The new PIN on Glass technology, on the other hand, is becoming more widely available. I SO. The most known examples are website-building companies which can provide integrated payment options, meaning ecommerce customers will see their experience improved as they will no longer need to actively look for third-party payment solutions. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. You own the payment experience and are responsible for building out your sub-merchant’s experience. Business Size & Growth. Payfac as a Service is the newest entrant on the Payfac scene. In fact, ISOs don’t. But a lot has. Delve deeper into. THIRD PARTY AGENT An entity that provides payment related services on behalf of a Visa Client. A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. There are several ways for businesses to go about accepting payments, and two of the most popular provider options are PayFacs and Independent Sales Organizations (ISOs). Table of Contents [ hide] 1. 2. One of the key differences between PayFacs and ISO systems is the contractual agreement. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. 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. Also, unlike an ISO, the PayFac provides the processing services, settlement of funds, and billing to the merchant. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. A. Payscape is also a registered ISO/MSP for Fifth. Software companies that focus on specific verticals, such as healthcare or childcare, are natural PayFac candidates. PayFac registration may seem like the preferred option because of the higher earning potential. B2B. To learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. Learn more: What is an ISO? PayFac vs marketplace: what’s the difference? A PayFac is similar to a marketplace in that it provides a platform for merchants to sell their goods or. When PayFac became a buzzword among software platforms and the many businesses trying to sell to them, the meaning of the word started to blur. Offering similar services to popular payment processing tools like Stripe and PayPal, PayFac is a third-party merchant service provider. The PayFac model has gained popularity in recent years, as it allows businesses to simplify their payment processing and reduce costs, while also providing a better customer experience. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. 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. This is because the. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. ; Re-uniting merchant services under a single point of contact for the merchant. What is a merchant of record? Read article. Third-party integrations to accelerate delivery. Worldpay was one of the first processors to offer payfac extensibility. implementation of a payment facilitator model) calls for getting certified as one by the respective acquirer, and for. 3. 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. They offer payments to their merchant customers, known as submerchants, through their own links with payment processors. This is because PayFacs or master merchants must have a market or domestic entity wherever they are providing. The acquirer receives funds from the issuer and pays them into the master merchant account of the PayFac. However, PayFac concept is more flexible. What is an ISO vs PayFac? Independent sales organizations (ISOs) and payment facilitators (PayFacs) play important intermediary roles in the payments ecosystem. 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. The ISO acts as an intermediary between the merchant and the payment processor, taking care of merchant recruitment, sales, and ongoing merchant support, while the processor handles transactions behind the scenes. A guide to marketplace payments. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. This allows faster onboarding and greater control over your user. 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: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Here, ISOs (Independent Sales Organizations if on the Visa network), or MSPs. You see. Reduced cost per application. payment processor question, in case anyone is wondering. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. By viewing our content, you are accepting the use of cookies. This can include card payments, direct debit payments, and online payments. PayFac vs ISO: When Does One Make Sense over The Other? Add comment. Software companies that focus on specific verticals, such as healthcare or childcare, are natural PayFac candidates. e. If your rev share is 60% you can calculate potential income. A PayFac provides credit card processing services to merchants on behalf of a bank or other. ISO vs. On. Stripe is an ISO with First Data Merchant Services (FDMS, I believe now owned or controlled by Wells Fargo) doing the actual processing and, as such, assumes a different legal role than PayPal (which is a VAR for Paymentech). In exchange for the user fees, PayFac underwrites these new merchants and assumes the risk of any payments made through its platform. Standard. . Merchants need 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. 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. The ISO is tasked with facilitating the relationship between the two parties and getting merchants signed up with a merchant account. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. Revenue Share*. The merchant fills out extensive paperwork in order to open their own merchant processing account. PayFacs perform a wider range of tasks than ISOs. Download to discover your next payment strategy: Sponsor: Nexio #. If your sell rate is 2. Payfac is the abbreviated term often used in the payments industry to describe a company that provides payment processing services to. Even though PayFacs and ISOs may seem to be quite similar on the surface, there are a few key differences between them. However, with each merchant processing hundreds or thousands of transactions a day, and potentially hundreds of merchants in an ISO’s portfolio, residuals snowball and can be exceptionally. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. PSP = Payment Service Provider. The payfac accepts and processes payments on behalf of merchants (called submerchants in this context), through a contract with an acquirer. Lower. However, the setup process might be complex and time consuming. PayFacs take care of merchant onboarding and subsequent funding. However, the setup process might be complex and time consuming. Each ID is directly registered under the master merchant account of the payment facilitator. Often, ISVs will operate as ISOs. In almost every case the Payments are sent to the Merchant directly from the PSP. But how that looks can be very different. You must be logged in to post a comment. Contracts. PSP and ISO are the two types of merchant accounts. Each of these sub IDs is registered under the PayFac’s master merchant account. However, the setup process might be complex and time consuming. While the. Lean on our payments expertise and offer your customers an end-to-end solution. Payfac-as-a-service is a turn-key payment facilitation model in which an external company provides businesses with the necessary tools and infrastructure to accept electronic payments, such as credit and debit cards, ACH, and echecks. This is a clear indicator that fraud monitoring should be a priority in 2022 and beyond, and why it’s vital to work with a PayFac like. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. However, much of their functionality and procedures are very different due to their structure. 1 billion for 2021. To manage payments for its submerchants, a Payfac needs all of these functions. 07% + $0. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Clover vs Square. 1 comment. For example, an. ISO: Key Differences & Roles In Payment Processing The world of payment processing has its fair share of acronyms, and two of the most popular are PayFac (Payment Facilitator) and ISO (Independent Sales Organization). Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. PayFac vs ISO: When Does One Make Sense over The Other? Now’s Your Chance to Suggest 2020 Article Topics. Besides that, a PayFac also. Modern PayFacs find it more profitable to integrate with just one processor/gateway and provide merchant processing services (onboarding, chargeback. The PayFac model revolutionized the payments industry by streamlining the onboarding process and providing a one-stop solution for SaaS businesses. Just to clarify the PayFac vs. This includes underwriting, level 1 PCI compliance requirements,. In comparison, ISO only allows for cheque payments. Payment facilitation helps. Click at read more about what an OBO is and what it has to do with make processing! don’t provide any processing infrastructure, nor do they continually control any on their merchants’ money directly. In fact, they broke the mold when they offered Toast a payfac at $0. However, the setup process might be complex and time consuming. In banking and payments, ISO stands for independent sales organization – a type of merchant services company that acts as an intermediary and matches merchants with the payment processing services they need. Toward the middle person, ISO is the acronym used by the International Arrangement for Standards. PSPs facilitate payments and act as a proverbial middleman between you and the merchant. What’s the Difference Between a Payment Facilitator, a Payment Processor, and an Independent Sales Organization (ISO) At a glance, a facilitator, a processor, and an ISO may seem to be similar, but the differences are notable. Read article. By owning these operational components,. Since it is a franchise setup, there is only one. A Payment Facilitator or Payfac is a service provider for merchants. 1. In fact, they broke the mold when they offered Toast a payfac at $0. Payfac-as-a-service vs. But a lot has. Marketplace vs ecommerce platform: What's the difference? Read article. Registering as a payment facilitator (PayFac) or independent sales organization (ISO) have become popular options for SaaS companies looking for a comprehensive payment strategy. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Uber could easily masquerade as a PayFac, but it would never choose to become one. We get white glove treatment from Global Payments Integrated—they put clients first. 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 registration. For example, an. ) paying Toast, or Revel, or Clover FOREVER is a tough pill to swallow. The PayFac model thrives on its integration capabilities, namely with larger systems. It enters a contractual agreement with its customer, the PayFac, which is the master merchant. 9% and 30 cents the potential margin is about 1% and 24 cents. Payment facilitation, or PayFac allows a SaaS company to act as a master merchant for its client base. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. One of the most significant differences between Payfacs and ISOs is the flow of funds. However, the setup process might be complex and time consuming. A payment facilitator is a merchant services business that initiates electronic payment processing. Enabling businesses to outsource their payment processing, rather than constructing and maintaining their own. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. PayFacs provide a similar service to standard merchant accounts, but with a few important differences. PayFacs vs ISOs. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. (ISO). Gateway Service Provider. Browse Payfac, SaaS and SaaS Payments content selected by the SaaS Brief community. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. Becoming a payment facilitator is a change to your operational and support models, has and it pays long-term benefits. PayFac vs. If the intermediary entity, which funds the sub-merchants, uses different MID for each merchant, it is called a payment facilitator. 4. For example, an. There are several ways for businesses to go about accepting payments, and two of the most popular provider options are PayFacs and Independent Sales Organizations (ISOs). In other words, processors handle the technical side of the merchant services, including movement of funds. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. While an ISO, or independent sales organization, is similar to a Payfac, there are some key differences. Massive technological leaps have made it easier than ever for software providers to explore new opportunities and expand their offering, such as becoming a PayFac as a service. Since it is a franchise setup, there is only one. A relationship with an acquirer will provide much of what a Payfac needs to operate. The payfac model is a framework that allows merchant-facing companies to. It also needs a connection to a platform to process its submerchants’ transactions. New Zealand -. For example, if you’re selling in-store, then your ISO should offer you a point of sale software and. As part of the agreement, the PayFac obtains the right to onboard sub-merchants. Payment Facilitator vs ISO. ISOs vs Payfacs. Both the PayFac and ISO acquisition models have unique benefits and drawbacks. To the extent that a Payment Facilitator wishes to identify and review every unmatched refund it has that capability. The Payment Facilitator uses a sub-merchant platform to provide two types of merchant accounts, a PSP and an ISO. Payfac as a Service providers differ from traditional Payfacs in that. Browse Payfac and Payments content selected by the SaaS Brief community. Industries. PayFac: ISO: Merchant onboarding timeline : Instant account approvals: Days or weeks : Sign-up process: Quick and easy. ”. PayFac-as-a-service delivers a competitive payment program with instant onboarding of merchants while creating a seamless customer experience. Sometimes a distinction is made between what are known as retail ISOs and. 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. For example, an. Smaller. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. ISOs and ISVs are both B2B providers, working with merchants and the companies who serve them. For example, an artisan. Jun 29, 2023. The submerchants and the PayFac enter into an agreement, and that agreement is not related to the PayFac’s agreement with the payment processing partner. You own the payment experience and are responsible for building out your sub-merchant’s experience. According to an canvass leaded by payment processing mammoth TSYS, 80% of consumers pick debit and believe show compared to exactly 14% who said they favorites cash. NPC is Vantiv's nationwide ISO merchant distribution business serving over 220,000 small-to-medium-sized merchants. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. This also means the Payfac assumes the merchant’s credit liability, but they diversify this risk by aggregating a large pool of merchants under them. ”. With an ISO, you’ll. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. PayFac-as-a-Service (PFAAS) combines easy-to-integrate payment technology, full-service offerings, and transparent pricing to deliver Independent Software Vendors a simple way to harness the full power of payment facilitation – minus. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. PayFac is software that enables payments from one vendor to one merchant. The PayFac must properly follow KYC practices and correctly assess the sub-merchants as all transactions can be aggregated under a single merchant ID. Risk management. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Those who implement the PayFac model get their residual revenue share for handling both business and technical aspects of merchant lifecycle. An ISO acts as a middleman, facilitating the relationship between the ISV and the payment. ISO, so you can choose one of the two, or you’re looking for a PayFac solution for your business. Aug 10, 2023. For example, an artisan. Independent sales organizations (ISOs) are a more traditional payment processor. ISOs rely mainly on residuals, a percentage of each merchant transaction. After the vetting process, the PayFac entity adds the sub-merchant to its master list of sub-merchants or customers. Also, it’s essential to mention that PayFac is a Mastercard model, while the one for Visa is a payment service provider. Difference #1: Merchant Accounts. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. In short, a PayFac or payment facilitator, is a master merchant that supports sub-merchants. Sometimes a distinction is made between what are known as retail ISOs and. Industries. 1. PayFac vs ISO: Contractual Process. ; For now, it seems that PayFacs have. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. One of the key differences between PayFacs and ISO systems is the contractual agreement. Extensive. 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. Some stay where they are (like, again, Uber or Amazon), while others decide to implement the PayFac model. You see. PayFac vs ISO: Key Differences. In fact, ISOs don’t even need to be a part of the merchant’s contract. Acquiring banks willingly delegated them to payment facilitators in exchange for part of liabilities and residual revenues. By viewing our content, you are accepting the use of cookies. 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. ISO: An Independent Sales Organization (ISO) is a company that refers businesses that need to accept card payments to processors and acquiring banks. ISO: What Is the Optimal Integrated Payment Strategy in SaaS? Advertisement. It assumes liability for losses or non-compliance. All in all, the payment facilitator has the master merchant account (MID). An ISO contract with banks to provide credit card processing services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. ISO vs. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. What is a payment facilitator (payfac)? What is an independent sales organization (ISO)? What are the differences between ISOs and payfacs? Do I need an ISO or a payfac? Is Stripe an ISO or a payfac? Payment Facilitator vs ISO. 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. This site uses cookies to improve your experience. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Registered payment facilitators earn 20-40 basis points more per transaction than they would riding the rails of another wholesale PayFac. Payroc LLC is a registered independent sales organization (ISO/MSP) for Fifth Third and Wells Fargo Bank, N. One key difference between payment facilitators and aggregators is the size of businesses or merchants they work with. A PayFac, or payment facilitator, was originally defined by Visa® and Mastercard® to describe the entity that is officially doing business with the card brands. Onboarding workflow. The Payment Aggregator can quickly onboard a new merchant (typically a user of the SaaS offering) and they can begin. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. 4. Without ISOs, a relatively small handful of global and regional payment processors would each be forced to interact with. This can include card payments, direct debit payments, and online payments. 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. This doesn’t happen with ISO, as it never handles money directly. (GETTRX) is a registered ISO/MSP/PSP for. Lower. PayFac vs ISO: Differences, Similarities, and How to Choose the Right One 11 Like Comment Share Copy; LinkedIn; Facebook; Twitter; To view or add a comment, sign in. Payment Facilitator (PFAC, PayFac, PF): A merchant service provider who can facilitate transactions and simplify the merchant account enrollment process on behalf of the sub-merchant. With companies like Stripe, Square and PayPal pioneering the payment facilitator or “PayFac” model, the era of Integrated Payments 2. “You’re giving the payment facilitator the rights to generate liability that you as the bank are going to be responsible for,” Spalinger said. It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank. As a PayFac, Segpay handles the sub-merchant onboarding and provides a fully managed payment processing solution. 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. 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. Costs, including engineering, security, and maintenance are just a few expenses to consider when determining whether or not to offer payfac-as-a-service. While there are advantages to taking on high risks, such as greater flexibility. ISO are important for your business’s payment processing needs. The most known examples are website-building companies which can provide integrated payment options, meaning ecommerce customers will see their experience improved as they will no longer need to actively look for third-party payment solutions. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. The payment facilitator model was created by the card networks (i. Top content on Payfac, Payment Services and SaaS Payments as selected by the SaaS Brief community. For example, an. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk. An ISO works as the Agent of the PSP. Relationships of modern humans with other human species, such as Neanderthal etc, ranged from killing and eating each other to interbreeding. What is a Payment Facilitator (Payfac)? Payfacs are an evolution of a long-established distribution model in the payments industry. 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 approve. Part 1 charted PayFac’s evolution from “fast onboarding for ISOs” to more nuanced, vertically focused, customizable solutions. A single PayFac-as-a-Service solution gives your bank the ability to help your SMB clients reach their objectives by: Retaining more customers – Keeping up with the current payment acceptance solutions ensures your SMB client won’t lose its customers to other, more technologically advanced alternatives. There’s not much disclosure on the ‘cost of sales’ (i. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. A guide to marketplace payments. an ISO. A recent Nilson report found that fraud rose more than 6% (exceeding $10 billion) in 2020 from 2019, with the U. Our belief remains that all payfacs will inevitably write directly to the networks and avoid the processors for so many reasons. ISO vs. Menda chats with Deana Rich about two main topics. Classical payment aggregator model is more suitable when the merchant in question is either an. FIGURE 6: SaaS Provider & Platforms – Observed PayFac Model Progression Journeys . For example, an. Click here to learn more. . Identifying these incidents via the Infinicept system quickly is an easy first step to take in halting such. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Payment facilitation (Payfac) is a service that allows businesses to accept payments from their customers in a variety of ways. In fact, when a merchant is seen as potentially liable for fraudulent activity, an ISO and/or processor are sometimes named as codefendants, along with people at the ISO or processor who. This includes underwriting, level 1 PCI compliance requirements,. So, what. Until recently, SoftPOS systems didn’t enable PINs to be inputted. A PayFac is a processing service provider for ecommerce merchants. Now let’s dig a little more into the details. You must be logged in to post a comment. There are DEF benefits to. The PSP in return offers commissions to the ISO. April 12, 2021. Even within the payments industry, ISOs and the role they play are. We promised a payfac podcast so you’re getting a payfac podcast. A PayFac works by establishing one master merchant account, which can then be leveraged by multiple businesses for a small fee. Acquiring banks willingly delegated them to payment facilitators in exchange for part of liabilities and residual revenues. However, the setup process might be complex and time consuming. ISO: Key Differences & Roles In Payment Processing The world of payment processing has its fair share of acronyms, and two of the most popular are. While the PayFac model comes with some unique risks, the benefits of additional control and potentially higher margins have seen its popularity grow among two major categories of operators:. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. Swipesum details all you need till get about Payfac vs ISO. However, the setup process might be complex and time consuming. The name of the MOR, which is not necessarily the name of the product seller, is specified by. 20 (Processing fee: $0. Payment Processors and ISOs have a symbiotic relationship, with each party benefiting from the collaboration. Optimized across years of experience onboarding and verifying millions of individuals and businesses, our payfac solution includes real-time KYC checks, sanctions screening, secure card data tokenization and vaulting,. Here are the six differences between ISOs and PayFacs that you must know. An ISO or acquirer processes payments on behalf of its clients that are call merchants. Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. Top content on Payfac, SaaS and SaaS Payments as selected by the SaaS Brief community. 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. 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. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Once a sub-merchant has been through the onboarding process it is down to the PayFac to control payments adhering to the rules. In a similar manner, they offer merchants services to help make the selling process much more manageable. You may also like. 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. One of the reasons for this phenomenon is that many companies (including former independent sales organizations (ISO)) find it more profitable to combine the functions of an online gateway provider and a merchant service provider (MSP). Otherwise, you can use an independent sales organization (ISO), which allows for higher volume but can create delays in transaction times. 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. a PSP/PayFac. May 24, 2023. Payfac and ISO models involve much more regulatory and compliance overhead than payfac-alternative models. ISOs, unlike Payfacs, rely on a sponsor bank to. This allows faster onboarding and greater control over your user. Payfac and payfac-as-a-service are related but distinct concepts. Thus, an ISO’s customers can access a wider range of processors, even if the onboarding experience is tedious. Integrated Payments. (ISO). Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. The enabler is essentially an acquirer in the traditional term. ”. agent A specified good or service is a distinct good or service (or a distinct bundle of goods orBy setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Software users can begin. ISO. Learning the meaning of the following terms will help you evaluate PayFac-as-a-Service providers and choose the one best suited to your needs. This simplifies the onboarding process and enables smaller. Payment Facilitators offer merchants a wide range of sophisticated online platforms. To know that your payfac relationship is completely above-board, first know what a payment facilitator is and the issues related to money transmission. Each ID is directly registered under the master merchant account of the payment facilitator. 1) A PayFac always acts on sub-merchant’s (retailer’s) behalf, while an MOR might be the actual retailer. One classic example of a payment facilitator is Square. Our team has over 30 years experience. Also known as a “PayFac” or merchant aggregator, a payment facilitator is a third party agent that contracts with an acquirer to THE ACQUIRER A Visa Client licensed to provide card acceptance 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. However, the setup process might be complex and time consuming. The key difference between a payment aggregator vs.