Web-based Tax Company Provides Online Sales Tax Calculation and Address
Verification Services to Leading Global Internet Payment Authorization Service
ENGLEWOOD, Colo., and PROVO, Utah, April 25 /PRNewswire/ -- Esalestax.com
(www.esalestax.com), an online company that will be the first to offer
merchants and tax authorities a Web-based portal solution to Internet sales
taxation and Authorize.Net, part of the Go2Net Network (NASDAQ:GNET) and a
leading payment authorization service for online businesses, today announced a
strategic partnership. Under the agreement, Esalestax.com will provide
Authorize.Net and its growing base of more than 70,000 online merchants with
sales tax calculation services and shipping address validation services, both
unique offerings only available from Esalestax.com.
The Authorize.Net partnership marks the launch of two new Esalestax.com
products, CertiCALC, the company's sales tax calculation service, and
CertiSHIP, which ensures merchant customer address accuracy. CertiCALC
captures all of the information necessary from each transaction, which enables
the merchants to easily and immediately fulfill their reporting needs. All of
this information is available online for each merchant.
While Authorize.Net currently uses the AVS (address verification system)
as a fraud-screening device for merchants accepting credit cards, adding
CertiSHIP will ensure that Authorize.Net merchants can better control returned
deliveries due to incorrect addresses. Currently, approximately 7 percent of
goods ordered on the Internet are returned due to incorrect shipping
addresses. The combination of the CertiSHIP service with Authorize.Net's
current AVS program greatly enhances the ability of merchants in the
Authorize.Net system to both verify the customer's credit card billing address
and the merchandise ship-to address.
"Our new relationship is evidence that Internet taxation is moving to the
forefront of traditional and online business agendas," said Mike Blandina,
president of Esalestax.com. "We're finding that online and brick-and-mortar
companies alike are increasingly concerned with having reliable, accurate
sales tax calculation and address verification systems in place."
"We believe that government is several years away from being in a position
to implement any kind of universal sales tax structure across the Internet,"
said Monte R. Swain, chief financial officer of Authorize.Net. "Nevertheless,
many of our merchants find themselves in a position to collect and remit sales
taxes. Today there are more than 30,000 taxing authorities and various rate
structures in the U.S, with many more authorities and rate structures to deal
with as our merchants continue moving into international settings. While
there are a number of companies that facilitate the collection and remittance
of sales taxes electronically, it is our view that only Esalestax.com has
established an Internet-dedicated technology that is robust and flexible
enough to really respond to this very complex and changing environment.
"Additionally, we are very excited to now include the ability to validate
the shipping address within the Authorize.Net payment processing system,"
continued Swain. "Overall, we are very pleased to establish an alliance with
Esalestax.com that will allow our merchants to confidently grow their business
within any type of tax environment, and expect that the burden of their tax
compliance (if any) will be absolutely minimized within the Authorize.Net
system."
About Authorize.Net
Founded in 1996 and acquired by Go2Net, Inc. in July 1999, Authorize.Net
Corporation is the preferred payment-processing service for e-commerce,
providing secure, reliable and easy-to-use payment solutions that make the
Internet a new revenue opportunity for businesses of all sizes. These tools
also provide a smarter, faster, more economical method of transaction
processing for retail-based storefronts and the services industry.
Authorize.Net has grown to include more than 70,000 clients, using a network
of more than 800 ISOs and acquiring banks to resell its products and services.
For more information on Authorize.Net, visit (http://www.authorize.net/).
About Go2Net, Inc.
Go2Net (http://www.go2net.com/) is one of the Internet's leading networks,
providing consumer services, business services, and enabling services. The
company offers through the World Wide Web a network of branded properties and
aggregated content in the categories of search and directory, personal
finance, multi-player games, small business services and e-commerce solutions.
The company also develops Internet technologies for its own network and for
license to strategic partners. The Go2Net Network is home to many of the
Internet's leading vertical destinations, including: MetaCrawler, Silicon
Investor, the HyperMart Network, PlaySite and Dogpile.
About esalestax.com
Esalestax.com (http://www.esalestax.com/) is currently developing a
product for online sales transaction taxation that will serve as a
'go-between' among merchants and state tax authorities. The Englewood-based
company will offer merchants and state tax authorities the first Web-based
portal solution for Internet tax processing. Esalestax.com's architecture
will perform the appropriate tax calculations, return the results to the
merchant, and then retain the information for filing and tax authority audits.
The company's application system accurately calculates and applies existing
sales and use taxes to online purchases and ensures that each jurisdiction is
able to collect taxes on all transactions as required by law. This takes the
burden away from the merchants having to collect, file and remit taxes to
taxing authorities.
This announcement contains forward-looking statements that involve risks
and uncertainties, including those relating to the company's ability to grow
its user and advertiser base. Actual results may differ materially from the
results predicted and reported results should not be considered as an
indication of future performance. The potential risks and uncertainties
include, among others, the company's limited operating history, the
competitive environment in which the company competes, the early stage of the
Web as an advertising and electronic commerce medium, the company's dependence
on advertising, sponsorship and commerce revenues, the company's dependence on
strategic relationships to drive traffic to its Web sites, consumer acceptance
of the company's new products and services, the company's ability to develop
and integrate new technologies and services into its existing services and
into new platforms, such as broadband, and the increased use of the Web for
commerce. More information about the potential factors that could affect the
company's business and financial results is included in the company's Annual
Report on Form 10-K for the year ended September 30, 1999, and Form 10-Q for
the quarter ended December 31, 1999, which are on file with the Securities and
Exchange Commission.
CONTACT: Elizabeth Weaver of Barnhart/CMI, 303.626.7248, or
elizabethw@barnhartcmi.com, for Esalestax.com; or Shawn Fahey, Vice President
Business Development of Esalestax.com, 303-302-3829, or sfahey@esalestax.com;
or Kendra M. Romley, Public Relations Manager - Authorize.Net, of Go2Net,
Inc., 415-979-1402, or kendrar@go2net.com.
SOURCE Go2Net, Inc.
-0- 04/25/2000
/CONTACT: Elizabeth Weaver of Barnhart/CMI, 303.626.7248, or
elizabethw@barnhartcmi.com, for Esalestax.com; or Shawn Fahey, Vice President
Business Development of Esalestax.com, 303-302-3829, or sfahey@esalestax.com;
or Kendra M. Romley, Public Relations Manager - Authorize.Net, of Go2Net,
Inc., 415-979-1402, or kendrar@go2net.com/
/Web site: esalestax.com
/Web site: go2net.com
/Web site: authorize.net
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