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. Sending money to Bank accounts. It covers topics such as nonprofit payment processing, its types and benefits, how to choose a processor, security and compliance best practices,. The PayFac model was defined by the idea that one company could register as a “Master Merchant,” with an unlimited number of sub merchants underwritten beneath them. The payfac part you described is clear, thanks! What confuses me is that as far as I understand, a PSP can also explore working with a BIN sponsor (an acquirer / a principle member of Visa/MC) so they dont have to get the acquiring license themselves, but in this model they can get into the fund flow since the BIN sponsor would settle to them - this is similar to PayFac model so I’m trying. Optimize your finances and increase automation with our banking infrastructure. Optimized across years of experience onboarding and verifying millions of individuals and businesses, our payfac solution includes real-time KYC checks, sanctions screening, secure card data tokenization and vaulting, and IRS tax threshold tracking and 1099. 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. Explore ratings, reviews, pricing, features, and integrations offered by the Payment Processing product, Square Payments. 0 companies are able to capture more of the payment economics and offer merchants a better experience. As he noted, the banks’ PayFac clients are demanding the changes, in an industry where Square and Stripe are boosting payments acceptance across any number of verticals. Growth remains top of mind among all enterprises, and PayFac 2. ) 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. 4 billion in gross payment volume (GPV) in Q3, a 43% year-over-year (YoY) increase, per its Q3 shareholder letter. This blog post explores. PayFac is a way for software applications to turn a traditional cost center into a revenue-generating business unit. Becoming a PSP [Payment Service Provider] lends itself well to some businesses that fall into the software provider classification. Tilled has invested in a 26,000 square-foot office space near Boulder for team. The PayFac is exempt from underwriting all merchants upfront and is instead underwriting merchants as transactions are processed on an ongoing basis. Are you a business looking to expand your payment acceptance options? Have you heard of payment facilitators, also known as PayFacs? These modern payment solutions offer more flexible and cost-effective options. 3% + 30 cents when the buyer keys in the transaction online. As the payment-facilitator model gains favor, understanding the process to become one has become more important than ever. 2021. The growth in the number of payfacs, and in the payment volume passing through them, is reshaping key relationships within the payments ecosystem. Companies such as Square are classified as a PayFac but are required to meet very stricture rules set up by the PCI industry as well as meet money transmitters rules that are regulated by state banking commissioners. bottom of page. As you will see below just to be approved to become a PayFac by a credit card processor the process is arduous and. TEAM PAYMENTCOM. A payment service provider (PSP) is a third-party company that allows businesses to accept electronic payments, such as credit cards and debit cards payments. 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. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Under the PayFac model, each client is assigned a sub-merchant ID. 5 • API Release: 13. Companies like Shopify, MindBody, and Square are all considered Payment Facilitators. (Think Square, Stripe, Stax, or PayPal. PayFac Sooners and Boomers. To clarify the matter, we will offer a clear and comprehensive explanation of what is a payment facilitator, its primary functions and business model in this complete guide. It’s worth noting that some PayFacs (like Stripe, PayPal, or Square) do not perform underwriting at the time of the application, so approvals are almost instantaneous. Stripe, Square, PayPal and others have forced. Nowadays, there’s a software. Since that time, he has operated in multiple capacities to serve the company. For example, Payrix Pro provides you with a payfac-like experience without the risks, while Payrix Premium offers all the tools you need to. PayFac enablement gives an acquirer the opportunity to competitively position itself in a market, differentiate its offering, and widen its proposition. A PayFac is a third party services provider that acts as an intermediary between merchants and payment processors. Compare the best Payment Facilitation (PayFac) platforms for Cloud of 2023 for your business. A Payment Aggregator or Facilitator [Payfac] can be thought of as being a Master Merchant, facilitating credit and debit card transactions for sub-merchants within your payment ecosystem. Contact our Internet Attorneys with the form on this page or call us at 855-473-8474. “Unlike Square’s PayFac model, Stripe’s model is available to merchants in 43 countries and supports 135+ currencies, allowing businesses to sell anywhere in the world,” Kothapa said. As well as reducing the administrative burden for sub. Yet, it was the rise of vertical-specific software ecosystems that gave the PayFac model true mainstream status. The software provider that has partnered with a PayFac can now see additional top-line growth. 