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. For example, an. The payment facilitator works directly with the. A Payment Facilitator or Payfac is a service provider for merchants. An ISO or acquirer processes payments on behalf of its clients that are call merchants. However, the setup process might be complex and time consuming. Massive technological leaps have made it easier than ever for software. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The PayFac model allows a single entity to become the “merchant of record” and board sub-merchants with fewer data requirements and scrutiny. A registered Payment Facilitator, also known as a “PayFac” or “merchant aggregator” is a third-party business or platform that contracts with an acquirer to provide payment services to their customers, referred to as “sub-merchants. 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. Payfac and payfac-as-a-service are related but distinct concepts. becoming a payfac. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. MoneySend is the Mastercard transaction type (Transaction Code 28) designed. 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. Payment Processors and ISOs have a symbiotic relationship, with each party benefiting from the collaboration. In a new series, Rich Aberman, co-founder of WePay, and Karen Webster set the record straight on what a PayFac is and isn’t, how a company can become one (and what it costs), the value equation. Payfac as a Service providers differ from traditional Payfacs in that. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. One is an ISO or independent sales organization, and another is a PayFac or payment facilitator. For example, an. e. Extensive. 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. 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. Payment Facilitator. Fortis manages everything for you – underwriting, fraud monitoring, funding, gateway reporting, and chargeback management. 3. To fully understand the benefits of the payment facilitator model, it’s important to first take a look at what goes into creating a standard payment processing agreement. 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. In this article we are going to explain why payment facilitator model is becoming so popular (attracting more and more entities) while ISO model is gradually dying out, vacating the space for new payment facilitators. In a similar manner, they offer merchants services to help make the selling process much more manageable. 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. For example, an. You see. 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. 4. Both PayFacs and ISO’s (independent sales organizations) act as intermediaries between merchants and payment processors . The ISO is an intermediary signing up the merchants for the acquirer’s payment processing services. ISO. , Concord, California (“Wells”). Track leaves of all part-time and full-time employees even when they have different shifts. As a result, the revenues, collected by a PayFac, are much larger than the revenues of a traditional ISO. FIGURE 6: SaaS Provider & Platforms – Observed PayFac Model Progression Journeys . Now let’s dig a little more into the details. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Find a payment facilitator registered with Mastercard. A PayFac (payment facilitator) has a single account with. ISO vs. 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. 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. 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. 1. 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. We would like to show you a description here but the site won’t allow us. Payment processors do exactly what the name says. ISOs vs Payfacs. 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. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. an ISO. Payment. The merchant interacts directly with the ISO and follows their set processes to register and become. For example, an. For example, an. ) The PayFac takes on merchants as its own contracted “sub-merchants,” which process their transactions through the master merchant account. They provide services that allow software platforms to accept credit and debit card payments and make it easier and faster for them to start accepting payments as they handle most of the work for you. 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, much of their functionality and procedures are very different due to their structure. PayFac: ISO: Merchant onboarding timeline : Instant account approvals: Days or weeks : Sign-up process: Quick and easy. When choosing between a Payment Facilitator (Payfac) and a Merchant of Record (MoR) for your business, several key factors should be carefully considered: 1. 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. Read More. 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. Payfac is a contracted Independent Sales Organisation (ISO), so they have the responsibility to manage their own sales agents and underwriters and adhere to the rules of the card associations. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. This relatively new payfac business model is experiencing rapid growth. Independent sales organizations (ISOs) and resellers of merchant services are examples of payment service providers in the industry. Read More. Payment Processors are responsible for authorization, authentication, data security, settlement, clearing, and reporting services, while ISOs focus on sales, marketing, merchant support, customer service, and value-added services. 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. Payment Facilitators offer merchants a wide range of sophisticated online platforms. PayFac: How the Two Most Common Types of Payment Intermediaries Differ April 12, 2021. The merchants can then register under this merchant account as the sub-merchants. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. They build the integration and then lean on the processing partner to. However, the setup process might be complex and time consuming. One of the key differences between PayFacs and ISO systems is the contractual agreement. Pinterest. Uber corporate is the merchant of record. For example, an. The value of all merchandise sold on a marketplace or platform. When you swipe a credit card, transfer money, or make an online purchase, there’s an inherent belief that the system will handle these transactions efficiently and accurately. This model is ideal for software providers looking to. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. The new PIN on Glass technology, on the other hand, is becoming more widely available. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk. 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. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Without ISOs, a relatively small handful of global and regional payment processors would each be forced to interact with thousands. 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. PayFac vs ISO: Key Differences Even though PayFacs and ISOs may seem to be quite similar on the surface, there are a few key differences between them. 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. Explore. For example, an. You own the payment experience and are responsible for building out your sub-merchant’s experience. The key difference between a payment aggregator vs. While there are advantages to taking on high risks, such as greater flexibility. So naturally, any company considering the option needs to make sure the investment they’ll make in the Payfac model makes sense financially. If a partner can "see" the benefits of. You own the payment experience and are responsible for building out your sub-merchant’s experience. An ISO contract with banks to provide credit card processing services. Next-generation ISO (or next-gen ISO) is a. ISOs play an important role in the payment process, but many people aren’t sure what they are. e. However, the setup process might be complex and time consuming. 