要成为 PayFac，ISV 或 VAR 与处理银行（例如，Elavon 或 Fiserv）签署直接协议，使他们能够作为主商家账户进行操作。通过作为主商户账户操作，支. 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. K. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Take the Savings Challenge today to see how much we can save you in interchange fees. This series, “Just the FACs,” tracks the development and progression of ISVs and PayFacs. Payfac and payfac-as-a-service are related but distinct concepts. SaaS is that the former provides software products and the latter represents one channel through which those products can be delivered (i. Estimated costs depend on average sale amount and type of card usage. Payfac as a Service is the newest entrant on the Payfac scene. Army is preparing to test three new trucks. June 14, 2023 PayFac Vs. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. PayFac: A PayFac essentially takes on some of the duties of a payment processor and a payment gateway and acts as the merchant-of-record for the acquirer, servicing its submerchants (customers). The Army plans. With Payfac, you can bypass the complex, extensive paperwork and documentation required by acquiring banks. A Quick Overview of What Provisional Credit Entails. By using a payfac, they can quickly and easily. Payment Processors: 6 Key Differences. Independent sales organizations (ISOs) and. The company is. Each of these sub IDs is registered under the PayFac’s master merchant account. The PSP in return offers commissions to the ISO. 99) Lenovo Legion Tower 5 Ryzen 7 RTX 4070 Dual Drive Desktop — $1,499. April 12, 2021. Toggling between payfac-alternative and rental payfac models will allow deal teams to get a sense of which model fits a given ISV. Payfacs work by having a master merchant account (and a master MID) through its relationship with acquiring banks. Even though I don’t think everyone should or will become a PayFac, it is incredibly important that everyone has a payments strategy. . Payfac as a Service. Connect with real people who really get it, 24/7. Reliable offline mode ensures you're always on. Thus, when the time comes for fund payouts, the processor transfers money. The key aspects, delegated (fully or partially) to a. What SaaS & E-commerce Companies Need to Know About Payment Facilitator Regulations, and what key regulations. 6. It’s used to provide payment processing services to their own merchant clients. Finery Markets ''Liquidity Match'' operates through a sub-account model with a master account created by a broker, prime-broker, OTC-desk, or liquidity provider, which then creates multiple sub-accounts to serve its clients via GUI or API. Unlike payfacs, ISOs set up individual merchant accounts for each business they service. For financial services. PSP = Payment Service Provider. Payfac-as-a-service vs. The merchant obtains a gateway system, its supplementary APIs and the various forms of payment as a bundle and only has to sign one contract. ISV: Key Differences & Roles in Payment Processing. e. This is because the per-transaction payment processing rates are typically better for merchant accounts—as opposed to sub-merchant accounts. Restaurant-grade hardware takes on everyday spills, drops, and heat. Risk management. “A payments facilitator (or PayFac) allows anyone who wants to offer merchant services on a sub-merchant platform. Before you go to market as a PayFac, it is a good idea to set a goal to define success. 6 Differences between ISOs and PayFacs. 24/7 Support. difference between the two extremes of, on the one hand, an ISV becoming a PayFac and, on the other hand, an ISV having a simple referral relationship. This provides greater ease-of-use, but the PSP charges more per transaction in exchange. From an ISV perspective, flat rate pricing is also less transparent. Global expansion. In a comprehensive white paper on the subject we explained PayFac meaning and how to become a payment facilitator. 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. It’s an easy choice for the ISV or PayFac that wants to boost its growth and dip its toes into a very easy international market. A Birds-Eye-View of the PayFac® Journey. GETTRX absorbs the stress of fraud monitoring and compliance reporting while you focus on your business. 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. A payment facilitator (PayFac) is a merchant services business that sets up electronic payment and processing services for business owners (merchants), so they can accept electronic payments. 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. You own the payment experience and are responsible for building out your sub-merchant’s experience. By using a payfac, they can quickly and easily. North America is a Mature ISV Market, Europe is Not. In 2021, global payment facilitators processed over $500 billion in transactions – a 75% increase over the previous year. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. A PayFac must flag suspicious transactions and initiate corrective action. When it comes to payment facilitator model implementation, the rule of thumb is simple. You need to know exactly what you are getting into and be cognizant of the risks. The Army plans to purchase 649 of them. Office of Foreign Asset Control or OFAC 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. L’éditeur reste le propriétaire du bien tout au long de ce processus. Just to clarify the PayFac vs. Difference between a MOR and a PayFac As we can see, the functions performed by a merchant of record are similar to those performed by a payment facilitator (check out our PayFac articles series ). The Ascent ISV Platform is a fully integrated PayFac solution. Skaleet's Core Banking Platform helps marketplaces launch their PayFac solution by opening a merchant bank account and receiving a merchant category code (MCC) to acquire and aggregate payments for a group of smaller merchants, typically called sub-merchants. 