Frequently Asked Question
Bartercard operates as a ‘trade exchange’ and has transformed traditional bartering into a modern business tool and many people search for bartarcard faqs. Using online technology, Bartercard has created a flexible, secure and fully accountable way for businesses to trade their goods and services with businesses world-wide.
Bartercard facilitates and monitors the purchases (debits) and sales (credits) undertaken by members. These transactions are recorded electronically and its members receive a monthly statement that summarises their transactions. Members can transact using the following: phone application with transactional capabilities and online transactional options. In addition, Bartercard promotes member businesses and maintains and updates a member business directory.
The vision of Bartercard is to be the leading global marketplace where businesses connect and trade their goods and services.
Bartercard currently operates in ten countries.
Bartercard can work for any company that has the capacity to take on additional business. There are many case studies and trading tips available for members to study to see how Bartercard can work for them.
Bartercard has approximately 55,000 cardholders who are trading over T£425 million a year.
There are over 650 categories of business, everything from Accommodation to Zoos.
Bartercard welcomes many industries and businesses.
You can sell almost anything through Bartercard. Besides your own products and services there is nothing stopping you from selling something from home or even buying from a manufacturer or wholesaler at cost and then on-sell through Bartercard. Your trading is only limited to the efforts you are willing to put in to be successful
There are many different ways to use Bartercard to build your business and improve your lifestyle. Upon joining you will have access to many video tutorials and case studies on unique and creative ways to solve common business challenges. A dedicated Account Specialist will also be available for you to discuss the many options that best suit your business and lifestyle needs. You can get a sense of how some of members use Bartercard by clicking on ‘Testimonials’.
A Bartercard transaction is similar to a credit/debit card transaction.
Members earn trade pounds for goods and services they sell and this value is recorded electronically in the member’s account. Members use their Bartercard transactional card to spend their credit balance (or draw on their interest-free line of credit) on goods and/or services from any other Bartercard member. The flexibility of the Bartercard system is you don’t have to purchase from the same business that purchases from you; you can spend locally, nationally and internationally; you can sell now and buy later; you can use the interest free trade pound credit lines provided and buy first before even making a sale.
Yes, your business pays for your personal expenses so if you can save cash on expenses then it just makes sense to use Bartercard.
You can pay trade pounds as a director’s dividends, drawings or loan. As a tip there is no Benefit Tax applicable if you deposit cash into your business and draw out the equivalent amount of trade pounds in exchange. There is further explanation of this on how to incorporate trade pounds into your payroll system in our creative business tips available for members. However, we always suggest members speak to their accountant regarding how best to implement these strategies into their business.
Yes, you can limit the amount of trading you do. We suggest Bartercard members trade up to 10% to 15% of their total business turnover. We understand there are times when you may be operating at full capacity for a period or seasonally at your peak. Working with your Account Specialist you’ll work out a plan for the amount of trading that best suits you and your business. You can start slowly and as you work with us to bring on more suppliers of your choice you can increase the amount of trade you do.
When you join, a comprehensive business analysis is conducted with the view to identify potential suppliers already available in our network. If there are insufficient suppliers available to suit your business requirements then Bartercard will work with you to bring on additional new suppliers to satisfy your needs. Many of Bartercard’s top trading members have successfully improved their business profitability by being proactive in their recommendation and referral of new suppliers to provide them with the products and services they need to run a successful business.
By purchasing products or services with your trade pounds, you have already saved cash and kept that cash in your business. You can also buy items with your trade pounds and then on-sell them for cash, therefore converting trade pounds to cash. For example, a restaurant purchases wine on Bartercard and then sells within the restaurant for cash.
Trade pounds are not transferable for cash by Bartercard or any other Financial Institution.
Bartercard is a 100% trading system exchange. Upon joining every member agrees to trade at 100% full barter. There are practical exceptions to this rule. Bartercard rules allow for real estate transactions to be conducted with a minimum of 20% barter component; transactions in excess of £100,000 can be negotiated; and continuous cash/trade supply agreements can be negotiated only with prior written approval of Bartercard authorised representative
Bartercard has offices in the United Kingdom, New Zealand, Australia, Thailand, France, South Africa, Cyprus, France, Israel and U.A.E. In addition, Bartercard has reciprocal arrangements with several other Trade Exchanges worldwide. There are many members who have now established new selling and buying markets internationally. Travel remains the favourite for members taking international holidays. They are paying for their holidays with new business and with their own goods and services.
Yes, Bartercard hosts local and regional networking functions in the UK. Each member is encouraged to participate in these functions in order to acquaint themselves with other members and promote their own business. It is a great way to build up your contact base.
A trade pound is the electronic trading currency Bartercard members use to transact with. For accounting, VAT and Income Tax purposes, one trade pound (T£1) is equivalent to one pound sterling (GBP£1).
Yes, an invoice is required for a barter transaction as it is for any other business transaction. Where a member makes a taxable supply and the consideration is expressed in trade pound credits, the invoice must comply with all of the usual requirements for an invoice.
No, Bartercard is not considered a discount system as no member in the network uses Bartercard to discount their product. It’s not a rewards or loyalty program either and shouldn’t be likened to any reward or fuel discount card.
You can read more on what is the true cost of discounting in our blog.
No, Bartercard is not a pyramid-based model or a Ponzi scheme. As any business does, we seek to bring on new members to expand the network and provide new trading opportunities to our members, as well as replacing business operated by members that may have sold, closed or are otherwise unable to continue operating. There is no hierarchical setup where existing members gain rewards from new members further down a ‘hierarchy’ using the network. Our philosophy, business model and pricing structure are based on members making transactions, rather than merely becoming a part of the network.
Just like you would normally, we recommend that you get quotes from a variety of businesses before you decide to make a purchase. To manage any form of overpricing, Fair Trading plays an important role in the ethos of Bartercard. We advocate that prices must be consistent with that of a cash purchase; just because a transaction is being done in trade pounds, it shouldn’t be more expensive than a cash transaction.
Cash fees are payable to service our administration costs. Not all aspects of running a business can be paid for using trade and we wouldn’t encourage anyone to solely run their business using trade pounds.
No, your trade pounds do not expire if you are a Bartercard member, however, the physical Bartercard card you receive expires as per the date shown on the card. A new card is then posted out automatically.
If you are gifted a Bartercard Gift Certificate, the available funds expire after one year from the date of issue.
Yes, businesses can be rated through both your experience and other member experiences. This can be done via Bartercard Search and is based on a star rating.