If your platform needs to operate internationally and support sub-merchants in other regions, partnerships with local acquirers, gateways, and other service providers may be necessary. 1. Stand-alone payment gateways are becoming less popular. EVO was founded in the U. Stripe benefits vs merchant accounts. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting and customer support. Global expansion. The core of their business is selling merchants payment services on behalf of payment processors. 01274 649 893. ISOs often provide a range of services, including equipment sales or leasing—for example, point-of-sale (POS) terminals —transaction processing, and customer service. Until recently, SoftPOS systems didn’t enable PINs to be inputted. Stripe benefits vs. Payment Gateway Articles describing the key fintech news, innovative solutions, and various aspects of the industry. PayFacs perform a wider range of tasks than ISOs. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. 00 Retains: $1. Stripe benefits vs. Payments Path to payment facilitation: Are you ready for the journey? November 10, 2021 Payment facilitation helps you monetize credit card payments by. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting and customer support. becoming a payfac. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. 11 + 4%. It offers a system capable of processing payments, providing multiple means for completing a transaction, such as credit cards, debit, e-wallets, instant transfers, bank transfers, and cash in one. With UniPay Platform you have the options of an affordable white label payment gateway solution, a full on-premise software license (including the source code), which ensures the top-quality payment processing. the right payments technology partner. payment processor question, in case anyone is wondering. PayFac-as-a-service delivers a competitive payment program with instant onboarding of merchants while creating a seamless customer experience. Payment facilitators conduct an oversight role once they have approved a sub merchant. Fortis manages everything for you – underwriting, fraud monitoring, funding, gateway reporting, and chargeback management. As a PayFac, Segpay handles the sub-merchant onboarding and provides a fully managed payment processing solution. 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. In essence, they become a sub-merchant, and they face fewer complexities when setting. When the PayFac entity integrates the. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting, and customer support. Stripe benefits vs merchant accounts. TSYS Developer Portal is your gateway to access the APIs, tools and resources you need to integrate with TSYS payment solutions. One key difference between payment facilitators and aggregators is the size of businesses or merchants they work with. A payment processor. Global expansion. They allow future payment facilitator companies to make the transition process smooth and seamless. Payment gateway selection is a tricky process. Gateway providers typically charge setup fees to generate a new gateway account and these fees usually range from $5-$25/Merchant and are a one time upfront fee per new merchant account setup on the gateway. For instance, a gateway provider may charge a monthly fee of $30 and 2. Global expansion. An ISO works as the Agent of the PSP. The platform becomes, in essence, a payment facilitator (payfac). It also means that payment risk is moved from individual. One classic example of a payment facilitator is Square. ACH Direct Debit. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The rate. It is the mechanism that reads a customer’s payment information. Stripe, a tech-enabled evolution on the traditional payfac model, offers a complete solution that combines the functionality of a merchant account and a gateway all in one. Instead, in the PayFac model, a small business gets a submerchant account under the master merchant. A PayFac will smooth the path. For Public Sector pricing, please contact us. What are the differences between payment facilitators and payment technology solutions, and how do you know. The merchant of record is responsible for maintaining a merchant account, processing all payments. If your platform needs to operate internationally and support sub-merchants in other regions, partnerships with local acquirers, gateways, and other service providers may be necessary. However, businesses of all sizes can gain profit from UniPay PayFac Model, as it provides a mere and efficient way to accept payments. The main difference between these two technologies, the Payment Facilitator and the Payment Processor, is the difference in the organization of merchant accounts. Our suite of scalable issuer solutions provides the next generation platform for origination, processing and risk management. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. It also means that payment risk is moved from individual merchants to the PayFac, as they own the master merchant account. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. This solution involves you partnering with either (1) an acquiring bank or (2) an acquirer and a payment facilitator vendor. PayFacs can provide an infrastructure and gateway for sub-merchants, providing them with benefits such as an automated underwriting tool with real-time approval and integrated fraud prevention. It needs to obtain a merchant account, and it must be sponsored into the card networks by a bank. Payfac is the abbreviated term often used in the payments industry to describe a company that provides payment processing services to. If your platform needs to operate internationally and support sub-merchants in other regions, partnerships with local acquirers, gateways, and other service providers may be necessary. Wide range of functions. However, PayFac concept is more flexible. With UniPay Platform you have the options of an