The traditional methods of sending money across borders have always been limited by various regulations and infrastructure resulting in high cost, high fees, and delayed delivery timelines.
In this ultra-connected digital world, every service is available at the click of a button. And new entrants into the cross border payment industry are challenging the status quo and changing the speed in adopting new technology and the delivery timelines, riding on new technologies namely: Artificial Intelligence, Machine Learning, and Blockchain technology.
This 2020, we are calling it the “Year of Challengers” for the cross-border payment industry. Visa, a global payment technology firm sees this as an opportunity with a vision to make sure that it becomes the best way to pay and be paid, for everyone everywhere including merchants and Financial Institutions.
Recently, Visa announced its partnership with TD Bank, N.A., a U.S. national bank that is located in Cherry Hill, New Jersey is a subsidiary of the Canadian-based Toronto-Dominion Bank. This Canadian multinational bank is commonly known as TD and operates as TD Bank Group.
This recent diversification of Visa with TD Bank and its multifarious subsidiaries (TD Bank Group), will allow TD's 26 million Canadian customers to transfer their money to Canada from their U.S. accounts at TD Bank.
TD Bank Group, which is the 5th largest bank in North America, has taken up the challenge to help Canadians with a new solution in moving their money between Canada and U.S. accounts quickly and easily. This new service, called TD Bank (U.S.) to TD (Canada) Transfer is powered by Visa Direct, which is a real-time payment delivery system allowing seamless transfer of funds directly to bank accounts using card credentials. It allows transfers of up to $5,000 daily in real-time from a U.S. based TD Bank to a Canadian-based TD Canada Trust account in 30 minutes or less. This service is only available for transferring money to yourself (me-to-me transactions) from a U.S. TD Bank to Canadian-based TD Canada Trust accounts.
In order to bring Visa Direct's advantage to the world market, Visa is working with financial institutions, technology companies, and remittance players. The renewed vision of Visa is backed by the security, scale, and the quality of partners. In the cross-border payment industry, Visa has already partnered with both the leaders; like Western Union and MoneyGram and the new entrants; like Remitly and Wise. Visa's collaboration with the remittance service providers also shows its efforts to help customers and small businesses to send and receive international payments quickly and securely.
Financial institutions, payments service providers and technology companies are already leveraging Visa Direct in moving money conveniently for consumers and businesses. As of now, the Visa Direct platform is available in more than 200 markets all around the world.
All financial institutions may have to circumvent Visa's set of rules that allow its participation in their payment system, but considering TD bank's historical merging of The Dominion Bank and Bank of Toronto, and its present operating networks working in a number of locations in financial centers around the globe namely; Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance and U.S. Retail including TD Bank, America's Most Convenient Bank, TD Auto Finance U.S., TD Wealth (U.S.), TD Ameritrade and TD Securities., Visa may be looking forward to a game-changer in their latest initiative as at the end of October 2019, TD had CDN$1.4 trillion in assets compared to Visa?s ever-growing net revenues from $20, 609 million to $22,977 million.
Frank Psoras, Senior Vice President, Everyday Banking at TD said that TD's main aims are to provide customers with products and services that bring value and are user-friendly. Commenting on the recent partnership he added, “At TD, we're focused on providing our customers with products and services that are easy to use and deliver value. Today, we're ready to offer an even easier way for our customers to move money from their TD's the U.S. to Canadian bank accounts, presenting our commitment to omnichannel experiences that allow Canadians to get bank's service in the ways that work best for them.”
Brian Weiner, Vice President and Head of Product, Visa Canada said that the partnership is to empower Canadians to send, receive and get access to their money wherever, whenever and however they want. With this service, Canadians can enjoy more convenient ways to manage and move their money. This is a great opportunity for Visa cardholders as this partnership will enable them to enjoy the service as well. This move by TD also demonstrates their commitment to improving their customers' experiences adapting to their changing preferences.
