Better Credit Card Processing For Tax Professionals
Credit card processing for tax professionals refers to a type of merchant account that allows tax professionals to accept credit and debit card payments from their clients for tax-related services. These merchant accounts are customized to meet the unique needs of tax professionals, including the ability to send invoices with payment links or accept subscription payments.
The global tax preparation market will reach $32.62 billion in the year 2024 (Source) and is expected to grow to $40.6 billion by 2028. Despite the industry’s massive growth potential, tax professionals often face challenges in obtaining merchant account approval. Many acquiring companies view tax professionals as high risk due to various factors.
Tax-related charges vary depending on the time and work involved. This variation in pricing can lead to disputes and chargebacks if the client is not satisfied with the service provided.
Tax preparation services generally experience massive business during the tax season, and for the rest of the year, they have smaller transaction volumes. This fluctuation creates a challenge for credit card processors when it comes to forecasting their sales revenue. Along with that, irregular transaction volume can also elevate the credit risk.
Tax-related services are subject to strict regulatory requirements, including anti-money laundering and know your customer regulations. If the tax professional does not fully comply with these regulations while delivering the services, then it can create problems for the acquirer. This complexity is something many providers do not want to deal with.
Tax professionals handle sensitive information of the clients, and fraudsters may target tax professionals to extract this information, which can result in financial losses for both the payment processor and the tax professional.
Tax preparation-related transactions generally have higher dollar amounts compared to regular e-commerce transactions. When the transaction value is increased, it also increases the possibility of chargebacks and fraud.
QuadraPay Offers Best Credit Card Processing for Tax Pros
The team at QuadraPay specializes in providing credit card processing solutions to tax professionals. We truly understand the specific requirements of professionals working in this industry. Our solutions allow tax professionals to accept payments through various modes, including credit cards, debit cards, ACH, eCheck payments, and many more.
We firmly believe that tax professionals should have access to affordable credit card processing so that they can maximize their profit while reducing transaction costs. A transparent pricing structure that our team will send over to you will give you a clear idea of how much you will be saving if you switch to our solutions. We are also very generous in taking steps to waive unnecessary fees like setup charges and annual fees. Our transparent approach becomes the foundation of a long-term relationship with our tax professional merchants.
All of our solutions are powered by some of the best payment processing companies in the USA, UK, Canada and Europe. Our merchants receive proactive customer support, and they can resolve queries they may have at any time. Apart from better customer support, our merchants also don’t have to worry about security and compliance. Our processing partners fully adhere to industry standards and regulations. You will be able to peacefully process transactions without worrying about the necessary compliances, which the credit card processing company must take care of.
Rates and Fees For Merchant services for tax pros
The fees for credit card processing solutions for tax professionals can vary based on various factors. The actual fees depend on what kind of payment processor you choose, monthly sales volume, type of card acceptance needed, and other value-added services opted for. The credit card processing fees for tax professionals consist of several components, including interchange fees, markup, and assessment fees, to name a few.
The interchange plus fees usually range from 1% to 3%. This fee includes a portion for the merchant acquirer, the payment gateway company, and other parties involved, and it also includes any markup. We will be able to provide you with exact pricing after our acquiring partner reviews your profile. Ask us today for a free quote!
KYC Requirements for Payment Processing for Tax Pros
The KYC documents required for obtaining approval of a merchant account for tax professionals include a set of documents like a business registration certificate and individual documents. These documents help the credit card processing company to completely evaluate the risk profile of the tax professional company. Let’s look at some of the most important KYC documents that you will be asked to share with the payment processor at the time of application.
The merchant account application form will cover a lot of your tax preparation agency. You need to submit the personal identification documents of all the directors of the company who own over 20% of shares. Depending on the type of business, you are required to share a copy of the business registration and related documents like articles of association and memorandum of association.
The credit card processing company will be transferring the funds to your business bank account. They need to confirm your bank details. This can be done by either a voided check or a letter of good standing from the bank which confirms your bank information.
For proof of company and proof of directors’ addresses, you can provide utility bills. Apart from the above-listed documents, some additional documents may be required, and you will be informed about them at the time of application.
FAQ Credit Card Processing For Tax Professionals
What kind of taxation forms do tax pros assist with?
During the tax season and throughout the year, tax professionals provide services related to preparing various tax forms such as 1040, 1065, 1120, 1120s, and 1099. Tax professionals utilize various industry software like Drake, Lacerte, UltraTax, ProSeries, QuickBooks, Xero, Sage, and Wave to provide these services.
What is the MCC for Tax Preparation Services?
The Merchant Classification Code (MCC) for tax preparation professionals and companies is 7276. Businesses categorized with MCC 7276 provide tax preparation services. They do not provide accounting and bookkeeping services.
Ask us today for more details about credit card processing for tax professionals.
It is the right time for you to explore better credit card processing solutions for your tax preparation company. We assure you that our solutions will add value to your business at competitive pricing and with better services. Fill out the form on our website to get in touch with a tax preparation merchant services specialist today.