38 Fountain Square Plaza, Cincinnati, OH 45263, and Elavon, Inc. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Simplify funding, collection, conversion, and disbursements to drive borderless. What SaaS & E-commerce Companies Need to Know About Payment Facilitator Regulations, and what key regulations. By the same token, Square took onboarding to new heights by allowing a business to purchase a reader, fill out forms online and accept payments that. ), Stripe, and Toast. Custom rates. In contrast, PayFacs have one or two processor relationships and onboard ISVs as referral agents. 22 per transaction. Payfac infrastructure company Finix announces that it is now operating its own payfac and competing directly with Stripe and others in offering payment processing services to independent software vendors (ISVs). The Afterpay processing fee is 6% + 30¢ per Afterpay order across all Square products that. Bigshare Services Pvt Ltd is the registrar for the IPO. • It operates in a highly competitive segment with many big players. The cloud-based POS system is built for restaurant operators looking for a flexible business technology solution for running front of house, back of house, and their back office — keeping everything connected and in sync. With many advanced features including coursing, live sales reporting, and 24/7 support, Square is the dedicated tech. You can use the theme offered by your payment service provider to display your Hosted Checkout interface. Payment Facilitators offer merchants a wide range of sophisticated online platforms. Square, Toast, Stripe – these software companies all became payments facilitators to drink from the payments processing fountain. But as with any corporate. 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. There is a significant amount of vetting done on your company to mitigate. Partnering with a PayFac (outsourcing to a provider) With this payments model, you are. 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. About This Report. , invoicing. You own the payment experience and are responsible for building out your sub-merchant’s experience. A Payfac is a third-party. We can create custom pricing packages for some businesses that process over $250,000 in card transactions annually. Your homebase for all payment activity. With Tilled’s PayFac-as-a-Service model, we offer all the benefits of payment facilitation like easy onboarding and instant approvals just like Stripe, Square, and Braintree, along with creating a substantial additional revenue stream for your business (link to add 500K/year article?). 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. Plus, PayFac’s revenue stream is a steady and constant one. Payment Facilitators contract directly with the sub-merchant for processing services and perform key payment activities in-house. You need to enable JavaScript to run this app. In this guide, we’ll explore what a payment facilitator (often abbreviated as payfac or PF) is, examine the considerations and costs of different types of payfac solutions, and identify the best ways to add payments to a platform or marketplace. The platform receives payment credentials from the PayFac partner through API, and the provider can just accept payments. Your software provides scheduling services, an intake process, integrations into health record systems, and you’re also processing payments using a managed PayFac provider like Stripe, Square or Braintree. 8–2% is typically reasonable. Full commerce. The minimum order quantity is 1000 Shares. Paypal is an example of a payfac, and while Paypal is highly convenient and can be great for specific business models, they do not work with certain industries that can be deemed high-risk. As a result, the PayFac must handle underwriting and approvals, the merchant onboarding process, receives funds on behalf of its clients, and create a schedule to transfer those funds into merchant accounts. Thinking about the three-to-five-year strategic plan — geographics expansion, adjacent services and products, and even new end customers — can help sharpen the focus on PayFac options, she said. PayPal was the pioneer and while their credit card processing partner may have been initially wary of the risks involved the massive volume PayPal began processing in turn led to. The payfac model was developed to enable payment-specific organizations to streamline the process of getting started with online payments, provide services to a wider range of businesses, and concentrate on their core competencies. Payment processors work in the background, sitting between PayFac’s sub-merchants and the card networks. 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. With payfacs, merchants are assigned a sub-merchant ID in which all of these sub-merchants are registered under the payfac’s master merchant account. In general, it’s a well-liked choice among small businesses and. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. As a PayFac, Segpay handles the sub-merchant onboarding and provides a fully managed payment processing solution. 