In the United States, Form 1099-K "Payment Card and Third Party Network Transactions" is a variant of Form 1099 used to report payments received through reportable payment card transactions (such as debit, credit, or stored-value cards) and/or settlement of third-party payment network transactions.
Ignition Inc. is considered a Payment Settlement Entity and we will file the 1099-K should your gross payment volume through Ignition exceed the minimum threshold of $2,500 USD in total gross volume during the course of the year.
Note: Prior to 2023, the 1099K threshold was $20,000 USD in total gross volume and 200 transactions. In 2024, the threshold was was $5,000 USD.
Please note: The current 2025 threshold is $2,500.
The threshold will be updated to $600 USD in total gross volume in 2026 and beyond.
We will provide your business with the necessary 1099-K form that will include both ACH and credit card payments transacted using Ignition.
If you have $2,500 USD in total gross volume in the previous calendar year – and you’re based in the US or are a US taxpayer – you should expect to receive a 1099-K, either through paperless delivery or paper mailing.
We will e-file and mail the 1099-K, and you’ll receive this by the due date of January 31st.