Set up Wix Payments. In essence, they become a sub-merchant, and they face fewer complexities when setting. This means that a SaaS platform can accept payments on behalf of its users. Independent sales organizations (ISOs) are a more traditional payment processor. A best-in-class payment solution. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. PayFac and online marketplace models do not compete, they are just intended to serve slightly different purposes. A merchant acquirer or an acquiring bank is a bank that underwrites (and later funds) a merchant and (what is important) assumes the liability and risk, associated with credit card fraud and chargebacks. So, the acquiring bank is in charge of the PayFac customers’ transaction processing. Both PayFacs and ISO’s (independent sales organizations) act as intermediaries between merchants and payment processors . With UniPay Platform you have the options of an affordable white label payment gateway solution, a full on-premise software license (including the source code), which ensures the top-quality payment processing. Moreover, in a sense, PayFac model relieved acquirers from merchant management functions, which they delegated to PayFacs. €0. 1. A Payment Facilitator [Payfac] is essentially a Master Merchant that processes credit and debit card transactions for sub-merchants within their payment. Revolutionize Business. ISO providers so that you can make an informed decision about which payment processing option makes the most. The main difference between the two entities is that one is a company that facilitates payments, and the other is a piece of software that integrates into a website or payment portal. A closer look at the economics from each $1 of payment volume. Payfac as a Service providers differ from traditional Payfacs in that. 3. So to sum it all up: payment processors offer the functionality for merchants to start accepting payments and route. Payment is becoming more cashless than ever now as a massive number of transactions are digitally carried out through credit cards and e-wallets. It then needs to integrate payment gateways to enable online. ,), a PayFac must create an account with a sponsor bank. The merchants are signed up under the payment aggregator MID. The former, conversely only uses its own merchant ID to. 9% + 30¢. While both models allow businesses to accept payments, a payfac might. becoming a payfac. I SO. Stand-alone payment gateways are becoming less popular. It also needs a connection to a platform to process its submerchants’ transactions. In this model, the ISV would need to acquire sponsorships from processors or banks, build gateway integrations, develop payment processes, hire payment specialists, maintain PCI DSS standards, and much more. A payment aggregator is a 3rd-party payment service provider (PSP) that allows merchants to process payments without having a merchant account. Sub-merchants operating under a PayFac do not have their own MIDs, and all. What the PayFac builds in the above analogy are the APIs that allow merchants to integrate into its platform, the payment gateway that’s responsible for tokenization and secure transmission of card data, and the tech behind such features as reporting and merchant onboarding. However, becoming a payfac requires a significant amount of up-front and ongoing work, like opening a merchant account, obtaining a merchant ID (MID), and getting your PCI DSS certification. A Payment Facilitator, commonly known as, a Payfac, has one master merchant account under which all the merchants join as sub-merchants. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent that. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. 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. Prepare your application. as a national independent sales organization in 1989. PayFac vs ISO. No setup fee. It is often used to refer generally to any number of providers ( including gateways – we’ll get to that in a minute) involved in enabling and supporting payments. Posted at 5:43 pm in Operations, Payment Processing. or by phone: Australia - 1300 721 163. If the intermediary entity, which funds the sub-merchants, uses different MID for each merchant, it is called a payment facilitator. 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. 7-Eleven Malaysia. A payfac is a platform that intermediates payments between consumers, payment operators (card operators, banks, PSPs, etc. 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 first is the traditional PayFac solution. Article September, 2023. The main difference between the two entities is that one is a company that facilitates payments, and the other is a piece of software that integrates into a website or payment portal. The value of all merchandise sold on a marketplace or platform. The MoR is also the name that appears on the consumer’s credit card statement. To fulfill its core responsibilities, a payment processor typically uses a payment gateway to 1) encrypt and transmit payment details, and 2) communicate transaction approvals and declines. It may be a good fit if. Becoming a payment facilitator is a change to your operational and support models, has and it pays long-term benefits. Fortis also. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting and customer support. Payfac-as-a-service vs. Minimum contract applies. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. Simplify funding, collection, conversion, and disbursements to drive borderless. The gateway encrypts the information it received from the buyer and sends the transaction data to a card association. 