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. 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. In addition to serving as Payroc ’ s SVP Payfac Trusty,. However, the setup process might be complex and time consuming. For example, an. In this article we are going to explain why payment facilitator model is becoming so popular (attracting more and more entities) while ISO model is gradually dying out, vacating the space for new payment facilitators. For example, an. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Since it is a franchise setup, there is only one. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac 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. However, the setup process might be complex and time consuming. However, there are instances where discrepancies arise. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. However, the setup process might be complex and time consuming. Square, Stripe, PayPal, AirBnB and Uber are well-known examples of PayFacs. 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. Also Read: Evaluating the Differences Between an ISO and a PayFac . However, in terms of payment processing, the end result is largely the same for your organization. MSP = Member Service Provider. ISVs create software for companies in the payments industry. 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. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The first is the traditional PayFac solution. 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. 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. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. Embedding payments into your software platform is a powerful value driver. Independent sales organizations (ISOs) are a more traditional payment processor. Almost every bank nowadays has a department dealing with merchant services. However, the setup process might be complex and time consuming. After the approval is true, I want to save the attachment to a specific folder in my OneDrive. However, the setup process might be complex and time consuming. Difference #1: Merchant Accounts. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. The ongoing, lifetime aspect of residuals is important for two reasons. Find a payment facilitator registered with Mastercard. PayFacs provide a similar. For example, an. A PayFac, or payment facilitator, is a merchant services model that streamlines the merchant account enrollment process by onboarding a merchant as a sub-account under the PayFac’s master account. It’s more PayFac versus wholesale ISO model or full liability ISO. ISOs. Typically, the ISO stays out of the contract between the two and instead focuses on the relationship with the payment processor. However, the setup process might be complex and time consuming. Processor relationships. For example, an. 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. ISO vs. April 12, 2021. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The downside of this speed is the risk exposure in a breach; if a retail ISO is breached the acquirer steps in and shoulders most of the load. A best-in-class payment solution. 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. For example, an. As a result, PayFac or ISO must accept a higher level of accountability, which in the case of PayFacs maybe 100%. For example, an. Sub-merchants sign an agreement with the PayFac for payment. At ETA PayFac Day, we hosted a session that highlighted the pros and cons of becoming a PayFac and shed light on complimentary partnership models that offer similar degrees of control and increased profits. 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. To ensure maximum relevancy, the logical structural models, assets, threats and security objectives in this document are based. The types of new entities an ordinary ISO can turn into include a PayFac, a wholesale ISO, a next-generation ISO, or a merchant services consultant. However, much of their functionality and procedures are very different due to their structure. I SO. In exchange for the user fees, PayFac underwrites these new merchants and assumes the risk of any payments made through its platform. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Furthermore, segregated accounts secure the client's funds if the firm goes bankrupt, shuts down, or any other unfortunate event that prevents them from doing business. 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. 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. 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: 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. Popular 3rd-party merchant aggregators include: PayPal. ,), a PayFac must create an account with a sponsor bank. PayFac is more flexible in terms of providing a choice to. 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. They are typically small businesses that work with a limited number of banks. PayFac vs Payment Processors. While they both enable a company to process payments, they have different roles and responsibilities. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Business Size & Growth. ISOs offer greater control and potential cost savings for. PayFac vs ISO: Contractual Process. For example, an. During Jim's tenure with NPC and Vantiv, he also drove the development of and relationship with several key NPC ISOs, as well as oversight and management of specific. Learn more: PayFac vs ISO: which one to choose for your business? Benefits of becoming a PayFac. However, the setup process might be complex and time consuming. 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. Payment Facilitators vs. In a similar manner, they offer merchants services to help make the selling process much more manageable. This allows the businesses under the payfac’s umbrella to focus on their core operations rather than deal with the complexities of the. PayFac vs ISO: 5 significant reasons why PayFac model prevails. Payfac and ISO models involve much more regulatory and compliance overhead than payfac-alternative models. However, the setup process might be complex and time consuming. ISOs sold merchant accounts to applicants on behalf of different acquiring banks and were integrated with multiple payment gateways, that were connected to specific acquirers and processors. PayFacs work under one or more payment processors, operating in a layer of the industry between processors and merchants. if ms form category == cat01 then save to My Docs/stuff/cat01. PayFac: Key Differences & Roles in Payment Processing A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. A prospective PayFac has to meet more rigorous requirements and incur large upfront costs. It works by using one umbrella merchant account that allows every merchant to open as a sub-account underneath it. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. . Some ISOs also take an active role in facilitating payments. Click here to learn more. 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 artisan. Enabling businesses to outsource their payment processing, rather than constructing and maintaining their own. 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. Typically, it’s necessary to carry all. 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. The types of new entities an ordinary ISO can turn into include a PayFac, a wholesale ISO, a next-generation ISO, or a merchant services consultant. 