### Question
How is the "third party payment network" defined?


### Answer
The term **third party payment network** is defined in *26 U.S.C. § 6050W* as follows -

> any agreement or arrangement—


(A) which involves the establishment of accounts with a central organization by a substantial number of persons who—


(i) are unrelated to such organization,


(ii) provide goods or services, and


(iii) have agreed to settle transactions for the provision of such goods or services pursuant to such agreement or arrangement,


  

(B) which provides for standards and mechanisms for settling such transactions, and


(C) which guarantees persons providing goods or services pursuant to such agreement or arrangement that such persons will be paid for providing such goods or services

#### Citation:
  - *26 U.S.C. § 6050W*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 61-INFORMATION AND RETURNS > Subchapter A-Returns and Records > PART III-INFORMATION RETURNS > Subpart B-Information Concerning Transactions With Other Persons**