5 billion from its solution (think: SIs) and app partners by 2024. In this the ninth episode of PayFAQ: The Embedded Payments Podcast brought to you by Payrix, Host Bob Butler interviews Jorge Lozano, VP of Underwriting and Lloyd Fernandez, VP of Product at Payrix, about all of the decisions a software company must make when embedding or integrating payments. the scheme and interchange fees). PayFac vs. 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. 200+ Integrations. 12. Offline Mode. Gross revenues grew. While ISOs and payfacs both facilitate electronic payments for businesses, they cater to different needs. facilitator is that the latter gives every merchant its own merchant ID within its system. Reducing the. There’s also Cash App, Google Pay, Apple Pay and even Facebook Messenger. Hips is a complete omnichannel payment gateway and platform for businesses, ISV's and ISO's that want to offer their customers payment terminals or online payment services. One of the key differences between PayFacs and ISO systems is the contractual agreement. The main difference between payfac and payfac-as-a-service is the ownership of the payment processing systems and level of control the business has over. While a software company can pursue multiple pathways to offer payments to its customers, the only way to fully capture the benefits of FinTech 2. ISOs mostly. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. ISO vs. For example, an artisan who sells handmade jewelry online may find the process of setting up their own merchant account daunting or unnecessary, given their lower transaction volume. They allow future payment facilitator companies to make the transition process smooth and seamless. Offering a turn-key payfac platform greatly expands the ISV target market for Finix, with the ability to build more immediate opportunities with a much clearer and shorter sales cycle. Failure to do so could leave PayFac liable for penalties. 0. In an ever-changing economic world, we are helping businesses be successful today and well into the future. Uber corporate is the merchant of. Square has been one of the most disruptive technology companies in the past decade, yet they recently caught the media’s attention for the wrong reason. Credit Card Processing – Process EMV, magstripe, and NFC credit cards;. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. An ISV can choose to become a payment facilitator and take charge of the payment experience. Still Microsoft doesn't explain very clearly what these attributes should be. The pace at which development occurs translates into ISV partners receiving revenue from customer payments flowing through their. Payfac and payfac-as-a-service are related but distinct concepts. The business impact SIs effect for their partners is game-changing, but understanding. A payment facilitator (or PayFac) is a payment service provider for merchants. Why PayFac model increases the company’s valuation in the eyes of investors. A payment facilitator, commonly known as a payfac, occupies one of the central roles within the payment processing ecosystem, yet it causes significant confusion. e. If your rev share is 60% you can calculate potential income. GM Defense. For large payment facilitators. In fact, ISOs don’t even need to be a part of the merchant’s contract. Both offer ways for businesses to bring payments in-house, but the similarities end there. 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. As an added benefit, Partner Connect automates all. Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. By using a payfac, they can quickly and easily. For each payfac on the Mastercard payment facilitator list we identified two key characteristics: 1) is the company an ISV (independent software vendor) where software is the primary business and payments are secondary, and 2) in what business category or vertical is the payfac focused. g. Management of a reporting entity that is an intermediary will need to determine. It works by using one umbrella merchant account that allows every merchant to open as a sub-account underneath it. The PFaaS provider handles all of the risk, compliance and underwriting on behalf of the ISV. In essence, they become a sub-merchant, and they face fewer complexities when setting. Reduced cost per application. Acquirer = a payments company that. The truck, known as the Infantry Squad Vehicle, will prioritize speed over. PayFac vs ISO: 5 significant reasons why PayFac model prevails. Unlike an ISO, the funds are initially settled into the PayFac account, and it is up to the. Contracts. There is no way to see how much profit a company like Stripe, Square or Braintree is making off processing your payments thanks to their pricing model. 2. Carat is the Fiserv omnichannel commerce ecosystem that delivers unlimited global payment opportunities across any channel. You own the payment experience and are responsible for building out your sub-merchant’s experience. 4. Under the PayFac model, a merchant is set up under the PayFac’s master account, but they are onboarded with their own unique MID. e. The ISVs that look at the long. Understandably, the PayFac model has grown rapidly in popularity with software vendors in a wide variety of categories. By using a payfac, they can quickly and easily. What ISOs Do. Stripe’s pricing is fairly straightforward. . Payment facilitator model is suitable and effective in cases when the sub-merchant in question is a medium- or large-size business. Our Solutions. For example, a PSP might collect a $5 fee on a $100 transaction processed, subtract the processing cost of $1. 