That is correct. That's what it is supposed to do. Payments made by credit card are not reportable on the 1099-NEC. Instead, they are reported to your vendor by his/her merchant service on a 1099-K.
https://www.irs.gov/forms-pubs/about-form-1099-k
https://www.irs.gov/pub/irs-pdf/i1099mec.pdf
Exemptions page 8/9:
Form 1099-K. 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-NEC.
