Due to regulations imposed by the IRS in 2011 under Section 6050W of the Internal Revenue Code, all credit card processors are now required to supply Form 1099K to each of their merchants who process transactions during the year and also report the information directly to the IRS. The 2011 Form 1099K is for your records only and does not require any action on your part.
Go to http://edocket.access.gpo.gov/2010/pdf/2010-20200.pdf to read the final ruling in the Federal Register.
YOUR ROLE
As a merchant, your role regarding this new legislation is to comply with any requests from your processor to correct your legal business name and Federal TIN. If you do not receive a correction request, then you do not need to take any additional steps.