ProPay Annually sends IRS 1099-K forms to qualified merchants.
Details of qualification criteria can be located at https://www.irs.gov/businesses/understanding-your-form-1099-k
Additionally, some states have specific reporting requirements that may generate a 1099-K for a merchant.
Partners and merchants should ensure their business, address and Tax Identification data on file with ProPay is accurate prior to Dec 31 each year to ensure accurate and timely delivery of 1099-K forms.
Payment Facilitation Partners with qualified merchants should receive a TIN-matching report via their SFTP Report subscriptions at https://xfer.propay.com monthly which can be used to confirm with merchants that their data on file is correct.
Merchants using propay.com can manage their information by logging into the website.
Integrated Partners who host their own user interfaces can use the ProPay Account Edit API method to update merchant business information.
1099-K Form Delivery
Previously, bulk PDF forms were delivered to some partners via https://xfer.propay.com. This will not occur going forward.
2020 forms will be mailed to the merchant address on file. The address used is the principal home address.
For SSN-validated accounts, this is generally the home address of the principal owner of the account.
For EIN-validated accounts, this is generally the business address for the merchant, submitted as the principal home address.
The forms will be sent from ProPay. Payment Facilitation partners whose merchants primarily interact with their website/solution may desire to inform their merchants to expect the form directly from ProPay to avoid confusion about its purpose.
1099-K Form Corrections and Updates
Once merchant business information is corrected, partners can request a new copy by contacting their relationship manager or Client Support.
Merchants who use propay.com can correct their data there and contact ProPay's Customer Service team to request an updated 1099-K.
Due to the updated processes and timelines, corrected or updated 1099-K forms may take 4-6 weeks to process.
Frequently Asked Questions (FAQs)
How will merchants receive 1099-K forms?
Direct mail from ProPay. Digital copies will only be provided on request for corrected, missing or updated 1099-Ks.
When will forms be sent?
Prior to Jan 31, 2021
To which address will they be sent?
To the Know-Your-Customer (KYC) validated home address on file, typically the merchant principal's home address for SSIN-validated accounts, or the business address for EIN-validated accounts.
Why did I or my merchant get 2 forms?
Credit card processing and ACH volumes were reported separately. If the merchant qualifies for both forms of payment, they may receive two forms.
How are the totals calculated?
Volumes include all settled/completed credit card transactions or ACH transactions.
Credit card processing totals include SplitPay and Spendback transactions for the receiver.
As a Payment Facilitator, how do I locate data that requires updates to ensure proper TIN matching (Tax Identification Number)?
Payment Facilitators should be receiving a report via https://xfer.propay.com in the /Report1099K folder on a monthly basis containing data related to 1099-K eligible merchants.
If you are not receiving this report, please contact your relationship manager or Client Support to begin receiving it.
How should a merchant correct inaccurate data?
If the merchant uses an integrated Payment Facilitation partner solution, they should update the information on that solution, which should in turn update ProPay's system to generate a new 1099-K request.
If the merchant uses propay.com to manage their account, they should correct data by logging in there and editing their profile and business information.
How long does a merchant have to correct invalid data?
Through May of each year.
How should I request a copy of a missing or corrected 1099-K form?
Corrections made to Name or Tax ID will trigger the hard copy 1099-K to be re-mailed.
Otherwise, merchants can contact ProPay Customer Service - customerservice [at] propay.com with their account number.
Payment Facilitation partners can email clientsupport [at] propay.com with the ProPay Account Number to request an updated form
What if the 1099-K and data was reported to the IRS on the wrong Tax ID?
The merchant should submit a copy of a correct W-9 form to ProPay in order for the data to be corrected with ProPay and the IRS.
How long will it take to receive a corrected or updated copy of a 1099-K?
Processing requests for new forms may take up to 4-6 weeks. We are exploring ways to decrease that timing.