What is a Payment Settlement Entity with respect to Form 1099-K?
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Last modified 6/23/2020 9:52:16 AM EST |
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A payment settlement entity in Form 1099-K is 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:
1. Merchant Acquiring Entity: An organization that has contractual obligation to make payment to participating payees in settlement of payment card transactions.
2. Third-Party Settlement Organisation: An organization that has the contractual obligation to make payment to participating payees of third party network transactions.