Love this new series on Embedded Commerce and debunking the PayFac myth. Compare price, features, and reviews of the software side-by-side to make the best choice for your business. To be clear: this means you get the money directly into your own account, NOT like PayPal. June 26, 2020. Several viable business models can make this happen: referral partnerships, becoming a PayFac or becoming an ISO. Blog. Essentially, a payfac is a company that allows its customers to accept electronic payments using their platform. Contracts. The Traditional Merchant Onboarding Process vs. Also, it’s essential to mention that PayFac is a Mastercard model, while the one for Visa is a payment service provider. The terms payment service providers (PSP), payment facilitators, and payment aggregators can have slightly different meanings depending on the region, but they refer to similar types of entities. We help managers: 1) Make more profitable decisions. e. 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. We understand the details of embedded payments and the options for building a solution that is secure, scalable and compliant. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent that. It could be a product that is yet to reach the buyer,. 1 Overview–principal versus agent. To your customers, the payments experience is seamless and fully integrated with your SaaS platform. The PlayStation Portal is now available to buy for $200. PayFacs perform a wider range of tasks than ISOs. These include SaaS providers, investment firms, franchise owners, online marketplaces, and others. • ISO Merchant (ISO – M) —conducts merchantPSP & PayFac 102. 5 would go to the PSP, and $1. On the other hand, a PayFac is a company that simplifies the payment process for sub-merchants by providing a. Send you one of 100+ unique reports with suggestions that fit like a glove. Supranuclear refers to the region of the brain affected by the disorder — the section above 2 small areas called nuclei. The PayFac model eliminates these issues as well. But that’s where the similarities end. The contract is typically between the sponsor and the merchant, but the ISO may sometimes be included in a three-party agreement. A payment processor receives the initial authorization request when the card is swiped to make a purchase. 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. It's rather merging into one giving the merchant far better control. From recurring billing to payout, we’re ready to support you and your customers. Both aggregators and facilitators offer similar benefits from the perspective of the end-user. But how that looks can be very different. 11 + $ 0. ISOs and PFs may occupy similar space, but their fundamental differences set them apart from each other. Problems with swallowing, which may cause gagging or choking. €0. A Payment Facilitator, or PayFac, is a sub-merchant account used by merchant service providers to provide payment processing services to their own clients, known as sub-merchants. 27. Here are the main considerations when deciding between a PayFac and an ISO: Onboarding - the ISO onboarding process is usually. Our white label solution. Difference #1: Merchant Accounts. Instead of each individual business. PayFacs take care of merchant onboarding and subsequent funding. CAC = $10,000 / 1,000 = $10. For large payment facilitators. We have defined three distinct categories: global, international, and regional PSPs. In the UK, however, workers have the right to one uninterrupted 20-minute rest break during the work. 5 would go to the reseller. According to experts, Uber and AirBnB rely on the services different gateway partners in different parts of the world. 收单行 (Acquirer): 收单金融机构，也可同时作为PSP向商户提供服务。. Payments for software platforms. This is. That means they have full control over their customer experience and the flexibility to. Oct 2001 - Oct 2015 14 years 1 month. Higher fees: a payment gateway only charges a fixed fee per transaction. One integration to unlock the latest in online payments and bank-to-bank payment methods across North America. Payfacs work by having a master merchant account (and a master MID) through its relationship with acquiring banks. Payfac is the abbreviated term often used in the payments industry to describe a company that provides payment processing services to businesses. Instead of going through the lengthy and expensive process of setting up multiple integrations, you can save time and money by using MONEI to accept all the payment methods you’ll ever need. The Payment Facilitator uses a sub-merchant platform to provide two types of merchant accounts, a PSP and an ISO. Popular 3rd-party merchant aggregators include: PayPal. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. A payfac vs. A payment facilitator, commonly known as a payfac, occupies one of the central roles within the payment processing ecosystem, yet it causes significant confusion. The core of their business is selling merchants payment services on behalf of payment processors. When it comes to choosing between a PayFac and an ISO, the best option depends on your business's specific needs and preferences. MSP = Member Service Provider. Stripe’s payfac solution. A payment facilitator is a company that allows their customers to accept electronic payments using the payment facilitator’s infrastructure. . For merchants, it is often cheaper and more convenient to use services of a PSP, rather than have different contracts with various payment gateways, processors and acquiring banks. The principal versus agent guidance in ASC 606 applies to revenue arrangements that involve three or more parties and is applied from the perspective of an intermediary (for example, a reseller) in a multi-party arrangement. Code Connect offers many API products for Modern Banking Platform in its API catalog. It’s also possible to monetize transactions with both options. Payment Service Provider (PSP) is like a Pay-Fac, but where you get your own Merchant Account (meaning your business passes credit check / underwriting process). Prepare your application. On the one hand, these services unlock purchasing power, helping customers manage their finances. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. paylosophy. 1. 11 + 4%. • The UMRN, the Sponsor Bank Code and the Utility Code are meant for office use only and need not be filled by the investors. Blog. In essence, they become a sub-merchant, and they face fewer complexities when setting. Payment is becoming more cashless than ever now as a massive number of transactions are digitally carried out through credit cards and e-wallets. 70. A payment facilitator, on the other hand, provides onboarding, processing and settlement solutions to a range of merchant types and may offer solutions in both a card present and an ecommerce environment. Pay360 Evolve puts you in control of monetising your service, and lets you offer your customers a world class global payment experience directly from your software platform. It manages the transfer of funds so you get paid for your sale. PayFacs perform a wider range of tasks than ISOs. The number of Payfacs is estimated to have grown by 13. The first thing to do is register. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Consequently, only the PSP’s payment application (which does have the encryption key) is capable of decrypting the swipe. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. So, when the swipe is read, neither the merchant, nor the business-specific software. PayFac vs ISO: which one to choose for your business? Read article. Companies that provide software and other infrastructure for. Discover flexible, scalable solutions that fuel your growth and transform the payments experience to delight your customers. It has to provide both merchant services and a payment solution. The easy-to-use and instantaneous nature of the Payment Facilitator makes it such a popular choice among merchants. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. TabaPay View Software. Toggle Navigation. “Sponsoring Payfacs is a relationship between the bank the Payfac and the hundreds or thousands of downstream merchants underneath the Payfac,” Spalinger said. The Vita ditches that technology for cartridges and digital downloads instead. An HSM appliance is a physical computing device that safeguards and manages digital keys for strong authentication and provides crypto-processing. An MoR acts as a payment processing service that is essentially a reseller of the merchant’s goods or services, and a payfac assumes responsibility for establishing and managing the relationships that the merchant needs to start taking payments. 支付服务商(PSP): 商户的支付对接合作伙伴。 收单行(Acquirer): 收单金融机构，也可同时作为PSP向商户提供服务。 收单处理机构 (Processor): 负责处理收单数据的信息服务商。 Payment Facilitator (PayFac): 大商户模式，是商户而不是收单机构。Payfac可以对接一些子. But like with any payment option, there are different Payfac models to choose from. BOULDER, Colo. The PayFac model allows a single entity to become the “merchant of record” and board sub-merchants with fewer data requirements and scrutiny. 2. The arrangement made life easier for merchants, acquirers, and PayFacs. The risk-sharing model provides financial protection against chargebacks and fraud. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. You own the payment experience and are responsible for building out your sub-merchant’s experience. Build payments economies of scale and achieve end-to-end efficiency. In each episode, we bring togeth…IXOPAY’s payment platform offers White Label solutions for PSPs, ISOs and sales agents, allowing them to manage payment flows, provide modern centralized merchant services and accurate reporting to their global online merchants. facilitator is that the latter gives every merchant its own merchant ID within its system. Moreover, integrating a payfac solution into ISV’s software removes the need for a merchant to create a relationship outside of the software with acquiring banks or payment gateways. A powerful payment gateway that supports an extensive combination of devices, and operating systems for point of sale payments. But regardless of verticals served, all players would do well to look at. Stripe is free to set up and the company does not charge a monthly or annual fee for its services. July 12, 2023. Fueling growth for your software payments. It doesn’t have to be this complex and expensive. This crucial element underwrites and onboards all sub. A payment processor executes the money transfer by exchanging data between the merchant, the issuing bank and the acquiring bank. There are some native RetroArch cores for vita. Payments designed to. Read article. On the other hand, a PayFac is a company that simplifies the payment process for sub-merchants by providing a. The disease affects an estimated 10. This, in turn, gave way to re-bundling, as these services were aggregated into a single vendor for online and offline transactions. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. As a result, it would link the merchant and the acquiring bank. Payment method Payment method fee. 2 million annually. The PayFac would also need to hire a FTE to take exceptions and review these exceptions for risk. Payment facilitators conduct an oversight role once they have approved a sub merchant. The term “white label” stands for a technology that our customers and in particular payment professionals can use,. Not only does the PS Vita have a touchscreen for its main display, but it also has a touchpad. PayPal using this comparison chart. A few wholesale ISOs undertake underwriting risk, but most ISOs step away from this task. 5. Jun 29, 2023. com. Nintendo claimed Gamecube had about 12 million polygons per second. What is a payment facilitator? ISO vs PayFac . If the merchant fits the requirements, PayFac onboards is a sub-merchant under the master MID. What SaaS & E-commerce Companies Need to Know About Payment Facilitator Regulations, and what key regulations. PayFac registration may seem like the preferred option because of the higher earning potential. PayFac vs Payment Processor. Aug 10, 2023. Embedding payments into your software platform is a powerful value driver. 1. 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. Exact Payments is a team of payments experts with years of experience helping clients build and manage payments solutions. Registered payment facilitators earn 20-40 basis points more per transaction than they would riding the rails of another wholesale PayFac. Under the PayFac model, a merchant is set up under the PayFac’s master account, but they are onboarded with their own unique MID. retailers. Our Solutions. Firstly, it has a very quick and easy onboarding process that requires just an. See Bambora: PayFac vs Gateway vs Merchant Account PSPs In-between an ISO and a Pay-Fac. Payment facilitator model is becoming increasingly popular among many types of companies. Skaleet's Core Banking Platform helps marketplaces launch their PayFac solution by opening a merchant bank account and receiving a merchant category code (MCC) to acquire and aggregate payments for a group of smaller merchants, typically called sub-merchants. As a result, it would link the merchant and the acquiring bank. In the scenario of a SaaS company operating as a PayFac, you are the master merchant and your customers are the sub-merchants. PayFac is software that enables payments from one vendor to one merchant. PayFacs have the. Products. ISOs function only as resellers for processors and/or acquiring banks. First, a PayFac needs to establish a partnership with an acquiring bank, and get sponsorship to process payments for sub-merchants. As intermediary technologies between a payment system and merchant, Independent Sales Organizations (ISOs) and Payment Facilitators (PayFacs) serve a very similar purpose. GETTRX absorbs the stress of fraud monitoring and compliance reporting while you focus on your business. And that PlayStation handheld has now been officially named as the PlayStation Portal, which Sony calls a ‘remote player’ owing to its reliance on the PS5 itself – read on and we’ll tell you more about that. Your provider should be able to recommend realistic metrics and targets. A PayFac handles the underwriting. The MoR is liable for the financial, legal, and compliance aspects of transactions. a Payment Service Provider (PSP), aka a Payment Facilitator (PayFac). LTV:CAC Ratio = $1. The Visa® merchant aggregation model covers all commerce types, including the face-to-face and e-commerce environments, and helps to increase electronic payment acceptance for merchantsFast, efficient boarding solutions that orchestrate third-party and internal systems to help you turn prospects to customers – face-to-face, on the phone, or online. 