Revolution Payment Systems

Introduction & Overview
The Housing and Economic Recovery Act of 2008 is a new federal regulation that requires “merchant acquiring entities” to report the gross amounts of their merchant customers’ electronic payment transactions to the IRS. These new requirements will apply to transactions beginning on January 1, 2011, with required reporting to begin in 2012. All merchant acquiring entities must collect and verify the Tax Identification Number (TIN) and associated legal business name and address for each of their merchants on file.
Elavon is a merchant acquiring entity and, as a result of this new law, is implementing procedures and system enhancements to prepare merchants for the impact of these requirements, effective January 1, 2011. Currently, Elavon is anticipating the Secretary of the Treasury’s release of the specific requirements and regulations associated with the new reporting rules. We will continue to update you with educational and support information as it becomes available.
Legislative Overview
The Housing and Economic Recovery Act of 2008 created new payment transaction reporting requirements intended to help the IRS identify underreported sales. At year-end, the reporting entity (i.e. the “merchant acquiring entity”) will be expected to file a Form 1099-K, an information return, with the IRS and provide a copy to you, reporting the gross amount of the credit card, debit card, gift card, and e-commerce transactions associated with your business.
Requirements & Implications
The new reporting law – which was opposed by business associations, banks, industry associations and Elavon before it was ultimately signed into law – also requires Elavon to collect and verify each merchant’s Tax Identification Number (TIN) and the legal business name and address associated with that number.

If you fail to provide Elavon with your TIN, or if there is a discrepancy between your TIN and the legal business name in Elavon’s records and the IRS’ records, you will be subjected to IRS mandated backup withholdings. This withholding provision goes into effect for transactions starting in 2012 (unlike the reporting provisions of the legislation, which apply to transactions beginning on January 1, 2011).

About TINS
The acronym for Tax Identification Number, TIN, is a generic term to refer to a business’ Employer Identification Number (EIN) or the business owner’s Social Security Number (SSN). If you are notified that your TIN or legal business name in Elavon’s records does not match the IRS’ records, you must provide Elavon with a Form W9.
New Reporting Requirements Summary
IRS Requirements for Elavon:
• Elavon must collect and verify your TIN and associated legal name and address for your merchant business.
• Beginning with the 2011 tax year, Elavon is responsible for collecting your total annual dollar amount of payment card transactions to report to the IRS in 2012.
• In January 2012, Elavon must file a Form 1099-K, an information return, with the IRS and provide a copy to you for the 2011 tax year.

• Beginning in 2012, if your TIN/legal business name combination that was provided to Elavon does not match the information on file with the IRS, you will be subjected to IRS mandated backup withholdings.
IRS Requirements for Merchants:
• You must ensure that the TIN/legal business name combination that was provided to Elavon for payment card transactions matches the information on file with the IRS.
• When you receive a copy of the information return filed by Elavon annually, you should compare that information with your own tax records to validate the accuracy of the information.

In today’s fast paced, instant gratification-obsessed society, consumers expect to be able to use their credit and debit cards at your business. Economists agree that cash and checks are going the way of the dinosaur. So to stay on top, attract new customers and earn their long time loyalty, you need the right payment processing solution. It’s a simple fact of contemporary business. If you fail to keep up, your customers are more than likely going to patronize a competitor – leaving your business in the dust, right along with all that cash and dinosaur bones.

It’s a fact that businesses that accept plastic can boost sales by 30 percent or more. If you’re a cash only business that’s ready to take your business to the next level, there are plenty of options at your disposal. With the right tools and resources, accepting credit and debit cards is easier than you may think. It all begins with selecting a merchant account provider.

Your merchant account provider will work with you to create a custom tailored account that fits your business’ unique needs, positioning you to meet your goals and enjoy a fruitful future. Whether you own and operate a restaurant, retail establishment, a food delivery or catering service or a contracting business, it is important to choose a provider that understands your industry and its challenges.

You’ll also want to shop around to compare rates. On top of a monthly rate, certain providers charge varying fees for individual transactions. These fees are the very thing that dissuade many cash only business owners from signing up for a merchant account. But the customers you’ll be able to attract by accepting credit cards makes it a worthwhile decision. In fact, a whopping 78 percent of American consumers have credit cards, and 80 percent have debit cards. 60 percent of consumers have credit cards that reward them with airfare mileage or other points each time they use their cards. These valuable incentive programs have more and more customers reaching for plastic for every purchase. Why exclude these ready and willing patrons by maintaining a rigid, cash-only business model?

If those statistics don’t assuage your concerns, just put yourself in the shoes of your customers. Perhaps it’s late at night, and you’re on you’re way home from work. You need to stop at the store to pick up a few quick items before getting the rest you so desperately need. You find your items, head to the register and are turned away because you don’t have quite enough cash, and you’re unable to charge your purchase. How does this reflect on the business you are trying to patronize? How likely will you be to return?