99 (List Price $1,174. ISVs solve business problems for the merchants they serve by developing software for streamlining processes and extending customer capabilities. A Payment Facilitator or PayFac simplifies merchant account enrollment which allows smaller companies to quickly gain the upper hand. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. Read More. The MoR is also the name that appears on the consumer’s credit card statement. Report this post Report Report. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Elevate your application with efficient integrations, support — and now even devices to complete your platform. Payment facilitators conduct an oversight role once they have approved a sub merchant. Core from WePay gives you the tools to become a Payment Facilitator (PayFac) on Chase's payments infrastructure. Higher fees: a payment gateway only charges a fixed fee per transaction. Payfac-as-a-service vs. PayFacs perform a wider range of tasks than ISOs. “Our strategic partnership brings the speed and efficiency of Payfac to Bluefin’s Decryptx ® and ISV partner base including PCI-validated P2PE, tokenization and 3-D Secure, providing the. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk—in short. 4. Once adopted by their entire client base, this ISV could be one of our largest. becoming a payfac. The ISV/SaaS channel is less mature in the U. 5. Adopting the Payfac Model Being able to support a new payfac business model can seem somewhat daunting, but with the right resources and tools, becoming a payfac may be easier than you think. Three key reasons why ISVs are becoming Payment Facilitators: Merchant Onboarding: Traditionally, ISVs formed referral relationships with ISOs and vice versa. PayFac vs ISO: 5 significant reasons why PayFac model prevails. Jun 2023 - Present2 months. ISV software may run on different operating systems like Windows, Android or iOS, on cloud platforms. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. A bad experience will likely result in the client choosing another platform. By using a payfac, they can quickly and easily. The arrangement made life easier for merchants, acquirers, and PayFacs alike. ISOs and ISVs are both B2B providers, working with merchants and the companies who serve them. 同时，商家的 ISV 或 VAR 希望商家有积极的体验，并且不会遇到任何可能使他们转向相反方向的挫折。. The company has never lost an ISV partner as far as I know and the vast majority of ISV partners sole-source process with USIO’s PayFac. And for the payment facilitators (PayFacs) and independent software vendors (ISVs) that serve merchants through software and services that help those firms to accept payments, as Daniela Mielke,. ”. Benefits and opportunities are, more or less, obvious. A merchant acquirer or an acquiring bank is a bank that underwrites (and later funds) a merchant and (what is important) assumes the liability and risk, associated with credit card fraud and chargebacks. ”. Payment is becoming more cashless than ever now as a massive number of transactions are digitally carried out through credit cards and e-wallets. Stripe. One of the biggest benefits of PayFac-as-a-Service is the smooth onboarding process that delivers a great customer experience. Generally speaking, you will pay more to use a PSP/PayFac than you will with an ISO/MSP. By using a payfac, they can quickly and easily. Parmi les exemples, nous. In other words,. Accept payments everywhere with Shift4's end-to-end commerce solution. Partnering with a PayFac (outsourcing to a provider) With this payments model, you are outsourcing the bulk of your payment responsibilities to a PayFac. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. When you swipe a credit card, transfer money, or make an online purchase, there’s an inherent belief that the system will handle these transactions efficiently and accurately. Fraud was discussed and how to combat that and what will the next steps the card schemes are looking into - biometrics, AI solutions and more for e-commerce and. Global expansion. The comprehensive approach includes:For any ISV or SaaS business deciding to implement embedded. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. The payments experience is fundamentally shifting as software developers and. What is a PayFac? Who Should Become a PayFac? Independent software vendors have the potential to address $35 trillion in payments, or 15% of the worldwide total, by integrating payments into their platforms. Instead, all access is granted remotely via the Internet. Payfac and payfac-as-a-service are related but distinct concepts. Both offer ways for businesses to bring payments in-house, but the similarities end there. There’s a lot of things that you, as a software company, need to take on in order to execute your payment strategy. Blog ISO vs Payfac: Choosing the Right Payment Solution for Your Business. It eliminates the traditionally long account setup process that requires multiple steps, including a merchant application followed by a risk and underwriting assessment and supporting business documentation amongst other. 9% and 30 cents the potential margin is about 1% and 24 cents. 