101 — The Basis of PASE Services
Money is a
certificate that is issued by a
government as a convenient, temporary IOU for transferring the
ownership of an asset from one person or entity to another.
When currency enters the
economy, each transaction
creates a tax obligation that returns a portion of the "IOU" to the
government that issued the currency. On average, approximately $6 in
transactions return ownership of $1 in currency to the government ("The
A bank is a
that processes currency, performs accounting duties and speeds the rate
at which transactions are completed. Banks use the electronic currency
of credit card services to promote more commerce through that currency
Currency is a
modular system which allows
its users to combine or subtract units to match the value of a
improves the quality of life
is an "asset". "Commerce" describes the transfers of the assets that
are defined as goods or services.
And Skills Exchange (P.A.S.E.)
uses specialized accounting procedures to provide a framework for B2B
is designed to join currency,
credit and debit cards as a convenient way to complete transactions
between small companies.
PASE treats a
company's products and/or
skills as being equal to their cash values. Through a system that
resembles that of a bank, PASE provides the accounting services that
turn barter into an economical marketing tool.
transactions through PASE are based on
the gift certificates of the members.
the accounting for
transactions is based on AMPs (Asset Management Points), but
functionally, everything is based on gift certificates.
company's gift certificates
go in, and your choices of gift certificates from other PASE clients
certificates makes PASE
transactions indistinguishable from cash transactions, with the added
benefits that come from legal protections in every state.
There are no
fees to join and 10% sales
commissions are payable in AMPs, by the seller at the time of a sale.
by law, PASE submits 1099
forms for every exchange that we manage for our clients. (I.R.S. treats
barter exchanges as taxable income and/or deductible expenses)
is responsible for the payment
of any tax obligation which is created by their exchange activities.
a framework for incremental
asset transfers between companies that mirrors the modular system of
currency. However, the units of measurement are actual assets, rather
Management Points (AMPs) are the
measuring system of PASE accounting. They keep track of asset units,
but have no value outside the "books" of the service.
public interfaces are based
on real assets that we, and our clients, commit to the network. They
fit into the familiar format of "deposits" and "withdrawals", with
"AMPs" as the tool that connects them.
begins when a new client
"deposits" assets into their account. The assets are a transfer to PASE
of the right to issue a quantity of the client's gift certificates.
This allows PASE to break the quantity into units that are recorded in
our books as AMPs, each of which represents a one dollar value on the
opening deposit for new
accounts is ^500 (500 AMPs).
at their discretion, make
additional deposits at any time, for any amount (Up to their monthly
exchange limit — See Below for Explanation).
The right to
issue gift certificates in
the name of the client NEVER exceeds the amounts that are individually
assigned by the client at the time of each deposit.
The AMPs are
placed in the client's
account and become the means for completing asset exchanges with other
the rights to issue
certificates are placed into our reserve accounts, where they provide
security for maintaining the value that the AMPs represent. The reserve
account ensures that, no matter what happens, AMPs remain as ownership
rights, never IOUs.
sets a limit on the value of
the certificates that they want to exchange in any given month. As part
of an overall marketing strategy, modifying the limits every month can
be used to level business cycles, or as part of a growth plan.
Client "X" plans to make a 100 AMP exchange next month and sets a
monthly exchange limit of 100 AMPs on his/her account. "100 AMPs" is
posted in the directory as their limit. But, thanks to market
conditions, "X" only exchanges 50 AMPs from his/her monthly limit. If
their transaction account is short of the amount needed for the desired
exchange, (s)he simply makes a Strategic Deposit of to 50
makes his/her purchase as planned.
making a Strategic Deposit,
the client is creating a new right to issue gift certificates. That
right goes into the PASE reserve account and AMPs are created for the
client's transaction account. All financials remain balanced for both
the client and for PASE)
Management Points (AMPs) represent
an equal value of various gift certificates that PASE holds in reserve
to handle unforeseen liquidity and/or selection problems.
even the possibility of member
defaults, PASE maintains its reserves to 110% of the value of AMPs in
If, at any
time, a desired product or
service is unavailable through normal trades, members are welcome to
contact PASE directly to check the availability of the item in the
control over their own account
activity allows them to limit the number of gift certificates that they
offer for exchange every month, all of the way down to zero for up to
six (6) consecutive months.
inactive periods, members are
allowed to make monthly Strategic Deposits up to an amount equal to
half of their average monthly activity levels during their most recent
A landscaper has an active account from April through September,
averaging ^500 in exchanges each month.
During the "idle" six (6) months, the landscaper may make up to ^250 in Strategic Deposits each
month and continue trading with other members at that level.
Back of the House Surplus Store
reserve accounts serve their
security functions best when the rights that are held reflect a fresh
balance of products and services.
the reserve account's
freshness and balance, the rights will be replaced by newer rights that
have been obtained by PASE, with the originals transformed into gift
certificates that will be marketed to the general public through our
transformations are performed as
needed to maintain balance, or every three months, to maintain
Outlet is a marketplace for
gift certificate downloads that are initially discounted by 25% from
their face value (Please Note: The certificates that are offered as
surplus are owned by PASE and obtained through deposit swaps with
clients and through the 10% commission charged for transactions. Value
is lost by PASE, not by the clients who will ultimately redeem the
discounted certificates at their face values.
To avoid the
minor possibility that
"discounted" will be interpreted as "bad" by anyone, the Outlet is
showcased as "market testing", an activity that reflects well on any
"freshness" factor is maintained
throughout the Outlet; After being listed for two weeks, certificates
are discounted by another 25%. After two more weeks, the certificates
are offered at 25% of their face values.
After a total
of six weeks in the Surplus
Outlet, gift certificates are donated to local charities.
REDUCE PASE's INCOME. CLIENTS LOSE NOTHING BECAUSE OF OUR DISCOUNTING
depressing, but you may not be the
favorite donor of your favorite charity.
doohickies may not be the type of
inkind donation they need. Maybe they need whatchamacallits instead.
donate AMPS to
them, instead of "doohickies", they can trade those for what they
really need. And THE PASE will match your first ^200 in donations every
them efficiently reach their
goal and it hasn't required more than an extra minute or two of your
favorite donor now??!!
assist charities by providing
special, fee-free accounts through which local groups may collect
donations or convert in-kind donations into more useful items or
PASE's services can be handled
online by our clients, but we added a human element to keep the assets
entrusted to us as secure as possible.
Deposits are manually added to
action is initiated through a
ticket system (to keep the process short and sweet). Tickets may be
submitted at any time, but are only processed between 6 A.M. and 6 P.M.
Eastern Standard Time, seven days a week. Between those hours, any
transaction should be completed within an hour. When you complete your
transaction is up to you.
unlikely event that our security
features fail to stop hacking, PASE offers a "make whole" guaranteed
that will replace any AMPs that are fraudulently transferred.
PASE places no
restrictions on direct exchanges between
When a client is in a
situation where (s)he can
complete an even "my stuff for your stuff" exchange, there is no reason
to involve PASE or pay us a commission.
PLEASE REMEMBER: Direct
trades are taxable transactions
and must be reported by their participants to federal and state tax
If Your Business Category is
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