What is a Payment Settlement Entity with respect to Form 1099-K?
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Last modified 1/3/2023 7:02:50 AM EST |
Added by TaxBandits Team
Applicable To
94X
1099
W-2
ACA
W-4
A payment settlement entity in Form 1099-K refers to an entity that makes payment in settlement of a payment card transaction (credit card, debit card, or other payment cards) or third-party network transaction.
Two types of PSE
- Merchant Acquiring Entity: An organization that has a contractual obligation to make payment to participating payees in the settlement of payment card transactions.
- Third-Party Settlement Organisation: An organization that has the contractual obligation to make payment to participating payees of third-party network transactions.