Bill Sheley, SVP and Global Head of Visa Direct, Visa stated that with regards to individuals and small businesses, there are still many challenges in moving money around the world. Technology might have brought us closer together but there are many more problems to be tackled in the payment industry. In today's hyperconnected world, one would expect moving money for consumers and businesses to be seamless and instantaneous as texting. Around $80 trillion is still being sent with international wire transfers or banks which is an outdated system that is slow and expensive. In the coming years, digital money transfers will be the way forward.
Visa's survey found that 36% of Canadian snowbirds are frustrated with financial matters like moving money between Canadian and U.S. accounts. The politically correct word for snowbird is a winter visitor. As many as 1.5 million Canadians snowbirds go for warmer climates during the winter season and as much as six million trips to the U.S. were taken by Canadians in the year 2019, according to the agency, Statistics Canada.
TD Bank also ranks among the world's leading online financial services firms with more than 13 million mobile users. Now, combine that with Canadian winters meaning nearly 1.5 million Canadians are estimated to head out west towards the warmer climates which will require cross-border services.
Visa and TD collaboration is a vital step and a necessary resolution to ease banking and financial services for not only the Canadian population but also for the incoming tourists from the U.S. This partnership model can also be adopted and initiated to many other cross-border travels and movements. This initiative will make the cross-border money transfer hassle-free for these vacationers. This convenient way of moving money is also a frequent need for customers working away from their home country. Compare the top money transfer companies for free on CompareRemit before sending money online.
New York, 27/05/2023 – Taptap Send, the innovative mobile money transfer application, is proud to announce its partnership with leading remittance solution provider CompareRemit.com. With a focus on empowering immigrants, Taptap Send simplifies the process of sending money back home to India, Pakistan, Philippines, Bangladesh, Sri Lanka, and Nepal.Sending money across borders has long been a complex and expensive endeavor for immigrants supporting their families and loved ones. Taptap Send was developed to address these challenges, providing a user-friendly mobile application that streamlines and optimizes the money transfer process, all through the convenience of a smartphone.Taptap Send offers a range of features designed to enhance the experience for immigrants sending funds back home:Competitive Rates and No Transfer Fees: Taptap Send leverages technology to streamline operations, resulting in more affordable transfers compared to traditional methods.Mobile Accessibility: The Taptap Send mobile application ensures users can initiate money transfers anytime, anywhere.Transparent Pricing: Users are provided with upfront information on exchange rates, allowing them to make informed decisions and have a clear understanding of the total cost of the transfer.Taptap Send aims to break down the barriers faced by immigrants when sending money back home, enabling them to provide vital support to their families and communities with ease and efficiency.Through its partnership with CompareRemit.com, Taptap Send further expands its reach and impact, offering immigrants a comprehensive range of remittance solutions tailored to their specific needs and requirements.To learn more about Taptap Send and explore the various money transfer options available for sending funds to India, Pakistan, Philippines, Bangladesh, Sri Lanka, and Nepal, please visit the Taptap Send website.About Taptap Send:Taptap Send is a mobile money transfer service that simplifies and enhances the process of sending funds internationally. Designed with immigrants in mind, Taptap Send offers a user-friendly mobile application that empowers users to initiate money transfers conveniently and affordably, providing vital support to their families and loved ones across borders.Media Contact:Name: Anthony JacobTitle: Head of Growth, South AsiaEmail: [email protected]
The leading cross-border money transfer comparison portal expands corridor offering to cater to the growing Canadian immigrant marketSANTA CLARA, CA, November 14, 2018 - CompareRemit, a leading online money transfer comparison marketplace, has announced the launch of a new corridor from Canada to India. The marketplace currently offers money transfer channels from the United States and the United Kingdom.According to the Canadian International Development Platform, in 2016, an estimated $23.3 billion was sent from Canada to other countries such as China ($3.9 billion), India ($2.6 billion) and the Philippines ($2.2 billion). With the immigrant market in Canada continuing to see steady growth, CompareRemit seized this opportunity to grow with it and offer users a simple and seamless method for money transfer, while also broadening the market for its wide array of transfer company partners, according to CompareRemit CEO Rajeev Shrivastava."We are excited to add this new Canadian corridor to our platform," he said. "With the addition of a new corridor, CompareRemit now has its presence in the three largest remittance sending countries the US, the UK, and Canada, which gives our users more options than ever to send money overseas."CompareRemit has helped in seamless money transfers of over $1 billion annually with its partnership with leading money transfer service providers from across the globe. With the addition of a new send corridor from Canada to India, CompareRemit is committed to expanding the network of transfer channels to offer users the most convenient and comprehensive money transfer experience available.About CompareRemit: CompareRemit is a leading money transfer comparison portal with the world's best money transfer companies all at one platform. From becoming the first company to offer remittance rates on smartwatches to offering the widest selection of money transfer companies; CompareRemit has emerged as a leader in the industry. CompareRemit offers a mutually beneficial ecosystem where money transfer companies can reach the niche remittance audience while providing users with an easy-to-use platform where they can satisfy all their remittance needs.
