If you are unable to use the Commerce Control Center, you may be able to update your information through CardPointe — however, this option is only available if your account has not yet been placed on backup withholding. View the article below for steps:

Once you have submitted the support ticket with CardPointe, please 💬 Contact Us and let us know the ticket was submitted so we can help ensure your information is updated.

Backup Withholding (BUW) is a program instituted by the Internal Revenue Service (IRS) where funds are withheld from a merchant as a result of failing to provide correct taxpayer information to their payment card processor. Typically, the amount of funds withheld is between 24-28% of each batch that the merchant submits.

Similar to income tax withholding on a paycheck, backup withholding is imposed by the IRS on certain types of investments and income. The Housing and Recovery Act of 2008 included Amendment 6050W, Merchant Tax Reporting. This Amendment requires all merchant account providers to collect and verify TINs and report annual gross payments processed by debit or credit cards using Form 1099-K (Payment Card and Third Party Network Transactions) to the IRS and merchants.

Backup Withholding (BUW) occurs when a merchant fails to provide the correct taxpayer information to their processor. In short, the combination of the Legal Business Name and Tax Identification Number (Tax ID) does not receive a match when run against the records from the IRS.

A merchant can receive a mismatch from an incorrect Legal Name, Tax ID, or both.

Please note that the IRS Database is very case sensitive (ex. use of "&" instead of "and" can cause a mismatch and put a merchant onto BUW). As a result, it is important for merchants to know that it is crucial that they provide their information as accurately as possible.

Merchants who have not provided a valid Taxpayer Identification Number (TIN), address, and name match to their merchant accounts provider.

You will not be subject to backup withholding on payments you receive if you give the requester your correct TIN, make the proper certifications, and report all your taxable interest and dividends on your tax return.

Merchants with mismatched TINs could risk an automatic withholding of a percentage of their merchant account deposits. Merchants receive a 1099-K form each calendar year with the TIN information we have on file.

Additionally, some states may impose their own separate withholding penalty. This could result in a merchant not having access to the withheld funds until the following year when they file a tax return. If the state is withholding your funds, please contact your state.

It is important to remember that Fiserv, DaySmart, and CardConnect are not the institutions withholding your funds.

Though CardConnect is the ones that fund you for processed transactions, the IRS has legal authority to withhold the allotted percentage from each batch when your account is on BUW.

To submit a correction to your tax filing information online, navigate to https://www.businesstrack.com. To log in, you will need to enter the 10-digit Communication ID. This Communication ID is located in your mailed BUW notice and/or was provided to you, if applicable, in your courtesy reminder from DaySmart.

Once you have logged in, you will be prompted to fill out and submit IRS Form W-9 electronically. You will be able to specify an email address to receive a confirmation notice when the information is validated. Below is a detailed outline of the steps.

If you are unable to utilize the Commerce Control Center option, Cardpointe also offers the ability to update your legal business information.

We’ve put together a helpful article that walks you through the easy steps to update your legal business name and tax ID with CardPointe.

Once you have submitted the support ticket with CardPointe, please 💬 Contact Us and let us know the ticket was submitted so we can help ensure your information is updated.