Payment facilitators can perform all the of the following. Global expansion. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. S. Payments Path to payment facilitation: Are you ready for the journey? November 10, 2021 Payment facilitation helps you monetize credit card payments by. Nium moves money, manages foreign exchange, and mitigates fraud so your business can send and receive funds in real-time. 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. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. For example, an artisan who sells handmade jewelry online may find the process of setting up their own merchant account daunting or unnecessary, given their lower transaction volume. Posted at 5:43 pm in Operations, Payment Processing. An ISV can choose to become a payment facilitator and take charge of the 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. Payments. An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. Stripe benefits vs merchant accounts. 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. Gateway 💳🛍️ Let's go diving into the payment realm 💡 You want smooth checkouts 🤔, but the payment landscape holds more than meets the eye. PayFacs are often more suitable for SMEs seeking a quick and straightforward setup. 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. Let’s discuss the most common marketplaces and platforms. Payfac and payfac-as-a-service are related but distinct concepts. 01274 649 893. At Revision Legal, we protect businesses that thrive online, and understand the connections between law, technology, and business. A payment facilitator, also known as a PayFac, is a sub-merchant account for a merchant service provider. Instead of each individual business. Today we have CardConnect, the gateway Fiserv acquired. If necessary, it should also enhance its KYC logic a bit. The monitoring process ensures that there are no anomalies and in cases of unlawful activities, suspensions are placed. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. In recent years payment facilitator concept has been rapidly gaining popularity. Stripe provides a way for you to whitelabel and embed payments and financial services in your 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. With a. It works by using one umbrella merchant account that allows every merchant to open as a sub-account underneath it. PayFac has its own secure gateway, and it provides easy integration with major e-commerce shopping carts. The PayFac model eliminates these issues as well. 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. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Reports for insights into payments and POS data for your. It also means that payment risk is moved from individual merchants to the PayFac, as they own the master merchant account. 4. Global expansion. 3. It can also. ,), a PayFac must create an account with a sponsor bank. It also needs a connection to a platform to process its submerchants’ transactions. Just to clarify the PayFac vs. A Payment Facilitator or Payfac is a service provider for merchants. The future of integrated payments, today. Non-card payments like ApplePay and GooglePay for both in store and online. PayFac model is easier to implement if you are a SaaS platform or a. 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. When it comes to choosing between a PayFac and an ISO, the best option depends on your business's specific needs and preferences. 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. 30, including 2-3% for every transaction, and $0 to $25 monthly cost. 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. Our suite of scalable issuer solutions provides the next generation platform for origination, processing and risk management. When you’re using PayFac as a service, there are two different solution types available. 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 is a platform that intermediates payments between consumers, payment operators (card operators, banks, PSPs, etc. Technology: PayFacs offer proprietary technology solutions — in the form of gateways, hardware, and/or other. The MoR is also the name that appears on the consumer’s credit card statement. When you want to accept payments online, you will need a merchant account from a Payfac. PayFac – Square or Paypal;. Payment Processors: 6 Key Differences. The differences are subtle, but important. 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 payment facilitator is a merchant services business that initiates electronic payment processing. This crucial element underwrites and onboards all sub-merchants. Once approved, the sub-merchant can process payments using the PayFac’s payment gateway and infrastructure while remaining aggregated under the master merchant account. UniPay Gateway is the leading Omnichannel payment processing and management solution for PayFacs, Saas and equity firms operating worldwide. Onboarding process responsible for moving the client’s money. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. becoming a payfac. A payment processor handles the technical aspects of transaction processing and is connected to the banking system through the respective. To ensure the correct money flow, the payment. You own the payment experience and are responsible for building out your sub-merchant’s experience. With Stripe's payfac solution, unlock SaaS revenue, turn payments into a profit center, and offer new financial services through your software platform. It accepts all payment types, ranging from direct credit/debit to PayPal, Skrill, Paytm, etc. 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 (PayFac) is a type of merchant services company that provides business owners with a way to accept electronic payments, both online and in-store. A payment processor sends card information from a merchant’s POS system to the card networks and banks involved in the transaction. 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. So, what. ISOs often provide a range of services, including equipment sales or leasing—for example, point-of-sale (POS) terminals —transaction processing, and customer service. 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. (PayFac) Receives: $3. While Tilled’s PayFac offerings will bring a lucrative new revenue stream to your business through payment monetization, we do more than write you a check each month and wish you luck with this new aspect of your business. The payment gateway provider must be able to offer you the liberty to get anyone on board and do business with them. 