PAYMENT FACILITATOR
PAYFAC
PAYFAC AS A SERVICE
PayFac is short for payment facilitator. A PayFac is a processing service provider for ecommerce merchants. When accepting payments online, companies generate payments from their customer’s debit and credit cards. Our digital solution allows merchants to process payments securely. A payment facilitator is a merchant services business that initiates electronic payment processing services.
WHY USE PAYFACS & WHY YOU SHOULD CONSIDER BECOMING YOUR OWN PAYMENT FACILITATOR?
Today the standard of how businesses operate and generate revenue has evolved worldwide. Whether it is strictly brick-and-mortar or a fully automous e-commerce marketplace, payment facilitation and payment processing is what truly keeps the momentum of economies moving. We aim to provide merchants the information they need to make the best decisions and additionally be empowered with our suite of digital tools.
As a Payment Facilitator, the payfac decides who which merchants use their services and control the fees charged per each transaction through the PayFac system. A payfac has the advantage of onboarding new clients with efficiency. Payment facilitators work directly with their banking partners. Revenue streams are generated from the fees charged to end-users.
SPLIT PAYMENTS
Instructional funding is a vital functionality to being a Payment Facilitator.
ISO VS. PAYFAC
Being a PayFac is simply better than being an Independent Sales Organization.
BlockChain Payfac
Blockchain cryptocurrency payment facilitation and payment processing.
OFFLINE PAYMENTS
Utilize our Merc Integration for Offline Communication and Offline Payments.
What is a PayFac (Payment Facilitator)?
Technology platforms and e-commerce marketplaces assist merchants with accepting online payments by providing ditigal services for companies in various industries. Merchants (the business of record) use these platforms in a way that no longer requires direct relationships with payment gateways or onboarding banks.
Who Uses Payment Facilitators?
PayFacs are used by independent organizations that typically fall into the following categories: E-Commerce, Invoicing, Fundraising, Ticketing, Traveling, SaaS Technology, On-Demand Fulfillment Services, Retail, and other businesses that utilize online payments or organizations that act as a payment processor.
How do Payment Facilitators Work?
The established payment facilitator retains the master merchant identification (MID) account. To process payment transactions, the merchant must apply for a merchant account. It includes an application with key data points which is part of the underwriting process, establishing a pricing agreement, and integrating the updated payment technology.
What is a Payment Facilitator Model?
The best PayFacs utilize automated smart technology.
Software providers register with a acquiring payment facilitator to offer payment services to their sub-merchants who use their software. Therefore, the “master” merchant is the company whose software acts as a payment processor. They are able to onboard other companies (sub-merchants) under their umbrella account to facilitate payments on their behalf.
Payment Facilitator vs. Payment Processor
Payment processors are online programs that enables monetary transactions, usually derived by a sub-merchant, to manage transactions with customers through credit cards, ACH, and debit cards.
In the payment processor model, a conventional merchant account is underwritten in the beginning, thus the merchant’s application yields to the initial approval or rejection. However, with a payment facilitator, it is a constant underwriting process where each transaction is evaluated.
Payment Gateway vs. Payment Processor
The payment processor is the service provider facilitating the payment acceptance. It collects and transmits the card information through the Payment Gateway (the digital technology that transmits the data securely), and from there it initiates its authorization along with the card settlement for the card networks and banks where the merchant is finally receiving the funds.
Payment gateways provide secure connections between the e-commerce site and its processor. The gateway encrypts all data that’s passed in each card transaction, verifies the legitimacy of the transaction, and securely sends it.
The difference between a payment gateway and a payment facilitator is one is the merchant of record whereas all processing is facilitated through that account and the other (the payment gateway) is the automated communication network responsible for transmitting the payment data securely between the payment processor (merchant of record and all of their sub-merchants) and the credit card networks to eventually flow from one bank to another securely.
