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:
The EMV credit card is one of the best payment technologies that most Americans have never heard of. Because of their embedded security chips, these credit cards are very difficult to clone. Whether using chip & signature or chip & PIN EMVs, the cards must physically be present when customers are making a purchase.
Because of these extra security features, EMV credit cards are already standard in most major retail markets around the world. But the majority of American shoppers and merchants have yet to embrace this 20-year-old technology:
Hosted payment pages allow merchants to securely accept credit and debit cards for online purchases. The actual payment page has the look and feel of the merchant's site, but the entire transaction happens on a hosted, third-party server.
Traditional swipe & sign credit cards are quickly being phased out in the United States. In their place are Chip & PIN credit cards — a new payment technology that offers greater security and fraud protection.
This transition isn’t only happening in the United States. Chip & PIN credit cards have already become the standard in most parts of the world, with the U.S. being the last major market to reach full compliance.
EMV credit cards are the wave of the future. But that future could be very expensive.
Short for Europay, MasterCard and Visa, EMVs are a relatively new type of credit card equipped with embedded security chips designed to prevent fraudulent activity. It's no longer enough to copy down a user's 16-digit card number. The plastic (and chip) must be physically present at point-of-sale registers in order to make a purchase:
Writing paper checks at the cashier counter used to be the standard payment method for in-store purchases (second only to cash). Using these checks can be a bit inconvenient for those standing behind you in line, but we've all done it (or know folks who have).
EMVs are chip-enabled credit cards that offer greater security (i.e. fraud prevention) than their more traditional swipe-and-sign counterparts do. Already the standard in most parts of the world, these EMV credit cards have only recently emerged in the U.S.