Complaint Review: Federated Payments

Your reply) Under the Housing and Economic Recovery Act of July 30, 2008, The United States Treasury Department has now enacted IRS regulation 139255-08, mandating that all credit card processors report on merchant transactions to the IRS.  This regulation was signed into law on August 16, 2010, and will be in effect for the 2011 tax year  
The U.S. Government decided to add these new restrictions, even though Federated Payments, along with its partners and the Electronic Trade Association, lobbied the US Senate on our merchants’ behalf to repeal this new law.   As a result, we have been forced to make a tremendous investment to develop and maintain automated reporting systems that will meet the IRS requirements.  We have taken every possible step to ensure that our reporting will minimize any IRS requests to withhold merchant funds pending investigation.   Federated Payments is forced to take these actions to comply with federal law, and we regret that this has created an additional cost.  By packaging this cost into a one-time $99 fee, rather than into ongoing, increased billing, we hope to minimize the financial impact to our merchants.        Federated Payments is committed to providing the best care anywhere, and will continue to provide the lowest possible pricing in all the areas that we can control.

A- So now you have to keep track of the money, huh, must be hard for a financial institution!  Instead of telling my company you also tell them, and have to keep a record of my tax numbers. I have to admit, that’s a heavy workload! 

In response to this posting by “Dave” that he was charged twice for annual fees this is simply not true.  "Dave" obviously misunderstood.  The real story is that he was charged his annual fee once (that was agreed to in advance and signed under contract) and a one-time IRS fee for the reasons set forth below.

• Under the Housing and Economic Recovery Act of July 30, 2008, The United States Treasury Department has now enacted IRS regulation 139255-08, mandating that all credit card processors report on merchant transactions to the IRS.  This regulation was signed into law on August 16, 2010, and will be in effect for the 2011 tax year

• The U.S. Government decided to add these new restrictions, even though Federated Payments, along with its partners and the Electronic Trade Association, lobbied the US Senate on our merchants’ behalf to repeal this new law.

• As a result, we have been forced to make a tremendous investment to develop and maintain automated reporting systems that will meet the IRS requirements.  We have taken every possible step to ensure that our reporting will minimize any IRS requests to withhold merchant funds pending investigation.

• Federated Payments is forced to take these actions to comply with federal law, and we regret that this has created an additional cost.  By packaging this cost into a one-time $99 fee, rather than into ongoing, increased billing, we hope to minimize the financial impact to our merchants.