Credit Card Industry Laws

In addition to the Payment Card Industry (PCI) security standards enforced by the major credit card brands, federal regulations dictate how credit cards are allowed to be issued, processed and handled.

Under section 6050W of the IRS tax code that came with the Housing Assistance Act of 2008, payment processors are required to submit an annual 1099-K to the IRS detailing exactly how much each of their merchants earned in credit/debit sales. It’s important for the merchant to provide its processor with the correct Tax Identification Number (TIN) and tax filing name to facilitate this.