Frequently Asked Questions
1. Why should we sign up for IPP?
There are many benefits available to an IPP Member. These include, Extended Trading Terms which in some cases will mean that you will sell the product before you are required to pay for it, you will also earn one Reward Point for every dollar spent and those points will transfer onto an IPP Debit Card so you can purchase what you would like, whether it be a holiday or your kids school fees or just something you want and can’t justify otherwise. The IPP Debit Card will be accepted at all businesses which accept Debit Cards.
A further benefit of being on this program is a measurable reduction on administrative tasks as you will only pay once a month for each of your previous months collective IPP purchases via one pre- advised draw down.
The long-term benefit aside from the above, is the strengthening of your industry and the introduction of new suppliers wanting to trade with newsagents because they will receive payment overnight and exposure to such a large number of like retailers.
2. How is this program funded? Who pays?
The IPP Suppliers fund the program. They pay a fee per dollar spent by the newsagent and that fee covers the funding, the reward points, the administration and the insurance which protects the whole program.
This fee is attractive to the supplier because it is minimal and does not have to provide support to the administration of a large association or marketing group.
3. How does the extended credit advantage us?
Please ask yourself some questions.
a. Do you have an overdraft? What does it cost you?
b. How much time do you devote to paying invoices?
c. How many suppliers request payment before you have had the opportunity to sell their product?
d. Do suppliers of certain products e.g. tobacco, newspapers etc. request immediate payment or payment within 7 days?
The extended credit terms will save you on the time you would normally spend on administrative tasks, allow you to sell the product before you pay and will reduce your current cost of financing your business.
4. What if I don’t need to deal with a particular supplier?
There are no expectations of IPP Members to purchase. A newsagent can decide which supplier they wish to deal with and how often and what they want to purchase.
5. Can I pay early?
Of course, if you normally pay accounts as you receive them and would prefer to continue doing the same there is a mechanism within the program which allows for that. Just log in and nominate which account you wish to pay and it will be paid the following day.
This program should not mean you must change the way you do business unless you decide you want to take advantage of the extended payment terms.
6. Are there any fees?
As we said in FAQ #2 the program is funded in full by the supplier. Though, if you are unable to meet the extended payment terms, there are fees which incur. That is no different to paying fees if you go over your overdraft or credit card responsibilities, in fact the IPP fees are lower in cost, are lower than a credit card fee and only charged per day of outstanding payment.
As you would understand the newsagent has a responsibility to pay its accounts as they fall due under the IPP Program. If you visit the IPP Website you can view the IPP Fee Schedule.
There is a one-off $250 joining fee which is charged once your IPP Membership is approved. This fee is waived if you are a NANA Member.
7. What happens if I don’t have the money?
You will be sent a statement for the previous month on the 7th of the current month. The amount on the statement will be due on the 27th of the month. If, at some stage prior to the 27th you realise you will not have the full amount required you will need to notify the funder so they can make alternative arrangements.
***This program does not mean that you do not have to be vigilant with money, it does though offer you via extended payment terms, the opportunity to sell product before you pay instead of how it normally works.
8. What if I need an increase in my credit limit?
Once you have purchased to a level equivalent to 75% of your Credit Limit you will be contacted and advised of this and asked if you need to increase your credit limit.
9. What if I get charged and the product doesn’t get delivered or it is faulty, or needs to be returned?
Invoices are available on the Moneytech website for you to check as often as you require, the information is updated daily. If you find you have an issue with a particular invoice contact the supplier and request a reversal/credit immediately to ensure the final statement amount incorporates this by the 27th of the month following your purchase.
10. When do I get my rewards points?
Your Reward Points are credited to your IPP Debit Card on the 7th day of the month following payment at the end of the 27th day of the previous month. Your previous months Reward Points will be forfeited if your payment is not made by due date.
11. Can any of our suppliers join?
Ask them to contact us to discuss what they can do to be part of the program.
12. Are there any expectations for us to trade with IPP Suppliers while we are an IPP Member?
As there is an actual cost to IPP Australia each quarter to maintain members accounts with Moneytech we ask that our IPP Members make a minimum of three purchases per calendar quarter using our IPP Suppliers. e.g. making 3 purchases with one supplier or 1 purchase from 3 different IPP suppliers etc. over that quarter.
13. Explain the relationship between suppliers and newsagents on the program
The relationship remains the same as it is today in that you will still order and receive their product as you do currently.
The IPP Program intervenes in the payment process to pay the IPP Supplier for your purchases within 24 hours of an invoice being raised on your account, and then offer IPP Members the opportunity to extend normal payment terms and pay collectively for the previous month’s purchases on the 27th day of the following month.
It is a win/win for both the IPP Supplier and of course the IPP Member, the newsagent.
14. What does Free Access to BPay mean to you?
IPP offers IPP Members the ability to conduct Over-the-Counter Bill Payments powered by BPAY. (The program works off a windows computer and the customer needs access to type in their PIN.)
- The IPP member will complete a document to execute terms and conditions.
- The commissions earned is $0.50 per transaction.
- And the fee to the consumer is $1.20.
There is usually a monthly fee for access to BPay, but this will be waived for IPP Members.
15. Why do we have to sign the Indemnity & Guarantee?
The Guarantee and Indemnity Form protects us should a member decide to leave the program prior to outstanding payments being collected.
16. Why do we have to sign the Privacy Consent Form?
The Privacy Consent Form allows us to check for default judgement/s etc. which may be filed against a prospective member’s business prior to their IPP Account being approved.
17. Is there a risk to me or my business if I join IPP?
If the IPP Program was to cease operation you would still be liable to pay your suppliers for goods you have purchased and had delivered.
Your payment relationship with the supplier would revert to what it was prior to the program commencing.
As there are no fees or costs to the IPP Member there would be no extra monies payable by the IPP Member.
Last updated: 12-06-2020