My volume is not accurate. Why aren’t credits excluded from my total?
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 1099K 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.