Watch. 00 Payment processor/ merchant acquirer Receives: $98. They offer merchants a variety of services, including. For example, an. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. The payment facilitator model was created by the card networks (i. If you're wondering what the difference is between Payfac and ISO, the answer is simple: The Payfac solution provider is directly responsible to MasterCard and. This was an increase of 19% over 2020,. Can an ISO survive without. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. A PayFac, or payment facilitator, was originally defined by Visa® and Mastercard® to describe the entity that is officially doing business with the card brands. In an ever-changing economic world, we are helping businesses be successful today and well into the future. Thought Leadership, Whitepapers Build Vs. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. For example, an. For example, an. e. The distinction between wholesale ISO and PayFac is thusly less critical than the distinction between being a technology company and being a troglodyte. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an. For example, an artisan. a Payment Service Provider (PSP), aka a Payment Facilitator (PayFac). ISO. Often, ISVs will operate as ISOs. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Checkout. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Visa or MasterCard bank) member, but that has a relationship with an organization that is an Association member. The ISO is an intermediary signing up the merchants for the acquirer’s payment processing services. A Payment Facilitator or Payfac is a service provider for merchants. One of the reasons for this phenomenon is that many companies (including former independent sales organizations (ISO)) find it more profitable to combine the functions of an online gateway provider and a merchant service provider (MSP). PayFac: Key Differences & Roles in Payment Processing Read more Top 4 Benefits of Being an Independent Sales Agent Read more Why Becoming a Sales Agent in the Payments Industry is a Great Job Opportunity! Read more How to Become a Successful Sales Agent in the Payments Industry. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Take the Savings Challenge today to see how much we can save you in interchange fees. The merchants can then register under this merchant account as the sub-merchants. For example, an. When you want to accept payments online, you will need a merchant account from a Payfac. Examples. For example, an. Buy: Becoming a Payment Facilitator Versus PayFac-as-a-ServiceOne of the main benefits to adopting the Payfac ® model is the increase in revenue you get from each transaction processed using your software. Payscape is also a registered ISO/MSP for Fifth. However, the setup process might be complex and time consuming. You own the payment experience and are responsible for building out your sub-merchant’s experience. Para ampliarlo, es una empresa que permite a sus clientes aceptar pagos electrónicos utilizando la plataforma del facilitador de pagos. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Checkout’s UK & Europe net revenues in FY2019 were $55M and grew 52% yoy. The most important difference between a PayFac and an ISO is that PayFacs “own” their merchants – entering into direct contracts with them (albeit on behalf of an acquiring partner. Payment Facilitation as a Service, also known as PayFac as a Service or PFaaS, allows software platforms and SaaS providers the ability to act as a merchant account for their end users. Smaller. Under the PayFac model, each client is assigned a sub-merchant ID. For example, an. In this sub-merchant model, Payfac has a master merchant account under which merchants are signed up, as sub-merchants. The PayFac model thrives on its integration capabilities, namely with larger systems. However, the setup process might be complex and time consuming. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent that. debit card account, including non-Mastercard debit cards. For example, an. PayFac vs Payment Processors. The most known examples are website-building companies which can provide integrated payment options, meaning ecommerce customers will see their experience improved as they will no longer need to actively look for third-party payment solutions. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Step 2: Transaction Originator collects debit card information and initiates transaction to Mastercard. A Payfac, or payment facilitator, is essentially a third-party payment system that allows businesses and organizations to receive and process online and in-store payments. When PayFac became a buzzword among software platforms and the many businesses trying to sell to them, the meaning of the word started to blur. The business has gone through the traditional setup of a merchant account in its name and is registered as a Merchant. An ISO is an intermediary entity that resells and markets payment processing services on behalf of banks and payment processors. Payment Processors: 6 Key Differences. Track leaves of all part-time and full-time employees even when they have different shifts. Embedding payments into your software platform is a powerful value driver. 2) PayFac model is more robust than MOR model. Partnering with a PayFac-as-a-Service provider leaves the technical work like coding, compliance monitoring, and payment integration to industry. The PayFac aggregates transactions and sends them to its processor, keeping operations streamlined. The ISO is tasked with facilitating the relationship between the two parties and getting merchants signed up with a merchant account. For example, an. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Massive technological leaps have made it easier than ever for software. Payfac and ISO models involve much more regulatory and compliance overhead than payfac-alternative models. Stripe is an ISO with First Data Merchant Services (FDMS, I believe now owned or controlled by Wells Fargo) doing the actual processing and, as such, assumes a different legal role than PayPal (which is a VAR for Paymentech). However, the setup process might be complex and time consuming. For example, an artisan. The procedures used to develop this document and those intended for its further maintenance are described in the ISO/IEC Directives, Part 1. However, the setup process might be complex and time consuming. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. When you start accepting payments online, you need a merchant account from a payment facilitator with sufficient infrastructure and proper compliance to process payments . Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Here, ISOs (Independent Sales Organizations if on the Visa network), or MSPs (Member Service Providers if Mastercard) sell credit card processing services to merchants on behalf of an acquiring bank. ISO 23195, Security objectives of information systems of third-party payment services, provides an internationally agreed list of terms and definitions, two logical structural models and a list of security objectives. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac as a Service is the newest entrant on the Payfac scene. The PayFac does not have to underwrite all merchants upfront — they are instead, underwriting the merchants essentially as they continue to process transactions for them on an ongoing basis. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. 4. All ISOs are not the same, however. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. However, the setup process might be complex and time consuming. Besides that, a PayFac also. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Principal vs. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. ISVs create software for companies in the payments industry. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Exact handles the heavy. An ISV can choose to become a payment facilitator and take charge of the payment experience. ,), a PayFac must create an account with a sponsor bank. Almost every bank nowadays has a department dealing with merchant services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and. The way Terminal creates API objects depends on whether you use direct charges or destination charges. Generally speaking, a PayFac might be suitable for. Payment Facilitators vs. The PayFac, he said, has emerged, and evolved from its 1990s underpinnings where merchant acquirers had handled that merchant enrollment, boarding, underwriting and even settlement. 1 billion for 2021. For example, an. When autocomplete results are available use up and down arrows to review and enter to select. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. It becomes more lucrative for a PayFac to offer merchant, gateway, and other services in one package and to support a single acquirer/processor. Generally, a PayFac is a good fit for businesses that process less than $1 million in payment volume annually, while an ISO is well-suited for larger businesses that process more than this. However, the setup process might be complex and time consuming. For example, an. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. For example, an. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. If you use direct charges, all Terminal API objects belong. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. e. Difference #1: Merchant Accounts. For example, an. ISOs and ISVs are both B2B providers, working with merchants and the companies who serve them. Uber corporate is the merchant of record. A. For example, an artisan. Pinterest. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. In simple terms, the MOR is the name that the customer (cardholder) sees on the receipt. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. For example, an artisan. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. In contrast, a PayFac is responsible for the submerchants. What is an ISO vs PayFac? Independent sales organizations (ISOs). FinTech innovators love the payment facilitator (PayFac), a shift that WePay co-founder Rich Aberman outlined in Episode 1 of the Payment Facilitators series with Karen Webster, CEO of PYMNTS. Also, unlike an ISO, the PayFac provides the processing services, settlement of funds, and billing to the merchant. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Second, because residuals are earned on. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Get notified when Stripe Reader S700 is available in your country. Estos tipos de cuentas agregan fondos de muchos comerciantes en una. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. As small business grows, MOR model might become too restraining, while payment facilitators provide robust APIs, which sometimes allow merchants to customize each function separately, according to their. Gain competitive. 4. However, the setup process might be complex and time consuming. Jul 14, 2020 - Are you an ISO? Find out why you should become a PayFac and what options you have available for becoming a Payment Facilitator and providing merchant services. However, the setup process might be complex and time consuming. , it will enable disbursements and P2P payments to and from nearly any U. They are typically small businesses that work with a limited number of banks. While there are advantages to taking on high risks, such as greater flexibility. Under the PayFac model, each client is assigned a sub-merchant ID. Clover vs Square. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Find a payment facilitator registered with Mastercard. The new PIN on Glass technology, on the other hand, is becoming more widely available. For example, an artisan. The Payment Facilitator Registration Process. However, the setup process might be complex and time consuming. The most known examples are website-building companies which can provide integrated payment options, meaning ecommerce customers will see their experience improved as they will no longer need to actively look for third-party payment solutions. Onboarding workflow. ISO vs. April 12, 2021. ISO. Want to know the difference between ISO and payment facilitator? ️ Read this summary to find out why payment facilitator concept has been rapidly gaining popularity. Compare PayFast vs. On balance, the benefits are substantial and the risks manageable. In this model, the issuer (having the relationship with the cardholder) and the acquirer (having the relationship with the Merchant) is the same entity. The payfac accepts and processes payments on behalf of merchants (called submerchants in this context), through a contract with an acquirer. ISV: An Independent Software Vendor (ISV) is a. A payment facilitator (or payfac) is the owner of a master merchant identification number who registers merchants as sub-merchants and enables their payment acceptance. 4. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Below we break down the key benefits of the PayFac model for software. In this post, we break down the differences between a few of the most common routes you can take when it comes to integrated payment models: independent sales organization (ISO), full-fledged payment facilitator (PayFac), or PayFac-as-a-Service (PFaaS) models. This was around the same time that NMI, the global payment platform, acquired IRIS. Independent sales organizations (ISOs) and payment facilitators (PayFacs) both act as intermediaries between merchants and payment processors, making them parallel channels in the overall payments ecosystem. The differences of PayFac vs. But how that looks can be very different. The unique relationship PayFacs have with their merchants exposes them to more risk than your average ISO – even more than most wholesale ISOs – but, in return, PayFacs gain a lot of control over how. However, the setup process might be complex and time consuming. A three-party scheme consists of three main parties. “One of the largest challenges a new PayFac will face is meeting the rigorous demands of its sponsorship bank,” says CJ Schneller, Vice President of Enterprise Risk at MerchantE. PINs may now be entered directly on the glass screen of a smartphone using this new technology. For example, an. PayFac: ISO: Merchant onboarding timeline : Instant account approvals: Days or weeks : Sign-up process: Quick and easy. Visa and Mastercard allow sub-merchants to process up to $1 million in annual charge volume before requiring them to establish their own, independent merchant accounts. The differences of PayFac vs. July 12, 2023. PayFac: Key Differences & Roles in Payment Processing A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. While some software providers starting out as an ISO or referral partner may elect a managed payfac solution as the next logical tech enablement progression, other providers may not want to relinquish visibility and control to a third. 4. However, the setup process might be complex and time consuming. The merchant interacts directly with the ISO and follows their set processes to register and become. For example, an. Wide range of functions. Recently, the concepts of PayFac and aggregators have started converging. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Besides that, a PayFac also takes an active part in the merchant lifecycle. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an artisan. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. As PSPs must pay acquirers and banks and still have some profit margin, the fees can be higher than what can be directly negotiated with banks and acquirers. Unlike PayFac technologies, ISO agreements must include a third-party bank to. Payfac = a software product, platform, or marketplace that has in integrated payments into its product, and is responsible for the risk of transactions processed by its customers. This solution involves you partnering with either (1) an acquiring bank or (2) an acquirer and a payment facilitator vendor. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. There’s not much disclosure on the ‘cost of sales’ (i. The industry term is Payment Facilitation (or Payfac), and Exact has everything you need to build and scale the entire process from instant onboarding to flexible payouts, fraud protection, comprehensive reporting and end-to-end data. ISOs rely mainly on residuals, a percentage of each. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. A PayFac processes payments on behalf of its clients, called sub-merchants. While the PayFac model comes with some unique risks, the benefits of additional control and potentially higher margins have seen its popularity grow among two major categories of operators:. PayFacs for short, are esoteric merchant acquiring entities that are really picking up momentum. Here are several benefits: As a hybrid PayFac, your company can handle client onboarding in minutes or hours instead of the usual 48-72-hour time-frame required for merchant account setup. In comparison, ISO only allows for cheque payments. Business Size & Growth. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. The contract is typically between the sponsor and the merchant, but the ISO may sometimes be included in a three-party agreement. So, the main difference between both of these is how the merchant accounts are structured and organized. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. However, the setup process might be complex and time consuming. Payment Processors: 6 Key Differences. 727 1550 E FL 3, Orem, UT. A PayFac provides credit card processing services to merchants on behalf of a bank or other. This relatively new payfac business model is experiencing rapid growth. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. PayFac vs ISO: 5 significant reasons why PayFac model prevails. PayFac vs ISO: Contractual Process. In 2021, global payment facilitators processed over $500 billion in transactions – a 75% increase over the previous year. You own the payment experience and are responsible for building out your sub-merchant’s experience. An ISO is a sales partner for payment processors, while a payment facilitator offers payment processing services to merchants by aggregating them under one master account. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. When you enter this partnership, you’ll be building out. Comments on: ISO vs Payfac: Choosing the Right Payment Solution for Your BusinessA: Mastercard Send is the first-of-its-kind interoperable global platform that enables funds to be sent quickly and securely. The PayFac does not have to underwrite all merchants upfront — they are instead, underwriting the merchants essentially as they continue to process transactions for them on an ongoing basis. See moreWhile ISOs and payfacs both facilitate electronic payments for businesses, they cater to different needs. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Risk management. One of the most significant differences between Payfacs and ISOs is the flow of funds. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. They provide the systems and technology that process transactions. Payfac is a type of payment facilitator, while ISO stands for Independent Sales Organization. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Like payment facilitators, ISOs serve as intermediaries to provide merchants with access to the payments system on behalf of their acquiring bank partners, often. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFac Dynamic Payout Daily Operations Guide This document is intended for use by operations and financial professionals to assist with day-to-day monitoring and management of the Worldpay Dynamic Payout funding model. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. PayFacs are generally more suitable for smaller businesses or those looking for a streamlined, integrated payment platform with faster funding times. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. S. Payment processors do exactly what the name says. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. To learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. What’s the Difference Between a Payment Facilitator, a Payment Processor, and an Independent Sales Organization (ISO) At a glance, a facilitator, a processor, and an ISO may seem to be similar, but the differences are notable. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. Traditional Merchant Account vs. For example, an. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Modern PayFacs find it more profitable to integrate with just one processor/gateway and provide merchant processing services (onboarding, chargeback. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. For example, an. PayFac: Key Differences & Roles in Payment ProcessingThe choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. (Piense en Square, Stripe, Stax o PayPal). agent A specified good or service is a distinct good or service (or a distinct bundle of goods orPayment facilitator model allowed all categories of entities to benefit: merchants received fast and smooth underwriting, acquirers could save resources and service larger numbers of merchants. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFac vs ISO: Contractual Process. To put it another way, PIN input serves as an extra layer of protection. A merchant of record is an entity that accepts cardholders’ payments and assumes liability for processing of these payments on the merchant’s behalf. The size and growth trajectory of your business play an important role. Payfac-as-a-service vs. ”. When it comes to choosing between a PayFac and an ISO, the best option depends on your business's specific needs and preferences. PayFac vs ISO: Contractual Process. While there is some overlap between a payment processor and a PayFac, there are also some important differences you should be aware of (although this isn’t a fully exhaustive list!) Here are the top 6 differences: The electronic payment cycle Payfac-as-a-service is a turn-key payment facilitation model in which an external company provides businesses with the necessary tools and infrastructure to accept electronic payments, such as credit and debit cards, ACH, and echecks. What is a card ISO? An ISO (independent sales organization) is a term Visa uses to refer to a person or organization that isn’t a Credit Card Association (i. PayFac offers clients a choice if they wish to pay by cheque or bank transfer. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. IRIS CRM Blog ISO vs. July 12, 2023. One of the key differences between PayFacs and ISO systems is the contractual agreement. ISOs, unlike Payfacs, rely on a sponsor bank to. For example, an. One classic example of a payment facilitator is Square. La respuesta corta; es un proveedor de servicios de pago para comerciantes. When you want to accept payments online, you will need a merchant account from a Payfac. The first is the traditional PayFac solution. A prospective PayFac has to meet more rigorous requirements and incur large upfront costs. PSP and ISO are the two types of merchant accounts. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payment Facilitator Paradigm and Beyond: VAR, ISV, Next-generation ISO; Gateway Selection for SaaS and PayFac Payment Platforms; Best Crypto Payment Gateway Solutions for Platforms; How PayFac Model Increases Your Company’s Valuation; Payment Advice. For example, an. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. While ISOs and payfacs both facilitate electronic payments for businesses, they cater to different needs. One of the key differences between PayFacs and ISO systems is the contractual agreement. The merchant fills out extensive paperwork in order to open their own merchant processing account. Payfac and payfac-as-a-service are related but distinct concepts. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. . Payment processors do exactly what the name says. Wider range of featuresA payment facilitator or payfac is a service provider that affords small and medium-sized merchants the means to process debit or credit card payments more quickly, efficiently, and securely, allowing them more room to focus on their core business objectives. In contrast, PayFacs have one or two processor relationships and onboard ISVs as referral agents. The PayFac model has gained popularity in recent years, as it allows businesses to simplify their payment processing and reduce costs, while also providing a better customer experience. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. These systems will be for risk, onboarding, processing, and more. MSP = Member Service Provider. Are you a business looking to expand your payment acceptance options? Have you heard of payment facilitators, also known as PayFacs? These modern payment solutions offer more flexible and cost-effective options. Use this document after completing your integration and certification testing and have started processing live transactions. For example, an artisan. Payment processors The PayFac model thrives on its integration capabilities, namely with larger systems.