A Payment Settlement Entity (PSE) for purposes of payment card transactions is a U.S. or non-U.S. entity that is a merchant acquiring entity. The merchant acquiring entity must be a bank or other organization that has obligated itself under contract to pay participating payees in settlement of payment card transactions. A PSE for purposes of third-party network transaction is a third-party settlement organization (TPSO). This means that it is the central organization that has the contractual obligation to make payments to participating payees of third-party network transactions. Note. Healthcare networks, in-house accounts payable departments, and automated clearing houses do not qualify as TPSOs and do not report under section 6050W.
Citations:6050W. Returns relating to payments made in settlement of payment card and third-party network transactions