1- Cash – Always number one choice
2- Credit Cards:
Bank/Credit Union – Ask your own bank if they offer Credit Card Machines.
Smart Phone or iPad – We recommend going to www.squareup.com. There are no annual or monthly fees and it is 2.75% per swipe and that is on all major credit cards. The equipment is small, convenient & FREE! There are also no set up fees of any kind. NO CONTRACT! BUT, if you are going to be processing a lot of payments look into the Credit Card Machine above with a .19% & a monthly fee because the 2.75% will add up very quickly.
3 – Checks – Check are risky so listen to your gut with accepting them.
Sales Tax
When you purchase your inventory from Paparazzi you will notice that your sales tax percentage is calculated on the $5 retail value of the products you are purchasing, rather than the $2.75 price you pay to Paparazzi for the inventory. The reason for this is that Paparazzi is required, by law, to calculate sales tax this way since we are registered as a Party Plan Company. The law mandates Paparazzi to charge this way ensuring each state that sales tax will be collected, reported, and issued to the state on the retail sale of that product. Each state assumes the sale of your inventory will happen within that state at the retail price, and, in turn, they have learned that not everyone will record, collect, and file their local taxes for their business when it is a “direct sale.”
Under these laws, each state knows that they will receive all of the assumed sales tax by collecting it immediately and upfront from Paparazzi upon the initial sale of the inventory to the consultant. This also applies to businesses who may wish to participate with Paparazzi and have Resellers Permits. Obviously, Paparazzi has no ability to change this policy or law, and has the full intention of complying with it to the fullest extent. If you are a Reseller, or you are working with a Reseller interested in becoming a Paparazzi Consultant, please contact our Customer Service Representatives with any questions at 855-697-2727.However, this does aid the Consultant in many ways. Because sales tax has already been collected, reported, and issued to the respective states (under the assumption of the retail sale of the inventory), Consultants are not required to remit individual sales taxes for their Paparazzi business. This allows the Consultant a great degree of freedom in how they manage and run their business. You, in turn, are encouraged to collect sales tax on the retail purchase of your inventory, thus reimbursing yourself the sales tax you have already paid upon ordering. Therefore, you have the prerogative to collect taxes from your customers or incur those costs yourself.
The percentage of sales tax charged for the inventory ordered is calculated based on the sales tax rate of the location the inventory is being shipped to, under the assumption that it will be within that general location that most of the sales will take place. That does not mean you are limited by your location to conduct your business. An example of how this is calculated is as follows: If you purchase 100 accessories from Paparazzi, you will pay the wholesale price of $275 for your inventory. When calculating taxes on this order, with an example of 5% sales tax, that sales tax rate is applied NOT to the wholesale price of the product, but to the total $500 retail value of the product. This produces $25 in sales tax ($500 x 5% = $25), making the grand total of this order $300 (shipping not included). When signing up new Consultants make sure they understand this process.