Peer-2-peer (P2P) payment apps, also known as money transfer apps or mobile wallets such as Paypal, Venmo, or Cashapp, are popular online payment platforms for business - they are convenient, easy to use, and are highly efficient ways to transfer money. However, with new regulations, using P2P payment apps for business transactions will be subject to taxation in the United States.In this article, we will discuss what is Form 1099-K, who is required to file taxes under the new rule for P2P users, and what information should be included in declaring to the Internal Revenue Service (IRS).New P2P Tax Laws of 2022 in the US SimplifiedLet's first understand the current tax rule to get a broader picture of the changes.For the current or the old tax rule on 1099-K tax returns filed prior to 2022, the IRS has set thresholds as follows: You have received over $20,000 in gross payment in a calendar year, andYou have settled more than 200 transactions in a calendar year.Now, the new tax rule on P2P Apps for calendar years after 2021, the IRS has changed the threshold as follows:You have received a gross payment that exceeds $600, andApplicable on any number of transaction/s.Put simply - you are required to report your earnings on the sale of goods and services if $600 or more was processed through these platforms. If you cross the threshold, the IRS expects the third-party networks in this case the P2P Apps to issue Form 1099-K to you to report payment transactions.Even if you do not receive a 1099-K, you are required to file the earrings in your income tax return.Â These new P2P tax laws will impact many users such as gig workers, online sellers, self-employed business owners, freelancers, etc.The new taxation rule for third-party payment networks has been implemented under the American Rescue Plan, the $1.9 trillion stimulus package that came into effect in March of last year. The change doesn't impact 2021 taxes but will impact 2022 tax returns filed in 2023.P2P Payment Apps 2022 Tax FAQsWhat Are the New Tax Reporting Requirements?To reiterate, beginning January 2022, if you receive $600 or more payments for goods and services in the current year, through a third-party payment network, such as Venmo, CashApp, or Paypal, your earnings will be reported to the IRS through Form 1099-K sent by the P2P platforms and income tax return.The tax rule only applies to payments received for sales of goods and services and does not include payments to friends and family.Read Comparison between PayPal, Venmo, and Zelle.What Is a Form 1099-K?Form 1099-K, Payment Card, and Third Party Network Transactions is an IRS form used to report payments for goods and services transactions to improve voluntary tax compliance.Payment settlement entities such as debit/credit card companies including PayPal, Venmo, Stripe, Etsy, and others are required by law to file them with the IRS and share copies with the payment recipient.You would receive Form 1099-K by January 31st of the following year if you received payments in the previous calendar year.What Is Included in Form 1099-K?Your Form 1099-K includes the gross amount of all reportable payment transactions, excluding any adjustments for credits, discounts, fees, or refunded amounts.A Form 1099-K will be sent to you from each payment settlement entity from which you received payments in settlement of reportable payment transactions. A reportable payment transaction covers a payment card transaction or a third-party network transaction.The minimum reporting threshold is meant only for transactions settled through a third-party network. There is no threshold for payment card transactions.What Additional Information May Be Required for Form 1099-K?Your third-party payment provider may request tax information such as your Employer Identification Number (EIN), Individual Tax Identification (ITIN), or Social Security Number to report payments on Form 1099-K properly. Once this information is confirmed, your tax forms can be issued without a hassle.If you cross the reporting threshold for the sale of goods and services on the payment apps, the Form 1099-K will be issued to you at the beginning of the 2023 tax period, and a copy of it will be sent to the IRS.You can also download account