The short answer is, no, you do not. Employers do not prepare 1099-NEC or 1099-MISC forms for any of their credit card business-related payments. The rule extends to some other forms of payment that are similar to credit cards. They include:
- Debit cards
- Mobile wallets (e.g. PayPal)
- Store-valued cards (e.g. gift cards)
Prepare a Form 1099-NEC or Form 1099-MISC if you pay one of your contractors with cash, check, or a similar payment method. The entity that is responsible for the payment settlement (e.g. a credit card company) must issue a 1099. They will send a Form 1099-K to contractors who use the credit card payment method.
People Also Ask
- How can I file Form 1099-K with software support? – Manual preparation is out of the question when you need to prepare and distribute hundreds of 1099 forms. Intuitive, menu-driven solutions can support a range of payroll, filing, and accounting services.
- Can I file a 1099 form for payments made to a vendor? – Sometimes, but it is useful to remember that the IRS does not necessarily require businesses to report every single payment that you make to an independent contractor with a 1099 form.
Third-party processors can print data on our preprinted forms for simple 1099-K distribution. Try our free 1099-etc Demo software today to learn how you can report data within our software.
This article was updated on Jan. 29, 2026 to keep its information as fresh as possible. We update this article every six months, before and after tax season, to keep current with any changes.