning the ERC. In this article, we take an in-depth look at the current state of the Employee Retention Credit (ERC).

The Employee Retention Credit, or ERC, created to assist COVID19 impacted employers, has attracted opportunistic consulting firms because of its appeal as a refundable tax credit. While pledging substantial refunds, many entities omit crucial information about wage deduction adjustments and other limitations embedded within the ERC rules.

Due to suspected abuse, the IRS issued a moratorium in the fall of 2023 on accepting new claims while they evaluate their processes. But where does the ERC stand as of now? Let’s see!

Key Takeaways

IRS Measures and Processing Halt: The IRS has taken steps to address false and fraudulent ERC claims, including an indefinite extension of the processing moratorium. This pause serves the dual purpose of identifying fraudulent claims and managing the millions of claims received over the past three years.
Legislative Developments and Proposed Changes: A legislative deal in progress, led by Jason Smith and Ron Wyden, proposes changes to the ERC framework. If approved, the proposed legislation could conclude the ERC as of January 31, 2024. The IRS has introduced a VDP and a withdrawal program for taxpayers with ERC claims.
Eligibility Criteria for ERC: To qualify for the ERC, businesses must meet eligibility criteria based on a significant decline in gross receipts in 2020 or 2021 compared to 2019. The gross receipts test compares the relevant calendar quarter to the same quarter in 2019, with specific thresholds for qualification. The suspension test is satisfied if business operations are fully or partially suspended due to government orders related to the COVID-19 pandemic.
Penalties for Improper ERC Claims: The IRS actively addresses improper ERC claims through criminal investigations and penalties. Initiatives include a claims withdrawal process, a VDP for acknowledging prior improper claims, and proposed penalties for ERC promoters. Proposed penalties could reach $200,000 or 75% of the ERC promoter’s gross income.

Current State of ERC

Throughout 2023, the Employee Retention Credit (ERC) program remained a significant part of federal employment tax credits. Introduced through the CARES Act in 2020, this refundable credit aimed to assist businesses and tax-exempt organizations affected by the pandemic. It encompasses qualified wages paid by eligible employers from March 13, 2020, to September 30, 2021, which was deemed crucial to support businesses during a challenging period.

Notably, the IRS had halted the processing of ERCs in the fall of 2023. This pause served a dual purpose for the IRS – it aids in identifying a considerable number of fraudulent claims associated with the credit. The IRS has been struggling to keep up with the millions of claims received over the last three years.

By initial revenue estimates, the joint committee initially projected the credit at $86 billion combined for 2020 and 2021. However, as of March 2023, the IRS reported claims exceeding $150 billion, and by October 2023, this figure surged to approximately $230 billion.

According to the most recent news, as of January 16, 2024, a preliminary framework was proposed for tax legislation. Led by Jason Smith and Ron Wyden, this proposal has outlined a framework for managing the completion of the ERC program. The proposed legislation includes substantial changes, with notable modifications to the ERC. If the proposed legislation is approved, the ERC will cease to exist after January 31, 2024.

Simultaneously, the IRS has introduced a Voluntary Disclosure Program (VDP), enabling taxpayers who have already received ERC refunds to apply until March 22, 2024. This program offers audit certainty in exchange for returning a portion of the refund. Additionally, an ongoing IRS withdrawal program (subject to potential termination) allows taxpayers to withdraw ERC claims yet to be paid by the IRS. With several deadlines approaching, taxpayers must make prompt decisions.

If the proposed legislation is not passed, employers can submit Employee Retention Credit (ERC) claims until April 15, 2024, for the 2020 period and until April 15, 2025, for the 2021 period.

When deciding to file withdrawal pending claims, participate in the ERC VDP, or refund claims, taxpayers must recognize that their eligibility for the ERC remains unchanged since the relevant periods in 2020 or 2021. Despite the current emphasis on fraud highlighted by the IRS, an employer’s qualification hinges solely on applying ERC law, which has remained consistent since 2021. Employers can be eligible in three ways: under recovery startup tax credit, with the gross receipts for the taxable year, or the suspension (government orders) test.