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. Third-party payment providers If you're not using Shopify Payments and you want to accept credit cards, you can choose from over 100 credit card payment providers for your Shopify store. If you want to offer payments or payments-related. In essence, PFs serve as an intermediary, gathering. The information flow for Batch is illustrated below: Your integration aggregates payer operations into a batch and uploads the batch of operations using HTTPS PUT over the Internet to the MasterCard Payment Gateway via the MasterCard Payment GatewayBatch service. The Global Infrastructure For Real-Time Payments. 2. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. It’s often described as ‘an electronic cash register. What’s the distinction between Payfac and PSP? A payment Facilitator is a third-party payment service provider (PSP). Payment gateway selection is a tricky process. If you are an existing Bambora customer who needs assistance there are our support guides that can be found here. We could go and build a payment gateway, but there would be a. White-label payfac services offer scalability to match the growth and expansion of your business. Stripe benefits vs merchant accounts. using your provider’s built-in tokenization and gateway solution can greatly reduce your Payment Card Industry (PCI) scope. 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. 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. 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. Meanwhile, PayPal and Square collectively generated revenues of $22 billion. June 3, 2021 by Caleb Avery. 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. Fueling growth for your software payments. It also needs a connection to a platform to process its submerchants’ transactions. Chances are, you won’t be starting with a blank slate. Both offer ways for businesses to bring payments in-house, but the similarities. Visit our TSYS Developer Portal today and unlock the. 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. Unlike payfacs, ISOs set up individual merchant accounts for each business they service. Leading company listed on the TSE. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Thanks to its flexibility and profitability, PayFac model seems to perfectly adjust to the present-day market requirements. This means businesses only need Stripe to accept payments and deposit funds into their business bank account. PayFacs take care of merchant onboarding and subsequent funding. The rise of PayFac for marketplaces seeking to provide payment services 💡. For some ISOs and ISVs, a PayFac is the best path forward, but for others owning the payments process, end-to-end is a long way. The traditional method of bringing payments in-house involves integrating a payment gateway or processor into the platform, allowing for seamless transactions within the platform. 7. Talk to an expert. With Fortis’ PayFac solution, software developers and merchants can leverage award-winning APIs and leading payment technology to scale their business. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. About 50 thousand years ago, several humanities co-existed on our planet. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. Payment facilitator’s role is to handle merchant lifecycle-related functions (from underwriting and onboarding to funding and chargeback handling) instead of the acquirer. 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. The main use of RunSignup’s free Email V2 was to share key race information with lottery entrants and eventual participants. In essence, they become a sub-merchant, and they face fewer complexities when setting. 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. One of the most significant differences between Payfacs and ISOs is the flow of funds. 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. Funds flow: As the master merchant, the PayFac receives funds from the Acquiring Bank during the settlement process. You'll need to submit your application through Connect . 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. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. Cards and wallets. For SaaS providers, this gives them an appealing way to attract more customers. More importantly, merchants that use those platforms do not need a direct relationship with a payment gateway or the acquiring bank. A PayFac (payment facilitator) has a single account with. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. The best way to choose between a payfac and a payment processor is to consider your specific needs and requirements. ”. PayFac vs. €0. First, a PayFac needs to establish a partnership with an acquiring bank, and get sponsorship to process payments for sub-merchants. But size isn’t the only factor. 5. Shopify supports two different types of credit card payment providers: direct providers and external providers. Put simply, the acquiring bank is the bank on the merchant end of the transaction, and the issuing bank is the cardholder or consumer’s bank. Successfully certified payfacs will receive the status of Visa Certified Payment Facilitator. PayFac vs ISO. To put it simply, a PayFac is a service provider specifically for merchants. Modern PayFacs find it more profitable to integrate with just one processor/gateway and provide merchant processing services (onboarding, chargeback handling, reconciliation,. Wide range of functions. Onboarding processA payment facilitator (or PayFac) is a payment service provider for merchants. 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. These systems will be for risk, onboarding, processing, and more. Acquiring banks willingly delegated them to payment facilitators in exchange for part of liabilities and residual revenues. Online Payment System Software and Global Payment Processor - UniPay Gateway. 