Merchant Services – 1099
I am not a writer so I fret as I sit to write this blog entry. Knowing a bunch of writers will be reading and critiquing makes it even worse! That said I do know a lot about banking and the financial industry so I hope this nugget of information is helpful…
It is becoming commonplace to see authors using their smart phone to process credit card payments. One thing may surprise these authors if they are not familiar with banking regulations that were passed in 2011. The legislation states Merchant Service Providers (the company processing your credit card payments) must send each customer a 1099 at the end of the year to show totals for sales made through the year. This process also ensures the Federal Government has a checks and balance regarding revenue and taxes owed. The new legislation was felt necessary with the increased numbers of consumers offering credit card payment options.
If you set-up a merchant service account, make sure to provide all information accurately. If not, your income may be reported incorrectly and cause major headaches come tax time.
Hope to see each of you in January at the Mid Winter Conference West.
About the Author:
Cheyenne Knopf is the Marketing Manager at OnLineBinding. Prior to helping authors achieve their dream of having their book completed, she worked for 8 years as a corporate banker specializing in Treasury Management. Her banking career gives her a unique edge in helping authors understand the business side of writing.