So, Who Really Qualifies?

To qualify for the Employee Retention Credit (ERC), businesses can meet eligibility criteria based on a “significant” decline in gross receipts in 2020 or 2021 compared to 2019. The IRS outlines the gross receipts test, comparing the calendar quarter in question against the same quarter in 2019. In 2020, qualification begins when gross receipts fall below 50% of those in the corresponding 2019 quarter. For 2021, the gross receipts must be less than 80% of the 2019 equivalent.

The suspension test, whether partial or full, is satisfied if the business’s operation is fully or partially suspended in a calendar quarter due to orders from a governmental authority restricting commerce, travel, or group meetings due to the COVID-19 pandemic.

When deciding whether to file, withdraw a refund claim, or engage in the Voluntary Disclosure Program, the safest route (and less likely to trigger an IRS audit) is to assess eligibility for the ERC as per the IRS interpretation. If eligible, disregarding messages about “fraud” and filing for a refund or retaining it if already received is advisable. While an audit may occur, certainty in meeting IRS eligibility criteria justifies the potential inconvenience.

High Penalties for Invalid ERC Claims

Employee Retention Tax Credit Calculations

The IRS actively seeks measures to address improper ERC claims. These initiatives include more criminal investigations targeting questionable claims audit activities, implementing a claims withdrawal process for pending ERC claims, introducing a VDP for individuals acknowledging prior improper ERC claims, and issuing adjustment proposals through letters.

In the ongoing effort to combat fraud linked to aggressive ERC, promoters aim to strengthen enforcement against inaccurate claims. Existing regulations impose a $1,000 penalty per person assisting in filing an understated tax liability for another. The proposed provision introduces a distinct definition for an ERC promoter and raises the penalty to $200,000 or 75% of the ERC promoter’s gross income.

Conclusion

Deciding on the appropriate course of action becomes challenging when uncertainty exists about qualifying under the IRS’s stringent tests or if there’s an argument for eligibility under the statute but not meeting the IRS’s more rigorous criteria. Individuals falling into these categories should discuss candidly with their tax advisors.

If advisors indicate non-qualification, it’s important to inquire if the decision is based on IRS directives rather than congressional rulings, allowing for an informed choice. One certainty is that missing the deadline for filing a refund claim leaves no room for recourse, even if some IRS guidance faces challenges in court. The end of the ERC could come as soon as January 31st 2024, so be aware of deadlines.

Frequently Asked Questions

IRS Employee Retention Credit Backlog

If you find yourself among the small business owners anxiously awaiting the processing of your Employee Retention Credit (ERC) claim, you’re part of a sizable group facing the same frustration. The current scenario depicts a staggering Employee Retention Credit backlog of more than a million unprocessed ERC claims! As of the end of November 2023, there are 1.01 million backlog creating substantial delays for businesses in dire need of financial relief.

Expressing concern over this dire situation, Senator Gillibrand took action on May 4th by addressing IRS Commissioner Danny Werfel. She underscored the urgency of the matter and urged Commissioner Werfel to provide a comprehensive update on the IRS’s efforts to tackle this colossal backlog. The growing impatience among small business owners is mirrored in Senator Gillibrand’s proactive approach to ensure accountability and transparency in the resolution of this critical issue.

The magnitude of the backlog raises questions about the IRS’s handling of the ERC program on multiple fronts. Not only did the IRS fall short in promoting the program as directed by the Treasury Department, but it also stumbled in timely and adequate guidance issuance.

