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What is a third-party relationship?

Third-party relationship – Any business arrangement between an organization and another entity, contractual or otherwise. Third-party relationships involve a wide range of activities, including:

  • outsourced products and services
  • outside consultants
  • networking arrangements
  • merchant payment processing services
  • services provided by affiliates and subsidiaries
  • joint ventures

Fourth parties refer to the third parties of third parties. So-called “nth” parties continue the cascade of this relationship – a fifth party is the third party of a third party’s third party, and so on.

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