4 million to $1. Global Electronic Technology, Inc. Processors follow the standards and regulations organised by credit card associations. Don’t let this be you. Merchant of record vs. The main difference between payfac and payfac-as-a-service is the ownership of the payment processing systems and level of control the business has over. See Bambora: PayFac vs Gateway vs Merchant Account PSPs In-between an ISO and a Pay-Fac. You'll need to submit your application through Connect . But regardless of verticals served, all players would do well to look at. In some cases, one entity can provide both functions for merchant customers. You own the payment experience and are responsible for building out your sub-merchant’s experience. And the cameo makes it all come together! Thanks, Timmy Nafso for having me. 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. On the other hand, a PayFac is a company that simplifies the payment process for sub-merchants by providing a. One classic example of a payment facilitator is Square. PSPs, including PayFacs, are entities, to which acquiring banks and payment network providers delegate merchant lifecycle management functions in. The acquirer will then pass the information to Mastercard to run the check, and the results will be passed back to the Payfac. Without a. PayFacs offer greater risk management abilities and impose stringent underwriting controls. Really, there are only four things to note. A PayFac will smooth the path. For financial services. Depression and anxiety. Key points. 1. The ISO is an intermediary signing up the merchants for the acquirer’s payment processing services. The underlying role that these fill for a business is to provide merchant services, and you can read our reviews of various merchant service providers here. However, there are instances where discrepancies arise. Banks can and commonly do hold both roles. Very few PayFac as Service providers publish pricing to sub PayFac’s and there is a reason. Higher fees: a payment gateway only charges a fixed fee per transaction. VikingCloud offers cloud-native predictive algorithms and innovative technologies help keep your organization safe. A card acquirer maintains the merchant’s account to accept payments for them, whereas a payment processor is only responsible for processing payments; merchants are not dealing directly with the processor during the. Wide range of functions. As PSP have become aspirational the difference between white label solutions and Payfac are slowly fading away. ISOs may be a better fit for larger, more established. 40. Square has been one of the most disruptive technology companies in the past decade, yet they recently caught the media’s attention for the wrong reason. With an integrated payments partnership, you don’t need endless development hours or a huge IT staff to get started. Very rarely, said Mielke, do ISVs win with the “knee-jerk reaction of becoming a PayFac and capturing those additional revenues. When it comes to choosing between a PayFac and an ISO, the best option depends on your business's specific needs and preferences. Here are some pros and cons of Payment Aggregation: The disadvantages to the Payment Facilitator model. 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. If you are an existing Bambora customer who needs assistance there are our support guides that can be found here. PayFac® solutions, at your service Worldpay from FIS is your advocate for payment facilitator solutions. May 24, 2023. 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. This model is ideal for software providers looking to. April 12, 2021 Independent sales organizations (ISOs) and payment facilitators (PayFacs) both act as intermediaries between merchants and payment processors, making them. On the other hand, a PayFac is a company that simplifies the payment process for sub-merchants by providing a. 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. The PSP in return offers commissions to the ISO. Another option to generate a profit from payments is to consider becoming a referral partner for an existing payment facilitator. These marketplace environments connect businesses directly to customers, like PayPal,. 7shifts is an all-in-one restaurant team management platform that helps operators manage work schedules, time clocking, team communication, labor compliance, payroll, tips and more, all from one single place. And acquiring banks, particularly the larger ones, sometimes offer payment processing services to their merchant clients. Say, for a $100 transaction processed the merchant would keep $95, $3. Nasp's online training and certifications. 