Key Takeaways:

Unprecedented Backlog: The IRS Employee Retention Credit (ERC) backlog has reached a record-breaking one million unprocessed claims as of November 2023, causing substantial delays for small businesses seeking financial relief.
Challenges in Program Administration: The backlog raises questions about the IRS’s handling of the ERC program, highlighting shortcomings in promoting the program and issuing timely guidance. The administration faced hurdles in reviewing claims, processing, and timely refund issuance, impacting businesses dependent on the ERC during the pandemic.
Crisis Mitigation Efforts: The IRS responded to a surge in questionable claims by freezing new ERC claims in September 2023. Mitigation efforts include a withdrawal program, voluntary disclosure program, and ongoing handling of claims submitted before the freeze, despite extended processing times due to a significant number of illegitimate claims.
Root Causes and Legislative Proposals: The backlog is attributed to staffing challenges, underfunding, and outdated technology. Legislative proposals aim to address these issues, including prohibitions on contingency fees for preparers, additional penalties for ineligible claims, and an extension of the statute of limitations. The IRS is incorporating scanning technology to expedite processing and seeking congressional support for enhanced enforcement against fraudulent claims.

Background Of Employee Retention Credit

The ERC made its debut in March 2020, aiming to incentivize employers to retain their workforce during the pandemic. Eligibility for the credit extends until the close of 2021 unless legislative changes intervene. Businesses that qualify, including those that secured a PPP loan, can potentially claim up to 50% of qualified wages, encompassing eligible health insurance expenses. Notably, the Consolidated Appropriations Act (CAA) brought about an expansion of the ERC, allowing eligible employers in 2021 to claim a credit of 70% on qualified wages.

While the ERC’s original intent was commendable—supporting businesses through the pandemic by promoting employee retention—but the IRS has encountered challenges across various facets of the program. It struggled to promote the program as directed by the Treasury Department, falling short in issuing timely and accurate guidance. The establishment of proper procedures to review claims proved to be another hurdle. Presently, there are issues in processing claims and issuing refunds, highlighting a series of shortcomings in the administration of the program.

Employee Retention Credit Backlog Crisis At All-Time High

untapped refunds employee retention tax credit

Due to a notable influx of questionable ERC claims, the IRS took the step of freezing the processing of any new ERC claims in September 2023. In response, the IRS introduced a withdrawal program and a temporary voluntary disclosure program to assist taxpayers who might have inadvertently made an inaccurate claim.

During recent addresses to Congress and a tax conference hosted by the Bar of Washington DC, the IRS Commissioner conveyed that there is currently no specific timetable for lifting the moratorium on processing ERC claims received on or after September 14, 2023. While the IRS is actively handling ERC claims submitted before this date, the Commissioner acknowledged extended processing times due to the substantial number of illegitimate claims. Notably, the majority of ERC claims under review were filed in the three months leading up to September 14, 2023.

The annual report from the NTA sheds light on the ongoing challenges faced by taxpayers in determining ERC eligibility since its inception. The IRS, grappling with both the volume and complexity of the law, has found it challenging to keep up with claims. This has, unfortunately, given rise to numerous scams encouraging businesses to claim credit without due regard to eligibility.

As of the end of November 2023, the backlog of unprocessed Forms 941X at the IRS, primarily representing ERC claims, reached a staggering 1.01 million. This figure marks the highest backlog since the IRS began reporting volumes in 2021, with an increase of nearly 300,000 since the ERC processing moratorium was announced on September 14.

The processing of ERC claims by the IRS has faced significant challenges since the credit’s inception, leading to delays with potential repercussions. Legitimate claims by employers are subjected to extended wait times, potentially causing financial hardships. The IRS is working to distinguish valid claims from those deemed ineligible or potentially fraudulent.

What Is The Reason For This Influx?

Senator Gillibrand attributes the backlog in ERC processing to staffing challenges, chronic underfunding, and outdated technology in a letter addressed to Commissioner Werfel. ERC claims are submitted using Form 941X, specifically the Adjusted Employer’s Claim for Refund or Quarterly Federal Return. Presently, only a paper version of Form 941X is available, and submission is limited to mail, with no electronic filing option. Consequently, each claim requires manual processing, a task managed by only two processing locations.

A September 2022 report from the TIGTA identifies recent legislative changes through the passage of the IIJA Act as a primary contributor to the backlog. The IIJA Act altered certain processes for claims related to recovery startup businesses. However, as outlined in TIGTA’s report, the IRS lacked procedures to verify recovery startup businesses and effective controls to disallow the ERC for non-recovery startup businesses.

