| Our solution is to balance a daily payroll with the costs of delivering those funds. We do this by building into ShofarNexus™ the software tools to manage funds and then apply those tools to our business model. |
| Transaction Fees |
| When payroll is done on a computer, the major cost difference between daily and longer term payments is the transaction fees charged by financial institutions. For an employer, this should simply be a part of the cost of doing business. However, these costs can be reduced. |
| Payroll Intermediary |
| An employer can setup a system where payroll is made daily, or in some cases more frequently, to an intermediary system that keeps track of the funds, but only transfers the funds as desired. |
| An hourly worker would be paid immediately after clocking out, a commission worker would be paid after each commission is earned, and a salaried worker would receive daily payments. |
| The earner can then choose to have the funds transferred to their financial institution on demand or on a regular basis. The transaction fees only occur when the funds are transferred to the earner’s financial institution, not when they are earned. The employer has fulfilled their obligation of a daily payroll, and the earner can choose their preference as to when they get paid. |
| Micropayments |
| ShofarNexus™ includes a micropayment system that allows payments in millionths of a dollar. The objective is to allow such a granularity that transactions can be for very specific items and reconciled immediately. For example, ShofarAd™ uses the service to charge for online advertising. When an ad is rendered on a site the charge is immediately applied to the advertiser and credited to the publisher. Payment delays are in milliseconds, not weeks. |
| Clearly it is impractical to transfer funds for each tenth of a cent that arrives to a financial institution. However, all parties have the ability to transfer funds when they see fit. |
