FAQ
Are there any tax advantages to EOA membership?
Income from EOA sales are treated tax wise the same as cash income. There are no tax advantages or disadvantages to bartering through EOA. Trading should be considered a marketing tool, not a tax tool. We provide your company with a 1099B form at the end of each year for all of the sales you have consummated within EOA. Cash purchases that are normally tax deductible are also tax deductible when purchased with EOA trade dollars.
How will my business profit from EOA membership?
EOA membership produces new business - allowing you to expand your market and to maintain your cash paying customers. Membership conserves cash. For example, if you owned a hotel that had vacant rooms and needed new carpet. Membership would provide you a way to buy your carpet, and fill your rooms without spending cash. The same is true for filling empty tables for a restaurant; moving inventory for retailers and manufacturers or increasing billable hours for service businesses. We provide the competitive edge that encourages members to become new clients that will bypass your competing businesses to do business at your establishment.
How does Barter work with EOA?
We have eliminated the risks, hassles and restrictions of one-on-one trading where each business must want what the other has to offer and at the same time that the other party wants it, and for the same value as what the other business wants. We have also eliminated the risks of one-on-one trading. Your Trade Broker will bring your company new sales and reduce your business’ cash outlays.
We also provide you with monthly statements that detail all trade purchases, sales, current trade dollar balance and line-of-credit.
What companies are involved in barter?
Globally, over 570,000 businesses are involved in Barter. It is estimated that 85% of Fortune 500 companies engage in barter on a regular basis.
What if I don’t want to use another merchant, but they want to use me?
EOA transactions are not one-on-one trades; sellers do not have to purchase from buyers. When you accept a member’s EOA card your firm earns trade dollars which is than spend able with any of the 570,000 members of the 850 offices located worldwide.
How are EOA transactions conducted?
All EOA transactions debit trade dollars from the buyers account and credit the seller’s account. This process is accomplished using one of the following methods:
- Credit card terminal: approvals and declines operate the same as Visa transactions.
- Automated telephone system: Seller calls from any touch-tone phone and answers questions; completes an EOA transaction slip; buyer signs and each receive copy.
- Office: Seller calls EOA office and provides information to a trade broker; buyer signs and each receive copy.
What if everyone wants my products and services and I can't find enough to buy?
EOA members may remain members but stop accepting trade dollars - providing time to spend down their account balance. There are normally one or two members on hold.
What if I need to make a purchase before I've earned trade dollars in the system?
Just like a bank, we encourage businesses to apply for a barter line-of-credit. If you qualify, you can begin purchasing immediately. Almost all new members are provided lines-of-credit.
How should I price my products and services?
Members sell their products and services to other EOA members on the same terms and at the same prices as they do for cash customers. You may exclude specials from EOA purchases - many EOA members follow this practice.
How can I barter outside of my own city?
EOA trades worldwide through 650 offices in the US and 200 outside of the US. EOA trade dollars are spend able worldwide by calling your broker; who will assist you in making long distance purchases or in booking your transportation, lodging and entertainment worldwide.
Want more information about EOA? Interested in becoming a business member?
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