Addressing the Challenges and Advancements in ERC Processing

The IRS has incorporated scanning technology to automate the transcription of information that was previously manually entered, successfully digitizing around 1/3 of the ERC return backlog.

The IRS Commissioner has urged Congress to pass legislation aimed at bolstering enforcement against illegitimate ERC claims. The proposed legislation comprises three key elements:

Prohibiting ERC preparers from charging fees based on a percentage of the claimed ERC amount. The IRS asserts that contingency fees create incentives for preparers to improperly inflate ERC amounts. On the other hand, ERC preparers argue that contingency fees provide greater access to ERC claims as employers may face challenges paying upfront preparation fees.
Empowering the IRS to impose additional penalties on preparers responsible for ineligible ERC claims. This measure aims to penalize preparers, especially those from ERC “mills,” who may mislead customers by providing advice contrary to their regular tax preparers’ recommendations, as highlighted by North Carolina Senator Thom Tillis.
Extending the statute of limitations on assessment for ERC claims filed in 2020 and the first two quarters of 2021 from three years to five years. This mirrors a previous extension Congress granted for ERC claims filed in the third and fourth quarters of 2021, also extending the statute of limitations from three to five years.

Additionally, the IRS National Taxpayer Advocate (NTA) is advocating for expedited processing of ERC claims. The NTA’s yearly report to Congress reveals a significant backlog, with approximately 45,000 ERC claims per week received during the two-month period around the start of the moratorium. However, the IRS processed only about 150 claims per week during the same period, resulting in this influx of unprocessed claims, which is projected to rise to nearly 1.3 million by February.

Conclusion

The IRS Employee Retention Credit (ERC) backlog has reached an unprecedented milestone, surpassing one million unprocessed claims as of November 2023. This staggering figure has raised serious concerns among small business owners eagerly awaiting financial relief. Senator Gillibrand’s proactive engagement highlights the urgency of addressing this crisis, emphasizing the need for accountability and transparency in the IRS’s efforts to tackle the colossal backlog.

The backlog crisis underscores multiple challenges in the administration of the ERC program, from the IRS’s failure to effectively promote and guide the program to issues in processing claims and issuing timely refunds. Small businesses, dependent on the ERC for survival during challenging times, face prolonged wait times and financial hardships due to this bureaucratic tangle.

Efforts to address the backlog include a freeze on new ERC claims, the introduction of withdrawal programs, and a temporary voluntary disclosure program. Legislative proposals aim to enhance enforcement against ineligible claims, empower the IRS to penalize preparers and extend the statute of limitations. Despite these measures, the backlog persists, prompting urgent calls for improved processing efficiency and transparency in handling ERC claims.

Talus Pay Welcomes 2024 With Not One But Two Strategic Acquisitions!

Talus Pay is a prominent player providing payment processing services and has recently completed the acquisition of two companies – Clarus Merchant Services and Jobox.ai. Clarus Merchant Services is a top vendor of comprehensive B2B financial services, while Jobox.ai, recognized for its FinTech innovations, specializes in the housing service sector.

This is a strategic acquisition by Talus Pay. The company now processes over $9 billion in yearly payments and, catering to more than 22,000 merchants in the US, is geared towards promoting growth in the facility and housing services sector. Talus Pay envisions extending Jobox’s cutting-edge technology to diverse key fields, including beauty, auto repair, hospitality, and beyond. It’s worth noting that Talus Pay operates within the A&M Capital Partners portfolio, although the precise financial details of the transaction have yet to be disclosed.

