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Table of Contents

Lead Story

Turbulence expected for 1099-K reporting, be prepared

News

Industry Update

Washington takes a second look at Durbin

Big card brands, big banks hit with more antitrust suits

CEOs advise wait and see at ETA forum

Update feeds need for more PTS guidance

Features

Legislative update, November 2011

Five key lessons e-commerce merchants can learn from the 2010 holiday season

Michael Duffy
Chase Paymentech Solutions LLC

Research Rundown

Give, inspire and flourish

Selling Prepaid

Prepaid in brief

Union Privilege makes savings a plus

Holiday gift cards get personal

Views

ISOs and the new frontier of payments

Brandes Elitch
CrossCheck Inc.

Education

Street SmartsSM:
Agent training - more than taking a test

Bill Pirtle
C3ET Credit Card Consortia for Education & Training Inc.

When big money meets small ISOs

Adam Atlas
Attorney at Law

Country-specific alternative payments

Caroline Hometh
RocketPay LLC

Visa to eliminate PCI DSS requirements with EMV - not

Linda Grimm
Linda Grimm Consulting

How does a credit card salesperson learn to sell POS?

Jerry Cibley
United Bank Card Inc.

PR and press release basics

Peggy Bekavac Olson
Strategic Marketing

Managing infrastructure in a virtual world

Tim Cranny
Panoptic Security Inc.

Caution: Assumptions ahead

Jeff Fortney
Clearent LLC

Company Profile

POS Portal Inc.

New Products

TIN matching simplified

TIN Matching Service
SecurityMetrics Inc.

Authenticate and process with one touch

OneTouch Mobile Payment
Admeris Payment Systems Inc.

Inspiration

Choose to be grateful

Departments

Forum

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

November 14, 2011  •  Issue 11:11:01

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New Products

TIN matching simplified

Product: TIN Matching Service

The Jan. 1, 2012, deadline looms for businesses to report taxpayer identification numbers (TINs) and legal business names to acquiring banks or payment settlement entities.

Under IRS section 6050W, a requirement contained in The Housing and Economic Recovery Act of 2008, payment processors must have valid TINs and business names for all merchants serviced in tax year 2011, and then file 1099-K forms reporting gross payment card transactions.

In July 2011, merchant data security solutions provider SecurityMetrics Inc. introduced a TIN Matching Service to accommodate ISO compliance with the new federal requirements. The service has reportedly helped scores of payment processors recover and match millions of merchant TINs and legal business names not yet validated with IRS records.

Along with the burden of reporting merchant income shifting to acquirers, section 6050W also requires that all business records match IRS records. If business information is not verified properly, up to 28 percent of future payment card transactions can be withheld by the acquiring entity until the information is corrected.

(The IRS recently granted a one-year reprieve for withholding funds and for levying penalties because of erroneous information submitted on 1099-K forms, but reporting must go on as originally mandated.)

Designed for processors and ISOs that do not have the resources to effectively and completely validate each merchant in their portfolios, SecurityMetrics can simplify the process.

"We've worked with acquirers whose merchant TIN validations are 15 to 90 percent complete," SecurityMetrics Chief Executive Officer Brad Caldwell said. "The law requires 100 percent. Most merchant businesses can't financially handle the federally mandated 28 percent withholding of all card revenues.

"The SecurityMetrics TIN Matching Service is designed to alleviate the pressure of reaching out to an entire portfolio and makes the IRS TIN validation process easy for any acquirer to implement."

SecurityMetrics' TIN Matching Service offers:

Having a reliable ally in generating correct and timely TIN reporting could be the perfect New Year's resolution for ISOs seeking to reduce merchant attrition and meet federal annual reporting mandates in 2012 and beyond.

SecurityMetrics Inc.
801-995-6340
www.securitymetrics.com

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | Harbortouch | USAePay | IRISCRM.COM | Humboldt Merchant Services