What is a Payment Settlement Entity with respect to Form 1099-K?
103 views |
Last modified 10/12/2023 6:05:23 AM EST |
Added by TaxBandits Team
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.