Have a new customer just brought in, trying to make sure they're in the right classification "bucket" for lack of a better term since it's kind of a rarity

Business is a firm which apartment renters pay on a monthly basis to report timely rent payments (which they verify with the tenants landlord) to the various Credit Reporting agencies in an effort to enhance their credit scores.

Have a variance of opinion here, someone is calling them a Third Party Service Provider, someone else is thinking a peripheral PSP.

Has anyone had experience with this type of business?

They are not in the business of making actual payments. They only do reporting. They could not be a TPSP. I have no idea what a peripheral PSP might be.

Yep, that was my argument against the TPSP classification. Didn't see it at all.

And as far as PSP, someone had made a reach about the credit reporting being considered a "financial transaction" on behalf of their client(s).

From page 309 of the exam manual...

A professional service provider acts as an intermediary between its client and the bank. Professional service providers include lawyers, accountants, investment brokers, and other third parties that act as financial liaisons for their clients. These providers may conduct financial dealings for their clients.

Is this person arguing the credit reporting agency is a bank?