Integrating a white-label PayFac gateway is another option to try. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. Traditional payfac solutions require building and investing in multiple systems for payment processing, sub-merchant onboarding, compliance, risk management, payouts, and more. Payment processors. 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. Who Gets Involved in the PayFac Scene? There are five main elements which compose the payment facilitator landscape. The ISO acts as an intermediary between the merchant and the payment processor, taking care of merchant recruitment, sales, and. What is a payment facilitator, and what is payfac-as-a-service? Here’s what businesses need to know about how payfac solutions work. Morgan Payments' Merchant Services and Treasury Services will make data available via portal, API, and automated. Use the WePay Account ID in the POST /accounts/id endpoint to update their Account with this information: Copy. On top of the requirements placed on it by other entities, the Payfac may choose to be even more restrictive, for risk mitigation or other business reasons. This could mean that companies using a. Ensure that the payfac is compliant with regulatory requirements, such as PCI-DSS, and is able to provide a secure environment for processing electronic payments. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. Although the benefit of becoming a payfac is greater control and higher profit margins, the initial and ongoing investment is steep, including: Hiring a full-time payments team – business, legal, engineering, and customer service. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. 4. The PayFac is then responsible for managing its sub-merchants and processing all transactions on their behalf. PCI Compliance requirements are:. Why we like. Whether you're prepared to become a Payment Facilitator or wish to start on a more modest scale and expand confidently, PayTech Partners provides the necessary tools, and expertise to guarantee your success. Some ISOs also take an active role in facilitating payments. Priding themselves on being the easiest payfac on the internet, famously starting out as the payfac only requiring seven-lines of code to implement. Generally speaking, a PayFac might be suitable for bigger businesses that need to process a large volume of transactions, and an ISO might be more suitable for smaller businesses. For instance, some jurisdictions are still defining what a PayFac is. The quiz is primarily targeted at businesses that can benefit most from implementation of PayFac model, including franchisors, SaaS platform providers, online marketplace owners, and others. The combination of cryptocurrencies with the PayFac aligns well with the current trends in global commerce, offering both consumers and businesses more efficient and accessible ways to transact. Traditional payfac solutions require building and investing in multiple systems for payment processing, sub-merchant onboarding, compliance, risk management, payouts, and more. With a. Ensure that the payfac is compliant with regulatory requirements, such as PCI-DSS, and is able to provide a secure environment for processing electronic payments. Transaction message / unique identifier requirements As a Payfac, you receive a business identifier from the networks when your sponsor registers you. These methods can simplify payment as well as minimize fraud and mistakes for both businesses and consumers. The payment facilitators themselves: which are companies providing the necessary infrastructure and allows their sub-merchants to accept payments via credit card. Small/Medium. An Applicant must also demonstrate they have an adequate AML and Sanctions Program in place to prevent the Mastercard network from being used to facilitate money laundering, the financing of terrorist activities, or violation of applicable economic sanctions. Finally, some PayFac platforms uses a hybrid pricing model which can combine both flat-rate plan and pay-as-you go options. The % depends on many variables including customer base, volume of transactions and dollars, support requirements etc. PayFac-as-a-Service is quick, easy, and more efficient than becoming a registered PayFac. Also, it’s essential to mention that PayFac is a Mastercard model, while the one for Visa is a payment service provider. getting registered as a PayFac by a card network through an acquiring bank; signing an agreement with an acquirer/processor to get a point of entry into the banking system; being underwritten as a PayFac by an authorized acquiring bank; meeting insurance requirements, specific to payment facilitators;Traditional payfac solutions require building and investing in multiple systems for payment processing, sub-merchant onboarding, compliance, risk management, payouts, and more. You should be aware that the payfac model also has ongoing license requirements to maintain a good standing and credit requirements with acquiring banks and appropriate networks. Multiple business models with one tech stack lets you scale from zero-overhead payments revenues to licensed payfac on. 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. Unlike other providers of PayFac-as-a-Service for ISVs, like those offered by Shopify for eCommerce payments, a reliable payment facilitator won’t arbitrarily freeze its users’ accounts after certain sales milestones. Paysafe connects merchants and consumers around the world through seamless payment processing, digital wallet, and online cash solutions. White-label payfac services can allow businesses to revolutionize their payment processing capabilities, improve the customer experience, and explore new revenue opportunities—all while maintaining focus on their primary competencies. Register Sub-merchants You (the PayFac) will register sub-merchants by using the WePay API; Process Transactions Customize your authorization and settlement connection according to your own product requirements; Get Reports J. Traditional payfac solutions were popularized in the late 1990s as a way to help small- and medium-sized businesses accept online payments more easily. As a PayFac, Segpay handles the sub-merchant onboarding and provides a fully managed payment processing solution. Traditional payfac solutions require building and investing in multiple systems for payment processing, sub-merchant onboarding, compliance, risk management, payouts, and more. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. Payfacs often offer an all-in-one. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. The Visa Consumer Bill Payment Service (CBPS) is an optional service that provides bill payment services to consumers using debit or credit cards. Historically, a bank’s onboarding requirements catered to larger businesses that could manage the complex, costly, and time-consuming legacy setup processes. Avoid the slow, manual sub-merchant onboarding with other payfac solutions, and offload your payments compliance obligations to Stripe. ”. The requirements for marketplaces are defined by Visa rules; Visa is the only card brand with a specific marketplace program. In layman’s terms, that means your company will have to go through a time-consuming and expensive process, including documenting all your system’s structure and protections. The IPO opens on September 16, 2022, and closes on September 20, 2022. Your startup would manage the onboarding. By allowing submerchants to begin accepting electronic. Also, it’s essential to mention that PayFac is a Mastercard model, while the one for Visa is a payment service provider. First, a PayFac needs to establish a partnership with an acquiring bank, and get sponsorship to process payments for sub-merchants. Payment Gateway. Local laws define different infrastructure requirements that can increase costs significantly. The specified field is mandatory but was not provided in the request: the field is null, contains empty strings, or contains white spaces. View all Toast products and features. Traditional payfac solutions require building and investing in multiple systems for payment processing, sub-merchant onboarding, compliance, risk management, payouts, and more. Traditional payfac solutions require building and investing in multiple systems for payment processing, sub-merchant onboarding, compliance, risk management, payouts, and more. Ensure that the payfac is compliant with regulatory requirements, such as PCI-DSS, and is able to provide a secure environment for processing electronic payments. The applicant will need to demonstrate it has policies and procedures in place to comply with requirements: an acceptable use policy, a credit and fraud risk underwriting policy and an anti-money. Choose from a selection of free payment templates below, in Excel, Word, and PDF formats. PCI compliance has legitimately become a more important issue for merchants, issuers and acquirers with high profile breaches including Target, Home Depot and Wawa. Here are some potential drawbacks or challenges for a SaaS platform in becoming a Payment Facilitator (PayFac): High capital requirements. For Platforms. Uber corporate is the merchant. A good way to make sense of the Payfac model is to look at its two main parts—boarding of merchant accounts and settlement of funds. Traditional payfac solutions require building and investing in multiple systems for payment processing, sub-merchant onboarding, compliance, risk management, payouts, and more. To be approved by the acquirer and card brands, PayFacs undergo strenuous review to ensure they have. Process a transaction or create a report straightaway with our click-through links. Merchant account. Most PayFacs will require at least 3-5 full time employees just to. Major PayFac’s include PayPal and Square. Submerchants: This is the PayFac’s customer. Possible payment processing requirements from future merchants include: International payments; Same-day deposits;. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. Our payment-specific solutions allow businesses of all sizes to. 5% plus 15 cents for manually keyed transactions. Strong Understanding and previous experience with Money Service Business, PayFac as well as International Banking/FX. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. g. Registered payment facilitators earn 20-40 basis points more per transaction than they would riding the rails of another wholesale PayFac. As Chief Technology Officer, Paul brings over 25 years of experience building and leading teams in support of technology-driven outcomes. The parameters listed here are the required parameters to onboard submerchants as a Payment Facilitator (PayFac). These steps will help you make that determination. PayFac Alternative: PayFac-as-a-Service Fortunately, there is a quicker and less complicated path to becoming a payment facilitator, which also mitigates many of the risks and costs mentioned above. So, this was all about Merchant of Record vs PayFac. Working with a great payment facilitation partner will also. So, MOR model may be either a long-term solution, or a. Historically, a bank’s onboarding requirements catered to larger businesses that could manage the complex, costly, and time-consuming legacy setup processes. Austria. Most of the requirements for. By clicking 'I Agree" or continuing to use our site, you agree that we can place these cookies. It’s important to look for a payfac that has a strong track record of security and compliance and has implemented measures such as tokenization, encryption, and fraud detection and. What defines a PayFac? PayFacs are sponsored by an acquiring bank that has a direct relationship with the card brands. Discover flexible, scalable solutions that fuel your growth and transform the payments experience to delight your customers. Step 2: Segment your customers. Name of service(s) assessed: Payment Facilitator Platform (PayFac Platform) Type of service(s) assessed: Hosting Provider: Applications / software Hardware Infrastructure / Network Physical space (co-location). Key focus in regulatory compliance for PayFacs. These identifiers must be used in transaction messages according to requirements from the card networks. But remember, there is no one-size-fits-all approach when it comes to PayFacs. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. The next step towards becoming a payment facilitator is creating a merchant management system. It’s important to look for a payfac that has a strong track record of security and compliance and has implemented measures such as tokenisation, encryption, and fraud detection and. A Payment Facilitator, PayFac for short, is simply a sub-merchant account for a merchant service provider. For all of these reasons, to protect. Our partners are in the driver's seat. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. While the payment facilitator (PayFac) model has grown in popularity as a way to board merchants quickly. White-label payfac services can allow businesses to revolutionize their payment processing capabilities, improve the customer experience, and explore new revenue opportunities—all while maintaining focus on their primary competencies. To become a Mastercard merchant, simply contact an acquirer for a merchant account application. Create an effective pricing strategy. acting as a sole trader. Varanium Cloud IPO is a SME IPO of 3,000,000 equity shares of the face value of ₹10 aggregating up to ₹36. You’ll need adequate financial reserves, likely at least $1-$2 million, to get started. Settlement must be directly from the sponsor to the merchant. PCI compliant Level 1 Services Provider. We’ll help you bring your payfac experience to market fast, with operational readiness and tools for your payments strategy. We work as a team to ensure every client has access to:. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. One of the first steps needed to become a payfac is to get registered by card associations. This crucial element underwrites and onboards all sub-merchants. Traditional payfac solutions were popularized in the late 1990s as a way to help small- and medium-sized businesses accept online payments more easily. The Payfac revenue funnel is a high-level, back-of-the-envelope style model that is useful when making decisions about where to invest resources in a Payfac. Choose from Embedded Payments, our turnkey solution, and our Payfac-as-a-Service solutions that offer more ownership of your end-to-end payments. Payment facilitation is among the most vital components of monetizing customer relationships — and the role of PayFacs is often misunderstood. Each business profile is different and distinct based around levels of maturity, client profile type and cash flow should all be weighed. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. What ISOs Do. 60 Crores. A PayFac might be the right fit for your business if:. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. 2 Merchant Agreements 106 1. You may likely serve a diverse array of customers, from large enterprises to individuals on “freemium” plans. Direct bank agreements. A powerful payment gateway that supports an extensive combination of devices, and operating systems for point of sale payments. A payfac, on the other hand, is a service provider that simplifies the merchant account enrollment. Detailed instructions on the use of the PayFac Portal, used to provision sub-merchants to the US eCom platform. “A payments facilitator (or PayFac) allows anyone who wants to offer merchant services on a sub-merchant platform. Plus, you should also consider the yearly price of its ongoing. Shop Now Get a Demo. Card brand rules require the sponsor to monitor the Payfac’s compliance with operating rules and regulations and ensure the Payfac’s due diligence when boarding and overseeing submerchants. Financial Crimes Enforcement. You'll need to submit your application through Connect . Pillar 2: Transaction monitoring The PayFac protects against possible fraud by monitoring every transaction that is processed through the platform. Any inconsistencies in the process will be flagged by the PayFac and must be addressed by the sub-merchant as necessary. A PayFac collects minimal data up front and supplements it with other real-time data to get merchants up and running, literally, in minutes. The API reference may indicate different requirements, but those requirements are the default, whereas PayFac requirements are enhanced. UK domestic. Because they’re liable for the activities of their submerchants, payment facilitators must guard against their own risk as well. PayFac-As-A-Service is a merchant service that offers businesses flexibility in their payment processing by becoming the merchant on record and onboarding and underwriting our clients as sub-merchants, allowing them to process payments sooner. Dispute process guide for merchants using Prime Routing for PINless debit card transactions. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. What is a payment facilitator and are payfacs right for your business? Use our guide to payment facilitation to learn about payfacs and how to bring payments in-house. 