Now let’s dig a little more into the details. This allows faster onboarding and greater control over your user. For example, an. ISO question. Payfac is the abbreviated term often used in the payments industry to describe a company that provides payment processing services to. 2. The ISO is an intermediary signing up the merchants for the acquirer’s payment processing services. 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. Under the PayFac model, each client is assigned a sub-merchant ID. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. Compare PayFast vs. In order to understand how ISOs fit. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. 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. Most businesses that process less than one million euros annually will opt for a PSP. 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. An ISO is an intermediary entity that resells and markets payment processing services on behalf of banks and payment processors. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. When you start accepting payments online, you need a merchant account from a payment facilitator with sufficient infrastructure and proper compliance to process payments . However, the setup process might be complex and time consuming. The PayFac, he said, has emerged, and evolved from its 1990s underpinnings where merchant acquirers had handled that merchant enrollment, boarding, underwriting and even settlement. For example, an. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. 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. For example, an artisan. But of course, there is also cost involved. Why more and more acquirers are choosing the PayFac model. You own the payment experience and are responsible for building out your sub-merchant’s experience. These systems will be for risk, onboarding, processing, and more. For example, an. ISO vs. 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. Blog Exact Payments CEO, Phil Levy, Discusses the Future of Fintech With The Strawhecker Group. In exchange for the user fees, PayFac underwrites these new merchants and assumes the risk of any payments made through its platform. 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. PayFac: ISO: Merchant onboarding timeline : Instant account approvals: Days or weeks : Sign-up process: Quick and easy. The arrangement made life easier for merchants, acquirers, and PayFacs alike. For example, an. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and. Independent sales organizations (ISOs) and payment facilitators (PayFacs) both act as intermediaries between merchants and payment processors, making them parallel channels in the overall payments ecosystem. Recently, the concepts of PayFac and aggregators have started converging. PayFac vs. ,), a PayFac must create an account with a sponsor bank. ISV: An Independent Software Vendor (ISV) is a company that creates and sells software. No matter what your size, we can help enhance your business with streamlined, intuitive payment options for your customers, backed by a suite of payment tools to help you: Streamline billing and. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Our digital solution allows merchants. The downside of this speed is the risk exposure in a breach; if a retail ISO is breached the acquirer steps in and shoulders most of the load. ISVs create software for companies in the payments industry. The name of the MOR, which is not necessarily the name of the product seller, is specified by. However, the setup process might be complex and time consuming. Although each of these methods offer their own distinct advantages, understanding how they differ and which option is right for your specific. One of the key differences between PayFacs and ISO systems is the contractual agreement. For example, an. Payment Facilitator (PayFac) vs Payment Aggregator. During Jim's tenure with NPC and Vantiv, he also drove the development of and relationship with several key NPC ISOs, as well as oversight and management of specific. However, the setup process might be complex and time consuming. Qualpay offers a fully-integrated payment processing solution, including merchant account, payment gateway, invoicing and recurring payments. Principal vs. 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. However, the setup process might be complex and time consuming. For example, an artisan. However, the setup process might be complex and time consuming. The Kiflo PRM vendor dashboard keeps partnership teams up-to-date on all partner activity. payment gateway; Payment aggregator vs. The PayFac does not have to underwrite all merchants upfront — they are instead, underwriting the merchants essentially as they continue to process transactions for them on an ongoing basis. Payment processors The PayFac model thrives on its integration capabilities, namely with larger systems. A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. Let’s figure it out! ISO vs. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Fortis manages everything for you – underwriting, fraud monitoring, funding, gateway reporting, and chargeback management. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. This solution involves you partnering with either (1) an acquiring bank or (2) an acquirer and a payment facilitator vendor. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. e. In the U. FIS’ rival, Fiserv, acquired the remaining stake of Finxact for $650 million, while another company, Fintech Amount, bought Linear for $175 million. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. implementation of a payment facilitator model) calls for getting certified as one by the respective acquirer, and for. While there is some overlap between a payment processor and a PayFac, there are also some important differences you should be aware of (although this isn’t a fully exhaustive list!) Here are the top 6 differences: The electronic payment cycle 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. Stripe By The Numbers. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. A payfac or PF, short for payment facilitator, makes it possible for you to accept payments from customers in a variety of ways, including card payments,. Get notified when Stripe Reader S700 is available in your country. Our payment-specific solutions allow businesses of all sizes to. Square, Stripe, PayPal, AirBnB and Uber are well-known examples of PayFacs. ISOs. However, the setup process might be complex and time consuming. In simple terms, the MOR is the name that the customer (cardholder) sees on the receipt. 1. ISOs and ISVs are both B2B providers, working with merchants and the companies who serve them. S. This means that a SaaS platform can accept payments on behalf of its users. the PayFac Model. 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. Visa, Mastercard) around 2011 as a way for aggregators to provide more transparency into who their sub-merchants were. For example, an. However, in terms of payment processing, the end result is largely the same for your organization. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. ISOs function primarily as sales agents or. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. As he noted, among the firms that most commonly move down the PayFac path – ISOs, ISVs and platform businesses – the benefits stand out quite brightly: easier. e. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. So, what. First, it means tiny commissions can add up extremely quickly. However, the setup process might be complex and time consuming. agent A specified good or service is a distinct good or service (or a distinct bundle of goods orPayment facilitator model allowed all categories of entities to benefit: merchants received fast and smooth underwriting, acquirers could save resources and service larger numbers of merchants. However, the setup process might be complex and time consuming. Can an ISO survive without becoming a PayFac? Becoming a PayFac (i. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. The process of becoming a PayFac typically involves the following phases: Assessing the feasibility — Companies should first assess whether becoming a PayFac aligns with their business goals, resources, and risk tolerance. 2 Payfac counts exclude unidentifiable or defunct companies. GETTRX’s Zero and Flat Rate packages offer transparent billing, competitive rates, and industry-leading customer service, making them ideal choices for businesses seeking a seamless payment experience. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Sometimes a distinction is made between what are known as retail ISOs and. e. Research firm Statista estimates payfac transaction volume totaled $88 billion last year,. Traditional – where banks and credit card. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. However, the setup process might be complex and time consuming. It could be a product that is yet to reach the buyer,. North America is a Mature ISV Market, Europe is Not. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent that. For example, an. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. Even better? Funds are settled to the PayFac’s account and it’s determined by the PayFac to move those funds to the merchant. A best-in-class payment solution. This model is ideal for software providers looking to. 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. Sub-merchants sign an agreement with the PayFac for payment. When the form is submitted I am using a flow to generate an approval, this works as expected. However, the setup process might be complex and time consuming. The contract is typically between the sponsor and the merchant, but the ISO may sometimes be included in a three-party agreement. Payment Facilitators (commonly known as PayFacs or PFs) have risen in popularity over the recent years. If you want to take a full revenue model opposed to a commission based model anyway. While there are advantages to taking on high risks, such as greater flexibility. The bank receives data and money from the card networks and passes them on to PayFac. The PayFac aggregates transactions and sends them to its processor, keeping operations streamlined. Comments on: ISO vs Payfac: Choosing the Right Payment Solution for Your BusinessA: Mastercard Send is the first-of-its-kind interoperable global platform that enables funds to be sent quickly and securely. 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. Thus, it would arrange communication between both parties, the merchant and the acquiring bank. S. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. One of the key differences between PayFacs and ISO systems is the contractual agreement. The Traditional Merchant Onboarding Process vs. 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. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. However, the setup process might be complex and time consuming. For example, an artisan. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. Call it the Amazon. To put it another way, PIN input serves as an extra layer of protection. Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an. However, the setup process might be complex and time consuming. These companies include owners of SaaS platforms, franchisors, ISO, marketplaces, and venture capital firms. ISO vs. Within the ARM industry, PayFac models can provide an especially significant benefit – these models can be used to enable full compliance for convenience fee solutions, in order to protect collection agencies from non-compliance risks including lawsuits,. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFac vs ISO: Key Differences Even though PayFacs and ISOs may seem to be quite similar on the surface, there are a few key differences between them. What is a payfac? A payfac, short for payment facilitator, is a type of provider in the payments industry that simplifies the process for other businesses to accept credit and debit card payments. However, the setup process might be complex and time consuming. July 12, 2023. Clover vs Square. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The merchant provides a few basic details to their PayFac provider. MoneySend is the Mastercard transaction type (Transaction Code 28) designed. “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 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. 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. In almost every case the Payments are sent to the Merchant directly from the PSP. However, the setup process might be complex and time consuming. PayFac is more flexible in terms of providing a choice to. But regardless of verticals served, all players would do well to look at. 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 does not send the payments to the merchant. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. However, the setup process might be complex and time consuming. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. Independent sales organizations (ISOs) and payment facilitators (PayFacs) both act as intermediaries between merchants and payment processors, making them parallel channels in the overall payments ecosystem. 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. With Fortis’ PayFac solution, software developers and merchants can leverage award-winning APIs and leading payment technology to scale their business. 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 artisan. 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. A PayFac works by establishing one master merchant account, which can then be leveraged by multiple businesses for a small fee. Below we break down the key benefits of the PayFac model for software. Priding themselves on being the easiest payfac on the internet, famously starting. e. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. 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. PayPal using this comparison chart. Payfac and ISO models involve much more regulatory and compliance overhead than payfac-alternative models. Before offering customers payment methods from popular card networks (Visa, Mastercard, etc. For example, an. You own the payment experience and are responsible for building out your sub-merchant’s experience. Registering as a payment facilitator (PayFac) or independent sales organization (ISO) have become popular options for SaaS companies looking for a comprehensive payment strategy. However, the setup process might be complex and time consuming. 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. a merchant to a bank, a PayFac owns the full client experience. Payfac is a contracted Independent Sales Organisation (ISO), so they have the responsibility to manage their own sales agents and underwriters and adhere to the rules of the card associations. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. In this hybrid payment facilitation model, the Payfac payment service provider becomes a Payfac with Sponsor Banks; they act as a master merchant account and are able to set up sub-accounts for merchants same-day. The facilitator company collects and manages the money. 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. Today. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank. Stripe. At the same time, Paragon Payment Solutions assumes the majority of risk and responsibilities related to operational expenses, chargebacks,. The PayFac model allows a single entity to become the “merchant of record” and board sub-merchants with fewer data requirements and scrutiny. