What is a Payment Settlement Entity with respect to Form 1099-K?
237 views | Last modified 10/12/2023 6:05:23 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

  1. Merchant Acquiring Entity: An organization that has a contractual obligation to make payment to participating payees in the 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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