what is a third party transaction 
a third party transaction is a business deal that involves a person or entity other than the main participants typically it would involve a buyer a seller and another party the third party the involvement of the third party can vary based on the type of business transaction in some cases the involvement is one time such as a third party payment for an item purchased from a website sometimes the involvement is longer term such as a third party vendor always used by a certain company understanding third party transactions