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. Please enter your Xafe login details below: Forgot Password? Only individuals who have been expressly authorised by MarTrust to use this site should proceed to login. The acquirer is liable for transactions processed through the PayFac’s account; and because it is the member of the card scheme networks, it must follow their rules and requirements, also bearing full responsibility for underwriting, performing on-going due diligence on the master merchants, and onboarding them. In order to accomplish the listed tasks, you can follow one of the three conceptual approaches. 2) PayFac model is more robust than MOR model. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. You will be required to provide extensive documentation, including contracts. Uber corporate is the merchant of record. The stringent compliance requirements associated with AML, customer screening, and KYC must be met prior to approval as a payment facilitator and, after that, be routinely managed. You need to dedicate or hire resources with the requisite skills to handle underwriting, approvals, regulatory. Payment is becoming more cashless than ever now as a massive number of transactions are digitally carried out through credit cards and e-wallets. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. “A payments facilitator (or PayFac) allows anyone who wants to offer merchant services on a sub-merchant platform. Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the. The payment facilitator model has a positive impact on all key stakeholders in the payment . Toggle Navigation. Payment processors work in the background, sitting between PayFac’s submerchants and the card. Independent sales organizations are a key component of the overall payments ecosystem. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. Customized Payment Facilitation (PayFac). Encryption to protect payment card data. Associated payment facilitation costs, including engineering, due. It’s important to look for a payfac that has a strong track record of security and compliance and has implemented measures such as tokenization, encryption, and fraud detection and. Traditional payfac solutions require building and investing in multiple systems for payment processing, sub-merchant onboarding, compliance, risk management, payouts, and more. Usually, EMV certification involves an administrative fee (charged by acquirers), ranging between $2,000 and $3,000 for every formal test script run. New PayFacs must find an acquiring partner to issue them a master merchant account. How to start payfac? Becoming a payment facilitator involves navigating the various intricacies and requirements that may vary from your region and respective. 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. These identifiers must be used in transaction messages according to requirements from the card networks. The technological environment is changing as well. Take payments online, over the phone or by email. Copied. Reporting & Analytics. 5. 4 Transaction Identifier Requirements 24 Chapter 7. Historically, the onboarding requirements of banks catered to businesses that were larger. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. 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. The program, sponsored by Discover Global Network, provides ETA YPP scholars with mentors from leading payments companies, complimentary access to ETA industry events, and. Historically, a bank’s onboarding requirements catered to larger businesses that could manage the complex, costly, and time-consuming legacy setup processes. The tool approves or declines the application is real-time. 6 ATM 119 1. So, what. 6. Stripe’s pricing is fairly straightforward. 1 Overview–principal versus agent. There are pros and cons to the PayFac and ISO model depending on the size and specific requirements of your business. Global availability. But size isn’t the only factor. Learn more. For all requirements identified as either “Partial” or “None,” provide details in the “Justification for Approach”. A good way to make sense of the Payfac model is to look at its two main parts—boarding of merchant accounts and settlement of funds. A complex web of financial processes, legal obligations, and regulatory requirements underpin every purchase, and how a business deals with these elements directly affects customer experience, brand credibility, and its bottom line. A master merchant account is issued to the payfac by the acquirer. A merchant ID number is a unique identifier typically assigned to businesses when they open a merchant account. Historically, a bank’s onboarding requirements catered to larger businesses that could manage the complex, costly, and time-consuming legacy setup processes. The best way to choose between a payfac and a payment processor is to consider your specific needs and requirements. Requirements for Open Access Requirements for Open Access (aka Transact) to get credentials and submit online. If the merchant fits the requirements, PayFac onboards is a sub-merchant under the master MID. Why Visa Says PayFacs Will Reshape Payments in 2023. If you are looking for a simple, affordable, and secure payment processing solution, a payfac is a good option. A payment facilitator, also known as a PayFac, is a sub-merchant account for a merchant service provider. 5. 