affordable white label payment gateway solution, a full on-premise software. This model gives your users the ability to seamlessly accept payments directly from your platform and allows you to own and monetize the payments experience while. When you enter this partnership, you’ll be building out systems. The B2B FinTech company, WALBING, has obtained a Payment Service License from the German Federal Financial Supervisory Authority. A payment aggregator is a 3rd-party payment service provider (PSP) that allows merchants to process payments without having a merchant account. They can apply and be approved and be processing in 15 minutes. What ISOs Do. 01332 477 853. UniPay Gateway is the leading Omnichannel payment processing and management solution for PayFacs, Saas and equity firms operating worldwide. . With Stripe's payfac solution, unlock SaaS revenue, turn payments into a profit center, and offer new financial services through your software platform. Integrated per-transaction pricing means no setup fees or monthly fees. It manages the transfer of funds so you get paid for your sale. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. Its FACe gateway platform accelerates time to market for new payfacs. becoming a payfac. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its. Stripe benefits vs merchant accounts. Both offer ways for businesses to bring payments in-house, but the similarities. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. UniPay Gateway is the leading Omnichannel payment processing and management solution for PayFacs, Saas and equity firms operating worldwide. See our complete list of APIs. As your transaction volume increases, the payfac solution scales accordingly, providing consistent, reliable performance. That allows you to get certified by the respective gateway or. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting, and customer support. To ensure high security and performance levels, providers may make their own recommendations but can also honor existing gateway and processor relationships. Here are the best alternatives to Stripe from providers like Square, Helcim, and Treati. In other words, ISOs function primarily as middlemen (offering payment processing), while. You own the payment experience and are responsible for building out your sub-merchant’s experience. Region. 40% in card volume globally. Onboarding processPayrix is the only PayFac ® as a service platform built by a payment facilitator, exclusively for software platforms. The key aspects, delegated (fully or partially) to a. Whether easy, complex or somewhere in between, we’ve got you. Stripe benefits vs merchant accounts. If you need to contact us you can by email: support. If your platform needs to operate internationally and support sub-merchants in other regions, partnerships with local acquirers, gateways, and other service providers may be necessary. And this is, probably, the main difference between an ISV and a PayFac. Leading company listed on the TSE. What is a payment facilitator? A payment facilitator, also known as a “payfac” or payment aggregator, is a payment model that has grown tremendously over the past few years. Payrix enables vertical SaaS companies to: Unlock greater revenue by monetizing your payments; Create better UX through payments with our white labeled, powerful platformPayment gateway. PayFac model is easier to implement if you are a SaaS platform or a. 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. Whatever your industry, scale or ambition, we’ll help you configure the ideal solution for you. Visa, Mastercard) around 2011 as a way for aggregators to provide more transparency into who their sub-merchants were. The payfac model is a framework that allows merchant-facing companies to. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting and customer support. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its. Some say, a VAR is an evolutionary stage between a traditional ISO and a SaaS provider. Global expansion. 01. PayFacs are often more suitable for SMEs seeking a quick and straightforward setup. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. The TPA categories are listed in the table below. Global expansion. When choosing between a Payment Facilitator (Payfac) and a Merchant of Record (MoR) for your business, several key factors should be carefully considered: 1. Payfac-as-a-service vs. Partnering with a PayFac vs becoming a PayFac with a technology partner. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its. Typically a payfac offers a broader suite of services compared to a payment aggregator. The difference is that a payment processor can provide a single gateway for multiple payment methods. Online Payment System Software and Global Payment Processor - UniPay Gateway. The PayFac would also need to hire a FTE to take exceptions and review these exceptions for risk. The Visa® merchant aggregation model covers all commerce types, including the face-to-face and e-commerce environments, and helps to increase electronic payment acceptance for merchantsThese may encompass payment gateway, intelligent routing and cascading, fraud prevention, reporting and analytics, payment monitoring, subscription billing, payment integrations through an open Application Programming Interface (API), and more offerings. Wide range of functions. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. SoftwareRight now, Stax offers three software plans for small businesses starting at $49 USD (Starter), and moving up to $89 USD (Growth), or $129 USD (Pro) per month. Payment Processors: 6 Key Differences. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. Stripe, a tech-enabled evolution on the traditional payfac model, offers a complete solution that combines the functionality of a merchant account and a gateway all in one. Gateway 💳🛍️ Let's go diving into the payment realm 💡 You want smooth checkouts 🤔, but the payment landscape holds more than meets the eye. In a nutshell, the business problem that the PayFac, as an entity, and payments facilitation, as a concept, seeks to solve, and which has existed stretching back decades: Small businesses have. No setup fee. Stripe benefits vs merchant accounts. Especially valuable for platforms and marketplaces looking to payout users faster in a preferred currency. PINs may now be entered directly on the glass screen of a smartphone using this new technology. A payment gateway on the other hand is technology that verifies payments between merchants or vendors. Stripe, which is a tech-enabled evolution on the traditional payfac model, is a complete solution that combines the functionality of a merchant account and a gateway in one. apac@bambora. Discover Adyen issuing. NerdWallet rating. PayFacs take care of merchant onboarding and subsequent funding. PayFacs are based on the merchant aggregator model created by Visa and MasterCard to provide support for payment card acceptance in marketplaces. One FTE is sufficient until $250M in processing volume, then you’d need to add more bodies. If you are looking for a more robust solution with a wider range of features, a payment processor may be a. Independent sales organizations are a key component of the overall payments ecosystem. These systems will be for risk, onboarding, processing, and more. This made them more viable and attractive option than traditional ISOs. In response to the advance of payment facilitation services, many companies started offering special programs for payment facilitators (UniPay Gateway technology by United Thinkers with its PayFac. 25 per transaction. merchant accounts. One key difference between payment facilitators and aggregators is the size of businesses or merchants they work with. It needs to obtain a merchant account, and it must be sponsored into the card networks by a bank. “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. Payment Facilitator (PFAC, PayFac, PF): A merchant service provider who can facilitate transactions and simplify the merchant account enrollment process on behalf of the sub-merchant. Additionally, the overall integration was a seamless process, which made it easier for us to continue focusing on our product and customers. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. Payments. What is a payment facilitator? A payment facilitator, also known as a “payfac” or payment aggregator, is a payment model that has grown tremendously over the past few years. Moreover, in a sense, PayFac model relieved acquirers from merchant management functions, which they delegated to PayFacs. Payfacs are a type of aggregator merchant. With Fortis’ PayFac solution, software developers and merchants can leverage award-winning APIs and leading payment technology to scale their business. The payment facilitators reach out to your business and help integrate a seamless payment gateway network technology. The main use of RunSignup’s free Email V2 was to share key race information with lottery entrants and eventual participants. A payment gateway and merchant account often cost between $750 to $1,200 in set-up expenses, $0. 5%. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. You essentially become a master merchant and board your client’s as sub merchants. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. What SaaS & E-commerce Companies Need to Know About Payment Facilitator Regulations, and what key regulations govern their operation. Issues with connection can be caused by DNS problems, server failure, Firewall rules blocking specific port, or some other. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. In other words, processors handle the technical side of the merchant services, including movement of funds. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Thinking about the three-to-five-year strategic plan — geographics expansion, adjacent services and products, and even new end customers — can help sharpen the focus on PayFac options, she said. 2. Step 4) Build out an effective technology stack. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its. Classical payment aggregator model is more suitable when the merchant in question is either an. The future of integrated payments, today. So to sum it all up: payment processors offer the functionality for merchants to start accepting payments and route. That said, the PayFac is. In short, Payment Facilitation is an operating model that affects the acquiring side of the payment ecosystem. Global expansion. When you want to accept payments online, you will need a merchant account from a Payfac. We could go and build a payment gateway, but there would be a. Visit our TSYS Developer Portal today and unlock the. Payment facilitator model is becoming increasingly popular among many types of companies. 5%. The best crypto payment gateways provide convenient interfaces for accepting multiple types of cryptocurrencies, flexible settlement options, and low fees. 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. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. These plans are on top of what you'll pay for Stax Pay. Manage Your Payments. This crucial element underwrites and onboards all sub-merchants. 10 to $0. As a PayFac, Segpay handles the sub-merchant onboarding and provides a fully managed payment processing solution. A payment processor is a company that works with a merchant to facilitate transactions. This was around the same time that NMI, the global payment platform, acquired IRIS. Let’s examine the key differences between payment gateways and payment aggregators below. Amazon Pay. Some ISOs also take an active role in facilitating payments. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. Step 3) Integrate with a payment gateway As with any merchant account, a PayFac’s master merchant account requires a payment gateway for transactions to flow through. Generally, ISOs are better suited to larger businesses with high transaction volumes. First popularized by firms like PayPal and Square, the payments facilitator (payfac) model is reshaping the payments ecosystem, allowing nonpayments companies that adopt it to participate more fully in the payments revenue stream. PayFac-as-a-Service (PFAAS) combines easy-to-integrate payment technology, full-service offerings, and transparent pricing to deliver Independent Software Vendors a simple way to harness the full power of payment facilitation – minus. It provides a technology, allowing to authorize transactions and, potentially, receive transaction settlement information. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent that. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. The terms aren’t quite directly comparable or opposable. However, PayFac concept is more flexible. Onboarding process In this guide, we’ll explore what a payment facilitator (often abbreviated as payfac or PF) is, examine the considerations and costs of different types of payfac solutions, and identify the best ways to add payments to a platform or marketplace. The payment facilitator model was created by the card networks (i. Who Gets Involved in the PayFac Scene? There are five main elements which compose the payment facilitator landscape. Suitability Payment aggregator: Particularly suitable for small and medium-sized businesses that seek a simplified onboarding process and cost-effective payment. In a comprehensive white paper on the subject we explained PayFac meaning and how to become a payment facilitator. In total, they sent 19 marketing & logistics emails in 2023, leading to nearly 10,000 views of their RunSignup website. 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 What is a payment facilitator (PayFac)? Essentially, PayFacs use the acquiring license of another company to provide payment services to sub-merchants. The payment gateway. It accepts all payment types, ranging from direct credit/debit to PayPal, Skrill, Paytm, etc. Without a. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting, and customer support. Also, some companies, such as United Thinkers, are offering special payment facilitator programs. Clients or sub-merchants skip the traditional merchant account application process, thus enabling. Chances are, you won’t be starting with a blank slate. Send payouts to 190+ markets with real-time payments infrastructure for on-demand business. This means businesses only need Stripe to accept payments and deposit funds into their business bank account. Facilitators for short are called “PayFac”. Some Final Considerations: You will also need to find out about the third-party integration options, SDKs, and API functionality of the payment gateway. Integrated Payments 1. NMI By signing up with NMI as a reseller, you can offer your merchants complete payment solutions that enable them to begin selling right away; Authorize. accounting for 35. Difference #1: Merchant Accounts. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. Then the PayFac needs to build a number of other tools or go through compliance processes, like becoming PCI Level 2 certified, but as soon as they. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting, and customer support. 01274 649 895. Choose your gateway, processor: By facilitating open, interoperable service models, PayFac 2. A Payment Facilitator (PayFac) is a third-party service that lets merchants accept various forms of non-cash payments like credit/debit cards or digital payments. Business Size & Growth. Typically a payfac offers a broader suite of services compared to a payment aggregator. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. One classic example of a payment facilitator is Square. If your platform needs to operate internationally and support sub-merchants in other regions, partnerships with local acquirers, gateways, and other service providers may be necessary. Indeed, value. The merchant obtains a gateway system, its supplementary APIs and the various forms of payment as a bundle and only has to sign one contract. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. 🌐 Simplifying Payments: PayFac vs. Cards and wallets. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting and customer support. The PayFac executes all the tasks a payment processor needs to onboard a client and gives the ISV a seamless experience. July 12, 2023. Stripe, which is a tech-enabled evolution on the traditional payfac model, is a complete solution that combines the functionality of a merchant account and a gateway in one. Fueling growth for your software payments. Just like some businesses choose to use a third-party HR firm or accountant, some. The entire operating cost, which includes the transaction cost, set-up cost, and admin cost, is the most crucial factor to consider. 78% of people 40 and under would stay with their bank if it went all digital, according to our recent Expectations & Experiences consumer research, focused on digital banking and fintech services. More importantly, merchants that use those platforms do not need a direct relationship with a payment gateway or the acquiring bank. With the exception of processors catering to high-risk industry, they also offer month-to-month billing. Independent sales organizations (ISOs) are a more traditional payment processor. June 3, 2021 by Caleb Avery. PayFacs are generally. The terms agent, gateway, service provider, third party processor are all various terms for third party agents. Payfac and payfac-as-a-service are related but distinct concepts. This crucial element underwrites and onboards all sub. PayFac vs ISO. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. This sounds complicated, but at the most basic level, a payments facilitator is a way of outsourcing part of your business to an intermediary contractor. A payment gateway ensures that a customer’s credit card is valid. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. 3. We have APIs for all business types, whatever your size or location and whether you take payments online or at point of sale. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. Payfac-as-a-service vs. 11 + $ 0. Article September, 2023. In its role as a payment processor, Stripe provides the backbone that allows businesses to accept and manage online payments, managing the exchange of information and funds between the customer, the business, and their respective banks. Authorize. Payment Gateway: Payment facilitation (PayFac) platforms provide a secure connection between the merchant and the payment processor, ensuring that payments are quickly and securely processed. Also called a payment gateway, these companies offer. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. What SaaS & E-commerce Companies Need to Know About Payment Facilitator Regulations, and what key regulations. PayFacs provide a similar service to standard merchant accounts, but with a few important differences. In other words, processors handle the technical side of the merchant services, including movement of funds. Cardknox is the leading, developer-friendly payment gateway integration provider for in-store, online, or mobile transactions – hassle-free. Acquirer = a payments company that. Processors will act as a gateway setting their clients up with an individual merchant account while the merchant will still have a direct relationship with the acquiring bank. Your application must include: the application form relevant to your type of firm. Sub-merchants operating under a PayFac do not have their own MIDs, and all. Payment Facilitator. The PSP in return offers commissions to the ISO. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. To fulfill its core responsibilities, a payment processor typically uses a payment gateway to 1) encrypt and transmit payment details, and 2) communicate transaction approvals and declines. The gateway encrypts the information it received from the buyer and sends the transaction data to a card association. An ISV can choose to become a payment facilitator and take charge of the payment experience. Whether you are building a mobile app, a web portal, or a point-of-sale system, you can find the documentation, code samples and support you need to get started. TPA Category . Firstly, in the Payment Facilitator model, all the merchants are sub-merchants under a master merchant account, which allows them to quicker onboarding and more control. 3. The monitoring process ensures that there are no anomalies and in cases of unlawful activities, suspensions are placed. A Payment Facilitator [Payfac] is essentially a Master Merchant that processes credit and debit card transactions for sub-merchants within their payment. One classic example of a payment facilitator is Square. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. There are two ways to payment ownership without becoming a stand-alone payment facilitator. becoming a payfac. PayFac is software that enables payments from one vendor to one merchant. But regardless of verticals served, all players would do well to look at. Before you go to market as a PayFac, it is a good idea to set a goal to define success. Global expansion. 20 (Processing fee: $0. Our payment-specific solutions allow businesses of all sizes to. Using payment facilitation, customers can be onboarded and verified quickly, with a faster underwriting process. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. 30, including 2-3% for every transaction, and $0 to $25 monthly cost. It also needs a connection to a platform to process its submerchants’ transactions. As a result of the first. Payment facilitation (Payfac) is a service that allows businesses to accept payments from their customers in a variety of ways. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its. A payment processor executes the money transfer by exchanging data between the merchant, the issuing bank and the acquiring bank. Generally speaking, a PayFac might be suitable for bigger businesses that need to process a large volume of transactions, and an ISO might be more suitable for smaller businesses. UK domestic. Nick Starai is chief strategy officer and one of the co-founders of NMI who played an integral role in the formation and launch of the NMI payments platform in 2001. 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. 1. But size isn’t the only factor. PayFac Solution Types. I SO. 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. Firstly, it has a very quick and easy onboarding process that requires just an. A payment gateway on the other hand is technology that verifies payments between merchants or vendors. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. 0 began. A payment facilitator (PayFac) is a merchant services business that sets up electronic payment and processing services for business owners, so they can accept electronic payments online or in-person. With a. Typically a payfac offers a broader suite of services compared to a payment aggregator. When you enter this partnership, you’ll be building out. White-label payfac services offer scalability to match the growth and expansion of your business. A PayFac will smooth the path. ISO vs. Merchants that want to accept payments online need both a payment processor and a payment gateway. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. At the same time, more companies are implementing PayFac model and establishing PayFac payment gateway partnerships. Your provider should be able to recommend realistic metrics and targets. PayFac vs. If necessary, it should also enhance its KYC logic a bit. Both offer ways for businesses to bring payments in-house, but the similarities. Essentially, a payfac is a company that allows its customers to accept electronic payments using their platform.