In North America, 41% of all payfacs are ISVs, whereas in Europe, only 8% of payfacs are ISVs. PayFac Solution Types. Contracts. However, the setup process might be complex and time consuming. So, what. However, the setup process might be complex and time consuming. Payments for software platforms. What is a PayFac? Benefits & Reasons Why Businesses Need One in 2023. Visa and Mastercard allow sub-merchants to process up to $1 million in annual charge volume before requiring them to establish their own, independent merchant accounts. ISO vs. The procedures used to develop this document and those intended for its further maintenance are described in the ISO/IEC Directives, Part 1. For example, an. Benefits and criticisms of BNPL have emerged on several fronts. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. In an ever-changing economic world, we are helping businesses be successful today and well into the future. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Stripe. 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. For example, an artisan. (ii)during any period of two consecutive years, individuals who at the beginning of such period constitute the board of directors of the Company (the “Board”) and any new directors whose election by the Board or nomination for election by the Company’s stockholders was approved by at least two-thirds of the directors then still in office who either were. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFacs provide a similar. 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. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. Checkout. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. In a similar manner, they offer merchants services to help make the selling process much more manageable. Generally speaking, a PayFac might be suitable for. The payment facilitator model was created by the card networks (i. PayFac vs. But how that looks can be very different. Payfac and ISO (Independent Sales Organization) are two terms that are often confused with each other when it comes to payment processing. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. An ISO acts as a middleman, facilitating the relationship between the ISV and the payment. Can an ISO survive without becoming a PayFac? Becoming a PayFac (i. For example, an artisan. In contrast, a PayFac is responsible for the submerchants. An ISO or acquirer processes payments on behalf of its clients that are call merchants. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. Payment Facilitator. To fully understand the benefits of the payment facilitator model, it’s important to first take a look at what goes into creating a standard payment processing agreement. Higher fees: a payment gateway only charges a fixed fee per transaction. Payfac is a contracted Independent Sales Organisation (ISO), so they have the responsibility to manage their own sales agents and underwriters and adhere to the rules of the card associations. Avoiding The ‘Knee Jerk’. ISO serves as an intermediary between merchants and acquiring banks, taking responsibility for essential functions such as merchant onboarding, sales. When you’re using PayFac as a service, there are two different solution types available. However, the setup process might be complex and time consuming. ISO = Independent Sales Organization. ISO does not send the payments to the merchant. All ISOs are not the same, however. This model is ideal for software providers looking to. In 2021, global payment facilitators processed over $500 billion in transactions – a 75% increase over the previous year. Square, Stripe, PayPal, AirBnB and Uber are well-known examples of PayFacs. A Payfac, or payment facilitator, is essentially a third-party payment system that allows businesses and organizations to receive and process online and in-store payments. Massive technological leaps have made it easier than ever for software. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk—in short. Learn more: PayFac vs ISO: which one to choose for your business? Benefits of becoming a PayFac. Cutting-edge payment technology: Extensive. However, the setup process might be complex and time consuming. payment gateway; Payment aggregator vs. 00 Retains: $1. ISO. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Acquiring banks willingly delegated them to payment facilitators in exchange for part of liabilities and residual revenues. For example, an. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. It’s more PayFac versus wholesale ISO model or full liability ISO. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. One of the main benefits to adopting the Payfac ® model is the increase in revenue you get from each transaction processed using your software. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. When it comes to choosing between a PayFac and an ISO, the best option depends on your business's specific needs and preferences. Payment Facilitator vs Payment Processor. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Uber corporate is the merchant of record. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. However, the setup process might be complex and time consuming. Confusion often arises when distinguishing ISO vs. implementation of a payment facilitator model) calls for getting certified as one by the respective acquirer, and for. The way Terminal creates API objects depends on whether you use direct charges or destination charges. ISO vs. 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. ISVs create software for companies in the payments industry. PayFacs are businesses that resell merchant services on behalf of a payment processor, lightening the processor’s load and earning a slice of every transaction fee – known as a residual – in the process. The underlying role that these fill for a business is to provide merchant services, and you can read our reviews of various merchant service providers here. 727 1550 E FL 3, Orem, UT. April 12, 2021. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Besides that, a PayFac also. However, the setup process might be complex and time consuming. PayFac: Key Differences & Roles in Payment Processing A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. Contracts. responsible for moving the client’s money. