AIN Group – buying group and more – worth looking into/credit card processing fees subject to sales tax February 22, 2025
Homepage > Alarm & Security Law > Alarm Articles > AIN Group – buying group and more – worth looking into/credit card processing fees subject to sales tax February 22, 2025
KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and whitelist ken@kirschenbaumesq.com ****************************** AIN Group – buying group and more – worth looking into/credit card processing fees subject to sales tax February 22, 2025 ********************** AIN Group – buying group and more – worth looking into ********************** If you want to see an alarm “show” like no other than join AIN Group and attend its Live and Learn Conference. I haven’t attended a more professionally run, informative and fun event in the industry. You find out about AIN Group here: https://aingroup.com/ The Live and Learn Conference was at the Arizona Biltmore in Phoenix, AZ in January 2025. You missed that one. But the next one is going to be in the Bahamas, I believe. Joining the AIN Group is free. Participating is free. You can see all the benefits on the AIN Group website, so I won’t burden you with it here. Whether you’re a small or large company, alarm, integration, home entertainment, I highly recommend you check AIN Group out and join today. No matter where you are in the US there is an AIN Group team member ready to assist. You can find them here: https://aingroup.com/about-us/meet-the-team/ *********************** credit card processing fees subject to sales tax *********************** Ken, Regarding your January 3, 2025 response to Alexandra who asked if she could pass through credit card processing charges to customers I want to remind everyone that in most states, if the underlying service is sales taxable, then the credit card processing charges are also subject to sales tax. For example if labor and materials are taxable and a company replaces a DVR, and charges the customer $1,000 plus another $30 for the credit card processing fee, it must charge the customer sales tax on the entire $1,030. If the charges are taxable to the end user (the customer) paying tax on the materials to the distributor isn’t going to get the company off the hook. Mitch Reitman 817 698 9999 XT 101 Reitman Consulting Group Fort Worth, TX http://www.reitman.us ********************** Response ********************* Mitch, always with the bad news. I may start calling you the Grim Reaper. I want to propose another consideration when deciding whether to impose a processing fee on credit card payment. Will you actually be discouraging the payment? Would you be encouraging the payment if you didn’t charge the processing fee and allowed the payer the benefit of using the card, presumably getting the points or what other benefits comes with the card. I take credit cards in my practice. I allow clients to pay with credit card and I allow people we sue to settle up and pay with credit card [though in that instance I charge the client the processing fee]. The best reason for the question, why, is that I want to get the money. In the old days I’d settle a case and a good percentage of the payments that were to be mailed never made it; waste of time. Credit cards offer instant results, gratification. Sure we get the occasional challenge to the card, which delays payment, but generally we get paid. I’m about to pay a large bill, over $40K. If I could use a credit card I am certain it would be paid today. But there is a 2.9% surcharge, which comes to $1160.00. My benefits are not that great on the card; I’d rather pay by check, but that takes a lot more effort to write out and send, and it just doesn’t seem as easy. So it’s sitting on my desk. I don’t have to spend the money so I won’t know if it gets paid or I just don’t spend the money. Whether you’re collecting $32 or $3200 or $32,000, what’s it worth to get it now? ********************** STANDARD FORMS Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