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. Today’s PayFac model is much more understood, and so are its benefits. e. if ms form category == cat02 then save to My Docs. As merchant’s processing amounts grow, it might face the legally imposed. 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. becoming a payfac. These companies have. Benefits and criticisms of BNPL have emerged on several fronts. 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. Our digital solution allows merchants to process payments securely. A PayFac provides credit card processing services to merchants on behalf of a bank or other. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. Blog 6 Ways Embedded Payments Benefit B2B Accounting SaaS. Companies large and small rely on their accounting/finance, billing, cash. 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. However, the setup process might be complex and time consuming. com explains everything you need to know. When you swipe a credit card, transfer money, or make an online purchase, there’s an inherent belief that the system will handle these transactions efficiently and accurately. 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. Is a PayFac a merchant acquirer? A PayFac contracts with 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. Payfac is a contracted Independent Sales Organisation (ISO), so they have the responsibility to manage their own sales agents and underwriters and adhere to the rules of the card associations. When you want to accept payments online, you will need a merchant account from a Payfac. PayFacs are businesses that resell merchant services on behalf of a payment processor, lightening the processor’s load and earning a slice of every transaction fee – known as a residual – in the process. 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. ISOs offer greater control and potential cost savings for larger businesses with high transaction volumes, while payfacs provide a simpler, all-in-one solution for smaller businesses or those with fewer needs. For example, an. PayFac: Key Differences & Roles in Payment Processing Read more Top 4 Benefits of Being an Independent Sales Agent Read more Why Becoming a Sales Agent in the Payments Industry is a Great Job Opportunity! Read more How to Become a Successful Sales Agent in the Payments Industry. MSP = Member Service Provider. 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. an ISO. 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. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Typically, the ISO stays out of the contract between the two and instead focuses on the relationship with the payment processor. A Quick Overview of What Provisional Credit Entails. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. The differences of PayFac vs. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. For example, an artisan. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. You could also work with an existing ISO and get a buy rate, then make X over that Buyrate but you wouldn’t be able to be in the agreement or have any access to claim the discount or. When you enter this partnership, you’ll be building out. PayFac vs Payment Processors. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac and payfac-as-a-service are related but distinct concepts. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. 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. Understanding the differences between an ISO versus a PayFac will help you see why using a plug-and-play PayFac-as-a-Service solution is the most effective payment acceptance choice. PayFac Solution Types. Both the PayFac and ISO acquisition models have unique benefits and drawbacks. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Visa or MasterCard bank) member, but that has a relationship with an organization that is an Association member. Take Uber as an example. On. However, the setup process might be complex and time consuming. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. ) The PayFac takes on merchants as its own contracted “sub-merchants,” which process their transactions through the master merchant account. Each of these sub IDs is registered under the PayFac’s master merchant account. A Payment Facilitator or Payfac is a service provider for merchants. 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. g. A payment facilitator allows sub-merchants under one master merchant to process payments easily, with less hassle. Higher fees: a payment gateway only charges a fixed fee per transaction. ISO. For example, an. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. PayFacs for short, are esoteric merchant acquiring entities that are really picking up momentum. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. Contracts. Each ID is directly registered under the master merchant account of the payment facilitator. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 4. For example, an. 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. PayFac vs. Payfac’s immediate information and approval makes a difference to a merchant. While all of these options allow you to integrate payment processing and grow your. Generally speaking, a PayFac might be suitable for. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. Typically, it’s necessary to carry all. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. For example, an. ISOs play an important role in the payment process, but many people aren’t sure what they are. For example, an. So naturally, any company considering the option needs to make sure the investment they’ll make in the Payfac model makes sense financially. For example, an. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. Processor relationships. The PSP in return offers commissions to the ISO. Even better? Funds are settled to the PayFac’s account and it’s determined by the PayFac to move those funds to the merchant. PayFacs perform a wider range of tasks than ISOs. According to SMB estimates. PayFac vs ISO. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payment Facilitators vs. Payment Processors: 6 Key Differences. The payment facilitator model was created by the card networks (i. FIGURE 6: SaaS Provider & Platforms – Observed PayFac Model Progression Journeys . 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 merchantsA 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. You own the payment experience and are responsible for building out your sub-merchant’s experience. 3. However, the setup process might be complex and time consuming. Click here to learn more. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. The ISVs that look at the long. Below we break down the key benefits of the PayFac model for software. 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. A Payment Aggregator or Facilitator [Payfac] can be thought of as being a Master Merchant-facilitating credit, debit card and ACH transactions for sub-clients within their payment ecosystem. 4. Before outlining the similarities and commonalities of ISOs and ISVs, it’s helpful to recap their key differences: ISOs sell payment solutions to merchants, with wholesale ISOs offering additional services such as customer support. Payscape is also a registered ISO/MSP for Fifth. 70. However, the setup process might be complex and time consuming. The bank receives data and money from the card networks and passes them on to PayFac. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. The payment facilitator works directly with the.