Without ISOs, a relatively small handful of global and regional payment processors would each be forced to interact with. While an ISO product will sometimes take weeks to approve a merchant due to the more stringent and quite often paper-based application process, PayFacs are able to approve. This was an increase of 19% over 2020,. However, the setup process might be complex and time consuming. Payment Facilitators contract directly with the sub-merchant for processing services and perform key payment activities in-house. One of the reasons for this phenomenon is that many companies (including former independent sales organizations (ISO)) find it more profitable to combine the functions of an online gateway provider and a merchant service provider (MSP). For example, an. Under umbrella of. Click at read more about what an OBO is and what it has to do with make processing! don’t provide any processing infrastructure, nor do they continually control any on their merchants’ money directly. A single PayFac-as-a-Service solution gives your bank the ability to help your SMB clients reach their objectives by: Retaining more customers – Keeping up with the current payment acceptance solutions ensures your SMB client won’t lose its customers to other, more technologically advanced alternatives. Stax Payments is thrilled to announce the appointment of our new Chief Executive Officer, Paulette Rowe. Learn more: PayFac vs ISO: which one to choose for your business? Benefits of becoming a PayFac. 3. Read article. On. 4. Our team has over 30 years experience. Payfac: What’s the difference? Independent Sales Organization (ISO) is a third-party entity that partners with payment processors or acquiring banks to facilitate merchant services. Standard. Essentially the platform acts as a master merchant account and is able to set up sub-accounts for end users instantly. 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. An ISO works as the Agent of the PSP. Payment facilitators (PFs) were created to make a more streamlined path to electronic payment acceptance for small and medium-sized businesses. When you are listed, you help secure the promise of a trusted payment system by highlighting your investment in data security and the. Once you have everything in order, you’re ready to apply to be a registered ISO with Visa and Mastercard. However, the setup process might be complex and time consuming. The ISO acts as an intermediary between the merchant and the payment processor, taking care of merchant recruitment, sales, and ongoing merchant support, while the processor handles transactions behind the scenes. 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. 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 offer ways for businesses to bring payments in-house, but the similarities end there. Visa, Mastercard) around 2011 as a way for aggregators to provide more transparency into who their sub-merchants were. 1 comment. In almost every case the Payments are sent to the Merchant directly from the PSP. Swipesum details all you need till get about Payfac vs ISO. For example, an. A Payment Facilitator or Payfac is a service provider for merchants. The former, conversely only uses its own merchant ID to process transactions. However, the setup process might be complex and time consuming. Uber could easily masquerade as a PayFac, but it would never choose to become one. agent A specified good or service is a distinct good or service (or a distinct bundle of goods orA payment processor serves as the technical arm of a merchant acquirer. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk. However, the setup process might be complex and time consuming. Visa, Mastercard) around 2011 as a way for aggregators to provide more transparency into who their sub-merchants were. But a lot has. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. However, the setup process might be complex and time consuming. It also must be able to. For example, an. PayFac, which is short for Payment Facilitation, is still a relatively new concept. Since the start of COVID-19, Square has begun to hold back 20 to 30 percent of some of their client’s revenues for up to 4 months. ISOs vs Payfacs. becoming a payfac. S. Payfac 45. 3. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. PayFac vs. What is a payfac? A payfac, short for payment facilitator, is a type of provider in the payments industry that simplifies the process for other businesses to accept credit and debit card payments. For example, an artisan. Payment facilitation, or PayFac allows a SaaS company to act as a master merchant for its client base. Both PayFacs and ISO’s (independent sales organizations) act as intermediaries between merchants and payment processors . Click to read more nearly thing an ISO the real what it has to do with payment processing! 7. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. Toward the middle person, ISO is the acronym used by the International Arrangement for Standards. Instant merchant underwriting and onboarding. Both the PayFac and ISO acquisition models have unique benefits and drawbacks. Until recently, SoftPOS systems didn’t enable PINs to be inputted. 