Why? Let's take a trip through the perfect client session and sale. A family books their annual portrait session. The session goes wonderfully and not only do they purchase a group shot, but they also love all of the other images you captured and want gallery wraps, albums and more! When it's time to pay, they pull out a credit card. You happily accept their card because even though you are subject to the normal monthly or annual fee assessed by your credit card processor, it's worth it!
But what if you encounter a speed bump? What if you later receive notification from your credit card processing company that they are required to hold 28% of your gross monthly transactions? What went wrong?
It's possible that your tax ID name and number don't match exactly with what the Internal Revenue Service (IRS) has on file. It does happen! And if that is the case starting January 1, 2013, the processor will have to hold that percentage for the IRS until the proper information is secured. On top of that, the 28% of your hard-earned session or print fees will not be refunded until the following year as a tax credit.
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