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i-payout Launches e-Invoices for Clients with EU Distributors

Fort Lauderdale, FL – April, 2019

You can almost hear the sigh of relief coming out of direct selling distributors in the European Union.

That’s because i-payout has a solution for the big problems that the new EU Invoicing Mandate has created for MLM companies and direct sellers who earn commissions in the EU.

Ted Nuyten had a chat with Eddie Gonzalez (C.E.O./President) of i-payout about his company’s cure for the headaches that the EU Invoicing Mandate is creating.

Ted: Eddie, I know that your mass payment software solution is facilitating distributor payments in over 150 countries – with local currency capabilities in most of them. I know that you have numerous direct selling clients that are listed among the world’s 50 largest players.  But I’m not aware of this new invoicing capability you have that keeps things simple and legal for direct sellers in the EU.

Eddie:
Here’s some background. The EU Invoice Mandate requires virtually all purchases, payments and earnings (including those of direct selling distributors) to be accompanied by an invoice from the distributor. The Invoice Mandate enables the annual collection of billions of euros in additional VAT revenue by member countries of the EU.

Ted:
What sort of difficulties does the Invoice Mandate create for direct selling distributors in the EU.?

Eddie:
In order to legally receive their commissions, distributors, working as direct sellers, must prepare timely invoices that account for the income they expect to receive as a result of their own selling efforts and the combined efforts of their associated distributors. Knowing the intricacies of the process and knowing when VAT and or local taxes are to be applied can be overwhelming for direct selling distributors.

Ted:
And, if a direct seller doesn’t comply with the Invoice Mandate – are there penalties for non-compliance?

Eddie:
The penalties are serious.
Administrative Fines: They include fines of 85 EUR per each incorrectly issued invoice or and a 2,000 EUR fine for failure to issue an invoice. 
Sanctions Under Criminal Law – Including imprisonment
Protracted Audits – For both the distributors and their trading partners
Loss of Right to Deduct VAT - With an average VAT raging up to 27%, this could result in a distributor, retroactively, losing more than his/her profit margin on a sale.

And you can bet the EU countries are serious about the invoicing mandate – there’s over 150 billion EUR that they expect to collect, annually, via VAT payments that they currently are not getting.

Ted:
So, how do you and i-payout take care of the Invoicing Mandate for your clients with E.U. distributors?

Eddie:
We’ve added a processing module to our commission payment platform that identifies the products and pricing from distributors sales activity and combines that with the sales activity generated by their downline (if applicable). We apply the appropriate taxes (VAT and local) resulting from that sales activity and then issue an invoice on behalf of the distributor to their parent company for the amount the distributor is to be paid.  This would be a very complex task for the distributor to comply with on their own.  We actually do it for them.

Ted:
Sounds like a big-time win-win to me.  Both for the direct selling companies and for their independent distributors.
Thanks for bringing this issue to light and, solving it.

Eddie:
It’s a value-added service that, to our knowledge, no other provider of mass payments solutions is bringing to the table. We’re always searching for ways to better serve our clients. With this invoice generating solution, we have another big benefit for our clients.

About i-payout

i-payout is an award-winning financial software company that provides world-wide payment and 1099 solutions to its clients.  The company, now in its 11th year, holds a unique position among its competitors.  i-payout is unmatched in its ability to customize solutions to the individual needs of its rapidly growing client list. 
For more information write to discover@i-payout.com.

Independent Review Verifies i-payout’s Internal Controls and Processes

Fort Lauderdale, FL – April, 2017 – i-payout, a leading financial software company that facilitates global payouts via its highly adaptable platform, announced today that it has completed its SSAE 16 (SOC 1) Type II Audit. This attestation verifies that i-payout has the proper internal controls and processes in place to fully comply with governmental regulations and protocols in the service of its clients’ needs.

KirkpatrickPrice, a licensed CPA and PCI QSA firm, performed the audit and appropriate testing of i-payout’s controls. In accordance with SSAE 16 (Statements on Standards for Attestation Engagements), the SOC 1 Type II audit report includes i-payout’s description of controls as well as the detailed testing of its controls over a minimum six-month period.

“We place intense focus on data security, information privacy and compliance with regulatory protocols. In fact, the steps we take exceed industry standards.” noted Eddie Gonzalez, President and C.E.O. at i-payout. “We strive to protect all parties involved and know that our clients value our practice of going the extra mile to help ensure that key regulations that govern our clients are met. This latest SOC 1attestation is proof of that.”

Joseph Kirkpatrick, Managing Partner with KirkpatrickPrice commented, “ i-payout has implemented best practice controls to address information security and compliance risks. Our third-party opinion validates these controls and the tests we perform provide assurance regarding the managed solutions provided by i-payout.”

SOC 1 Type II is a reporting on the controls at a service organization that was established by the American Institute of Certified Public Accountants (AICPA). This report is in compliance with the SSAE 16 auditing standards which focus on the controls of a service organization that are relevant to an audit of a user entity’s financial statements. The standard demonstrates that an organization has adequate controls and processes in place. Federal regulations such as Sarbanes-Oxley, Gramm-Leach-Bliley and the Health Insurance Portability and Accountability Act (HIPAA) require corporations to audit the internal controls of their suppliers, including those that provide technology services.

