Always Provide Correct Tax Information to your Credit Card Processor

In 2008, IRS 6050 mandate made it certain that every year all credit card processors report their merchant processing revenues to the IRS. This mandate has been put into place to ensure merchants don’t evade paying taxes or dodge payable taxes.  It’s a new way of keeping the merchant from using their own funds with the credit card processor, if they’re found to have evaded taxes. 

Your credit card processor will not release your payment till your taxes have been cleared. And this has been mandated by IRS.

If next time you receive a notice from your service provider asking for your TIN number and other information, don’t ignore it. Provide a correct TIN number and corporate name

It is vital to provide your credit card processor revised tax information. In case, you tamper with it, the credit card processor is liable for withholding your money and not releasing it.

You can use the W9 form filled with accurate information to avoid detection of a mismatch of TIN number.  

For this thing, you need to have exact information such as the TIN registration and other details that you used for filling taxes. If the information filled by you mismatches the actual details, the form will be rejected. This is because the IRS doesn’t follow any verification system for a look up. 

If you feel uncertain about the details of your TIN, contact IRS for accurate information. Last of all do ensure that all this information is correctly provided to the credit card processor to avoid money seizing.  

 

High risk merchant account holders need to be more careful, because their business is already keeping them under vigil. Tax evasions could not only hold your money, but also get your account cancelled.

 

Credit Card Processing Limit: Why You Shouldn’t Be Crossing It

As a business owner, risks always keep haunting your thoughts. There are areas where you’ve got to be more careful, and where averting risks is entirely in your hands. For instance never play around with your credit processing limit. Going out of your bounds makes you entitled for a heavy price.

Before discussing the drawbacks of crossing credit processing limit, let’s learn what the term implies. 

Credit Card Processing Limit

Whether you’re an ordinary business or classified as high risk, a merchant account provider will set limits on credit processing depending upon the business type and scale. The restriction is imposed to avoid fraud transaction and reduce chances of chargeback.

Factors such as average transactions and anticipated monthly sales volumes play an important role in determining this limit. High riskmerchants account providers generally allow a higher limit keeping high business volumes in mind, but will certainly charge you an extra buck for the services.

Why You Shouldn’t Cross The Processing Limit?

Whether your business crosses the processing limit by a single or multiple transactions; it is considered risky by high risk merchant account providers. As a result the service provider will accuse you with superfluous chargebacks that were preventable.

During seasonal high, crossing credit limits may seem the only way out, but the sudden increase in the average sales will be looked upon as abnormal and suspicious by the service provider. He may let you off with a single warning, or in case of exceeding limit frequently, freeze your high risk merchant account all together.