Sales Tax: Visa and MasterCard have edits on commercial card (Business, Corporate, Purchasing) transactions. Edits are performed to ensure the tax amount is between .1% and 22% of the Visa transaction amount if the transaction is not tax exempt.
Sales Tax Exempt: Alaska, Delaware, Montana, New Hampshire, and Oregon do not currently impose a state sales tax. Sales tax collection may also be influenced by other factors in other states. Visa USA has a reference document that addresses “Sales and Use Taxes” and best practices.
Effective April 2010, sales tax exempt transactions will no longer be eligible for the Level 2 incentive rate from MasterCard. Tax exempt commercial card transactions with Line Item Detail will continue to be eligible for the Level 3 incentive rate from MasterCard.
Effective April 2006, sales tax exempt transactions will no longer be eligible for the Level 2 incentive rate from Visa. Tax exempt purchasing card transactions with Line Item Detail will continue to be eligible for the Level 3 incentive rate from Visa.
Customer Code: Effective October 1, 2004, Customer Code should be provided if available on Business and Corporate transactions to ensure consistency among MasterCard Corporate products.
MasterCard Commercial Large Ticket: Effective October 1, 2004, MasterCard Line Item Detail is required in addition to Sales Tax and Customer Code.
IRS Form 1099-MISC:
Merchant Category Codes: This Visa publication
of “Merchant
Category Codes” addresses FAQs about IRS revenue
procedures and the IRS’ MCC list to determine with transactions
are reportable. Additional information may be obtained on
the IRS Web site at:
www.irs.gov/irb/2004-31_IRB/ar17.html
Visa® Line Item Detail:
Effective April 2006, merchants that send line item detail with every (Level 3) transaction must provide the following fields on Visa Purchasing Card Transactions. The Line Item Detail data elements that become mandatory are:
In addition, the transaction detail data elements that become mandatory for Level 3 transactions are:
MasterCard® Line Item Detail:
Effective April 2003, Merchants that send line item detail with every (Level 3) transaction must provide additional fields on MasterCard Commercial Card Transactions. The Line Item Detail data elements that become mandatory are:
MasterCard Purchasing Card Information
MasterCard’s purchasing card information is available for download (requires Adobe Acrobat Reader) by accessing the following link.
