Who is a Payment Service Provider
Payment Service Providers (PSP) are businesses that participate in an electronic payment system by facilitating payments for goods and services between customers and merchants.
These businesses include:
- merchant acquirers
- switch service providers
- settlement service providers
- online payment gateway providers
- alternative payment method providers.
Businesses that are not Payment Service Providers
A business that only provides payment hardware, such as EFTPOS terminals, is not a PSP. A card issuer, such as a customer's bank, is also not a PSP.
However, if a business or an issuer is also a type of business in the list of PSP businesses above, it is a PSP.
Payment Service Providers with a reporting obligation
When more than 1 PSP is a part of an electronic payment transaction, the provider processing the funds into the merchant's bank account must report that merchant's processed transactions. Other PSPs do not have to report these transactions.
Reporting requirements for Payment Service Providers
Collecting information from Payment Service Providers
Learn more about PSPs providing bulk datasets on our Tax Policy website.