Key Takeaways:

Strategic Expansion: Talus Pay’s recent acquisitions of Clarus Merchant Services and Jobox.ai signify a strategic move to broaden its capabilities. With these additions, Talus Pay is positioned for substantial growth, surpassing $9 billion in annual processing volume and serving over 22,000 merchants, mainly targeting expansion in the facility and housing services sector.
Diverse Industry Impact: The integration of Jobox.ai, renowned for fintech innovations in-home services, and Clarus Merchant Services, a leader in B2B payment solutions, showcases Talus Pay’s commitment to diversifying its industry footprint. The company aims to extend Jobox’s cutting-edge technology beyond home services, impacting key industries such as beauty, hospitality, and auto repair.
Technology-Enabled Change: Talus Pay’s CEO, Kim Fitzsimmons, emphasizes the strategic value of adding Clarus and Jobox to the company’s portfolio, highlighting their robust end-to-end technology infrastructure. The acquisitions provide Talus Pay with valuable increased scale and proprietary software, contributing to technology-focused growth and enhancing services in complementary B2B sectors.
Vertical Integration Commitment: The collaboration aligns with Talus Pay’s commitment to a vertically integrated delivery of payment processing solutions. The acquisitions, supported by AMCP Principal Alex Sacripanti, reinforce Talus Pay’s dedication to partnering with entrepreneurs who share the company’s vision for future-ready tech and industry-specific expertise.

Acquisition By Talus Pay Expands Its Horizon

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Talus Pay, headquartered in Texas, has recently made two significant acquisitions this week. The payment processing company has added Jobox.ai, a fintech infrastructure company specializing in home services, and Clarus Merchant Services, known for its B2B payment solutions, to its portfolio. While the financial details of the transactions were not disclosed, these acquisitions have elevated Talus Pay’s annual processing volume to over $9 billion, serving a vast customer base of more than 22,000 merchants.

Talus Pay will leverage these acquisitions to foster home and facility services vertical growth. Kim Fitzsimmons, CEO of Talus Pay, enthusiastically welcomed Clarus and Jobox to the Talus Pay team, highlighting their robust end-to-end service, sales platforms, and technology infrastructure. Fitzsimmons emphasized that adding Clarus and Jobox provides Talus Pay with valuable enhanced scale and proprietary software in complementary B2B industry verticals.

Alex Sacripanti, Principal at AMCP, shared his satisfaction in supporting Talus Pay’s vision for future-ready growth. He noted that Clarus and Jobox align with Talus Pay’s values and exemplify a commitment to partnering with entrepreneurs who share the company’s vertical integration in providing payment processing services.

Jobox empowers hardworking housing services professionals throughout the US, offering a comprehensive business solution for those constantly on the move. The mobile app streamlines the matching of the job, payments and scheduling, inventory management, and customer communications, allowing SMB owners to concentrate on delivering exceptional service at every step. This focus builds lasting loyalty and customer relationships. The flexible, open-source design used by Jobox offers scalability.

Through both reseller and direct channels with ISV partners, Talus Pay aims to expand Jobox’s impact beyond home services into key industries. Shay Bloch, co-founder and CEO of Jobox, discussed the product’s utility for professionals in underrepresented residences and facility services, helping them run their companies efficiently and enhance their profitability. Bloch emphasized that partnering with Talus Pay enables them to strengthen their presence in the home services sector and expedite entry into unexplored market verticals.

Clarus Merchant Services, known for its proficiency in various B2B credit unions and distribution groups, is a critical player in the payment services domain. Emphasizing competitive pricing, customer care, and robust cardholder security, Clarus aligns seamlessly with Talus Pay’s strategic goals.

Operating from Maryland for over two decades, Clarus processes over $2 billion in annual card volume, serving a diverse clientele, including businesses, credit unions, wholesale distribution groups, and building materials distribution companies. With the acquisition in progress, Clarus anticipates offering the best solutions with this partnership to enhance its merchant services portfolio.

As part of the integration, Eric Pottebaum, the President of Clarus, will assume the role of General Manager with Clarus portfolio within Talus Pay’s leadership team. Shay Bloch from Talus Pay has been appointed CSO, whereas Kaushik Pendurthi has taken on the CTO role.

Enthusiastic about the collaboration, Eric Pottebaum noted substantial portfolio and business synergies with Talus Pay, making the union a natural progression. He looks forward to providing Clarus’s merchant customers with advanced solutions from Talus Pay and collectively contributing to long-term growth.