2-The ACH world has been a. First, a PayFac needs to establish a partnership with an acquiring bank, and get sponsorship to process payments for sub-merchants. Enabling businesses to outsource their payment processing, rather than constructing and. When you process payments with Square online and in person, you get unified sales and customer data, inventory syncing, and best-in-class hardware and software. If your business is listed on their prohibited list, switch payment processors immediately before they find out. Simplifying Payments Around the Globe. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. You own the payment experience and are responsible for building out your sub-merchant’s experience. 0 is designed to help them scale at the speed of software. To expand on that, it is a company that allows its customers to accept electronic payments using the payment facilitator’s platform. Now, however, the model is maturing, prompting PayFacs to look at other avenues for growth and to deepen their merchant relationships. As your transaction volume increases, the payfac solution scales accordingly, providing consistent, reliable performance. By bringing payments in-house, platforms can create new revenue streams from transaction fees, significantly boosting revenue per customer. While scaling up that company, he was introduced to bigger companies that expressed frustration with some of the PayFac pioneers, such as Stripe, Square and Braintree, about their pricing models for transitioning to monetizing payments, he told. 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. Payment facilitation – PayFac – has helped many business ease the transition to a world dominated by digital payments. Why PayFac model increases the company’s valuation in the eyes of investors. The IPO opens on September 16, 2022, and closes on September 20, 2022. Welcome to EQPay. (now often a hybrid of a software vendor and a payment processor operating as a payfac) has a much stronger ability to market lending to its customers. We’re more than just a payment processing company. Who Gets Involved in the PayFac Scene? There are five main elements which compose the payment facilitator landscape. Many companies want to repeat the successes of the first PayFacs (including PayPal, Stripe, Square, and others). 9 percent and 30 cents per transaction. N) and MasterCard Inc. Sponsor. Take the time to fully understand how PayFac works before committing to. 5. A PayFac is a merchant services model in which an organization opens a processing account with an acquiring bank so that it can serve a myriad of merchant clients. 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. Granted, Aberman noted, if a PayFac only has five payees, it is a fairly easy settlement process handled by cutting a check every week. Some ISOs also take an active role in facilitating payments. Buy a Square reader at Walgreens, go online and create your account and within 30 minutes you can be swiping payments. Finix launched as a software company building a turnkey infrastructure platform to help other software companies bundle. Payment facilitation helps. Payment facilitation (also known as PayFac) is a type of payment processing platform that acts as an intermediary between businesses, customers, and credit card issuers. What is a PayFac? RB: A payments facilitator (or PayFac) allows anyone who wants to offer merchant services on a sub-merchant platform. The PayFac model allows a single entity to become the “merchant of record” and board sub-merchants with fewer data requirements and scrutiny. By. The payfac is a perfect example of the acquiring industry keeping up with contemporary fintech. A Payment Facilitator (PayFac) is a third-party service that lets merchants accept various forms of non-cash payments like credit/debit cards or digital payments. We handle partial payments, automatic failed payment retry, and automatic payment recovery. Those sub-merchants then no longer have. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. Varanium Cloud IPO is a SME IPO of 3,000,000 equity shares of the face value of ₹10 aggregating up to ₹36. A payment facilitator, also known as a “payfac” or payment aggregator, is a payment model that has grown tremendously over the past few years. With Cardknox Go, there’s no need for a large upfront capital investment, high levels of risk. You own the payment experience and are responsible for building out your sub-merchant’s experience. Take back your time with automated invoicing, payment tracking, and streamlined compliance. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. 收单行收取费用，有时称为Merchant Discount Rate ， 该费用通常为每笔交易额的百分比。复杂之处在于，一般收单行收取的总交易费用可以分为多个不同部分，由. Aggregate processing means the funds from transactions are paid out to the PayFac first, who then distribute them to. These sales. January 9, 2023. Food delivery apps (think DoorDash or Postmates) act as a payment facilitator between. “Payments and stored value is a. The PayFac is also responsible for taking care of the different contracts between clients, including the payment processor, software platform, and any users. eComm PayFac API Reference Guide Document Version: 3. 