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. Since PayFac is a MasterCard processing model, it’s called Payment Service Provider for Visa, there are plenty of acquirers around the world. See all 7 articles. Some models involve the PayFac directly funding clients, underwriting clients, performing compliance (AML/BSA/OFAC) checks, and monitoring transaction fraud risk and chargebacks — which results in more requirements passed through to the PayFac. Traditionally, businesses that wanted to accept credit card payments had to complete a lengthy,. It’s important to look for a payfac that has a strong track record of security and compliance and has implemented measures such as tokenization, encryption, and fraud detection and. 7. For instance, suppose your intention is to become a payment facilitator, however, you cannot abide by all the requirements and take on the responsibilities set out by PayFac status. But, working with the right payment processor can make the whole ordeal feel more approachable, with helpful guidance and transparent communication. So each acquirer has its own set of Payfac requirements regarding things like underwriting, risk monitoring, funds settlement, and other policies and procedures. They can apply and be approved and be processing in 15 minutes. The PayFac uses an underwriting tool to check the features. Traditional payfac solutions were popularized in the late 1990s as a way to help small- and medium-sized businesses accept online payments more easily. Stripe is currently supported in 46 countries, with more to come. Especially, for PayFac payment platforms and SaaS companies. Instead, all Stripe fees. Ensure that the payfac is compliant with regulatory requirements, such as PCI-DSS, and is able to provide a secure environment for processing electronic payments. While large businesses were experts in payment facilitation, smaller enterprises were being left behind. 6% plus 10 cents for in-person transactions. Stripe Plans and Pricing. What is a payment facilitator, and what is payfac-as-a-service? Here’s what businesses need to know about how payfac solutions work. The high-level steps involved in becoming a PayFac. Ecommerce. It’s important to look for a payfac that has a strong track record of security and compliance and has implemented measures such as tokenization, encryption, and fraud detection and. Outlined below are the steps most companies will need to take. 5. Before the advent of third-party payment processing such as a PayFac, businesses had to open up their own merchant accounts with a bank to process electronic payments. Processing chip cards or mobile payments on our hardware leverages EMV or NFC technology to help prevent fraudulent transactions. The PayFac/Marketplace is not permitted to onboard new sub-entities. We are upgrading the login technology for your Payments apps. The payment facilitator model has a positive impact on all key stakeholders in the payment . The PayFac would also need to hire a FTE to take exceptions and review these exceptions for risk. Partnering with a PayFac-as-a-Service provider leaves the technical work like coding, compliance monitoring, and payment integration to industry experts. Simply put, embedded payments are when a software. 8 Travelers Cheques 119 1. So, MOR model may be either a long-term solution, or a. The tool approves or declines the application is real-time. How much risk a PayFac or wholesale ISO undertakes is negotiable, but PayFacs can take up to 100 percent of the liability if that’s how your contract is designed. 1 General Acquirer Requirements 100 1. Ensure that the payfac is compliant with regulatory requirements, such as PCI-DSS, and is able to provide a secure environment for processing electronic payments. With all its complex requirements, the underwriting process can feel daunting. Finding the right provider—whether. years' payment experience. The ISO, on the other hand, is not allowed to touch the funds. Australia. Payment Facilitation Model (PayFac) In the PayFac model, the payment service provider (PSP) acts as a master merchant and allows sub-merchants to process transactions through their own merchant. Essentially PayFacs provide the full infrastructure for another. Access Worldpay is a simple, fast, modern and secure integration to the most advanced payment gateway. New PayFacs must find an acquiring partner to issue them a master merchant account. Contact. For businesses with the right needs, goals and requirements, it’s a powerful tool. 9% plus 30 cents for online transactions. The principal versus agent guidance in ASC 606 applies to revenue arrangements that involve three or more parties and is applied from the perspective of an intermediary (for example, a reseller) in a multi-party arrangement. Pricing: 2. Traditional payfac solutions were popularized in the late 1990s as a way to help small- and medium-sized businesses accept online payments more easily. The Benefits of Partnering with the Right Payments ExpertTraditional payfac solutions were popularized in the late 1990s as a way to help small- and medium-sized businesses accept online payments more easily. For example, payfac models are common among software vendors providing US municipal government payment portals, because cardholder fraud is low, chargeback risk is very low, and client onboarding and churn is slow—all minimizing the requirements and risks of underwriting. For businesses with the right needs, goals and requirements, it’s a powerful tool. Step 2) Register with the major card networks. Moreover, for those businesses that cannot fulfill all PayFac-specific requirements all at once, white-label payment facilitator model became available. A tale which now speaks to Stripe’s strongest moats: products that are developer-centric and down-right simple. Enabling businesses to outsource their payment processing, rather than constructing and maintaining their own. Graphs and key figures make it easy to keep a finger on the pulse of your business. Payments for platforms and payments for ordinary merchants are not the same. If the merchant fits the requirements, PayFac onboards is a sub-merchant under the master MID. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. 