(b) EFFECTIVE DATE.—The amendment made by this 
section shall apply to payments made after the date of the 
enactment of this Act. 
SEC. 204. RETURNS RELATING TO PAYMENTS MADE IN SET-
TLEMENT OF PAYMENT CARD AND THIRD 
PARTY NETWORK TRANSACTIONS. 
(a) IN GENERAL.—Subpart B of part III of subchapter 
A of chapter 61 is amended by adding at the end the fol-
lowing new section: 
‘‘SEC. 6050W. RETURNS RELATING TO PAYMENTS MADE IN 
SETTLEMENT OF PAYMENT CARD AND THIRD 
PARTY NETWORK TRANSACTIONS. 
‘‘(a) IN GENERAL.—Each payment settlement entity 
shall make a return for each calendar year setting forth— 
‘‘(1) the name, address, and TIN of each partici-
pating payee to whom one or more payments in set-
tlement of reportable payment transactions are made, 
and 
‘‘(2) the gross amount of the reportable payment 
transactions with respect to each such participating 
payee. 
Such return shall be made at such time and in such form 
and manner as the Secretary may require by regulations. 
‘‘(b) PAYMENT SETTLEMENT ENTITY.—For purposes of 
this section— 
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‘‘(1) IN GENERAL.—The term ‘payment settle-
ment entity’ means— 
‘‘(A) in the case of a payment card trans-
action, the merchant acquiring bank, and 
‘‘(B) in the case of a third party network 
transaction, the third party settlement organiza-
tion. 
‘‘(2) MERCHANT
ACQUIRING
BANK.—The term 
‘merchant acquiring bank’ means the bank or other 
organization which has the contractual obligation to 
make payment to participating payees in settlement 
of payment card transactions. 
‘‘(3) THIRD
PARTY
SETTLEMENT
ORGANIZA-
TION.—The term ‘third party settlement organization’ 
means the central organization which has the contrac-
tual obligation to make payment to participating 
payees of third party network transactions. 
‘‘(4) SPECIAL
RULES
RELATED
TO
INTER-
MEDIARIES.—For purposes of this section— 
‘‘(A) AGGREGATED PAYEES.—In any case 
where reportable payment transactions of more 
than one participating payee are settled through 
an intermediary— 
‘‘(i) such intermediary shall be treated 
as the participating payee for purposes of 
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determining the reporting obligations of the 
payment settlement entity with respect to 
such transactions, and 
‘‘(ii) such intermediary shall be treated 
as the payment settlement entity with re-
spect to the settlement of such transactions 
with the participating payees. 
‘‘(B) 
ELECTRONIC
PAYMENT 
FACILITATORS.—In any case where an electronic 
payment facilitator or other third party makes 
payments in settlement of reportable payment 
transactions on behalf of the payment settlement 
entity, the return under subsection (a) shall be 
made by such electronic payment facilitator or 
other third party in lieu of the payment settle-
ment entity. 
‘‘(c) REPORTABLE PAYMENT TRANSACTION.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘reportable pay-
ment transaction’ means any payment card trans-
action and any third party network transaction. 
‘‘(2) PAYMENT CARD TRANSACTION.—The term 
‘payment card transaction’ means any transaction in 
which a payment card is accepted as payment. 
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‘‘(3) THIRD
PARTY
NETWORK
TRANSACTION.— 
The term ‘third party network transaction’ means 
any transaction which is settled through a third 
party payment network. 
‘‘(d) OTHER DEFINITIONS.—For purposes of this sec-
tion— 
‘‘(1) PARTICIPATING PAYEE.— 
‘‘(A) IN GENERAL.—The term ‘participating 
payee’ ‘’ means— 
‘‘(i) in the case of a payment card 
transaction, any person who accepts a pay-
ment card as payment, and 
‘‘(ii) in the case of a third party net-
work transaction, any person who accepts 
payment from a third party settlement or-
ganization in settlement of such trans-
action. 
‘‘(B) EXCLUSION OF FOREIGN PERSONS.— 
Except as provided by the Secretary in regula-
tions or other guidance, such term shall not in-
clude any person with a foreign address. 
‘‘(C) 
INCLUSION
OF
GOVERNMENTAL 
UNITS.—The term ‘person’ includes any govern-
mental unit (and any agency or instrumentality 
thereof). 
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‘‘(2) PAYMENT CARD.—The term ‘payment card’ 
means any card which is issued pursuant to an 
agreement or arrangement which provides for— 
‘‘(A) one or more issuers of such cards, 
‘‘(B) a network of persons unrelated to each 
other, and to the issuer, who agree to accept such 
cards as payment, and 
‘‘(C) standards and mechanisms for settling 
the transactions between the merchant acquiring 
banks and the persons who agree to accept such 
cards as payment. 
The acceptance as payment of any account number or 
other indicia associated with a payment card shall be 
treated for purposes of this section in the same man-
ner as accepting such payment card as payment. 
‘‘(3) THIRD
PARTY
PAYMENT
NETWORK.—The 
term ‘third party payment network’ means any agree-
ment or arrangement— 
‘‘(A) which involves the establishment of ac-
counts with a central organization for the pur-
pose of settling transactions between persons who 
establish such accounts, 
‘‘(B) which provides for standards and 
mechanisms for settling such transactions, 
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‘‘(C) which involves a substantial number of 
persons unrelated to such central organization 
who provide goods or services and who have 
agreed to settle transactions for the provision of 
such goods or services pursuant to such agree-
ment or arrangement, and 
‘‘(D) 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. 
Such term shall not include any agreement or ar-
rangement which provides for the issuance of pay-
ment cards. 
‘‘(e) EXCEPTION
FOR DE MINIMIS PAYMENTS
BY 
THIRD PARTY SETTLEMENT ORGANIZATIONS.—A third 
party settlement organization shall be required to report 
any information under subsection (a) with respect to third 
party network transactions of any participating payee only 
if— 
‘‘(1) the amount which would otherwise be re-
ported under subsection (a)(2) with respect to such 
transactions exceeds $10,000, and 
‘‘(2) the aggregate number of such transactions 
exceeds 200. 
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