The Clarus transaction was guided by a fintech advisory firm, MAPP Advisors, specializing in payments and advising the seller. IceMiller LLP, Corvino Law, and Winston & Strawn LLP provided legal counsel for Talus Pay concerning the acquisitions.

About Jobox

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Jobox is a Software as a Service (SaaS) marketplace infrastructure provider connecting businesses with vetted housing service professionals. The company’s artificial intelligence-driven infrastructure equips housing service professionals with a complimentary toolbox to launch their enterprises. Simultaneously, it assists major organizations in matching available work with a pool of professionals based on factors like skill type and location.

The Jobox platform is a comprehensive workspace for skilled professionals, streamlining processes and eliminating paperwork. It gives Jobox a real-time overview of a professional’s location, skills, and availability for job assignments. Leveraging this data, Jobox efficiently assigns new jobs from nationwide demand partners to a designated professional in a local market. This approach eliminates customers needing to select and validate service providers personally.

Professionals using Jobox can manage their businesses within a single app. This includes messaging customers, generating professional invoices, processing payments, and receiving weekly automated settlement reports for simplified accounting. Depending on the professional’s location and skillset, they may also access job opportunities for free and schedule their availability to suit their preferences. Founded on June 15, 2016, by Moshe Levy, Shay Bloch, and Kaushik Pendhurthi, Jobox was a privately owned company.

About CLARUS Merchant

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Established in 1999, CLARUS Merchant Services is committed to delivering professionalism and service that surpasses any other payment processor. Our dedication to scale, flexibility, and security ensures that Clarus merchants enjoy the advantages of seamless single-platform execution, a comprehensive suite of integrated future-proof products, value-added services, and deep analysis management reports.

Solutions offered by Clarus encompass a robust portfolio of competitively priced Point of Sale (POS) terminals, along with web, mobile, and Enterprise Resource Planning (ERP) options. With extensive processing experience, Clarus possesses the expertise to meet various industries’ diverse needs and requirements. Handling a substantial yearly card volume exceeding $2 billion, Clarus proudly brags to the industry’s highest customer retention rates.

About Talus Pay

Talus Pay, headquartered in Dallas, specializes in providing payment processing services primarily to SMBs in the US. With a client base exceeding 22,000 merchants across North America, Talus Pay focuses on four core verticals: restaurants, professional services firms, automotive businesses, and retailers. Despite this official emphasis, the company’s approach is industry-agnostic. Talus Pay’s proficient team of payment processing professionals possesses the collective experience and expertise to cater to SMBs in virtually any sector.

Talus Pay stands out by offering a range of advantages that appeal to value-conscious decision-makers in SMBs. The company facilitates various transaction types, including ACH, keyed-in card transactions, gift card transactions, e-check transactions, mobile wallet payments and transfers, and magstripe and chip card transactions. These capabilities aim to enhance client revenue and operational efficiency while easing the burdens on internal accounts payable operations.

Processing a substantial 67.8 million in transactions, amounting to over $9 billion yearly charge volumes, Talus Pay operates through direct and independent agents for sale. The company has also established a robust partner network, collaborating with financial institutions, ISOs, ISVs, and other value-added resellers.

Conclusion

Talus Pay’s recent Clarus Merchant and Jobox acquisitions are one step further for the payment processing company. With a processing volume of over $9 billion and a customer base of more than 22,000 merchants, Talus Pay is set for significant growth, especially in the home and facility services sector.

By adding Jobox.ai, known for its fintech innovations in the housing services field, and Clarus Merchant Services, a leader in integrated B2B payment solutions, Talus Pay is committed to expanding into various areas. The company plans to utilize Jobox’s technology in the beauty, hospitality, and auto repair industries.

This collaboration aligns with Talus Pays’ values, as highlighted by CEO Kim Fitzsimmons and supported by AMCP Principal Alex Sacripanti. The acquisitions provide software and increased scale to Talus Pay, reinforcing its position in complementary B2B sectors. As Talus Pay integrates Jobox and Clarus into its portfolio, it looks forward to offering solutions and creating long-term growth. This strategic move reflects Talus Pays dedication to delivering payment processing services across industries.