In case you missed the news, the IRS has required processors to begin reporting credit card sales for every client merchant. This means that your processor will now send you a 1099 totaling your credit card sales (your first 1099 will probably be for 2011 received in January of 2012). There are some potentially significant ramifications including backup withholding funds for any merchants whose legal name and tax ID number do not match what the IRS has on file. (More information and details about that here… http://www.heartlandpaymentsystems.com/IRS2010/.)
However, one of the ramifications should NOT be new fees. Any fees associated with IRS Reporting are “junk fees”. These are fees imposed by your processor, not the IRS. While there may be some legitimate additional costs to the processor to complete and mail this document, this should not amount to much. Just to give a comparable idea… Heartland only charges $3.25 to generate and mail a W2 or 1099 for our payroll clients. That would be a reasonable fee for a processor to assess once per year. Anything on a monthly basis, or anything much higher than that is a “junk fee”. Heartland is opposed to “junk fees” and has no intention of charging them. You are not required to pay “junk fees”… Ditch them and see all the other ways Heartland can improve your card processing experience. 
For more information click the link above or Contact Me.