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. Whatever works best for them. So, the main difference between both of these is how the merchant accounts are structured and organized. El ISO se encarga de facilitar la relación entre las dos partes y de conseguir que los comerciantes contraten una cuenta de vendedor. Reduced cost per application. For starters, ISOs function only as resellers. PayFac vs ISO: which one to choose for your business? Read article. This model is ideal for software providers looking to. With a. However, the setup process might be complex and time consuming. Global Electronic Technology, Inc. However, the setup process might be complex and time consuming. ISV: An Independent Software Vendor (ISV) is a company that creates and sells software. By viewing our content, you are accepting the use of cookies. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Registering as a payment facilitator (PayFac) or independent sales organization (ISO) have become popular options for SaaS companies looking for a comprehensive payment strategy. A relationship with an acquirer will provide much of what a Payfac needs to operate. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Since it is a franchise setup, there is only one. Article September, 2023. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. For some ISOs and ISVs, a PayFac is the best path forward, but. Payment facilitation, or “payfac,” continues to grow in popularity among software providers and is designed to facilitate payment card acceptance without requiring individual merchants to go through the lengthy process of establishing traditional merchant accounts. Very few PayFac as Service providers publish pricing to sub PayFac’s and there is a reason. Payment facilitation, or “payfac,” continues to grow in popularity among software providers and is designed to facilitate payment card acceptance without requiring individual merchants to go through the lengthy process of establishing traditional merchant accounts. Estimated costs depend on average sale amount and type of card usage. This simplifies the onboarding process and enables smaller. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent that. ISO. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. implementation of a payment facilitator model) calls for getting certified as one by the respective acquirer, and for. They’re more than just a payment provider. 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. 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. 07% + $0. To photographers, it describes the light sensitivity of a differential camera or a piece to picture. San Jose California Equipment Maintenance Agreement with an Independent Sales Organization. ISOs, unlike Payfacs, rely on a sponsor bank to. becoming a payfac. 0 vs. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. One of the key differences between PayFacs and ISO systems is the contractual agreement. This site uses cookies to improve your experience. the scheme and interchange fees). Merchants need to. Otherwise, you can use an independent sales organization (ISO), which allows for higher volume but can create delays in transaction times. ; Re-uniting merchant services under a single point of contact for the merchant. 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. In other words, ISOs function primarily as middlemen. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. Supports multiple sales channels. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 2. “You’re giving the payment facilitator the rights to generate liability that you as the bank are going to be responsible for,” Spalinger said. One of the main benefits to adopting the Payfac ® model is the increase in revenue you get from each transaction processed using your software. Very rarely, said Mielke, do ISVs win with the “knee-jerk reaction of becoming a PayFac and capturing those additional revenues. Payment Facilitator vs Payment Processor. Payment Facilitator vs ISO. However, the setup process might be complex and time consuming. 2. • The acquirer has access to Payfac system to oversee their performance and compliance. Payment Facilitators are 100% responsible for PCI Compliance, risk underwriting, funding and providing payment support. One of the most significant differences between Payfacs and ISOs is the flow of funds. 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. However, the setup process might be complex and time consuming. Integrated Payments 1. In order to understand how. In this model, the issuer (having the relationship with the cardholder) and the acquirer (having the relationship with the Merchant) is the same entity. Typically, the ISO stays out of the contract between the two and instead focuses on the relationship with the payment processor. Ongoing Costs for Payment Facilitators. If necessary, it should also enhance its KYC logic a bit. 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 Payment Facilitator uses a sub-merchant platform to provide two types of merchant accounts, a PSP and an ISO. When you want to accept payments online, you will need a merchant account from a Payfac. The Payment Aggregator can quickly onboard a new merchant (typically a user of the SaaS offering) and they can begin. 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. Understanding the differences between an ISO versus a PayFac will help you see why using a plug-and-play PayFac-as-a-Service solution is the most effective payment acceptance choice. You own the payment experience and are responsible for building out your sub-merchant’s experience. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Integrated Payments. It’s where the funds land after a completed transaction. Through our payment facilitation platform, Treati we're able to provide a full-stack payments API for B2B companies structured in a one-to-many model. Understanding the Payment Facilitator model The payment facilitator model was created as a way of streamlining business’ processes in a way that would allow them to accept electronic. For example, an. June 14, 2023 PayFac Vs. 