What is a Payment Settlement Entity with respect to Form 1099-K?
204 views | Last modified 6/23/2020 9:52:16 AM EST | Added by TaxBandits Team

Applicable To
94X 1099 W-2 ACA W-4

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.

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