Last year, we added new functionality in Escape Online to support payments to vendors via credit cards. While we are on this topic, we have received questions from customers in regards to processing 1099 Vendors who have been paid via credit cards. According to the IRS Instructions for Form 1099-MISC, "Payments made with a credit card or payment card and certain other types of payments, including third-party network transactions, must be reported on Form 1099-K by the payment settlement entity under section 6050W and are not subject to reporting on Form 1099-MISC. See the separate Instructions for Form 1099-K."
The burden of reporting payments through credit cards resides with the payment processor, i.e. the credit card company. So, you are not required to send a 1099 form to independent contractors such as freelancers, or to other unincorporated businesses such as LLCs, if you paid them via credit card.
Good news indeed!