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. Processor relationships. 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. FIGURE 6: SaaS Provider & Platforms – Observed PayFac Model Progression Journeys . Avoid the slow, manual sub-merchant onboarding with other payfac solutions, and offload your payments compliance obligations to Stripe. PayFac vs ISO: 5 significant reasons why PayFac model prevails. While there is some overlap between a payment processor and a PayFac, there are also some important differences you should be aware of (although this isn’t a fully exhaustive list!) Here are the top 6 differences: The electronic payment cycle The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. 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. Both offer companies a means of accepting and processing payments, and while they may appear to be the same, they are. 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. ISO: Key Differences & Roles In Payment Processing The world of payment processing has its fair share of acronyms, and two of the most popular are PayFac (Payment Facilitator) and ISO (Independent Sales Organization). Card Brands also authorize payment facilitators to accept settlement funds on behalf of their sub-merchants. (GETTRX) is a registered ISO/MSP/PSP/Payment Facilitator for Merrick Bank, South Jordan, UT, FDIC insured. PayFac-as-a-Service has emerged from payment companies and independent sales organizations (ISO) that have gone through the regulatory compliance of PayFac registration. Acquiring Bank. For example, an artisan. Stripe provides a way for you to whitelabel and embed payments and financial services in 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. Payfac as a Service providers differ from traditional Payfacs in that. A. Also, unlike an ISO, the PayFac provides the processing services, settlement of funds, and billing to the merchant. In other words, processors handle the technical side of the merchant services, including movement of funds. A Payment Facilitator (PayFac) is a type of merchant services company that provides business owners with a way to accept electronic payments, both online and in-store. What’s The Difference Between A PayFac vs ISO? Posted at 11:39 am in Fundraising, Payment Processing. In fact, ISOs don’t even need to be a part of the merchant’s contract. The merchant interacts directly with the ISO and follows their set processes to register and become. The PayFac is the merchant of record for transactions. For example, an. Orange California Equipment Maintenance Agreement with an Independent Sales Organization. Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. Each ID is directly registered under the master merchant account of the payment facilitator. However, the setup process might be complex and time consuming. They offer payments to their merchant customers, known as submerchants, through their own links with payment processors. Blog. Almost every bank nowadays has a department dealing with merchant services. However, PayFac concept is more flexible. The name of the MOR, which is not necessarily the name of the product seller, is specified by. While the. During Jim's tenure with NPC and Vantiv, he also drove the development of and relationship with several key NPC ISOs, as well as oversight and management of specific. 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. Hardware and Software. 70. In addition to serving as Payroc ’ s SVP Payfac Trusty,. Independent sales organizations (ISOs) and payment facilitators (PayFacs) both act as intermediaries between merchants and payment processors, making them parallel channels in the overall payments ecosystem. For example, an artisan. To help us insure we adhere to various privacy regulations, please select your. The ISO acts as an intermediary between the merchant and the payment processor, taking care of merchant recruitment, sales, and ongoing merchant support, while the processor handles transactions behind the scenes. In banking and payments, ISO stands for Swipesum get all to need to see about Payfac. At first it may seem that merchant on record and payment facilitator concepts are almost the same. For example, an. This means that there is no need for any charges between the issuer and the acquirer. 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. With companies like Stripe, Square and PayPal pioneering the payment facilitator or “PayFac” model, the era of Integrated Payments 2. And this makes a difference for several reasons, when it comes to the pros and cons of using a ISO/MSP vs. It assumes liability for losses or non-compliance. One classic example of a payment facilitator is Square. Risk management. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. In the scenario of a SaaS company operating as a PayFac, you are the master merchant and your customers are the sub-merchants. Independent sales organizations (ISOs) are a more traditional payment processor. ISO: What Is the Optimal Integrated Payment Strategy in SaaS? Advertisement. ISOs sold merchant accounts to applicants on behalf of different acquiring banks and were integrated with multiple payment gateways, that were connected to specific acquirers and processors. For example, an. PayFacs provide a similar service to standard merchant accounts, but with a few important differences. They’ll listen to you and guide you in developing the solutions your customers want and need. Lower. Payment facilitator model is a lucrative option for many present-day companies. PayFac vs. The PayFac model thrives on its integration capabilities, namely with larger systems. While there are one lot of roles ISOs handle in that payments space, they Swipesum details all you must go know about Payfac vs ISO. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. Payfac = a software product, platform, or marketplace that has in integrated payments into its product, and is responsible for the risk of transactions processed by its customers. 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 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. PSP and ISO are the two types of merchant accounts. (GETTRX) is a registered ISO/MSP/PSP for. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. One of the key differences between PayFacs and ISO systems is the contractual agreement. What’s the Difference Between a Payment Facilitator, a Payment Processor, and an Independent Sales Organization (ISO) At a glance, a facilitator, a processor, and an ISO may seem to be similar, but the differences are notable. 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. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. For example, an artisan. Payfac as a Service is the newest entrant on the Payfac scene. May 24, 2023. PayFac vs ISO is an illustrative example of natural selection and adaptation in the fintech world. An ISO contract with banks to provide credit card processing services. They typically work. PayFac vs ISO: When Does One Make Sense over The Other? Add comment. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. A payment facilitator (PayFac) is a merchant services business that sets up electronic payment and processing services for business owners, so they can accept electronic payments online or in-person. Marketplace vs ecommerce platform: What's the difference? Read article. com. PINs may now be entered directly on the glass screen of a smartphone using this new technology. In comparison, ISO only allows for cheque payments. The PayFac model thrives on its integration capabilities, namely with larger systems. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Here are the six differences between ISOs and PayFacs that you must know. 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. 1) A PayFac always acts on sub-merchant’s (retailer’s) behalf, while an MOR might be the actual retailer. Payfac: What’s the difference? Independent Sales Organization (ISO) is a third-party entity that partners with payment processors or acquiring banks to facilitate merchant services. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. There are DEF benefits to. Payment Processors and ISOs have a symbiotic relationship, with each party benefiting from the collaboration. This site uses cookies to improve your experience. One classic example of a payment facilitator is Square. Most businesses that process less than one million euros annually will opt for a PSP. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. The most important difference between a PayFac and an ISO is that PayFacs “own” their merchants – entering into direct contracts with them (albeit on. June 26, 2020. Generally, a PayFac is a good fit for businesses that process less than $1 million in payment volume annually, while an ISO is well-suited for larger businesses that process more than this. A payfac has a much more flexible payment system and a wider variety of payment methods, so much so that it can be carried out through the linked bank account. The PayFac does not have to underwrite all merchants upfront — they are instead, underwriting the merchants essentially as they continue to process transactions for them on an ongoing basis. We get white glove treatment from Global Payments Integrated—they put clients first. To manage payments for its submerchants, a Payfac needs all of these functions. Payment facilitators have a registered and approved merchant account with the acquiring bank. All ISOs are not the same, however. The monitoring process ensures that there are no anomalies and in cases of unlawful activities, suspensions are placed. 20 (Processing fee: $0. First popularized by firms like PayPal and Square, the payments facilitator (payfac) model is reshaping the payments ecosystem, allowing nonpayments companies that adopt it to participate more fully in the payments revenue stream. 05 per transaction + $6 per monthly active account. For example, an. Payfac-as-a-service vs. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. Massive technological leaps have made it easier than ever for software providers to explore new opportunities and expand their offering, such as becoming a PayFac as a service. What’s the Difference? Before payment facilitators began enabling smaller merchants to accept payments, acquiring banks relied on another business model to work directly with SMBs: the independent sales organization, or ISO. Even better? Funds are settled to the PayFac’s account and it’s determined by the PayFac to move those funds to the merchant. A merchant of record is an entity that accepts cardholders’ payments and assumes liability for processing of these payments on the merchant’s behalf. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. Becoming a full payfac typically requires an agreement with a sponsoring merchant acquirer such as Worldpay, registering as a payfac with the card networks, becoming compliant with the Payment Card Industry Data Security Standard (PCI DSS. