Business Transactions through Cards and Cheques
First, let’s define what a “business transaction” is, in this context. There are two kinds:
In the first case, the drafts and cheques will dominate, while in the second case the credit cards will (there used to be drafts – “grammatia” – in the Greek market but nowadays they are limited). You can also think of variants of the above, but the main idea is the same..
What does this new “method of payment” mean for the tax-collection mechanisms?
I think that this measure is moving to the right direction. If money change hands not as cash but in another form, then, by definition, there is actual proof of the money transaction! Therefore the tax-collector can ask “why this transaction happened? What was sold? Where is the actual invoice?”
Regarding individual transactions, we also see benefits. If the company is obliged to take your money through credit card, it is becoming less and less easy to not issue a sales invoice. If an invoice does not exist, then why did the company take your money in the first place?!
What are the implications involved?
What do all these things mean for the software companies in Greece? Opportunity! Companies will need new software to keep track of these “new kind of transactions”. From personal experience I know that a lot of SME’s keep track of their cheques and drafts “by hand” or in EXCEL. Regarding credit cards, they do have POS’es from one or more banks, but they register these transactions in their computer systems as either cash or with just basic information, entered in some silly “comments” field of their software. The margin of error is very big… I will try to better define “opportunity” in these next lines:
Let’s just hope that this will be a real opportunity for software vendors to create something new and earn some good money in the process. Let’s hope that these systems (that will surely emerge in the market) are not sold for… 100 €, thus killing once again the Greek Software market. We are talking about true value to the end-customer and this has to be paid…