This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. This can include card payments, direct debit payments, and online payments. The main difference between the two entities is that one is a company that facilitates payments, and the other is a piece of software that integrates into a website or payment portal. UK domestic. With companies like Stripe, Square and PayPal pioneering the payment facilitator or “PayFac” model, the era of Integrated Payments 2. A merchant can simply partner with a large provider and get all the gateway features it needs within a standardized offering. You essentially become a master merchant and board your client’s as sub merchants. 10 to $0. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. 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. With Fortis’ PayFac solution, software developers and merchants can leverage award-winning APIs and leading payment technology to scale their business. A Payment Facilitator [Payfac] is essentially a Master Merchant that processes credit and debit card transactions for sub-merchants within their payment. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. Here are the best alternatives to Stripe from providers like Square, Helcim, and Treati. Stripe By The Numbers. . What is a Managed PayFac? Businesses that are Payment Facilitators, or “Payfacs,” are in essence Master Merchants that process debit and credit card transactions for the sub-merchants within their payment application. Acquiring banks willingly delegated them to payment facilitators in exchange for part of liabilities and residual revenues. To clarify the matter, we will offer a clear and comprehensive explanation of what is a payment facilitator, its primary functions and business model in this complete guide. In a PayFac model, however, the merchant will establish a business relationship with the payment facilitator, and it is the latter who will maintain the relationship with. This. Benefit from fault-tolerant, scalable services plus rapid, safe, data-driven product enhancements on a. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. As the merchant of record, a PayFac can aggregate and process the card payments for as many “sub-merchants” as they would like underneath their umbrella. com. One of the key differences between payment aggregators and payment facilitators is the size of sub-merchants they are servicing. 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. This means providing. Some Final Considerations: You will also need to find out about the third-party integration options, SDKs, and API functionality of the payment gateway. Using payment facilitation, customers can be onboarded and verified quickly, with a faster underwriting process. PayFacs perform a wider range of tasks than ISOs. 0 vs. Beside simply reselling merchant accounts and serviced (as ordinary ISOs do), VARs provided consulting services, technical support, and even hardware solutions. Using payment facilitation, customers can be onboarded and verified quickly, with a faster underwriting process. Let us take a quick look at them. Before you go to market as a PayFac, it is a good idea to set a goal to define success. Potential risk of. At first it may seem that merchant on record and payment facilitator concepts are almost the same. 5%. 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. There is no paperwork involved, and no separate bank accounts with all the headaches involved with that. The 5 Best Crypto Payment Gateways For Businesses. Classical payment aggregator model is more suitable when the merchant in question is either an. Traditional payment facilitator (payfac) model of embedded payments. Gateway. How They Work PayFacs essentially build a payment infrastructure from scratch. Independent sales organizations are a key component of the overall payments ecosystem. That said, the PayFac is. 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. Typically a payfac offers a broader suite of services compared to a payment aggregator. Timely settlements and simplified fee payments. 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. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. Find the Right Online Payment Gateway. becoming a payfac. Generally, ISOs are better suited to larger businesses with high transaction volumes. It becomes more lucrative for a PayFac to offer merchant, gateway, and other services in one package and to support a single acquirer/processor. You own the payment experience and are responsible for building out your sub-merchant’s experience. PayFac vs ISO. apac@bambora. Cards and wallets. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Revolutionize Business. Like a phone plan, Stax offers add ons to their base plans, like same day funding and custom branding for invoices-but. Integrated Payments 1. PayFac vs merchant of record vs master merchant vs sub-merchant. One classic example of a payment facilitator is Square. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. GETTRX’s Zero and Flat Rate packages offer transparent billing, competitive rates, and industry-leading customer service, making them ideal choices for businesses seeking a seamless payment experience. 