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. The rise of PayFac for marketplaces seeking to provide payment services 💡. TSYS Developer Portal is your gateway to access the APIs, tools and resources you need to integrate with TSYS payment solutions. For their part, FIS reported net earnings of $4. Onboarding processPayrix is the only PayFac ® as a service platform built by a payment facilitator, exclusively for software platforms. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. ISO does not send the payments to the. 11 + 4%. It needs to obtain a merchant account, and it must be sponsored into the card networks by a bank. The new PIN on Glass technology, on the other hand, is becoming more widely available. Cards. Both offer ways for businesses to bring payments in-house, but the similarities. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. Private Sector Support. The information flow for Batch is illustrated below: Your integration aggregates payer operations into a batch and uploads the batch of operations using HTTPS PUT over the Internet to the MasterCard Payment Gateway via the MasterCard Payment GatewayBatch service. Freedom to grow on your own terms. The ISO acts as an intermediary between the merchant and the payment processor, taking care of merchant recruitment, sales, and ongoing merchant. 0 can be both processor and gateway agnostic. Funding A major difference between PayFacs and ISOs is how funding is handled. This means businesses only need Stripe to accept payments and deposit funds into their business bank account. Your application must include: the application form relevant to your type of firm. Both offer ways for businesses to bring payments in-house, but the similarities. Facilitators for short are called “PayFac”. One key difference between payment facilitators and aggregators is the size of businesses or merchants they work with. SoftwareRight now, Stax offers three software plans for small businesses starting at $49 USD (Starter), and moving up to $89 USD (Growth), or $129 USD (Pro) per month. Step 4) Build out an effective technology stack. A facilitator provides merchants with their own Merchant ID under a master. If you want to offer payments or payments-related. You own the payment experience and are responsible for building out your sub-merchant’s experience. 30, including 2-3% for every transaction, and $0 to $25 monthly cost. Integrated per-transaction pricing means no setup fees or monthly fees. In other words, ISOs function primarily as middlemen (offering payment processing), while PayFacs are payment facilitation. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. A Payment Facilitator, 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. Payment facilitator’s role is to handle merchant lifecycle-related functions (from underwriting and onboarding to funding and chargeback handling) instead of the acquirer. As merchant’s processing amounts grow, it might face the legally imposed. You own the payment experience and are responsible for building out your sub-merchant’s experience. The best crypto payment gateways provide convenient interfaces for accepting multiple types of cryptocurrencies, flexible settlement options, and low fees. Our digital solution allows merchants to process payments securely. Payment service provider is a much broader term than payment gateway. Using payment facilitation, customers can be onboarded and verified quickly, with a faster underwriting process. The merchant obtains a gateway system, its supplementary APIs and the various forms of payment as a bundle and only has to sign one contract. Processors follow the standards and regulations organised by credit card associations. It works by using one umbrella merchant account that allows every merchant to open as a sub-account underneath it. Stripe benefits vs merchant accounts. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. It provides a technology, allowing to authorize transactions and, potentially, receive transaction settlement information. Payfac-as-a-service vs. A payment gateway is a software program that sits between the merchant and customer, often supplied and hosted by a third-party provider. With business activities in 50 markets and 150+ currencies around the world, we are now among the largest fully integrated merchant acquirer and payment processors in the world. Exact handles the heavy lifting of payment operations so software businesses can grow their revenue and valuation while improving product stickiness and customer satisfaction. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. First, a PayFac needs to establish a partnership with an acquiring bank, and get sponsorship to process payments for sub-merchants. In many of our previous articles we addressed the benefits of PayFac model. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. A Payfac provides PSP merchant accounts. The Payfac Solution Provider (PSP) handles all of the underwritings, setting up of accounts, development of integrations with processors, connections with gateway partners (if applicable), the. becoming a payfac. Gateway providers typically charge setup fees to generate a new gateway account and these fees usually range from $5-$25/Merchant and are a one time upfront fee per new merchant account setup on the gateway. With Stripe's payfac solution, unlock SaaS revenue, turn payments into a profit center, and offer new financial services through your software platform. Gateway. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. This gateway is designed to be PCI compliant, taking steps to protect credit card information by complying with industry security standards. The payment gateway provider must be able to offer you the liberty to get anyone on board and do business with them. Seamless graduation to a full payment facilitator. On-the-go payments. With Fortis’ PayFac solution, software developers and merchants can leverage award-winning APIs and leading payment technology to scale their business. A payment processor sends card information from a merchant’s POS system to the card networks and banks involved in the transaction. What ISOs Do. The first thing to do is register. Access Worldpay uses cloud-based, RESTful JSON APIs for simple integration of online payments. PayFacs can provide an infrastructure and gateway for sub-merchants, providing them with benefits such as an automated underwriting tool with real-time approval and integrated fraud prevention. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. 150+ currencies across 50 markets worldwide. Onboarding process responsible for moving the client’s money. To ensure high security and performance levels, providers may make their own recommendations but can also honor existing gateway and processor relationships. One classic example of a payment facilitator is Square. Online Payment System Software and Global Payment Processor - UniPay Gateway. Instead, in the PayFac model, a small business gets a submerchant account under the master merchant. Stripe benefits vs merchant accounts. Global expansion. By Ellen Cibula Updated on April 16, 2023. Payments. A relationship with an acquirer will provide much of what a Payfac needs to operate. 01. The TPA categories are listed in the table below. Here are the best crypto payment gateway providers, including Coinbase Commerce, BitPay, and CoinGate. ISO vs. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. They decided to add a $285 annual fee to their merchants starting in. Aggregate processing means the funds from transactions are paid out to the PayFac first, who then distribute them to. Gateway Service Provider. 1. That is, the gateway, capable of accommodating all PayFac-specific features it requires. A merchant account is an account provided by your payment processor that receives the funds from your online. Mastercard PayFac Models: The Ins and Outs of the “Big Two” Payment Facilitator Programs. The PayFac then redistributes funds to its sub-merchants, and handles any future refunds or chargebacks. July 12, 2023. PayFac Solution Types. 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. PayFacs take care of merchant onboarding and subsequent funding. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. What SaaS & E-commerce Companies Need to Know About Payment Facilitator Regulations, and what key regulations govern their operation. Benefit from fault-tolerant, scalable services plus rapid, safe, data-driven product enhancements on a. 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. New PayFacs will. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting and customer support. 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. com. In 2019, Visa and MasterCard generated combined revenues of almost $40 billion. Powerful payment solutions for businesses of all sizes. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its. The road to becoming a payments facilitator, according to WePay. If your platform needs to operate internationally and support sub-merchants in other regions, partnerships with local acquirers, gateways, and other service providers may be necessary. In almost every case the Payments are sent to the Merchant directly from the PSP. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting and customer support. Issues with connection can be caused by DNS problems, server failure, Firewall rules blocking specific port, or some other. Bank/ credit or debit company. Especially valuable for platforms and marketplaces looking to payout users faster in a preferred currency. Discover Adyen issuing. Online, in-person, or on-the-go, it's easy to accept credit or debit payments on our devices at anytime with Canada's trusted payment processor. 70. Until recently, SoftPOS systems didn’t enable PINs to be inputted. 2. merchant accounts. 83% of card fraud despite only contributing 22. merchant accounts. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Stripe benefits vs merchant accounts. If necessary, it should also enhance its KYC logic a bit. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. The size and growth trajectory of your business play an important role. In this case, it’s straightforward to separate the two. To manage payments for its submerchants, a Payfac needs all of these functions. 3 Rounds of Lottery Drawings. If necessary, it should also enhance its KYC logic a bit. White-label payfac services offer scalability to match the growth and expansion of your business. Finally, web. Connection timeout. Payfacs are entitled to distinct benefit packages based on their certification status, with. Payfac-as-a-service vs. They provide services that allow software platforms to accept credit and debit card payments and make it easier and faster for them to start accepting payments as they handle most of the work for you. Onboarding processWhat is a payment facilitator (payfac)? 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. Payment facilitator model is becoming increasingly popular among many types of companies. 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. If your platform needs to operate internationally and support sub-merchants in other regions, partnerships with local acquirers, gateways, and other service providers may be necessary. What’s the distinction between Payfac and PSP? A payment Facilitator is a third-party payment service provider (PSP). Typically a payfac offers a broader suite of services compared to a payment aggregator. Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. PayFac vs merchant of record vs master merchant vs sub-merchant. A payment processor is a company that works with a merchant to facilitate transactions. PayFacs provide a similar service to standard merchant accounts, but with a few important differences. The PSP in return offers commissions to the ISO. PayFac: A PayFac essentially takes on some of the duties of a payment processor and a payment gateway and acts as the merchant-of-record for the acquirer, servicing its submerchants (customers). Acquirer = a payments company that. 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. 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. If you need to contact us you can by email: support. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. 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. Here, ISOs (Independent Sales Organizations if on the Visa network), or MSPs (Member Service Providers if Mastercard) sell credit card processing services to merchants on behalf of an acquiring bank. Typically a payfac offers a broader suite of services compared to a payment aggregator. NerdWallet rating. Relationships of modern humans with other human. Payment facilitators (PFs) were created to make a more streamlined path to electronic payment acceptance for small and medium-sized businesses. Our restaurant PayFac and gateway offer all of the features you need to ensure your payments are secure and on time. In order to establish a new payment gateway or payment processor relationship, your business has to go through a labor-intensive and time-consuming integration process. using your provider’s built-in tokenization and gateway solution can greatly reduce your Payment Card Industry (PCI) scope. “A payments facilitator (or PayFac) allows anyone who wants to offer merchant services on a sub-merchant platform. Merchant account/ business bank. Uniform Business Rate: A multiplier used in England and Wales to determine how much money owners of commercial and industrial properties must pay each year to their local governments. Global expansion. Generate your own physical or virtual payment cards to send funds instantly and manage spending. 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. This sounds complicated, but at the most basic level, a payments facilitator is a way of outsourcing part of your business to an intermediary contractor. 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. 01274 649 895. This means businesses only need Stripe to accept payments and deposit funds into their business bank account. Payfac-as-a-service vs. 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. The B2B FinTech company, WALBING, has obtained a Payment Service License from the German Federal Financial Supervisory Authority. You own the payment experience and are responsible for building out your sub-merchant’s experience. As a result of the first. Payment Gateway Articles describing the key fintech news, innovative solutions, and various aspects of the industry. The expansion of marketplaces has allowed the emergence of integration of payment services via the PayFac concept. ISO. All transactions are aggregated under one master merchant account and all funds are settled in the PayFac’s bank account. PayFacs take care of merchant onboarding and subsequent funding. High transaction costs, complex fee structures, and the need for seamless payment solutions have become. There is then additional time ensuring the payment gateway or application using the payment processing has all the appropriate merchant account credentials provisioned. Find the Right Online Payment Gateway. The PayFac model eliminates these issues as well. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. The core of their business is selling merchants payment services on behalf of payment processors. If your platform needs to operate internationally and support sub-merchants in other regions, partnerships with local acquirers, gateways, and other service providers may be necessary. Cards and wallets. The biggest advantage is you will get approved far quicker, and in some cases immediately. 01274 649 893. The key difference between a payment aggregator vs. When you enter this partnership, you’ll be building out. In other words, processors handle the technical side of the merchant services, including movement of funds. The terms agent, gateway, service provider, third party processor are all various terms for third party agents. PINs may now be entered directly on the glass screen of a smartphone using this new technology. So, what. For most merchants, it makes sense to go with a merchant services account and. A PayFac will smooth the path. We combine flexible payment processing, an industry-leading gateway and a vast range of value-added services to. The terms aren’t quite directly comparable or opposable. an ISO. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. The platform becomes, in essence, a payment facilitator (payfac). The payment processor also typically provides the credit card machines and other equipment needed to accept credit card payments. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Cons. For example, by shifting from the ISO model to become a payfac, Lightspeed expects to see a 2. This means providing. Partnering with a PayFac vs becoming a PayFac with a technology partner. With UniPay Platform you have the options of an affordable white label payment gateway solution, a full on-premise software. Intro: Business Solution Upgrading Challenges; Payment System Integration; Migrating from One Processor to Another;Starting from only £19 p/m our flexible pricing plans can be fully tailored to suit your business needs. 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. Payfac = a software product, platform, or marketplace that has in integrated payments into its product, and is responsible for the risk of transactions processed by its customers. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. net; Merchant of RecordRenew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. For example, an artisan who sells handmade jewelry online may find the process of setting up their own merchant account daunting or unnecessary, given their lower transaction volume. These methods can simplify payment as well as minimize fraud and mistakes for both businesses and consumers. becoming a payfac. UniPay Gateway is the leading Omnichannel payment processing and management solution for PayFacs, Saas and equity firms operating worldwide. Suitability Payment aggregator: Particularly suitable for small and medium-sized businesses that seek a simplified onboarding process and cost-effective payment. Potential risk of. However, PayFac concept is more flexible. Payment facilitators conduct an oversight role once they have approved a sub merchant. e. 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. Stripe By The Numbers. First popularized by firms like PayPal and Square, the payments facilitator (payfac) model is reshaping the payments ecosystem, allowing nonpayments companies that adopt it to participate more fully in the payments revenue stream. A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. This can include card payments, direct debit payments, and online payments. In other words, ISOs function primarily as middlemen (offering payment processing), while. PayFac is software that enables payments from one vendor to one merchant. When accepting payments online, companies generate payments from their customer’s debit and credit cards. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. Strategies. 00 Retains: $1. Reports for insights into payments and POS data for your. or scroll to see more. Payment facilitators can perform all the of the following. To put it another way, PIN input serves as an extra layer of protection. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. New Zealand - 0508 477 477. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. ) and network cards (credit/debit cards). This license, only the second…PayFac, which is short for Payment Facilitation, is still a relatively new concept. Information Flow. Payfac and payfac-as-a-service are related but distinct concepts. You'll need to submit your application through Connect . Operating on a platform that acts as a payfac means there’s no need to work with an acquiring bank, payment gateway, and other service providers. One FTE is sufficient until $250M in processing volume, then you’d need to add more bodies. Onboarding processWhat is a payfac? 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, direct debits, local payment methods, and alternative payment methods like mobile and digital wallets including Apple Pay and Google Pay. PayFac vs. Owners of many software platforms face the need to embed. The concept is continuing to evolve According to analysis from GlobalData, the worldwide market for digital payments will reach nearly $2,500 trillion in value in 2023, expanding at a compound annual growth rate (CAGR) of 14. WorldPay. At first it may seem that merchant on record and payment facilitator concepts are almost the same. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. The full-function platform has been designed to deliver Acquirers with a comprehensive Third Party Payment Facilitator programme,. PayFac vs ISO: 5 significant reasons why PayFac model prevails. Payment Gateway: Payment facilitation (PayFac) platforms provide a secure connection between the merchant and the payment processor, ensuring that payments are quickly and securely processed. RevSpring leads the market in financial communications and payment solutions that inspire action—from the front-office to the back office to the collections office. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. If you are looking for a more robust solution with a wider range of features, a payment processor may be a. 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. Stax (formerly called Fattmerchant), is a merchant services provider known for its subscription-based pricing and 0% markup on interchange rates. Payment gateway: Offers customization options to align with the business’s branding and user experience, focusing primarily on secure data transmission and transaction authorization. At Revision Legal, we protect businesses that thrive online, and understand the connections between law, technology, and business. merchant accounts. A relationship with an acquirer will provide much of what a Payfac needs to operate. A PayFac, or payment facilitator, is a merchant services model that streamlines the merchant account enrollment process by onboarding a merchant as a sub-account under the PayFac’s master account. Payfac conducts oversight on all the transactions on its platform to ensure that all payments operate under legal and network regulations. Under the PayFac model, a merchant is set up under the PayFac’s master account, but they are onboarded with their own unique MID. This model is ideal for software providers looking to. Payfacs with high standards and reliability based on the Visa's certification process may apply for two extended tiers: Visa Ready Payment Facilitator and Visa Trusted Partner. Stripe, a tech-enabled evolution on the traditional payfac model, offers a complete solution that combines the functionality of a merchant account and a gateway all in one. Nick Starai is chief strategy officer and one of the co-founders of NMI who played an integral role in the formation and launch of the NMI payments platform in 2001. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. It’s often described as ‘an electronic cash register. Partnering with white label PayFac gateway provides such a solution.