Instead of using cash to purchase products or services, members use “trade dollars,” which are actually barter credits. Each time a business sells its services/products to a company, it earns trade dollars. It can then use those trade dollars to purchase any services/products available within the network.
For example, a dental office may sell its services to any business. In return, the dental office may purchase anything available inside the network, including flowers, theater tickets, a stay in a hotel, restaurant certificates, real estate, or painting or legal services.
Tradebank completes trades for its clients much like a clearinghouse. The transactions between companies are converted to barter credits, or “trade dollars,” and are reflected as balances in each trading company’s “trade account.” As an intermediary, Tradebank receives a commission on each transaction and saves all parties the trouble and process of collection, exchange of goods, or matching needs exactly with those of another party. All accounts are maintained and serviced by Tradebank.