1. Those different purposes lead the two business models to appear and operate very differently. becoming a payfac. While Tilled’s PayFac offerings will bring a lucrative new revenue stream to your business through payment monetization, we do more than write you a check each month and wish you luck with this new aspect of your business. • ISO Merchant (ISO – M) —conducts merchantA payment facilitator is a company that allows their customers to accept electronic payments using the payment facilitator’s infrastructure. Europe. It does this by managing the numerous responsibilities - including risk. Take Uber as an example. The difference between payment facilitators (payfacs) and independent sales organizations (ISOs) is about which payment services they offer. PayFac-as-a-Service (PFaaS) allows software providers to reap the rewards of becoming a PayFac without the upfront investment of time and capital. For example, an artisan who sells handmade jewellery online may find the process of setting up their own merchant account daunting or unnecessary, given their lower transaction volume. Fast, efficient boarding solutions that orchestrate third-party and internal systems to help you turn prospects to customers – face-to-face, on the phone, or online. Strategies. With this fact in mind, many ISVs and SaaS businesses are choosing to become payment facilitators, giving them the ability to earn. Essentially, a payfac is a company that allows its customers to accept electronic payments using their platform. payment processor question, in case anyone is wondering. The main difference between a payment aggregator and a PayFac is the type of merchant ID (MID) used to differentiate accounts. PayFac: Key Differences & Roles in Payment ProcessingUnderestimating The Complexity Of Becoming a PayFac. Third-party integrations to accelerate delivery. Payments PayFac vs ISO: Weighing Your Payment Options There are several ways for businesses to go about accepting payments, and two of the most popular provider options are PayFacs and Independent. Think Stripe, PayPal,. 收单行 (Acquirer): 收单金融机构，也可同时作为PSP向商户提供服务。. Payfac and payfac-as-a-service are related but distinct concepts. The customer views the Payfac as their payments provider. Payment facilitators control the onboarding process for their customers – referred to as submerchants in the payment facilitator model – and are responsible for handling certain aspects of the. 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. Third-party integrations to accelerate delivery. Myth 1: The PayFac model is the best way for ISVs to enable payments processing while multiplying revenue. Smaller ISOs might rush to become PayFac because it sounds sexy, but we’re talking drastic cultural changes necessary to transform into an actual technology or software company. It’s an easy choice for the ISV or PayFac that wants to boost its growth and dip its toes into a very easy international market. Office of Foreign Asset Control or. Generally, ISOs are better suited to larger businesses with high transaction volumes. By using a payfac, they can quickly and easily. 0 is to become a payment facilitator (payfac). Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. Independent sales organizations are a key component of the overall payments ecosystem. In many cases an ISO model will leave much of the underwriting as well as settlement and reporting to the acquiring bank. Companies large and small rely on their. For example, an artisan who sells handmade jewelry online may find the process of setting up their own merchant account daunting or unnecessary, given their lower transaction volume. Who Gets Involved in the PayFac Scene? There are five main elements which compose the payment facilitator landscape. A PSP, on the other hand, charges a variable fee in addition to the fixed fee. This is known as PayFac-as-a-Service (PFaaS), which we will discuss in a later section. The PayFac signs a contract with the ISV, and another with the payment processor. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. April 12, 2021. Here, the ISV can integrate to the payment platform and provide the platform’s Payfac services to their merchants directly. As a result, the ISV avoids paying hefty fees and spending valuable resources applying to become a payment facilitator. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payment Facilitator (PayFac): 大商户模式，是商户而不是收单机构。. The payment facilitator is a service provider for merchants. However, there are instances where discrepancies arise. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. In essence, they become a sub-merchant, and they face fewer complexities when setting. The key difference between a payment aggregator vs. IRIS CRM Blog June 1, 2022 ISO and ISV are two extremely common terms in the payments industry, but, despite a couple of common letters, the two acronyms describe companies that do very different work – independent. The ISO acts as an intermediary between the merchant and the payment processor, taking care of merchant recruitment, sales, and ongoing merchant. A PayFac supports a large portfolio of sub-merchants throughout all their lifecycle — from underwriting to funding to. Settlement must be directly from the sponsor to the merchant. Stripe operates as both a payment processor and a payfac. It was even more exciting is the number of ISVs that are mandating their users adopt our PayFac solution. Marketplaces that leverage the PayFac strategy will have an integrated. Difference #1: Merchant Accounts. 10 basic steps to becoming a payment facilitator a company should take. For example, the bank will need to determine whether it will require daily reports or access to the Payfac’s systems. A PayFac sets up and maintains its own relationship with all entities in the payment process. Simultaneously, Stripe also fits the. 0 began. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk. Fortunately, there is an alternative to this that allows ISV or SaaS companies to offer a PayFac solution without assuming risk. The final evolutionary step making ISVs the new ISOs has occurred as ISVs have taken control of payments in their software by becoming payment facilitators. Intro: Business Solution Upgrading Challenges; Payment. Merchants can then tap into the payment facilitator’s existing relationships with acquiring banks and the PayFac’s processing technology to get up and running fast. Attempted to create different user agent combinations, such as ISV vs NONISV, AppName(s) as explained by Microsoft. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. Add payment services to your offering. Businesses can create new customer experiences through a single entry point to Fiserv. As small business grows, MOR model might become too restraining, while payment facilitators provide robust APIs, which sometimes allow merchants to customize each function separately, according to their. The risk is, whether they can. Moving from Managed PayFac Providers to a PayFac-as-a-Service: A Game-Changer for ISVs ISV CTOs are constantly seeking ways to streamline payment processing and generate revenue. Strategies. The industry term is Payment Facilitation (or Payfac), and Exact has everything you need to build and scale the entire process from instant onboarding to flexible payouts, fraud protection, comprehensive reporting and end-to-end data. What is a payfac? A payfac or PF, short for payment facilitator, makes it possible for you to accept payments from customers in a variety of ways, including card payments, direct debits, local payment methods, and alternative payment methods like mobile and digital wallets including Apple Pay and Google Pay. payment processor; What is a payment aggregator? A payment aggregator, also often referred to as a payment facilitator (payfac) or payment service provider (PSP), is a financial technology company that simplifies the process of accepting electronic payments for businesses. 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. PayFacs are generally more suitable for smaller businesses or those looking for a streamlined, integrated payment platform with faster funding times. becoming a payfac. MSP = Member Service Provider. 1. Traditional payment facilitator (payfac) model of embedded payments. A PayFac, or payment facilitator, was originally defined by Visa® and Mastercard® to describe the entity that is officially doing business with the card brands. Register your business with card associations (trough the respective acquirer) as a PayFac. Before offering customers payment methods from popular card networks (Visa, Mastercard, etc. 2 Payfac counts exclude unidentifiable or defunct. Qualpay offers a fully-integrated payment processing solution, including merchant account, payment gateway, invoicing and recurring payments. PayFac vs ISO: Contractual Process. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. However, just because an ISV — or any entity new to payments — wants to become a PayFac, that does not mean they should become one. Assessing BNPL’s Benefits and Challenges. In part one of our ISV Growth Edition mini-series (which we developed to offer insight into the dynamic ISV market and pertinent tips for growth), we’re tackling the importance of partnerships for ISVs and tips for getting started. 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. If you are attempting to become a fully registered PayFac yourself, or are considering various PayFac-in-a-Box options. 3. 12. Working with a PFaaS, ISVs can offer a one-stop-shop for your. Very rarely, said Mielke, do ISVs win with the “knee-jerk reaction of becoming a PayFac and capturing those additional revenues. Carat drives more commerce. With companies like Stripe, Square and PayPal pioneering the payment facilitator or “PayFac” model, the era of Integrated Payments 2. When you want to accept payments online, you will need a merchant account from a Payfac. By using a payfac, they can quickly and easily. A PayFac partners with an acquiring bank and processor and becomes registered as a payment facilitator to gain access to card network processing capabilities. 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 sub-merchants. The core of their business is selling merchants payment services on behalf of payment processors. FCRA – Payment facilitators pull client credit reports during the underwriting process and are subject to credit reporting laws as defined by the FCRA. Our services include M&A representation, investment and capital raise strategies, payment. In this scenario, the ISV is onboarded as a referral agent, eliminating several risks associated with becoming your own payment facilitator. It then needs to integrate payment gateways to enable online. The growth in the number of payfacs, and in the payment volume passing through them, is reshaping key relationships within the payments ecosystem. 6 percent of $120M + 2 cents * 1. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Very rarely, said Mielke, do ISVs win with the “knee-jerk reaction of becoming a PayFac and capturing those additional revenues. The ISO, on the other hand, is not allowed to touch the funds. Payfacs work by having a master merchant account (and a master MID) through its relationship with acquiring banks. For example, an artisan who sells handmade jewelry online may find the process of setting up their own merchant account daunting or unnecessary, given their lower transaction volume. IHVs design and build hardware to be compatible with broader operating systems and industry equipment. Gateways charge fixed fees per transaction, whereas payment service providers charge both fixed. , Elavon or Fiserv) to process payments on behalf of their merchant clients. Payment Facilitators contract directly with the sub-merchant for processing services and perform key payment activities in-house. “Plus, you have a consumer base that. The bank receives data and money from the card networks and passes them on to PayFac. Read More. Stay on the cutting edge. 0 companies are able to capture more of the payment economics and offer merchants a better experience. This ensures a more seamless payment experience for customers and greater.