mon parent of such group if such treatment is 
appropriate taking into account the economic 
relationships among such entities.’’. 
(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 sub-
chapter A of chapter 61 is amended by adding at the end 
the following 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 par-
ticipating payee to whom one or more payments in 
settlement of reportable transactions are made, and 
‘‘(2) the gross amount of the reportable trans-
actions 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. 
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‘‘(b) PAYMENT SETTLEMENT ENTITY.—For pur-
poses of this section— 
‘‘(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 organi-
zation. 
‘‘(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 organiza-
tion’ means the central organization which has the 
contractual obligation to make payment to partici-
pating 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 transactions of more than one 
participating payee are settled through an inter-
mediary— 
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‘‘(i) such intermediary shall be treated 
as the participating payee for purposes of 
determining the reporting obligations of 
the payment settlement entity with respect 
to such transactions, and 
‘‘(ii) such intermediary shall be treat-
ed as the payment settlement entity with 
respect to the settlement of such trans-
actions with the participating payees. 
‘‘(B) 
ELECTRONIC
PAYMENT 
FACILITATORS.—In any case where an elec-
tronic payment facilitator or other third party 
makes payments in settlement of reportable 
transactions on behalf of the payment settle-
ment entity, the return under subsection (a) 
shall be made by such electronic payment 
facilitator or other third party in lieu of the 
payment settlement entity. 
‘‘(c) REPORTABLE TRANSACTION.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘reportable trans-
action’ means any payment card transaction and any 
third party network transaction. 
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‘‘(2) PAYMENT CARD TRANSACTION.—The term 
‘payment card transaction’ means any transaction in 
which a payment card is accepted as payment. 
‘‘(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 
section— 
‘‘(1) PARTICIPATING PAYEE.— 
‘‘(A) IN
GENERAL.—The term ‘partici-
pating 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.— 
To the extent provided by the Secretary in reg-
ulations or other guidance, such term shall not 
include any foreign person. 
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‘‘(C) 
INCLUSION
OF
GOVERNMENTAL 
UNITS.—The term ‘person’ includes any govern-
mental unit (and any agency or instrumentality 
thereof). 
‘‘(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 ac-
cept such cards as payment, and 
‘‘(C) standards and mechanisms for set-
tling the transactions between the merchant ac-
quiring banks and the persons who agree to ac-
cept 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 
manner as accepting such payment card as payment. 
‘‘(3) THIRD PARTY PAYMENT NETWORK.—The 
term ‘third party payment network’ means any 
agreement or arrangement— 
‘‘(A) which involves the establishment of 
accounts with a central organization for the 
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purpose of settling transactions between per-
sons who establish such accounts, 
‘‘(B) which provides for standards and 
mechanisms for settling such transactions, 
‘‘(C) which involves a substantial number 
of persons unrelated to such central organiza-
tion who provide goods or services and who 
have agreed to settle transactions for the provi-
sion of such goods or services pursuant to such 
agreement 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 not be required to re-
port any information under subsection (a) with respect to 
third party network transactions of any participating 
payee if the amount which would otherwise be reported 
under subsection (a)(2) with respect to such transactions 
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