192 Understanding Payment Facilitator Or Payfac Youtube A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. instead of each individual business needing to set up its own merchant account , a process that can be time consuming, the payfac effectively “rents out” merchant account functionality under its larger master merchant account. What is a payment facilitator and why do you need to understand them if you want to be an aggregator.about faisal khanfaisal khan is a banking payments consu.
What Is A Payment Facilitator Or A Payfac Payment facilitators are merchant service providers that enable merchants to process payments electronically. unlike traditional merchant service providers that resell payment processing, payfacs own processing accounts and underwrite and onboard sub merchants under their accounts. payfacs typically leverage the software as a service (saas. Combined, think of a registered payment facilitator as an entity that handles the relationships with card networks, sub merchant onboarding, and payment services for merchants. the payfac directly handles paying out funds to sub merchants. most of the requirements for payfacs are enforced by the card networks and acquiring banks. In other words, isos function primarily as middlemen (offering payment processing), while payfacs are payment facilitation partners to their clients. a payfac sets up and maintains its own relationship with all entities in the payment process. it also holds a master merchant account and mid with a sponsoring bank, which means it can acquire and. A payment facilitator, payfac for short, is simply a sub merchant account for a merchant service provider. it’s used to provide payment processing services to their own merchant clients. “a payments facilitator (or payfac) allows anyone who wants to offer merchant services on a sub merchant platform. those sub merchants then no longer have.
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