About i-payout

i-payout is an award-winning financial software company that provides world-wide payment solution to its clients, and with that: comprehensive reporting tools, white-labeled branding, escheatment and tax withholding services, cash flow control and more. The company, now in its 10th year, holds a unique position among its competitors – it is arguably unmatched in its ability to customize solutions and quickly integrate them to satisfy the individual needs of its rapidly growing client list.
www.i-payout.com

About KirkpatrickPrice
KirkpatrickPrice is a licensed CPA firm providing assurance services to over 550 clients in more than 48 states, Canada, Asia, and Europe performing assessments, audits, and tests that strengthen information security and internal controls. KirkpatrickPrice most commonly provides advice on SSAE 16, SOC 2, HIPAA, PCI DSS, ISO 27001, FISMA, and CFPB frameworks.
www.kirkpatrickprice.com.
Direct-selling startup gelmoment taps i-payout for global expansion
Digital Global Payments Industry Leader Helps Facilitate Growth and Efficiency For Startup

Ft. Lauderdale, Fla. (August 2015) — Beauty industry startup GelMoment partners with i-payoutTM, a leading digital global payments provider for direct-selling companies. Quebec-based GelMoment provides patented, high-quality one-step gel nail polish, which is the first of its kind in the market. The direct-selling company partnered with i-payout, enabling GelMoment to expand its global footprint within the first year.

"We are honored to partner with GelMoment and to support the company’s global expansion plans," said Eddie Gonzalez, president of i-payout. "i-payout is proud to facilitate growth for new companies that bring innovation to their markets." GelMoment launched in January 2015, and by the end of Q2, it had grown to 1,353 distributors across the United States and Canada. Currently, 70% of its independent distributors are located in Canada and 30% in the U.S. With a steady 200 distributors signing up per month, GelMoment continues to grow. Additionally, with its planned global expansion, the company says it will increase by 500% in the next 12 months.

GelMoment has reason for its optimistic outlook: It’s the only company to offer a patented one-step, quick-dry formula for gel nail polish.

GelMoment is slated to launch in Australia on Sept. 1, 2015, and currently, there are 155 independent distributors pre-signed up prior to the launch. To support the rapid expansion, GelMoment selected i-payout for its easy, cost-effective and secure digital payments solution that will facilitate commission payments to its distributors. "Our potential market is enormous, and we will continue to expand in other countries after the Australia launch," said Dov Grossnass, CEO of GelMoment. "i-payout had extremely fast implementation and worked exclusively around our needs. The transition has been smooth for our independent distributors. We are looking for ways to expand our presence in the U.S. and other countries, and with i-payout’s solid customer support team, we trust this will happen at the pace we envision."

With its global banking partnerships and knowledge of national regulations in over 140 countries, i-payout has the capabilities needed to make global business happen for GelMoment. i-payout will further provide a customized platform for GelMoment to create a seamless experience for its independent distributors. GelMoment will also save time and money during tax season, as i-payout will deliver the appropriate tax forms to each distributor. The result is that GelMoment and its distributors can better focus on growing the business.
For more information on GelMoment, visit www.gelmoment.com, and for more information on i-payout, visit www.i-payout.com.

i-payouts’s C.O.O. Natalia Yenatska Earns “Pros to Know” Award from Supply & Demand Chain Executive magazine

FORT LAUDERDALE, FL APRIL 08, 2015 — Leading digital global payment provider i-payout™ announced today that its COO Natalia Yenatska has been recognized as one of the 2015 Supply Chain Provider “Pros to Know” by Supply & Demand Chain Executive Magazine. The awards recognize supply chain executives who are successfully preparing their companies’ supply chain clients, or the supply chain community at large, for the challenges of today’s business climate.

Ms. Yenatska works closely with her clients to establish processes that leverage emerging digital technologies, enabling efficient and safe transactions. Leading financial operations and project management, she oversees all aspects of business operations and ensures that staff is well equipped to meet the diverse needs of clients. With years of industry experience, Ms. Natalia Yenatska is an industry expert, innovator and promoter of emerging digital payment technologies that drive supply chain efficiencies.

“The determination, expertise and innovative management Natalia brings to i-payout” make her an asset to our company and a deserving recipient of this award,” said Eddie Gonzalez, President of i-payout™.

Chosen from almost 400 applicants, Yenatska was recognized among other influencers and thought leaders in the industry. She and other award winners were announced online at http://www.SDCExec.com and are listed in the March 2015 issue of Supply & Demand Chain Executive.

About i-payout™

Established in 2007, i-payout™ is a leading financial software company that facilitates global payouts and provides related payment management services. The company’s platform and services make it possible for organizations and their members to make and receive payments anywhere in the world at any time, via multiple options, with ease and convenience. i-payout™ has focused expertise and capabilities to address the specific needs of business verticals, including Multi-Level Marketing, Direct Selling Associations, unions, and the legal industry.

For more information contact Mike House: pr@i-payout.com