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. So, the main difference between both of these is how the merchant accounts are structured and organized. However, the setup process might be complex and time consuming. Visa vs. Both the PayFac and ISO acquisition models have unique benefits and drawbacks. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. payment gateway; Payment aggregator vs. When you enter this partnership, you’ll be building out systems. Step 1: Sender initiates P2P transaction to Transaction Originator. However, the setup process might be complex and time consuming. Overall, ISOs work as intermediary “resellers” of payment processors or acquiring banks to merchants, while PayFacs have a single account and absorb greater. While there is some overlap between a payment processor and a PayFac, there are also some important differences you should be aware of (although. S. 00 Retains: $1. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. To help your referral partners be as successful as possible, you need a smooth onboarding process. They may offer more or different services than a processor. 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. While an ISO product will sometimes take weeks to approve a merchant due to the more stringent and quite often paper-based application process, PayFacs are able to. However, the setup process might be complex and time consuming. Payment processors do exactly what the name says. While an ISO, or independent sales organization, is similar to a Payfac, there are some key differences. For example, an. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. For example, an artisan. 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. 1. This means that a SaaS platform can accept payments on behalf of its users. You see. PayFacs perform a wider range of tasks than 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. 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. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent that. So, what. In general, if you process less than one million. 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. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. For example, an. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. Exact handles the heavy. Blog 6 Ways Embedded Payments Benefit B2B Accounting SaaS. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Independent sales organizations (ISOs) are a more traditional payment processor. e. 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. 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 model. Take the Savings Challenge today to see how much we can save you in interchange fees. 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. 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. For example, an. The contract is typically between the sponsor and the merchant, but the ISO may sometimes be included in a three-party agreement. Checkout’s “gross profit” is the P&L line most comparable with Adyen’s “net revenue” line. However, the setup process might be complex and time consuming. a Payment Service Provider (PSP), aka a Payment Facilitator (PayFac). The way Terminal creates API objects depends on whether you use direct charges or destination charges. This includes underwriting, level 1 PCI compliance requirements,. PayFac vs. A PayFac sets up and maintains its own relationship with all entities in the payment process. Research firm Statista estimates payfac transaction volume totaled $88 billion last year,. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. In order to provide a plausible explanation, we need to understand the evolution of the merchant services 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. What is a payfac? A payfac, short for payment facilitator, is a type of provider in the payments industry that simplifies the process for other businesses to accept credit and debit card payments. 26 May, 2021, 09:00 ET. Within the ARM industry, PayFac models can provide an especially significant benefit – these models can be used to enable full compliance for convenience fee solutions, in order to protect collection agencies from non-compliance risks including lawsuits,. However, payment processing can quickly become overwhelming and complicated, often leaving businesses feeling unprepared and doomed to failure. 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. A payment facilitator allows sub-merchants under one master merchant to process payments easily, with less hassle. However, the setup process might be complex and time consuming. Payment aggregator vs. Stripe was founded in 2010 by two Irish siblings: then 22-year-old Patrick Collison and younger brother John, 20, positioning itself as the builder of economic infrastructure for the internet — launching their payfac flagship product in 2011. 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. ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization. Acquiring banks willingly delegated them to payment facilitators in exchange for part of liabilities and residual revenues. So, revenues of PayFac payment platforms remain high. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Intro: Business Solution Upgrading Challenges; Payment. Visa, Mastercard) around 2011 as a way for aggregators to provide more transparency into who their sub-merchants were. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Assessing BNPL’s Benefits and Challenges. ISVs create software for companies in the payments industry. ISO are important for your business’s payment processing needs. Although each of these methods offer their own distinct advantages, understanding how they differ and which option is right for your specific. For example, an. However, the setup process might be complex and time consuming. Under the PayFac model, each client is assigned a sub-merchant ID. Moreover, in a sense, PayFac model relieved acquirers from merchant management functions, which they delegated to PayFacs. The Payment Facilitator uses a sub-merchant platform to provide two types of merchant accounts, a PSP and an ISO. Propelling High Performance Digital Commerce. Compare price, features, and reviews of the software side-by-side to make the best choice for your business. 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. 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. July 12, 2023. PINs may now be entered directly on the glass screen of a smartphone using this new technology. These companies include owners of SaaS platforms, franchisors, ISO, marketplaces, and venture capital firms. e. . However, the setup process might be complex and time consuming. The facilitator company collects and manages the money. Mastercard PayFac Models: The Ins and Outs of the “Big Two” Payment Facilitator Programs. They provide the systems and technology that process transactions. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. Segregated accounts are legally segregated from the firm's assets, meaning the company cannot use the funds stored to conduct business operations. To become a Mastercard merchant, simply contact an acquirer for a merchant account application. When you start accepting payments online, you need a merchant account from a payment facilitator with sufficient infrastructure and proper compliance to process payments . For example, an. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payment Facilitator vs. Global expansion Adapt to changing landscapes Stripe’s payfac solution A comparison Get in touch Technology has fundamentally changed how businesses, acquiring banks, and. Payments is an expert in embedded payment solutions, enabling SaaS businesses to monetize payments through its turnkey PayFac-as-a-Service solution. For example, an artisan. To become a Mastercard merchant, simply contact an acquirer for a merchant account application. These first few days or weeks sets the tone for how your partners will best.