Pay at the pump’s incompatibility with tax exemptions

pay at the pump tax exemptions

Pay at the pump has become an incredibly popular feature for gas stations. Whether they are large chains or smaller independents, customer now expect this feature. Drive-aways and decreased throughput because of line-ups have made service stations switch over to pay at the pump. However, these trends do no account for First Nations customers who are eligible for tax exemptions on their gas purchases.

Pay at the pump is a simple process. The customer authorizes an amount, pays at the pump, fills their tank, and leaves. This is unfortunately not possible for First Nation customers and provides no PAP option for customers that are tax exempt through the status verification process. Fuel retailers that operate on reserves must account for the needs of their main customer base when upgrading their pumps and/or fuel consoles. Pay at the pump and tax exemptions bring up some issues that First Nations retailers have to deal with.

How can I improve throughput when I have tax exempt transactions?

Pay at the pump is very convenient for many gas retailers. However, it is not capable of more complex transactions such as tax exempt sales. Having a point of sale system able to process tax exemptions and submit tax rebate forms during a transaction is essential for high-volume service stations. It will compensate for the time lost by having the customers walk into the store to pay. A good point of sale paired with experienced staff members will make the processing of tax exempt fuel and tobacco sales easy and convenient. All this while maintaining the standard of record keeping deemed necessary by the province in which they operate. This is not to say that fuel retailers who process tax exemptions should shy away from upgrading their pumps. It is simply a necessity to have payment alternatives for tax exempt customers.

Pay at the pump tax exemptions are simply not possible, so it makes it impossible for eligible customers to get their exemptions. A service station must have an efficient POS instead. Like mentioned previously, a well-equipped point of sale will expedite the payment and record keeping process significantly. Though some provinces only accept paper rebate forms, experienced POS providers are capable of simplifying transaction records and form filling. Through an electronic system merchants can capture all necessary information during the transaction rather than after the fact. In provinces that accept electronic submissions, these systems save even more time by automatically submitting claims in real-time. This can be as they complete the transaction or whenever they make a batch submission.

Wiz-Tec offers the #1 tax exemption service in Canada. With over 300 sites using our iPOS for ITE software, you can rest assured you’ll have a reliable and efficient checkout lane with tax exemption capabilities.

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