There are sometimes advantages to being a late adopter. For example, many parts of the developing world lacked extensive telecommunications infrastructure during the 1980s. But then along came mobile technology, and these countries didn’t have to invest in expensive telephone lines. They were able to leapfrog over the older technology completely. And they could also learn from the growing pains of mobile markets that preceded them.
Similar to income tax withholding on a paycheck, backup withholding is imposed by the IRS on certain types of investments and income. The Housing and Recovery Act of 2008 included Amendment 6050W, Merchant Tax Reporting. This Amendment requires all merchant accounts providers to collect and verify TINs and report annual gross payments processed by debit or credit cards using Form 1099-K (Payment Card and Third Party Network Transactions) to the IRS and merchants.
By coupling your retail or online store with a merchant account, you can begin accepting credit cards. Although you are free to continue relying exclusively on cash or checks, adding more payment options will allow you to capture many more types of sales.
However, not all merchant account providers are created equally. Below are 12 essential questions you should ask before selecting a merchant account for your business:
By 2018, EMV credit card penetration in the United States is expected to approach 100 percent. But this is three years after new EMV liability laws go into effect in 2015. Despite being mandatory in most other countries, these chip-enabled credit cards have enjoyed relatively slow adoption in the largest consumer market on the planet.
But why have a deadline at all? And how prepared are American merchants for the transition?