Though it may seem like a small inconvenience, these experiences add up, combining into a negative image for your brand name. Particularly in today’s less than friendly economy, it’s important to extend every convenience possible to your valuable customers. Accepting credit cards sends an important message. You’ve gone through the steps to ensure that they can pay in the ways that are most convenient for them. This small difference can give you a real leg up over the competition.

Some cash only businesses are overwhelmed by the hardware and software needed to process credit cards. But when you choose the right merchant account provider, this technology is made easier than ever. Depending on the type of business you run, you provider will work with you to select the right terminals and software. Whether you are a mobile business, restaurant, online establishment, or retail shop, you’ll be outfitted with the tools you need and an expert team of customer service professionals to walk you through each and every step.

The good news is that the software you’ll use to process credit cards makes bookkeeping exponentially easier for you, each and every month. You’ll be able to track and record invoices for easy reporting. And if a customer has a question or problem with a purchase, you’ll be able to quickly locate his or her invoice and resolve the problem in a timely manner. This is another important part of earning customer loyalty.

The application process is quick and simple, and your merchant account provider will have you accepting credit cards in a matter of days. With only a little bit of effort on your behalf, you can expand your customer base, reinforce your positive brand name and stay ahead of the competition. If you’re a cash only business ready to expand to all new heights, explore this simple, lucrative option today.

Competition is one of the cornerstones of a free market economy. When more than one company provides a similar product or service in the same area, it helps to keep prices fair. Not only that, but it also inspires different businesses to provide more diverse options for their customers.

Providing varied goods and services means a lot more than just expanding what your company offers. It also means expanding how you offer them. One way you can get a leg up on the competition is by providing a wider range of payment options for your customers.

There is more than one way that a business can accept a credit card, and a merchant account provider can help you with all of these. Here are a few great options for payment processing through a merchant services account.

The “Old-Fashioned” Way

For businesses that maintain a physical location that customers can visit, you are going to need to be able to actually swipe their credit cards into a machine. These machines are called retail swipe terminals and you can find them in just about every establishment that you visit.

Once your customer swipes the card, the payment goes through a series of complicated transactions. Don’t worry—your account provider will take care of all of this. In a few days, the money will be placed in your business bank account. Some providers will even offer next-day access to funds.

You should talk to your provider about the different types of swipe terminals that they have available. Some machines offer touch-screens and others ask you to enter your PIN number on a keypad. Your customers can sign a screen or a receipt printed from a built-in printer. Many merchant accounts even offer machines that require no signature or PIN.

Before you sign up for anything, however, be sure to ask about any “fine print.” Your provider may offer supposedly free swipe terminals that actually have hidden charges. The most common example of this is an exorbitant fee if you ever decide to change providers.

Virtual Reality

In many industries, however, you don’t always have a physical card that you are able to swipe. Let’s say, for example, that you operate a business that takes a lot of orders over the phone. This could be a home shopping network, a flower shop that offers delivery, or any other company that needs to process credit cards over the phone, via fax, or through e-mail.

Your account provider can set you up with something called a virtual terminal to handle these transactions. A virtual terminal is simply a website that you can log onto through a computer that is connected to the Internet. Once you enter your username and password, you can enter the site and simply type in the credit card information. From there, your account provider will handle the transaction just as if you had swiped the card.

Expanding your Online Capability

When you bring your company onto the Internet you do a whole lot more than simply raising your local profile. You can now offer your products and services to people from all over the world.

As people shop online these days they expect to be able to pay via their credit or debit cards. In fact, the vast majority of purchases made over the Internet are paid for with plastic.

This might be surprising to many people, considering the fact that some individuals are nervous about the presence of identity theft over the Internet. But more and more people are learning every year that when you buy something online through a reputable establishment, you can be confident that your payment will be handled securely.

Your merchant account will provide you with the tools you need to assure the safety of all transactions. They will offer fraud detection software and even store all of your sensitive information on a PCI-compliant data center. This offers far more security than keeping this data on your personal or business computers.

Taking your Business Anywhere

Not every business is bound to a single physical location. If you are in the restaurant industry, you might consider expanding by offering delivery service to your customers. Many account providers can offer you wireless swipe terminals so that you can accept credit cards right at your customers’ front doors.

One of the great features of these wireless terminals is that you don’t even have to be within a coverage area to accept a card. You can swipe it, store the information, and then send it later, when you are back to where you can get a signal.

With solutions like these, you can rest assured that you are offering your customers every possible payment option. They will appreciate this convenient and repay you with their loyalty. Talk to a merchant account provider today about credit card processing and the wide world of other ways that they can help your business.