“Starting with tax year 2011, you will not report payments you made to vendors using these methods:

  • Credit cards
  • Debit cards
  • PayPal (and similar payment services)

You will continue to report payments you made to your 1099 vendors using these methods:

  • Cash
  • Checks
  • Direct deposits
  • Electronic funds transfers

http://www.qblittlesquare.com/paying-others/1099s1096s/