8% worldwide (CAGR - compound annual growth rate) over 2018-2025 1. The key aspects, delegated (fully or partially) to a. Tipalti is transforming finance and helping the hottest companies grow and scale their global operations — world-changing businesses such as Amazon Twitch, Twitter, and Roblox. PayFac or the Payment Facilitator is the third-party payment services provider (PSP). Progressive supranuclear palsy, or PSP, is a rare neurodegenerative disease that is often misdiagnosed as Parkinson's disease because its symptoms are similar. The PSP is an amazing piece of handheld history, but how does it stack up in 2023? This video is an extensive look at buying, modding, and gaming on a PSP in. Many large banks, for example, issue credit. All ISOs are not the same, however. PayFacs take care of merchant onboarding and subsequent funding. net is owned by Visa. Identify gaps in your AR practices to understand where you have room to grow. What is a merchant of record? Read article. Management of a reporting entity that is an intermediary will need to determine. 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. Small/Medium. Is a Payment service provider and payment gateway the same?PayFac vs ISO: Key Differences. 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. It provides a technology, allowing to authorize transactions and, potentially, receive transaction settlement information. As a managed PayFac, you will not have the full risk liability, you will not undertake 100% of the underwriting on your own or incur registration. Cincinnati, Ohio Area. Braintree became a payfac. Join our network of a million global financial professionals who start their day with etf. Stripe. e. apac@bambora. Last updated August 17, 2023 US retail ecommerce sales are expected to reach $1. A PSP is a company that offers merchants a range of payment processing solutions. The term “merchant of record” refers to the entity that is legally authorized and responsible for processing customer payments —including credit and debit card transactions and digital wallet transactions —for goods or services on behalf of a business. On the other hand, a PayFac is a company that simplifies the payment process for sub-merchants by providing a. Square has been one of the most disruptive technology companies in the past decade, yet they recently caught the media’s attention for the wrong reason. November 10, 2021. In this article,. Overall responsibility. One of the critical differences between payment processors and payment facilitators is the underwriting/approval process. We feel that people, asking such questions, just want to implement payment processing logic, similar to. However, if the business experiences rapid growth and needs to onboard a large number of merchants, the payfac may face scalability challenges. On the other hand, a PayFac is a company that simplifies the payment process for sub-merchants by providing a. Payment Facilitator (PayFac): 大商户模式，是商户而不是收单机构。. Premier Payments Online · June 26, 2020 · June 26, 2020 ·Descriptor definition. The current plan is to remove PSP from Kubernetes in the 1. To manage payments for its submerchants, a Payfac needs all of these functions. Those different purposes lead the two business models to appear and operate very differently. responsible for moving the client’s money. 0x. Specifically, PSP impacts areas of the brain near nuclei. Compare PayFast vs. September 28, 2023 - October 6, 2023. As PSP have become aspirational the difference between white label solutions and Payfac are slowly fading away. However, payment processing can quickly become overwhelming and complicated, often leaving businesses feeling unprepared and doomed to failure. Before you go to market as a PayFac, it is a good idea to set a goal to define success. On the other hand, a PayFac is a company that simplifies the payment process for sub-merchants by providing a. The terms aren’t quite directly comparable or opposable. 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. Use a walker that is weighted, to help prevent. THIRD PARTY AGENT An entity that provides payment related services on behalf of a Visa Client. This can include card payments, direct debit payments, and online payments. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. Aug 10, 2023. ISOs. The first is the traditional PayFac solution. Here’s how: Merchant of record. Payfac as a Service is the newest entrant on the Payfac scene. The PF may choose to perform funding from a bank account that it owns and / or controls. 5%) and PGA values (41% vs 21%) In PSP cohort: Yes: NA a: Ryan et al. A business that meets one or more of the definitions of a type of MSB (as currently defined) is an MSB and must comply with BSA requirements applicable to it as an MSB, as a financial institution and as a specific type of MSB. The main difference between a payment aggregator and a PayFac is the type of merchant ID (MID) used to differentiate accounts. The difference between a card acquirer, a PSP and a payment processor is that these entities perform different tasks. Here are the best alternatives to Stripe from providers like Square, Helcim, and Treati. Core from WePay gives you the tools to become a Payment Facilitator (PayFac) on Chase's payments infrastructure. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. Onward!IndexCode Connect: FIS Code Connect is an API Marketplace or API Gateway, which provides one-stop access to all APIs across FIS. Independent Sales Organization (ISO) Provides specific services directly or indirectly to issuing and/or acquiring clients. Psp games, on the vita, can look less sharp and some emulators run within the psp emulation Adrenaline. Hybrid PayFac or Hybrid Payment Facilitation. Loss of interest in pleasurable activities. Software users can begin. 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. Each ID. Malaysia. Link. comPayment software, infrastructure and team as a service. An existing PayFac will generally give you a small fee or small % per transaction for merchants you have referred to their platform. A new, handheld PlayStation console is here. It used to take weeks to get a merchant account, but then Payfacs came around and simplified the enrollment process by creating a sub-merchant platform. This article is part of Bain's report on Buy Now, Pay Later in the UK. As your true payments partner, we provide you with an entire division of payments experts essentially in house. Since these organizations are always expanding into other areas related to enhancing the payment transaction experience. Sooner or later, most vertical SaaS companies will have to become some form of a payment facilitator (a. PayFacs provide a similar service to standard merchant accounts, but with a few important differences. Reduced cost per application. At Revision Legal, we protect businesses that thrive online, and understand the connections between law, technology, and business. FinTech innovators love the payment facilitator (PayFac), a shift that WePay co-founder Rich Aberman outlined in Episode 1 of the Payment Facilitators series with Karen Webster, CEO of PYMNTS. Whether to become a Payment Aggregator or Payment Facilitator has far reaching implications for a SAAS application provider. It’s used to provide payment processing services to their own merchant clients. What’s the distinction between Payfac and PSP? A payment Facilitator is a third-party payment service provider (PSP). The payment facilitator model was created by the card networks (i. This provides greater ease-of-use, but the PSP charges more per transaction in exchange. The tool approves or declines the application is real-time. The PayFac aggregates transactions and sends them to its processor, keeping operations streamlined. An MoR acts as a payment processing service that is essentially a reseller of the merchant’s goods or services, and a payfac assumes responsibility for establishing and managing the relationships that the merchant needs to start taking payments. However, it is not specific gateway solutions that matter. For their part, FIS reported net earnings of $4. Sometimes a distinction is made between what are known as retail ISOs and. Jun 29, 2023. These nerve nuclei are often found in the brainstem and can impact vision, swallowing, speech, and more. Settlement must be directly from the sponsor to the merchant. 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. Avoiding The ‘Knee Jerk’. PSP = Payment Service Provider. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. Consequently, the reseller can mark it up and offer the service at 5% and collect 1. As with all feature deprecations, PodSecurityPolicy will continue to be fully functional for several more releases. There’s not much disclosure on the ‘cost of sales’ (i. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. 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. 5. What ISOs Do. Selecting the suitable operating model and payment service provider (“PSP”) partner is at the core of a payfac strategy. Learn more about Pay360 by Capita, a leader in integrated payment services & card processing for local government, retailers, gaming & ecommerce businesses. Payment facilitation, or “payfac,” continues to grow in popularity among software providers and is designed to facilitate payment card acceptance without requiring individual merchants to go through the lengthy process of establishing traditional merchant accounts. . The payfac has a more specific focus on the payment processing element. Vantiv. 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. Here are the six differences between ISOs and PayFacs that you must know. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. PayFac vs Payment Processor. A payment gateway on the other hand is technology that verifies payments between merchants or vendors. On balance, the benefits are substantial and the risks manageable. However, since PayFacs perform activities like application. PayFacs are based on the merchant aggregator model created by Visa and MasterCard to provide support for payment card acceptance in marketplaces. Here's a rundown of each device with links to detailed specs. Since the start of COVID-19, Square has begun to hold back 20 to 30 percent of some of their client’s revenues for up to 4 months.