# Third party network transaction

# What is a third party network transaction?
A third party network transaction is a transaction where the funds are settled to the user through a third party network. A third party payment network is any agreement or arrangement that provides for the following:
* A central organization establishes the accounts by a substantial number of providers of goods or services who are unrelated to the organization and who have agreed to settle transactions
* Standards and mechanisms for settling the transactions
* Guarantee of payment to the persons providing goods or services (participating payees) in settlement of transactions
An example of this is when platforms use Stripe to process payments. Stripe is the organization that has the contractual obligation to make payments to platforms (e.g., participating payees of third party network transactions), and therefore issues a 1099-K to the platforms.
For more information, visit: [https://www.irs.gov/pub/irs-pdf/i1099k.pdf](https://www.irs.gov/pub/irs-pdf/i1099k.pdf)
**_This article is neither legal advice nor tax advice. We recommend that you speak to your tax advisor with any questions or concerns around tax reporting._**