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. Our suite of tools and services offers a choice of funding options, settlement, revenue generation, and risk management capabilities for payment facilitators. This means businesses only need Stripe to accept payments and deposit funds into their business bank account. ) and network cards (credit/debit cards). Sub Menu Item 5 of 8, Mobile Payments. Gateways charge fixed fees per transaction, whereas payment service providers charge both fixed. What the PayFac builds in the above analogy are the APIs that allow merchants to integrate into its platform, the payment gateway that’s responsible for tokenization and secure transmission of card data, and the tech behind such features as reporting and merchant onboarding. Payment. These terms are often used interchangeably, but while they’re interconnected, they can’t be used to describe the same thing. Cardknox is the leading, developer-friendly payment gateway integration provider for in-store, online, or mobile transactions – hassle-free. Some common examples include adoption rate, retention rate, total processing volume, and the lifetime value of customers. PayFac vs ISO is an illustrative example of natural selection and adaptation in the fintech world. Optimize your finances and increase automation with our banking infrastructure. You own the payment experience and are responsible for building out your sub-merchant’s experience. Think debit, credit, EFT, or new payment technologies like Apple Pay. Business Size & Growth. 5%. Offering similar services to popular payment processing tools like Stripe and PayPal, PayFac is a third-party merchant service provider. What is a Payment Facilitator (Payfac)? Payfacs are an evolution of a long-established distribution model in the payments industry. 350 transactions included. Payfac and ISO models involve much more regulatory and compliance overhead than payfac-alternative models. The PayFac executes all the tasks a payment processor needs to onboard a client and gives the ISV a seamless experience. A PayFac will smooth the path. Wide range of functions. However, PayFac concept is more flexible. CardPointe payment gateway integration. 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. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. Payfac and payfac-as-a-service are related but distinct concepts. Payfac solutions can be a critical source of revenue generation, allowing ISVs to differentiate their product and service offerings in a crowded space. With UniPay Platform you have the options of an affordable white label payment gateway solution, a full on-premise software. 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. ISO vs. Pros and Cons of Becoming a Payfac. A closer look at the economics from each $1 of payment volume. 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. United States. 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. A payment processor sends card information from a merchant’s POS system to the card networks and banks involved in the transaction. 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 merchant to a bank, a PayFac owns the full client experience. Partnering with a PayFac vs becoming a PayFac with a technology partner. This model is ideal for software providers looking to. Freedom to grow on your own terms. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. facilitator is that the latter gives every merchant its own merchant ID within its system. The entire operating cost, which includes the transaction cost, set-up cost, and admin cost, is the most crucial factor to consider. If necessary, it should also enhance its KYC logic a bit. or scroll to see more. A merchant of record is an entity that accepts cardholders’ payments and assumes liability for processing of these payments on the merchant’s behalf. The easy-to-use and instantaneous nature of the Payment Facilitator makes it such a popular choice among merchants. Every payment gateway, processor, or bank uses its own payment system (often a unique one). 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. Both PayFacs and ISO’s (independent sales organizations) act as intermediaries between merchants and payment processors . Global expansion. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. You own the payment experience and are responsible for building out your sub-merchant’s experience. PINs may now be entered directly on the glass screen of a smartphone using this new technology. Partnering with white label PayFac gateway provides such a solution. We will createnew value centered on payment. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. A facilitator provides merchants with their own Merchant ID under a master. RevSpring leads the market in financial communications and payment solutions that inspire action—from the front-office to the back office to the collections office. 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. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. Cardknox Go (PayFac) – Become a Payment Facilitator, without the hassle;. Stripe benefits vs merchant accounts. The customer views the Payfac as their payments provider. Set up Wix Payments. Payment Facilitator. As merchant’s processing amounts grow, it might face the legally imposed. In short, Payment Facilitation is an operating model that affects the acquiring side of the payment ecosystem. He drives the strategic direction of the company and supports. 2. payment processor question, in case anyone is wondering. Payfac as a Service is the newest entrant on the Payfac scene. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. If the intermediary entity, which funds the sub-merchants, uses different MID for each merchant, it is called a payment facilitator. It becomes more lucrative for a PayFac to offer merchant, gateway, and other services in one package and to support a single acquirer/processor. 0 can be both processor and gateway agnostic. It provides a technology, allowing to authorize transactions and, potentially, receive transaction settlement information. To manage payments for its submerchants, a Payfac needs all of these functions. 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. The full-function platform has been designed to deliver Acquirers with a comprehensive Third Party Payment Facilitator programme,. A SaaS or PayFac, usually, needs to dedicate much more considerable effort to integration and certification. Major PayFac’s include PayPal and Square. The payment facilitator model was created by the card networks (i. When you enter this partnership, you’ll be building out. Payment facilitation helps you monetize. It manages the transfer of funds so you get paid for your sale. PayFac vs ISO. It runs about 40 minutes (really shooting to be less than 30) and we discuss the differences in payfac vs ISO and where payfac is heading. This provides greater ease-of-use, but the PSP charges more per transaction in exchange. Integrated Payments 1. Operating on a platform that acts as a payfac means that there’s no need to work with an acquiring bank, payment gateway, and other service providers. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. Gateway 💳🛍️ Let's go diving into the payment realm 💡 You want smooth checkouts 🤔, but the payment landscape holds more than meets the eye. We would like to show you a description here but the site won’t allow us. This means that a SaaS platform can accept payments on behalf of its users. Whatever your industry, scale or ambition, we’ll help you configure the ideal solution for you. 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. The payment facilitators themselves: which are companies providing the necessary infrastructure and allows their sub-merchants to accept payments via credit card. They offer payments to their merchant customers, known as submerchants, through their own links with payment processors. PayFac and online marketplace models do not compete, they are just intended to serve slightly different purposes. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. 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. Put our half century of payment expertise to work for you. At the very minimum, a new PayFac. as a national independent sales organization in 1989. 20 (Processing fee: $0. 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. Full visibility into your merchants' payments experience. Accept in-Person Payments. Essentially, a payfac is a company that allows its customers to accept electronic payments using their platform. Onboarding processRenew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. ISOs mostly. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. When choosing between a Payment Facilitator (Payfac) and a Merchant of Record (MoR) for your business, several key factors should be carefully considered: 1. 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. This means providing. Here are the best alternatives to Stripe from providers like Square, Helcim, and Treati. Integrated per-transaction pricing means no setup fees or monthly fees. 0 vs. You own the payment experience and are responsible for building out your sub-merchant’s experience. If you are looking for a more robust solution with a wider range of features, a payment processor may be a. “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. In total, they sent 19 marketing & logistics emails in 2023, leading to nearly 10,000 views of their RunSignup website. Stand-alone payment gateways are becoming less popular. 650 Pre-Registered Entrants. It is significantly less expensive compared to using a regular PayFac model. Difference #1: Merchant Accounts. Send payouts to 190+ markets with real-time payments infrastructure for on-demand business. Those sub-merchants then no longer. Its FACe gateway platform accelerates time to market for new payfacs. Onboarding processPayrix is the only PayFac ® as a service platform built by a payment facilitator, exclusively for software platforms. PayFacs are based on the merchant aggregator model created by Visa and MasterCard to provide support for payment card acceptance in marketplaces. Priding themselves on being the easiest payfac on the internet, famously starting. 83% of card fraud despite only contributing 22. Also called a payment gateway, these companies offer. It needs to obtain a merchant account, and it must be sponsored into the card networks by a bank. Payfac and payfac-as-a-service are related but distinct concepts. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. the right payments technology partner. Demystifying payment provider terms: Partnering with a PayFac vs PayFac-as-a-service You might have heard the terms PayFac partnership, managed payment facilitation, managed payment solution, outsourcing to a PayFac, PayFac-as-a-service (PFaaS), PayFac-in-a-box, or PayFac-as-a-whatever—but when it comes down to it, all of these terms mean. Independent sales organizations (ISOs) are a more traditional payment processor. Exact handles the heavy lifting of payment operations so software businesses can grow their revenue and valuation while improving product stickiness and customer satisfaction. The Job of ISO is to get merchants connected to the PSP. 00 Payment processor/ merchant acquirer Receives: $98. 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. 20) Card network Cardholder Merchant Receives: $9. 1. Our restaurant PayFac and gateway offer all of the features you need to ensure your payments are secure and on time. Payment gateway: Offers customization options to align with the business’s branding and user experience, focusing primarily on secure data transmission and transaction authorization. Typically, it’s necessary to carry all. 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. Visa vs. Typically a payfac offers a broader suite of services compared to a payment aggregator. Especially valuable for platforms and marketplaces looking to payout users faster in a preferred currency. Simplifying Payments Around the Globe. There are two ways to payment ownership without becoming a stand-alone payment facilitator. When accepting payments online, companies generate payments from their customer’s debit and credit cards. The difference is that a payment processor can provide a single gateway for multiple payment methods. Besides that, a PayFac also takes an active part in the merchant lifecycle. PG vs PSP vs ISO vs PayFac vs Payment Aggregator Payment Gateway a payment gateway means just a technological platform, while a payment aggregator. When the PayFac entity integrates the. In other words, processors handle the technical side of the merchant services, including movement of funds. It provides a technology, allowing to authorize transactions and, potentially, receive transaction settlement information. Generally, ISOs are better suited to larger businesses with high transaction volumes. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. Global expansion. + 1. Payment Facilitators vs. Standard support line. It is the mechanism that reads a customer’s payment information. The timeout indicates that connection with the back end is impossible, and the server, to which the data needs to be transferred, cannot be reached. Online Payments. A Payfac provides PSP merchant accounts. PayFac vs merchant of record vs master merchant vs sub-merchant. One classic example of a payment facilitator is Square. PayFac vs merchant of record vs master merchant vs sub-merchant. Payment facilitation (Payfac) is a service that allows businesses to accept payments from their customers in a variety of ways. Stripe operates as both a payment processor and a payfac. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. Both offer ways for businesses to bring payments in-house, but the similarities.