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. 2. PayFac vs ISO: Contractual Process. , May 26, 2021 /PRNewswire/ -- PayFac-as-a-Service startup Tilled today announced the close of $11 million in Series A funding to empower software companies. For example, an. For example, an. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an. However, the setup process might be complex and time consuming. However, they do not assume. However, the setup process might be complex and time consuming. The customer views the Payfac as their payments provider. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. However, the setup process might be complex and time consuming. For example, an. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. A payfac is also responsible for underwriting and risk assessment, settling funds with submerchants, dealing with chargebacks and disputes, and ensuring compliance with regulations in the payment industry. For example, an. Comments on: ISO vs Payfac: Choosing the Right Payment Solution for Your BusinessA: Mastercard Send is the first-of-its-kind interoperable global platform that enables funds to be sent quickly and securely. 26 May, 2021, 09:00 ET. Find a payment facilitator registered with Mastercard. Typically, it’s necessary to carry all. See image of current working flow. 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. A PayFac processes payments on behalf of its clients, called sub-merchants. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. Mastercard PayFac Models: The Ins and Outs of the “Big Two” Payment Facilitator Programs. In addition to serving as Payroc ’ s SVP Payfac Trusty,. In contrast, PayFacs have one or two processor relationships and onboard ISVs as referral agents. While the PayFac model comes with some unique risks, the benefits of additional control and potentially higher margins have seen its popularity grow among two major categories of operators: traditional acquirers and independent software vendors. However, much of their functionality and procedures are very different due to their structure. Each of these sub IDs is registered under the PayFac’s master merchant account. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. One key difference between payment facilitators and aggregators is the size of businesses or merchants they work with. The road to becoming a payments facilitator, according to WePay founder Rich Aberman, is long, expensive and technologically complex. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. A PayFac provides credit card processing services to merchants on behalf of a bank or other. Each of these sub IDs is registered under the PayFac’s master merchant account. However, in terms of payment processing, the end result is largely the same for your organization. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. A. They offer merchants a variety of services, including. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. (Piense en Square, Stripe, Stax o PayPal). The speed at which a merchant can start processing payments with a PayFac is vastly different than the rate at which this could be done in the legacy ISO model. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. However, the setup process might be complex and time consuming. There’s not much disclosure on the ‘cost of sales’ (i. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. PayFacs perform a wider range of tasks than ISOs. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payment facilitation helps you monetize. Very rarely, said Mielke, do ISVs win with the “knee-jerk reaction of becoming a PayFac and capturing those additional revenues. 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. Risk management. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. For example, an. In general, if you process less than one million. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. This doesn’t happen with ISO, as it never handles money directly. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. The unique relationship PayFacs have with their merchants exposes them to more risk than your average ISO – even more than most wholesale ISOs – but, in return, PayFacs gain a lot of control over how. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. The Payment Facilitator uses a sub-merchant platform to provide two types of merchant accounts, a PSP and an ISO. Examples. 4. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. e. Priding themselves on being the easiest payfac on the internet, famously starting. The bank receives data and money from the card networks and passes them on to PayFac. If you want to take a full revenue model opposed to a commission based model anyway. Unlike PayFac technologies, ISO agreements must include a third-party bank to. 00 Payment processor/ merchant acquirer Receives: $98. So, MOR model may be either a long-term solution, or a. Independent sales organizations (ISOs) and resellers of merchant services are examples of payment service providers in the industry. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFacs work under one or more payment processors, operating in a layer of the industry between processors and merchants. Click here to learn more. For example, an. Payments is an expert in embedded payment solutions, enabling SaaS businesses to monetize payments through its turnkey PayFac-as-a-Service solution. However, the setup process might be complex and time consuming. Step 3: The Network (Mastercard) conducts due diligence on Transaction Originator, originates the transaction, routes to PIN Debit networks and provides transaction controls. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac. As PSPs must pay acquirers and banks and still have some profit margin, the fees can be higher than what can be directly negotiated with banks and acquirers. In this sub-merchant model, Payfac has a master merchant account under which merchants are signed up, as sub-merchants. becoming a payfac. You own the payment experience and are responsible for building out your sub-merchant’s experience. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. The payfac accepts and processes payments on behalf of merchants (called submerchants in this context), through a contract with an acquirer. 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. The payment facilitator works directly with the. An ISO works as the Agent of the PSP. A best-in-class payment solution. Stripe is an ISO with First Data Merchant Services (FDMS, I believe now owned or controlled by Wells Fargo) doing the actual processing and, as such, assumes a different legal role than PayPal (which is a VAR for Paymentech). By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Take Uber as an example. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an. A Payment Facilitator or Payfac is a service provider for merchants. ISO. For example, an artisan. An ISV can choose to become a payment facilitator and take charge of the payment experience. Risk management. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Popular 3rd-party merchant aggregators include: PayPal. ”. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. In a new series, Rich Aberman, co-founder of WePay, and Karen Webster set the record straight on what a PayFac is and isn’t, how a company can become one (and what it costs), the value equation. Visa vs. 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. ISOs, unlike Payfacs, rely on a sponsor bank to. However, the setup process might be complex and time consuming. Is a PayFac a merchant acquirer? A PayFac contracts with an. For example, an. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. ISO vs. For example, an. 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. An ISO contract with banks to provide credit card processing services. Stripe Terminal is fully compatible with Connect, enabling your platform or marketplace to accept in-person payments. ISO 23195, Security objectives of information systems of third-party payment services, provides an internationally agreed list of terms and definitions, two logical structural models and a list of security objectives. For example, an. For example, an. You own the payment experience and are responsible for building out your sub-merchant’s experience. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. However, the setup process might be complex and time consuming. Onboarding workflow. PayPal using this comparison chart. For example, an. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. While all of these options allow you to integrate payment processing and grow your. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. the PayFac Model. Gain competitive. For example, an. For example, an artisan. For their part, FIS reported net earnings of $4. It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. However, the setup process might be complex and time consuming. They provide the systems and technology that process transactions. Our payment-specific solutions allow businesses of all sizes to. The downside of this speed is the risk exposure in a breach; if a retail ISO is breached the acquirer steps in and shoulders most of the load. Propelling High Performance Digital Commerce. For example, an. PayFac-as-a-Service helps you hit the ground running and quickly onboard customers while adhering to compliance standards. The bank receives data and money from the card networks and passes them on to PayFac. Payment Facilitators vs. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. Payment facilitation helps. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. 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. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. July 12, 2023. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. The Visa® merchant aggregation model covers all commerce types, including the face-to-face and e-commerce environments, and helps to increase electronic payment acceptance for merchantsA Payment Facilitator (PayFac) is a type of merchant services company that provides business owners with a way to accept electronic payments, both online and in-store. ISO vs. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Both PayFacs and ISO’s (independent sales organizations) act as intermediaries between merchants and payment processors . However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. However, the setup process might be complex and time consuming. For example, an. However, the setup process might be complex and time consuming. PayFac: How the Two Most Common Types of Payment Intermediaries Differ April 12, 2021. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. Payment Processors and ISOs have a symbiotic relationship, with each party benefiting from the collaboration. PayFac vs Payment Processors. What’s the difference in an ISO and a PayFac? While an ISO merely connects a merchant to a bank, a PayFac owns the full client experience. 1 billion for 2021. e. However, the setup process might be complex and time consuming. ISVs create software for companies in the payments industry. In a similar manner, they offer merchants services to help make the selling process much more manageable. ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization. When you want to accept payments online, you will need a merchant account from a Payfac. ) The PayFac takes on merchants as its own contracted “sub-merchants,” which process their transactions through the master merchant account. You could also work with an existing ISO and get a buy rate, then make X over that Buyrate but you wouldn’t be able to be in the agreement or have any access to claim the discount or. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. If you're wondering what the difference is between Payfac and ISO, the answer is simple: The Payfac solution provider is directly responsible to MasterCard and. The Worldpay PayFac® experience goes the distance from boarding sub-merchants to collecting payments, reducing risk, and more. When accepting payments online, companies generate payments from their customer’s debit and credit cards. 3. Now let’s dig a little more into the details. For example, an artisan. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. In other words, processors handle the technical side of the merchant services, including movement of funds. For example, an. According to SMB estimates. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Traditional – where banks and credit card. In contrast, a PayFac is responsible for the submerchants. Wider range of featuresA payment facilitator or payfac is a service provider that affords small and medium-sized merchants the means to process debit or credit card payments more quickly, efficiently, and securely, allowing them more room to focus on their core business objectives. (PayFac) Receives: $3. Payfac and payfac-as-a-service are related but distinct concepts. PayFac vs. PayFac vs ISO: 5 significant reasons why PayFac model prevails. It works by using one umbrella merchant account that allows every merchant to open as a sub-account underneath it. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. However, the setup process might be complex and time consuming. Furthermore, segregated accounts secure the client's funds if the firm goes bankrupt, shuts down, or any other unfortunate event that prevents them from doing business. PayFacs for short, are esoteric merchant acquiring entities that are really picking up momentum. For example, an. An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The submerchants and the PayFac enter into an agreement, and that agreement is not related to the PayFac’s agreement with the payment processing partner. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Here are the six differences between ISOs and PayFacs that you must know. You own the payment experience and are responsible for building out your sub-merchant’s experience. if ms form category == cat01 then save to My Docs/stuff/cat01. However, the setup process might be complex and time consuming. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Why more and more acquirers are choosing the PayFac model. Payfac Model. Fortis manages everything for you – underwriting, fraud monitoring, funding, gateway reporting, and chargeback management. 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. For example, an. NPC is Vantiv's nationwide ISO merchant distribution business serving over 220,000 small-to-medium-sized merchants. You see. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. In 2021, global payment facilitators processed over $500 billion in transactions – a 75% increase over the previous year and. A PayFac works by establishing one master merchant account, which can then be leveraged by multiple businesses for a small fee. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Both the PayFac and ISO acquisition models have unique benefits and drawbacks. 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 former, conversely only uses its own merchant ID to process transactions. It provides a technology, allowing to authorize transactions and, potentially, receive transaction settlement information. What is a card ISO? An ISO (independent sales organization) is a term Visa uses to refer to a person or organization that isn’t a Credit Card Association (i. debit card account, including non-Mastercard debit cards. They are typically small businesses that work with a limited number of banks. PSP = Payment Service Provider. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. PayFac vs ISO. This allows the businesses under the payfac’s umbrella to focus on their core operations rather than deal with the complexities of the. IRIS CRM Blog ISO vs. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an. Some ISOs also take an active role in facilitating payments. This was an increase of 19% over 2020,. However, the setup process might be complex and time consuming. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. One of the key differences between payment aggregators and payment facilitators is the size of sub-merchants they are servicing. This article is part of Bain's report on Buy Now, Pay Later in the UK. (ISO). However, the setup process might be complex and time consuming. The ISO is an intermediary signing up the merchants for the acquirer’s payment processing services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The types of new entities an ordinary ISO can turn into include a PayFac, a wholesale ISO, a next-generation ISO, or a merchant services consultant. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. becoming a payfac. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. Typically, the ISO stays out of the contract between the two and instead focuses on the relationship with the payment processor. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. For example, an. A PayFac will function as a payment facilitator in this general sense (though it's important to note the differences outlined above), and you can use a payment gateway to translate data between the PayFac and the credit card providers. For example, an artisan. However, the setup process might be complex and time consuming. Buy: Becoming a Payment Facilitator Versus PayFac-as-a-ServiceOne of the main benefits to adopting the Payfac ® model is the increase in revenue you get from each transaction processed using your software. Now let’s dig a little more into the details. For example, an. PayFac vs Payment Processors. The merchant interacts directly with the ISO and follows their set processes to register and become. For example, an artisan. For example, an. The North American market for integrated. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. Payfac and payfac-as-a-service are related but distinct concepts. One of the most significant differences between Payfacs and ISOs is the flow of funds. When you enter this partnership, you’ll be building out. Principal vs. PayFac: ISO: Merchant onboarding timeline : Instant account approvals: Days or weeks : Sign-up process: Quick and easy. You own the payment experience and are responsible for building out your sub-merchant’s experience. However, they differ from payment facilitators (PFs) in important ways. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run.