Regulations require us to report settled volume, it does not adjust for fees, credits, or chargebacks.  
 
For example, if a batch included 2 $5000 transactions and one credit for $5000, the 1099-K will report $10,000. We are required by the regulation to report this way. Many processing industries fought against this in 2010 but the government ruling was to report the gross volume not the net volume of chargebacks and credits.