Tradebank Frequently Asked Questions    FREQUENTLY ASKED QUESTIONS

Our customers often ask us lots of valuable and intelligent questions. We have compiled a list of the most common questions and answers below. Click on a question to see the answer.

  1. I've swapped products and services with other businesses, why do I need Tradebank?
  2. What are Tradebank Dollars (T$, TRADEdollars)?
  3. Can I deposit my TRADEdollars into a Canadian registered bank?
  4. Do I have to have TRADEdollars in my account to make a purchase?
  5. How do I know who else is in the network?
  6. Will you sign up more than one business from each category?
  7. How will you promote my products and services?
  8. How do the taxes work?
  9. What does the CRA have to say about Tradebank?
  10. Does the Tradebank statement "stand alone" as tax documentation?
  11. Can I donate my TRADEdollars?
  12. Can I obtain a copy of the Cardholder Agreement?
  13. In general, are the prices inflated within a barter system?
  14. Does a business have to offer all of their products or services on trade?
  15. Can I charge CDN$ when selling my products and/or services?
  16. Can I have more than one account?
  17. Can I offer trade as an incentive to my employees?
  18. What is Tradebank's rationale behind its trading rules?
  19. What are the most common reasons for a client having their account cancelled?

I've swapped products and services with other businesses. Why do I need Tradebank?

Trading through Tradebank is easier than trading on your own. We expose your business to more new prospects and help you increase your sales. Tradebank has a network of over 8,000 member businesses, so you don't need to conduct one-to-one trades (that is, you don't need to buy from the client from which you are selling). Tradebank makes it easier to trade for the goods and services you need to run your day-to-day business operations.  

What are Tradebank Dollars (T$, TRADEdollars)?

The T$ is the official currency of Tradebank. Trade transactions between companies are actually converted to trade credits or "TRADEdollars" (one TRADEdollar is equal to one CDN dollar in value) and are reflected in each company's "trade account". The T$ to CDN$ conversion rate is fixed at 1:1.

Can I deposit my TRADEdollars into a Canadian registered bank?

No.

Do I have to have TRADEdollars in my account to make a purchase?

Yes. You must have the TRADEdollars in your account to make purchases within the Tradebank Network.

How do I know who else is in the network?

Logging into www.thinktradefirst.ca, calling your broker, attending TRADEevents and reviewing the weekly TRADEflash. Creating a relationship with your TRADEbroker is the most effective tool.

Will you sign up more than one business from each category?

Yes, each region will be looking to fill their roster of clients in each category. Some categories will require there be multiple clients in a particular region (eg. restaurants) or the business will be swamped with trade customers. Typically trade business should be no more than 10% of a business’s overall revenue. A client can request to be exclusive in a category so long as that business can fulfill all requests from other Tradebank clients for their particular services within their area.

How will you promote my products and services?

We will promote your products and services through the following means at no additional charge: directory listing on www.thinktradefirst.ca, weekly on TRADEflashes, monthly on TRADEinserts, word of mouth from TRADEbroker to clients, TRADEbroker directing requests for the products or services you sell to your business and unlimited classified listings

How do the taxes work?

There are no advantages or disadvantages when it comes to accounting for taxes when participating in a barter transaction. When processing a sale, all appropriate taxes (GST/HST/QST/PST) are to be added to the total before obtaining an authorization number from Tradebank. The seller must remit these taxes to the Canada Revenue Agency (CRA), and if the purchase is for business the buyer can obtain an input tax credit from the CRA.  To see how HST flows through click here.

What does the CRA have to say about Tradebank?

Click on the link to read the response from Canada Revenue Agency. (Canadian Revenue Agency)

Does the Tradebank statement "stand alone" as tax documentation?

In a similar manner to bank and credit card statements, you must maintain the backup invoices/contracts for the individual transactions you are claiming for tax purposes.

Can I donate my TRADEdollars?

We have established the Tradebank Foundation of Canada which can issue tax receipts for TRADEdollars, and supports many charities throughout Canada.

Can I obtain a copy of the Cardholder Agreement

Yes. It can be found here: (Tradebank Cardholder Agreement)

 

In general, are the prices inflated within a barter system?

The short answer to this question is no, although there is a difference between inflated pricing and fair market retail pricing. Also, when doing price comparisons if you are comparing between a national chain (eg. Walmart) versus a small local store, the national chain typically wins the price war but may not offer the same level of customer assistance / knowledge or product quality.

Does a business have to offer all of their products or services on trade?

No, there are several instances where a company may only offer certain products / services on trade. If a company has a loss leader they would not be required to offer it on trade.

  1. If a company has a sale they can choose whether or not to offer the products on sale for trade.
  2. If there is a particular product/service that has an extremely high COGS it may be excluded.
  3. However, if you have the type of business where a customer can't obtain benefit from one of your services without obtaining another one of your services the total service should either be offered on trade or none of the service should be. This is easier to explain in specific business examples - please discuss with your TRADEbroker.

Can I charge any CDN$ when selling my products and/or services?

It depends. Tradebank's policy is that all transactions below T$5000 must be on full trade. If a transaction is above T$5000 then a cash / trade blend can be discussed. For example, if a company was having a roof put on their building and the cost was going to be $30,000, the contract for the roof could be arranged such that 60% of the deal was going to be for trade, with 40% payable in CDN$. The buyer and the seller both have to be comfortable with the split (and it needs to be clear prior to work commencing). Too little trade/too much in CDN$ and the buyer might not be interested.

Can I have more than one account?

Yes, if you have multiple businesses you may have more than one account. Also, you can have an affiliate account (see below) for personal spending.

Can I offer trade as an incentive to my employees?

Yes, there a multiple ways to offer trade incentives to your employees.

  1. Affiliate Account: if you will be giving a particular employee or group of employees on-going trade benefits then opening an affiliate account is beneficial for you and the employee.
  2. Gift Certificates: local regional offices often have gift certificates available for sale and if you are offering a small one-time bonus it often makes more sense to do the gift certificates rather than providing an affiliate account.
  3. Direct Purchase: you can arrange to do a direct purchase from your account for a product or service for your employee. This is best utilized when there will be one big transaction and not on-going utilization of trade by the employee.

For more on employee incentives, click here.

What is Tradebank's rationale behind its trading rules?

Tradebank has established its trading rules to make the network as fair and equitable as possible for all of the members to utilize trade effectively.   For a detailed breakdown of the thought process behind several of the key rules, click here.

What are the most common reasons for a client having their account cancelled?

Tradebank has the right to cancel accounts based on the cardholder agreement.   While Tradebank endeavours to maintain all its client relationships, there are times that Tradebank chooses to cancel members accounts for the betterment of the network.  The most common reasons Tradebank cancels members accounts are as follows:

  1. Non-payment of fees
  2. Failure to provide quality service / remedy poor service to other members
  3. Attempts to convert TRADEdollar leads into cash business*
  4. Business closure / bankruptcy
  5. Attempting to convert TRADEdollar leads into direct trades*
* In both these circumstances, Tradebank can opt to charge both the buyer and seller upto 18% of the estimated value of the transaction as a penalty.
 
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