statements for any reporting obligations, even if payments received are within $600. If needed, seek a licensed tax expert to assist you.How Can Information on Form 1099-K Be Used for Income Tax Returns?You must report any income listed on your Form 1099-K from your business on your income tax return.Since Form 1099-K may include both taxable and nontaxable income, keeping good records is very crucial. If you receive money from a nontaxable source, such as money received as gift or splitting bills, you need not report on your tax return.Also, make sure that your business books and records mirror your business income. Business income is generally referred to as the gross receipts on income tax returns. Your business income can be in the form of cash, checks, and debit/credit card payments.So consider the amounts shown on Form 1099-K, along with the other payments received, when calculating gross receipts for your income tax return.How to Maintain a Good Record for Tax Reporting?Record keeping is vital for accurate tax reporting. If you receive the Form 1099-K at year-end, you can check your accounting records to see if the income reported to the IRS is accurate. Even if you don't receive Form 1099-K, the income still needs to be reported on your tax return.Go for a record-keeping system that reflects your income and expenses. Also include accounting and payroll records, bank statements, receipts, tax forms, returns, and relevant business-related financial records.Most importantly, set up a business account if you are receiving business payments through a P2P payment platform.Maintain a separate account for business and personal transactions.Having a separate business account and keeping good records can be practical when showing both taxable and nontaxable income sources if the IRS audits your income tax return.If you pay your business expenses using any of the payment platforms, get the invoice or a receipt from the vendor or the contractor to record the amount paid and the details of the business expense. This will serve as evidence for your expenses if the IRS questions the legitimacy of your business expenses.1099-K Guide: What if Multiple Payment Platforms Are Used?The IRS tax rules are the same for all the P2P platforms, including PayPal, Stripe, or Venmo, though it might be enforced differently. If you are receiving business payments from multiple platforms and the collective amounts from sales on these platforms exceed $600, consider speaking to a licensed tax professional for best practices.You can find the contact details on Form 1099-K if you have any questions on the matter.Are Transactions on Zelle Taxable?While this rule applies to most third-party payment networks, Zelle is not included. Only the P2P payment companies that deal with the settlement of funds in business transactions are required to issue 1099 forms to users. Zelle doesn't process payments but facilitates communication via messages between a financial institution and people making the payments.Zelle states that it does not report transactions made on its Network to the IRS, even if the total is more than $600. The new law to provide forms 1099K for information reporting does not apply to the Zelle Network, it added.Will I Be Taxed in the United States for Sending Money Abroad Through a Payment App?Most digital wallets or P2P payment platforms do not support international money transfers. The best way to send money from the U.S. internationally is through online money transfer companies such as Xe money transfer, Remitly, and Western Union.In general, when you send money from the United States, the first $15,000 USD, per recipient will be exempt from taxes by the IRS under the Gift Tax policy. Although sending money as a gift is not taxable, you may need to report it to the IRS. In conclusion, from the beginning of the 2022 tax year, P2P platforms will be required to send Form 1099-K to users and the IRS to report payment transactions totaling $600 or more in a financial year. While this does not have any impact on international money transfer yet, existing laws that govern cross-border transactions will be applicable including Gift Tax.
Download Our Free App
Try our faster, enhanced mobile app for a better experience