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. ,), a PayFac must create an account with a sponsor bank. At Revision Legal, we protect businesses that thrive online, and understand the connections between law, technology, and business. However, it is difficult to determine whether this price is high or low without knowing what features the gateway offers. The core of their business is selling merchants payment services on behalf of payment processors. What SaaS & E-commerce Companies Need to Know About Payment Facilitator Regulations, and what key regulations govern their operation. 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. If you are looking for a more robust solution with a wider range of features, a payment processor may be a. All businesses looking to sell products online need to open a merchant account to accept card payments. Gateways charge fixed fees per transaction, whereas payment service providers charge both fixed. Integrate Evolve's payment service technology into your software platform and you can start offering your customers a seamless payments journey right away. The PayFac executes all the tasks a payment processor needs to onboard a client and gives the ISV a seamless experience. 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. becoming a payfac. Minimum contract applies. When you start accepting payments online, you need a merchant account from a payment facilitator with sufficient infrastructure and proper compliance to process payments . A payment gateway ensures that a customer’s credit card is valid. 3. From £19pm. We accept most major cards, including Visa, MasterCard, American Express, Discover, JCB, Diners Club International and UnionPay. The issuing bank answers to the authorisation request which it may ‘approve’ or ‘deny’. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. ISO vs. Simplifying Payments Around the Globe. PayFac vs ISO. 5-fold improvement in payment take rate [FN10]. A best-in-class payment solution. A payment gateway on the other hand is technology that verifies payments between merchants or vendors. 30, including 2-3% for every transaction, and $0 to $25 monthly cost. This includes underwriting, level 1 PCI compliance requirements,. Global expansion. At the same time, more companies are implementing PayFac model and establishing PayFac payment gateway partnerships. The MoR is also the name that appears on the consumer’s credit card statement. You see. Generate your own physical or virtual payment cards to send funds instantly and manage spending. When accepting payments online, companies generate payments from their customer’s debit and credit cards. Maybe you are ready to become a full-fledged PayFac, maybe the answer is a managed PayFac, or maybe the best solution would be to act as an ISO. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. He drives the strategic direction of the company and supports. Stripe benefits vs. Contact our Internet Attorneys with the form on this page or call us at 855-473-8474. It used to take weeks to get a merchant account, but then Payfacs came around and simplified the enrollment process by creating a sub-merchant platform. 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. Many large banks, for example, issue credit. FIS’ rival, Fiserv, acquired the remaining stake of Finxact for $650 million, while another company, Fintech Amount, bought Linear for $175 million. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. Stripe benefits vs. The B2B FinTech company, WALBING, has obtained a Payment Service License from the German Federal Financial Supervisory Authority. A payment processor sends card information from a merchant’s POS system to the card networks and banks involved in the transaction. PayFac vs ISO: 5 significant reasons why PayFac model prevails. TSYS Developer Portal is your gateway to access the APIs, tools and resources you need to integrate with TSYS payment solutions. Payfac-as-a-service vs. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. A PayFac is the official merchant of record with the major card brands such as Visa and Mastercard and holds the relationship with the acquiring bank. A PayFac is a processing service provider for ecommerce merchants. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. Who Gets Involved in the PayFac Scene? There are five main elements which compose the payment facilitator landscape. Gateway Service Provider. With the exception of processors catering to high-risk industry, they also offer month-to-month billing. The core of their business is selling merchants payment services on behalf of payment processors. Authorize. Simplify funding, collection, conversion, and disbursements to drive borderless. PayFac is software that enables payments from one vendor to one merchant. Whether easy, complex or somewhere in between, we’ve got you. In a comprehensive white paper on the subject we explained PayFac meaning and how to become a payment facilitator. Fiserv offers a full range of efficient in-house. 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. The ISO acts as an intermediary between the merchant and the payment processor, taking care of merchant recruitment, sales, and. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Stax (formerly called Fattmerchant), is a merchant services provider known for its subscription-based pricing and 0% markup on interchange rates. North America’s leading healthcare organizations, revenue cycle management and accounts receivables management companies trust RevSpring to maximize their financial results. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. Typically a payfac offers a broader suite of services compared to a payment aggregator. Payment facilitators, aka PayFacs, are essentially mini payment processors. net; Merchant of Record Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. The easy-to-use and instantaneous nature of the Payment Facilitator makes it such a popular choice among merchants. Read and Know more about Payment Aggregators in this blog of Basic Points of Difference between the Payment Gateway and Payment Aggregator A PayFac will function as a payment facilitator in this general sense (though it's important to note the differences outlined above), and you can use a payment gateway to translate data between the PayFac and the credit card providers. 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. To manage payments for its submerchants, a Payfac needs all of these functions. 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 Service Provider. The gateway handles the tokenization process, which hides the card information while it’s in transit; a very important piece of the data security in payments. It can also. 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. Some say, a VAR is an evolutionary stage between a traditional ISO and a SaaS provider. That is, the gateway, capable of accommodating all PayFac-specific features it requires. (PayFac) Receives: $3. We could go and build a payment gateway, but there would be a. What SaaS & E-commerce Companies Need to Know About Payment Facilitator Regulations, and what key regulations. NerdWallet rating. There are two ways to payment ownership without becoming a stand-alone payment facilitator. 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. Cards. The Payfac Solution Provider (PSP) handles all of the underwritings, setting up of accounts, development of integrations with processors, connections with gateway partners (if applicable), the. One FTE is sufficient until $250M in processing volume, then you’d need to add more bodies. PayFac® solutions, at your service Worldpay from FIS is your advocate for payment facilitator solutions. Our suite of tools and services offers a choice of funding options, settlement, revenue generation, and risk management capabilities for payment facilitators. A Payment Facilitator or PayFac simplifies merchant account enrollment which allows smaller companies to quickly gain the upper hand. 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. Stripe. Payment facilitator model is suitable and effective in cases when the sub-merchant in question is a medium- or large-size business. Grow with the experts. This model is ideal for software providers looking to. The concept is continuing to evolve According to analysis from GlobalData, the worldwide market for digital payments will reach nearly $2,500 trillion in value in 2023, expanding at a compound annual growth rate (CAGR) of 14. This means that a SaaS platform can accept payments on behalf of its users. However, PayFac concept is more flexible. No-Cost Merchant Services: Your Gateway to Success with Visa CBPS and 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. Acquirer = a payments company that. When you enter this partnership, you’ll be building out. Our restaurant PayFac and gateway offer all of the features you need to ensure your payments are secure and on time. This license, only the second…PayFac, which is short for Payment Facilitation, is still a relatively new concept. Indeed, some prefer to focus on online payment gateway fees comparison. When you’re using PayFac as a service, there are two different solution types available. ISO providers so that you can make an informed decision about which payment processing option makes the most. ISOs often provide a range of services, including equipment sales or leasing—for example, point-of-sale (POS) terminals —transaction processing, and customer service. To put it simply, a PayFac is a service provider specifically for merchants. 350 transactions included. Onboarding processBefore offering customers payment methods from popular card networks (Visa, Mastercard, etc. You own the payment experience and are responsible for building out your sub-merchant’s experience. the supporting material required for PIs , EMIs or RAISPs (whichever applies to you) everything listed below. PayFac: A PayFac essentially takes on some of the duties of a payment processor and a payment gateway and acts as the merchant-of-record for the acquirer, servicing its submerchants (customers). Payfacs with high standards and reliability based on the Visa's certification process may apply for two extended tiers: Visa Ready Payment Facilitator and Visa Trusted Partner. Cardknox Go (PayFac) – Become a Payment Facilitator, without the hassle;. United States. Some more important things to consider are:Merchant Account. As small business grows, MOR model might become too restraining, while payment facilitators provide robust APIs, which sometimes allow merchants to customize each function. A payfac vs. 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. Private Sector Support. If you're using a direct provider, your customers can. While there are many benefits of integrating to a Payfac, two of the most notable are frictionless onboarding and risk, liability and costs associated. In simple terms, the MOR is the name that the customer (cardholder). Global expansion. Amazon Pay. A relationship with an acquirer will provide much of what a Payfac needs to operate. The key difference between a payment aggregator vs. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Braintree became a payfac. the right payments technology partner. In many of our previous articles we addressed the benefits of PayFac model. 0 can be both processor and gateway agnostic. It also needs a connection to a platform to process its submerchants’ transactions. Find a payment facilitator registered with Mastercard. It may be a good fit if. The arrangement made life easier for merchants, acquirers, and PayFacs alike. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. This crucial element underwrites and onboards all sub-merchants. Those sub-merchants then no longer. So, the acquiring bank is in charge of the PayFac customers’ transaction processing. 7-Eleven Malaysia. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Partnering with white label PayFac gateway provides such a solution. 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. However, PayFac concept is more flexible. This solution involves you partnering with either (1) an acquiring bank or (2) an acquirer and a payment facilitator vendor. 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. Firstly, a payment aggregator is a financial organization that offers. But size isn’t the only factor. 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. As a result of the first. A Payment Facilitator, PayFac for short, is simply a sub-merchant account for a merchant service provider. Merchant account/ business bank. Besides that, a PayFac also takes an active part in the merchant lifecycle. Principal vs. The best way to choose between a payfac and a payment processor is to consider your specific needs and requirements. A Payfac provides PSP merchant accounts. Visa vs. Just like some businesses choose to use a third-party HR firm or accountant,. 00 Retains: $1. Payfacs are entitled to distinct benefit packages based on their certification status, with. Malaysia. 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. Corporate website of GMO Payment Gateway,Inc. Its FACe gateway platform accelerates time to market for new payfacs. They decided to add a $285 annual fee to their merchants starting in. . 01274 649 895. A Payment Facilitator or PayFac simplifies merchant account enrollment which allows smaller companies to quickly gain the upper hand. Payment gateway vs payment processor: what’s the difference? The difference between a payment processor and a payment gateway lies in the fact that one—payment the processor—is the service provider facilitating the transaction, while the other—the payment gateway—is the communication channel responsible for securely transmitting the. It is the mechanism that reads a customer’s payment information. Gateway 💳🛍️ Let's go diving into the payment realm 💡 You want smooth checkouts 🤔, but the payment landscape holds more than meets the eye. In this case, it’s straightforward to separate the two. Think debit, credit, EFT, or new payment technologies like Apple Pay. The payment facilitators themselves: which are companies providing the necessary infrastructure and allows their sub-merchants to accept payments via credit card. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. 2. 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. Beyond a gateway, there are a number of technology systems PayFacs need to have in place to operate competitively. 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. They can apply and be approved and be processing in 15 minutes. A Payment Facilitator or Payfac is a service provider for merchants. becoming a payfac. The ISO acts as an intermediary between the merchant and the payment processor, taking care of merchant recruitment, sales, and ongoing merchant. Likewise, it takes a lot of work and expenses to become a PayFac. Payment facilitator model is becoming increasingly popular among many types of companies. If you want to offer payments or payments-related. The key aspects, delegated (fully or partially) to a. 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. In total, they sent 19 marketing & logistics emails in 2023, leading to nearly 10,000 views of their RunSignup website. Payment is becoming more cashless than ever now as a massive number of transactions are digitally carried out through credit cards and e-wallets. net is owned by Visa. Onboarding processA payment facilitator (or PayFac) is a payment service provider for merchants. Typically a payfac offers a broader suite of services compared to a payment aggregator. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. This provides greater ease-of-use, but the PSP charges more per transaction in exchange. Uniform Business Rate: A multiplier used in England and Wales to determine how much money owners of commercial and industrial properties must pay each year to their local governments. It is significantly less expensive compared to using a regular PayFac model. Here are the best crypto payment gateway providers, including Coinbase Commerce, BitPay, and CoinGate. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Embedded experiences that give you more user adoption and revenue. 1. Strategic investment combines Payfac with industry-leading payment security . Online, in-person, or on-the-go, it's easy to accept credit or debit payments on our devices at anytime with Canada's trusted payment processor. merchant accounts. The majority of our customers use credit, debit, or prepaid cards to pay for their services. A payment processor serves as the technical arm of a merchant acquirer. 5. Instead, in the PayFac model, a small business gets a submerchant account under the master merchant. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Within the payment industry, VAR model emerged as the product of ISO evolution. Stripe benefits vs. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. A Payment Facilitator or Payfac is a service provider for merchants. PG vs PSP vs ISO vs PayFac vs Payment Aggregator Payment Gateway a payment gateway means just a technological platform, while a payment aggregator. Becoming a payment facilitator is a change to your operational and support models, has and it pays long-term benefits. Payfac and payfac-as-a-service are related but distinct concepts. If you are attempting to become a fully registered PayFac yourself, or are considering various PayFac-in-a-Box options,. No setup fee. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. The price is the same for all cards and digital wallets. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Freedom to grow on your own terms. However, becoming a payfac requires a significant amount of up-front and ongoing work, like opening a merchant account, obtaining a merchant ID (MID), and getting your PCI DSS certification. 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. While both models allow businesses to accept payments, a payfac might. Payment facilitation allows SaaS and digital platform businesses to onboard merchants, provide payment processing on their behalf, and handle the myriad complexities of managing transactions. Visa, Mastercard) around 2011 as a way for aggregators to provide more transparency into who their sub-merchants were. With UniPay Platform you have the options of an affordable white label payment gateway solution, a full on-premise software. A merchant of record (MoR) is the entity that is authorized, and held liable, by a financial institution to process a consumer’s credit and debit card transactions. The first thing to do is register. You own the payment experience and are responsible for building out your sub-merchant’s experience. The full-function platform has been designed to deliver Acquirers with a comprehensive Third Party Payment Facilitator programme, as well as a. A payment facilitator is a merchant services business that initiates electronic payment processing. A powerful payment gateway that supports an extensive combination of devices, and operating systems for point of sale payments. The Job of ISO is to get merchants connected to the PSP. 20 (Processing fee: $0. 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. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. These include SaaS providers, investment firms, franchise owners, online marketplaces, and others. A payment facilitator, also known as a PayFac, is a sub-merchant account for a merchant service provider. 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 larger master merchant. For example, by shifting from the ISO model to become a payfac, Lightspeed expects to see a 2. The rate. And this is, probably, the main difference between an ISV and a PayFac. By adopting a white-label payment gateway, a payment facilitator can eliminate the need to develop their own payment system from the ground up and. 1. A recent Nilson report found that fraud rose more than 6% (exceeding $10 billion) in 2020 from 2019, with the U. For instance, a gateway provider may charge a monthly fee of $30 and 2. A Payment Facilitator (PayFac) is a type of merchant services company that provides business owners with a way to accept electronic payments, both online and in-store. I SO. 6th April 2023 – Taunton, UK: Cardstream Group, which operates Europe’s fastest growing independent white label Payment Gateway, has announced the arrival of its significant new white label PayFac-as-a-Service to the market. When the PayFac entity integrates the. ISO. About 50 thousand years ago, several humanities co-existed on our planet. Onboarding process responsible for moving the client’s money. Indeed, value. The speed at which a merchant can start processing payments with a PayFac is vastly different than the rate at which this could be done in the legacy ISO. Payment processing up and running in weeks. The acquirer makes the payment facilitator’s check and dictates a variety of requirements. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent. PayFac Models. 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. Key Function ; Functional Descriptions . 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. In the current downturn, said Mielke, the PayFac or ISV that is diversified will be better positioned to weather the storm. Payments. Payment facilitation (Payfac) is a service that allows businesses to accept payments from their customers in a variety of ways. Independent Sales Organization (ISO) Provides specific services directly orGateway Selection for SaaS and PayFac Payment Platforms; Best Crypto Payment Gateway Solutions for Platforms; How PayFac Model Increases Your Company’s Valuation; Payment Advice. 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. Becoming a PayFac With NMI. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. PayFacs provide a similar service to standard merchant accounts, but with a few important differences. Why PayFac model increases the company’s valuation in the eyes of investors. 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. Suspicious and fraudulent identification. It needs to obtain a merchant account, and it must be sponsored into the card networks by a bank.