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. PayFac vs ISO: Key Differences. A payment processor is a company that works with a merchant to facilitate. the PayFac Model. In short, a PayFac or payment facilitator, is a master merchant that supports sub-merchants. 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. But to banks and merchants it means something very different. For SaaS providers, this gives them an appealing way to attract more customers. But no matter the vertical, the build versus buy question — that perennial. This model gives your users the ability to seamlessly accept payments directly from your platform and allows you to own and monetize the payments experience. An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. ISVs create software for companies in the payments industry. Onboarding process Today’s PayFac model is much more understood, and so are its benefits. 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. 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. ISOs rely mainly on residuals, a percentage of each. However, with each merchant processing hundreds or thousands of transactions a day, and potentially hundreds of merchants in an ISO’s portfolio, residuals snowball and can be exceptionally. PINs may now be entered directly on the glass screen of a smartphone using this new technology. Payment facilitators, aka PayFacs, are essentially mini payment processors. Here, the Payfacs are themselves the merchants of record. Risk management. (PayFac) Receives: $3. Wider range of featuresThe value of all merchandise sold on a marketplace or platform. Payment Processors are responsible for authorization, authentication, data security, settlement, clearing, and reporting services, while ISOs focus on sales, marketing, merchant support, customer. Just to clarify the PayFac vs. Software users can begin. A Payment Facilitator or Payfac is a service provider for merchants. The new PIN on Glass technology, on the other hand, is becoming more widely available. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. Both offer ways for businesses to bring payments in-house, but the similarities end there. Even within the payments industry, ISOs and the role they play are. Technology has fundamentally changed how businesses, acquiring banks, and card networks work together. Payfac’s immediate information and approval makes a difference to a merchant. In order to understand how. ISO does not send the payments to the merchant. ISO serves as an intermediary between merchants and acquiring banks, taking responsibility for essential functions such as merchant onboarding, sales. Now let’s dig a little more into the details. Without ISOs, a relatively small handful of global and regional payment processors would each be forced to interact with thousands. Payment Facilitator (PayFac) vs Payment Aggregator. As such, read on to discover how the PayFac model works, how to get the best out of it, and how your company can become a payment facilitator. Acquiring banks willingly delegated them to payment facilitators in exchange for part of liabilities and residual revenues. However, the setup process might be complex and time consuming. As a result, PayFac or ISO must accept a higher level of accountability, which in the case of PayFacs maybe 100%. Whatever information you need, we can help. Also take a look at some of the primary regulations payfacs face, such as those from the Financial Crimes Enforcement Network, Office of Foreign Assets Control, and USA PATRIOT Act. 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 typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. PayFac-as-a-service delivers a competitive payment program with instant onboarding of merchants while creating a seamless customer experience. May 24, 2023. It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank. responsible for moving the client’s money. PSPs facilitate payments and act as a proverbial middleman between you and the merchant. Blog. This doesn’t happen with ISO, as it never handles money directly. The size and growth trajectory of your business play an important role. 1. These companies include owners of SaaS platforms, franchisors, ISO, marketplaces, and venture capital firms. A payment facilitator (or payfac) is the owner of a master merchant identification number who registers merchants as sub-merchants and enables their payment acceptance. As merchant’s processing amounts grow, it might face the legally imposed. These companies have proven to the acquiring bank they can satisfy those regulatory requirements and, as a result, may board as many of the SaaS’s. The customer views the Payfac as their payments provider. ISO. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Thus, an ISO’s customers can access a wider range of processors, even if the onboarding experience is tedious. facilitator is that the latter gives every merchant its own merchant ID within its system. This is a clear indicator that fraud monitoring should be a priority in 2022 and beyond, and why it’s vital to work with a PayFac like. 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. PayFacs are often more suitable for SMEs seeking a quick and straightforward setup. PayFacs take care of merchant onboarding and subsequent funding. However, the setup process might be complex and time consuming. Instead of relying on an ISO program that's heavily focused on payments as a service, we're changing the concept of what service actually means. Transaction Monitoring. Once you’ve been authorized as a payment facilitator, the ongoing costs continue often exceeding $100,000 a year. 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.