Our favorite method of bank cards is the “card to card” transaction. When we get a plastic card, the first nuance we are interested in is the amount of “cashback” and how much money is charged during card-to-card transfers. Banks, which know our love, are constantly running campaigns related to them and attracting their customers in this way.
It is no coincidence that Mammad Karim, head of the Venture Fund, said that “card to card” transactions have become a phenomenon in Azerbaijan. According to the company official, the volume of these operations in our country is equal to billions. I wonder why these operations have become a phenomenon in the country? Where do people use the card to card transaction the most?
The use of “Card to card” transactions is more than the norm.
Economist Punhan Musayev In his statement to “Kaspi” newspaper, he said that the population’s interest in bank cards continues to grow. The number of users is large, and they make even the smallest payments by card: “Compared to previous years, card transactions and people’s proximity to the card system have increased. The use of “Card to card” transactions is more than the norm. The reasons may be different. For example, one of the possibilities is that if there is no pos-terminal in a restaurant, cafe or shop, we make the payment by card-to-card transfer.
Money used to be sent to students by mail, but now…
The expert says that “card to card” transactions are also widely used between parents and students: “The second reason can be explained by the fact that most higher education institutions are located in Baku and thousands of students from the region study here. Previously, parents used to send money to their children by mail, now it is done by “card to card”.
Are debts and credits paid by card?
The third reason may be related to the indebtedness of the population and the imbalance between the capital and the region. Our interlocutor notes that “card to card” is now replacing the way cash was used. Moreover, the fact that no interest is charged on some cards makes people’s work even easier: “The profitability of the population in the regions is not at the desired level. Sometimes they buy money on loan, and sometimes they prefer to buy goods on loan. Payments are usually made by card-to-card transfers. Or if someone owes someone, he does not meet the debt and sends it to his card. In addition, there are services that the residents of the region receive from the capital. For example, online courses have become quite popular since the pandemic. Of course, their payments can also be made by “card to card”. This is one of the factors that lead to an increase in the volume of transactions.”
“Can you send the payment to the card?”
I wonder if the popularity of “card to card” transactions encourages tax evasion? It is known that the government has recently been conducting a serious policy to eliminate and minimize the shadow economy and to “whiten” the circulation. Various methods are used for this. The legislative base is improved, projects and measures are implemented, strict laws are adopted. Or, the more cashless turnovers, the more tax benefits are given to taxpayers. Also, non-cash payments are stimulated by projects such as “VAT refund”. As a result, most transactions in the country are made with plastic cards, and the use of cash is decreasing.
This requirement is against the law
Tax specialist Anar Bayramov says that as a result of the “whitewashing” policy, some entrepreneurs resort to alternative ways to avoid taxes. Failure of post-terminals is the main direction. According to him, it is against the law to require payment in public catering facilities and stores by card-to-card transfer rather than by post-terminal: “Recently, when you mention that you want to pay with a post-terminal in public-catering, service, even trade, you will be told that it is broken. information is given. “You can immediately send the payment to the card,” the way out is offered. However, even if the post-terminal is faulty, steps must be taken to rectify the fault immediately. The legislation stipulates that the taxpayer must present a cashier’s check and receipt when accepting payment from the public. If not, he will face fines and financial sanctions.”
Tax evasion in the “Card to card” operation
It may be asked here that a receipt is presented when making a card-to-card transaction. But how does the taxpayer evade tax at this time?
The expert says that if all payments are made through the post-terminal, the real turnover of taxpayers is reflected. Even in case of cash payment, if a receipt is presented, there should not be a problem: “However, in practice, taxpayers delete the memory of cash registers, cancel receipts and hide the circulation. But when they pay with a post-terminal, they cannot delete that sales information from memory. Because the money is already in the seller’s bank account. Even if today he hides that turnover, even if he cancels the cashier’s check, during the inspections conducted by the tax authority, those bank data are obtained and the real turnover is determined. Even if a receipt is presented in the “Card to card” operation, it is considered as a cash payment.
“The buyer pays, but the seller says that the money has not arrived”
According to our interlocutor, citizens may be in a difficult situation in “card to card” operations: “We often encounter complications of this type of payment in restaurants or shopping centers. For example, when a buyer or user makes a transfer from card to card, the money comes out of his account, but in many cases it does not transfer to the seller’s account. There may be a technical reason here. Or if the number is written incorrectly, it can be used on someone else’s account. At this time, serious problems arise. The buyer pays the money, but the seller says that the money has not arrived.” (“Kaspi” newspaper)
