The Massachusetts-specific Form M-1099-K reporting requirements apply to third party settlement organizations, or TPSOs. A TPSO is a central organization with a contractual obligation to make payments in settlement to payees participating in a third party payment network. A third party payment network is an organization with which a substantial number of unrelated providers of goods and services have established an account, that has agreed to settle transactions between providers and purchasers using certain established mechanisms and standards, often for a fee, and which guarantees payment in settlement for such transactions.

The Massachusetts Form M-1099-K reporting requirements for merchant acquiring entities, which also report gross amounts paid in settlement to payees using Form M-1099-K, remain unchanged. In general, merchant acquiring entities are banks or other organizations that have a contractual obligation with payees to make payments in settlement for payment card transactions.