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. A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. It’s used to provide payment processing services to their own merchant clients. In many cases an ISO model will leave much of. 5. Conduct a readiness assessment This would help the PayFac entity to check if the sub-merchants are functioning within the regulatory guidelines of the federal laws. BOULDER, Colo. Why go PayFac? A PayFac is a master merchant that deals with the processor and has sub-merchants – customers – underneath. merchant requirements apply equally to a sponsored merchant. Home / Learning Center / What is a payment facilitator (PayFac)? What is a payment facilitator (PayFac)? According to data from the Pew Research Center, 41% of today's. 10. Better account security with multifactor authentication. This identifier is the reason sales made by a given. Update and manage your account. White-label payfac services can allow businesses to revolutionise their payment processing capabilities, improve the customer experience and explore new revenue opportunities – all while maintaining focus on their primary competencies. This includes setting up merchant accounts for your sub-merchants, managing transaction risks, and handling all compliance requirements. Build a go-to-market plan. Payment Facilitators offer merchants a wide range of sophisticated online platforms. For example, in some ways Stripe is closer to the payfac model, offering easy, out-of-the-box solutions for businesses with straightforward requirements. To help your referral partners be as successful as possible, you need a smooth onboarding process. 4 Card Acceptance 107 1. This can often include setting up onboarding processes, ensuring compliance requirements are met, and paying out funds to sub-merchants on an agreed schedule. 4. The requirements for becoming a payment facilitator (payfac) vary depending on the country and the specific payment networks or financial institutions that the payfac will work with. Merchant Underwriting and Onboarding. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. 2CheckOut (now Verifone) 7. Ensure that the payfac is compliant with regulatory requirements, such as PCI-DSS, and is able to provide a secure environment for processing electronic payments. Sponsors: Sponsors are the combination of an acquiring bank and a payment processor. Traditional payfac solutions require building and investing in multiple systems for payment processing, sub-merchant onboarding, compliance, risk management, payouts, and more. Also known as a “PayFac” or merchant aggregator, a payment facilitator is a third party agent that contracts with an acquirer to THE ACQUIRER A Visa Client licensed to provide card acceptance services. User Name. A payment facilitator, or “PayFac”, is a company that enables merchants and vendors to accept electronic payments for goods or services. Ensure that the payfac is compliant with regulatory requirements, such as PCI-DSS, and is able to provide a secure environment for processing electronic payments. Traditional payfac solutions require building and investing in multiple systems for payment processing, sub-merchant onboarding, compliance, risk management, payouts, and more. Traditional payfac solutions require building and investing in multiple systems for payment processing, sub-merchant onboarding, compliance, risk management, payouts, and more. For instance, some jurisdictions are still defining what a PayFac is. If you are looking for a more robust solution with a wider range of features, a payment processor may be a. Payfac: Business model. +2. Local laws define different infrastructure requirements that can increase costs significantly. The payment facilitator operating regulations apply to all Visa regions and define participant roles and obligations. If you are a sole proprietor, and you are not old enough to enter into a contract on your own behalf (which is commonly but not always 18 years old), but you are 13 years old or older, your Representative must be your parent or legal guardian. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. Payment facilitation helps you monetize. You or the acquirer also, most commonly, provide individual submerchant IDs. Traditional payfac solutions were popularized in the late 1990s as a way to help small- and medium-sized businesses accept online payments more easily. Automated on-boarding with one-click merchant acceptance allows you to board 100% of your existing users and all new customers moving forward. 1 ATM Requirements 119 1. Our engagements include a holistic understanding of your business model, goals, competition, timelines, budgets, resources and key-assets you wish to integrate, acquire or consolidate to scale your business. Traditional payfac solutions require building and investing in multiple systems for payment processing, sub-merchant onboarding, compliance, risk management, payouts, and more. Management of a reporting entity that is an intermediary will need to determine. 2. For all requirements identified as either “Partial” or “None,” provide details in the “Justification for Approach” column, including: • Details of specific sub-requirements that were marked as either “Not Tested” and/or “Not Applicable” in the ROC • Reason why sub-requirement(s) were not tested or not applicableFor ISVs looking to serve their customers and shoppers in multiple countries, the burden is even greater. consider potential growth trajectories and their associated requirements from a payment processing standpoint, and vet potential providers against all of this important information. Platforms also have ongoing requirements to maintain their good standing and credit requirements with acquiring banks and card networks. Ask any PayFac who has gone through the certification process and they will tell you this is a black hole. And if you thought you’d be able to stop paying them now that your registration is complete, think again. The key is working with the right sponsor as you embark on the journey of becoming a successful PayFac. 1 of the Mastercard rules outline the requirements and compliance standards for this category of payment facilitators.