Is the 2022 National Processing Review Right for Your Business?
Most processors are already aware of the 2022 National Processing Review (NPR), an initiative put forth by the Department of Veterans Affairs (VA) to modernize its electronic payment systems and reduce the use of checks by veterans and other beneficiaries. But does it make sense for your business? Take a look at the facts, and then weigh in with your opinion on whether the 2022 NPR is right for your business, too.
How NPA can help your business grow
Higher funding limits with flexible terms—If you can demonstrate that your business is unlikely to be able to repay any of its loans in five years, NPA allows up to $250,000 with a maximum 30-year repayment period and a minimum 15-year repayment period. So go ahead and invest!
Interest rates are low and at the bank’s discretion—Rates are set below prime lending rates and capped at 9%. Interest charges on late payments may be waived or reduced by the lender if it determines it will not generate enough return from such interest charges relative to what it would earn from other investments for which its funds are committed (which would lower borrowing costs). Payment requirements will vary depending on whether the borrower has been granted one or more waivers or reductions. Click here to learn more about this program and how it could help your business grow.
What happens if you don’t join NPA?
If you do not join NPA, your brand may become unrecognizable by consumers or even other local vendors in your area.
You will have to deal with increased scrutiny from regulatory bodies and/or payment processors.
Your financial information will be exposed and potentially used against you by these entities, often without your knowledge.
By not joining NPA, you are implicitly relinquishing control of aspects of your business that could severely damage the company’s profitability if mishandled. The cost of non-membership is higher than it has ever been before:
– Non-NPA members will see a 25% increase in their rates for food processing credit card transactions.
– The median annual fee for non-NPA members will rise from $900 to $1,000 per year.
– Minimum monthly service charge will increase by 10%. – Annual membership fees will rise by 20%.
The changes come into effect on December 15th, 2021. We recommend all businesses take this opportunity to reevaluate their current credit card processor situation and explore options outside of NPA as soon as possible.
All your member questions are answered!
What is an NPR? An NPR is a service or product that makes it easy to stay up-to-date on all your taxes and other federal services, including -Federal income tax filing with the preparation of Form 1040EZ, Form 1040A, or other required forms. -Direct deposit for IRS refunds. -Payment options to pay what you owe in taxes and fees through a variety of means, including installment agreements. -Determining your eligibility and applying for federal benefits such as health insurance or retirement benefits. -Looking up deductions and credits. -Informing you about upcoming changes to the law.
You can receive a PDF version of these updates by email or by opting into an online update list (for those who have yet to get their emails).
Your business will also be able to receive IRS notices from small businesses without interruption from future government shutdowns! Updates are available 24/7 365 days a year so no matter when there’s an issue that needs to be addressed, your business will know about it before the last minute.
With all this information at your fingertips, you’re sure to feel more confident moving forward with any decisions regarding your company’s tax matters. If this sounds like something worth looking into further, take advantage of our free informational workshop coming up next week on Tuesday at 3 pm PST.
Why NPA membership makes sense for you now
Do you have a preference in what type of merchant you are?
Do you accept personal or business card transactions or both? Do you offer any additional services, such as check cashing, payday loans, etc.? If so, does your state allow these products and services to be provided at a business that sells alcohol or tobacco products? Do you want NPA’s participation to help form national standards when it comes to credit card processing? To continue to support our members and help them thrive during this transitional period—here’s why NPA membership makes sense for your business.
1) We’re an association of businesses with similar interests who value open and honest discussions about issues affecting our industry, which helps ensure all voices are heard.
2) We provide educational events throughout the year focused on topics important to running a successful payment processing company, providing ample opportunities for networking with peers who share similar challenges.
3) Our advocacy team meets regularly with policymakers and regulators nationwide to help shape laws that affect all payment providers. We also host periodic meetings with regulators across the country where members can get questions answered about new regulations coming down the pipeline from federal or state agencies.