1. Classical payment aggregator model is more suitable when the merchant in question is either an. . We handle partial payments, automatic failed payment retry, and automatic payment recovery. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. MLSs can leverage payfac relationships to pursue specific vertical markets with greater efficiency and success, said Allan. Global expansion. This instant onboarding can be a powerful customer acquisition tool and is how Square has been able to grow so significantly. We want to empower you to make smarter decisions, optimize your organization’s processes, and scale your business – one payment at a time. And I think the reality is a lot of people are more familiar with the kind of big PayFac fact, Stripe Square, you know, Braintree, PayPal. Payfacs work by having a master merchant account (and a master MID) through its relationship with acquiring banks. Here’s how a payfac-as-a-service solution will boost your revenues: You pay the payment facilitator – 2. However, beside the reward, these tasks are associated with the respective liabilities. It offers the. A. The MoR is also the name that appears on the consumer’s credit card statement. Advertise with us. Such a simple payment option is a great client attraction tool. Power your entire business | Square. Chances are, you won’t be starting with a blank slate. Gateway transforming to PayFac (Payment Facilitator) by Merchant Onboarding, Underwriting, Compliance (KYB, AML) and claiming a larger share. The PayFac aggregates transactions and sends them to its processor, keeping operations streamlined. Three popular payment facilitators are Square (the payment acceptance brand of Block Inc. When an entity like Square promises to allow just about anyone to start processing almost immediately, the acquiring industry has to supply tools to make that possible. If you are an RCM company who is currently collecting payments from patients with those funds being deposited into your bank account and then forwarding these funds over to your medical groups or hospitals you are a Payment Facilitator or PayFac. Kevin Woodward February 1, 2018. A Simplified Path to Integrated Payments. Diversify revenue streams. US customers activated after August 1st 2022 will be hosted on the new HiMama Payments platform. Click to read more on merchant account, integrated payments, and payment facilitators!. However, once you are underwritten as a PayFac by an acquiring bank, multiple customers can accept electronic payments through your platform, generating a steady and lucrative revenue source for you. You own the payment experience and are responsible for building out your sub-merchant’s experience. View Platform. 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. Afterpay online payments. Very few PayFac as Service providers publish pricing to sub PayFac’s and there is a reason. GETTRX has over 30 years of experience in the payment acceptance industry. Enabling businesses to outsource their payment processing, rather than constructing and maintaining their own. The tool approves or declines the application is real-time. The payfac model is a framework that allows merchant-facing companies to. Other common PayFacs are Lightspeed and Stripe, but many more exist, including niche providers, such as Toast for restaurants. ISVs solve business problems for the merchants they serve by developing software for streamlining processes and extending customer capabilities. Graphs and key figures make it easy to keep a finger on the pulse of your business. At the smaller end of the market, the existing PayFac model offered by players like Square will continue to reign supreme, as these customers are too small for the economics of an in-house. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. It’s used to provide payment processing services to their own merchant clients. Step 2: Segment your customers. It then needs to integrate payment gateways to enable online. The business has gone through the traditional setup of a merchant account in its name and is registered as a Merchant. A Payment Facilitator (Payfac) is essentially a Master Merchant that processes credit and debit card transactions for sub-merchants within their payment application. The platform receives payment credentials from the PayFac partner through API, and the provider can just accept payments. You own the payment experience and are responsible for building out your sub-merchant’s experience. PayFac-as-a-Service seems to be the next big thing, he said, and with improved accessibility and time-to-market, we’ll see more new entrants in the market. Once your merchants pay this fee, any profit made on processing the payments skips right by you entirely and into the pockets of your PayFac provider (Stripe, Braintree, etc. PayFacs, or payment facilitators, are the new-age payments entities. Your managed PayFac provider is charging you 2. Log In. They aid those that want to embed payment services into their software to capture new. The guide provides information about the transaction formats used to create, update, and retrieve (information about) Legal Entities and Sub-Merchants. This business model enables the organization, now a payment facilitator, to bring their merchants a seamless and instantaneous onboarding process, as well as flat-rate pricing. If your rev share is 60% you can calculate potential income. 6 billion antitrust class-action settlement with more than 12 million retailers that accused Visa Inc (V. “In the old days, the 100 to 120 basis points spread was predominantly the revenue of the acquirer. Global reach. Find the top Payment Facilitation (PayFac) platforms in Europe in 2023 for your company. Enabling businesses to outsource their payment processing, rather than constructing and maintaining their own. Any software company can come to our website, access our sandbox and developer center and have our API running on their platform in a matter of days. If you’re considering using a PayFac-in-a-Box solution, or attempting to build out your own system using third-party platforms, be prepared to pay large monthly software fees. Messages. The Future of Payfac. 2017 / 6 / 5 page 2 1. A major difference between PayFacs and ISOs is how funding is handled. A web-based service directed at SaaS businesses blending accounting features with payment processing and transaction reconciliation. Tilled is the pioneer of a new model we call Payfac-as-a-Service. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. The PayFac is liable for processing the accounts of their sponsored merchants and often offer additional features like transaction processing support, new account underwriting review, transaction. Take Uber as an example. PayFac is a new innovation; Payment Facilitation has been around for many years. and $0. 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. They erroneously assume that if they are paying, say, 2. 1. 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. After the vetting process, the PayFac entity adds the sub-merchant to its master list of sub-merchants or customers. An example would be a SaaS platform that provides plumbers and home service providers an application that help them. They underwrite and provision the merchant account. consumers, and those who accept them, i. Stripe’s payfac solution. 0 began. Square; Ayden;. Registered Payment Facilitator (PayFac): Platforms like Square, Stripe, Shopify, Etsy and Uber have the funding, scale and resources to become a registered Payment Facilitator, which is a service provider that is sponsored by an acquirer to facilitate transactions on behalf of submerchants. Enabling businesses to outsource their payment processing, rather than constructing and. PayFacs offer greater risk management abilities and impose stringent underwriting controls. e. PayFac is short for payment facilitator, which refers to any merchant service that enables business owners to accept electronic payments in person as well as online. You own the payment experience and are responsible for building out your sub-merchant’s experience. What PayFacs Do In the Payments Industry. One Flat Price. Square: Founded in 2009, they tend to focus more on the very small business brick and mortar businesses. One classic example of a payment facilitator is Square. Read Square Payments reviews from real users, and view pricing and features of the Payment Processing software. Much like the great Oklahoma land rush of 1889, many acquirers are quietly staking their claim to new opportunities as processors increase their willingness to. Global reach. Call it the Amazon. Platform. PayPal, Stripe and Square have proven this model can be very profitable and that risk can be mitigated. 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. 0. Future of Fintech is hosted by Immad Akhund, Founder and CEO of. They will often provide merchant services and act as a payment. PayPal, Stripe and Square have proven this model can be very profitable and that risk can be mitigated. eliminating the time and costs associated with other “PayFac in a box” offerings. Most important among those differences, PayFacs don’t issue each merchant. Welcome to PayFac-as-a-Service. Square and Paysafe are among the companies that have made efforts to look beyond the traditional payments model to offer financial support – including lending – for their customer base. However, just like we explain in our. A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. These marketplace environments connect businesses directly to customers, like PayPal,. 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 best Stripe competitors combine transparency, low processing fees, and excellent support for eCommerce. You control funding and as act as first line of support for payment questions. “FinTech companies — PayPal, Square, Stripe, WePay. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. , and PayPal. 30 for every card charge. For this reason, PayFacs are well-positioned for substantial growth with the significant trend toward digital channels. Those sub-merchants then no longer have to get their own MID and can instead be. We will address the considerations behind using PayFac, the different types of PayFac options, and identify the best way for you to move forward in the marketplace. One classic example of a payment facilitator is. Payment Facilitators must undergo a comprehensive risk. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. PayFac business is high-quality and growing >60%, worth $6/share today and $24/share in 2027. Payment Facilitators must complete a thorough risk and financial review. Deliver better user experiences and start earning more. 3 percent and 10 cents (interchange plus pricing plan) Your revenues – (0. Especially valuable for platforms and marketplaces looking to payout users faster in a preferred. The PF may choose to perform funding from a bank account that it owns and / or controls. Enter Payfac-as-a-service (PFaaS). Payment facilitation allows SaaS and digital platform businesses to onboard merchants, provide payment processing on their behalf, and handle the myriad complexities of managing transactions. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. They provide services that allow merchants to accept card-not-present (CNP) and card-present (CP) payments. The PayFac model allows that company to keep the customer within its own realm when facilitating a transaction. Tilled is the pioneer of a new model we call Payfac-as-a-Service. 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. An acquiring bank, also referred to as an "acquirer", is a bank or financial institution that processes customer credit or debit card payments on behalf of the business and routes them through the card networks to the issuing bank. 3 Ratings. Payment GatewaysA payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. Adyen. 0 is to become a payment facilitator (payfac). Compare Wise vs PayPal, for instance, to see if there’s a cheaper way. The integration can be handled by most software development teams, Avery said, but Tilled does offer to provide third-party development teams to help startups that. This model offers several benefits to the software company. . The payment facilitators themselves: which are companies providing the necessary infrastructure and allows their sub-merchants to accept payments via credit card. Increase Cash Flow. 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. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an. PayFacs are based on the merchant aggregator model created by Visa and MasterCard to provide support for payment card acceptance in marketplaces. a merchant to a bank, a PayFac owns the full client experience. 45 Public Square (Suite 50) Medina, OH 44256. as a national independent sales organization in 1989. 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. Streamline. The Payfac then, upon onboarding the merchant, has the appeal of taking on any transactional risk while in. View Platform. Combine the power of payments monetization with the control and security of your app, website or hardware. One FTE is sufficient until $250M in processing volume, then you’d need to add more bodies. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. The payfac model is a logical starting point for software providers seeking to expand into broader financial services, creating a type of fintech flywheel. Squarespace Pay. In a comprehensive white paper on the subject we explained PayFac meaning and how to become a payment facilitator. While the payment landscape has numerous players and interrelationships that developed over time, the history of the. Knowing your customers is the cornerstone of any successful business. API and partner integrations. Payfac. Tilled calls this approach PayFac-as-a-Service. Your software provides scheduling services, an intake process, integrations into health record systems, and you’re also processing payments using a managed PayFac provider like Stripe, Square or Braintree. your payments. A payment facilitator (or PayFac) is a payment service provider for merchants. All from a single payment gateway platform. See transactions broken down by card type, your average transaction amount, and much more. Competitive, custom rates. Stripe is free to set up and the company does not charge a monthly or annual fee for its services. 6% + 10¢ for contactless payments, swiped or inserted chip cards, and swiped magstripe cards. Designed for growth and scalability, Payrix provides an end-to-end payment facilitation platform and white-glove approach that includes a payfac as a service model to get clients quickly up and. ‘PayFac’ technology simplifies underwriting and. What is a payment facilitator (PayFac)? Essentially, PayFacs use the acquiring license of another company to provide payment services to sub-merchants. And you’ll never be offered this type of flexibility from Stripe, Square, or Braintree. Skip to Content Home. That said, the PayFac is. Why Becoming a PayFac Doesn’t Pay. PayFac-as-a-Service allows B2B software companies to enjoy all the benefits of becoming a Payment Facilitator without any of the hard work or upfront investment. Set up merchant management systems. They formed integrations with a basket of payfacs (Stripe, PayPal, Square. First, a PayFac might only be paying a few hundred dollars a month for cookie-cutter underwriting services, but a huge chunk of would-be merchants are rejected. Optimized across years of experience onboarding and verifying millions of individuals and businesses, our payfac solution includes real-time KYC checks, sanctions screening, secure card data tokenization and vaulting,.