A PayFac is a processing service provider for ecommerce merchants. To ensure maximum relevancy, the logical structural models, assets, threats and security objectives in this document are based. 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. 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. However, the setup process might be complex and time consuming. There’s not much disclosure on the ‘cost of sales’ (i. 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 almost every case the Payments are sent to the Merchant directly from the PSP. Both offer ways for businesses to bring payments in-house, but the similarities end there. 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 key aspects, delegated (fully or partially) to a. However, the setup process might be complex and time consuming. For example, an. You own the payment experience and are responsible for building out your sub-merchant’s experience. However, the setup process might be complex and time consuming. e. ISOs function primarily as sales agents or. For example, an. However, the setup process might be complex and time consuming. Contracts. 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. In recent years payment facilitator concept has been rapidly gaining popularity. The Kiflo PRM vendor dashboard keeps partnership teams up-to-date on all partner activity. Gain competitive. 4. Each ID is directly registered under the master merchant account of the payment facilitator. 2. A PayFac (payment facilitator) has a single account with. When you enter this partnership, you’ll be building out systems. 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. Read More. S. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. What Is An ISO? ISOs are independent sales. Merchant accounts for credit card processing are used by businesses to accept credit cards and there are different models. 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 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. ISO does not send the payments to the merchant. For example, an artisan. Why more and more acquirers are choosing the PayFac model. The facilitator company collects and manages the money. The Worldpay PayFac® experience goes the distance from boarding sub-merchants to collecting payments, reducing risk, and more. becoming a payfac. Recently, the concepts of PayFac and aggregators have started converging. Besides that, a PayFac also takes an active part in the merchant lifecycle. 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. GETTRX absorbs the stress of fraud monitoring and compliance reporting while you focus on your business. Can an ISO survive without becoming a PayFac? Becoming a PayFac (i. In general, if you process less than one million. Watch. 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. ; Selecting an acquiring bank — To become a PayFac, companies. La respuesta corta; es un proveedor de servicios de pago para comerciantes. A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. Companies large and small rely on their accounting/finance, billing, cash. Before outlining the similarities and commonalities of ISOs and ISVs, it’s helpful to recap their key differences: ISOs sell payment solutions to merchants, with wholesale ISOs offering additional services such as customer support. 3. 4. For example, an. In the scope of implementing its ISO 9001 quality policy, the Central Bank has made it a priority to increase participants. 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 allows the businesses under the payfac’s umbrella to focus on their core operations rather than deal with the complexities of the. However, the setup process might be complex and time consuming. Although each of these methods offer their own distinct advantages, understanding how they differ and which option is right for your specific. Payment Facilitators (commonly known as PayFacs or PFs) have risen in popularity over the recent years. In general, if you process less than one million. 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. One classic example of a payment facilitator is Square. However, payment processing can quickly become overwhelming and complicated, often leaving businesses feeling unprepared and doomed to failure. Typically, the ISO stays out of the contract between the two and instead focuses on the relationship with the payment processor. You own the payment experience and are responsible for building out your sub-merchant’s experience. For example, an artisan. However, the setup process might be complex and time consuming. For example, an. 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. 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 essence, a PayFac is an agent for a payment processor, but a unique twist to the. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. 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. 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. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. Cutting-edge payment technology: Extensive. They build the integration and then lean on the processing partner to. 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. The North American market for integrated. Call it the Amazon. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. You own the payment experience and are responsible for building out your sub-merchant’s experience. e. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. To become a Mastercard merchant, simply contact an acquirer for a merchant account application. 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. if ms form category == cat02 then save to My Docs. Onboarding workflow. On the one hand, these services unlock purchasing power, helping customers manage their finances. However, the setup process might be complex and time consuming. For example, an artisan. However, the setup process might be complex and time consuming. And this is, probably, the main difference between an ISV and a PayFac. BOULDER, Colo. However, the setup process might be complex and time consuming. PayFac vs ISO: 5 significant reasons why PayFac model prevails. Payment Facilitator (PayFac) vs Payment Aggregator. Payfac’s immediate information and approval makes a difference to a merchant. Want to know the difference between ISO and payment facilitator? ️ Read this summary to find out why payment facilitator concept has been rapidly gaining popularity. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The bank receives data and money from the card networks and passes them on to PayFac. 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. 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). In other words, ISOs function primarily as middlemen. However, the setup process might be complex and time consuming. The differences of PayFac vs. 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: What’s the difference?. Payfac and payfac-as-a-service are related but distinct concepts. 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. Read More. 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. 2. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. No matter what your size, we can help enhance your business with streamlined, intuitive payment options for your customers, backed by a suite of payment tools to help you: Streamline billing and. Traditional Merchant Account vs. 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. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFac registration may seem like the preferred option because of the higher earning potential. ISOs rely mainly on residuals, a percentage of each. Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. 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 size and growth trajectory of your business play an important role. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. 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. However, the setup process might be complex and time consuming. This includes underwriting, level 1 PCI compliance requirements,. Becoming a PayFac allows the business to deliver more customized, branded, and better-integrated payments experiences entirely within their own app. In this article we are going to explain why payment facilitator model is becoming so popular (attracting more and more entities) while ISO model is gradually dying out, vacating the space for new payment facilitators. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. Besides that, a PayFac also. 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. 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 are important for your business’s payment processing needs. 4. The payfac accepts and processes payments on behalf of merchants (called submerchants in this context), through a contract with an acquirer. , it will enable disbursements and P2P payments to and from nearly any U. 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. However, the setup process might be complex and time consuming. By Ellen Cibula Updated on April 16, 2023. The Payment Facilitator uses a sub-merchant platform to provide two types of merchant accounts, a PSP and an ISO. ISOs, unlike Payfacs, rely on a sponsor bank to. 1 billion for 2021. For example, an. Payfac and payfac-as-a-service are related but distinct concepts. Payment Processors and ISOs have a symbiotic relationship, with each party benefiting from the collaboration. See image of current working flow. The ISVs that look at the long. responsible for moving the client’s money. ISO vs. For example, an. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. 26 May, 2021, 09:00 ET. Our digital solution allows merchants. 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. When autocomplete results are available use up and down arrows to review and enter to select. Payment processors The PayFac model thrives on its integration capabilities, namely with larger systems. 3. PSP and ISO are the two types of merchant accounts. PayFac-as-a-service delivers a competitive payment program with instant onboarding of merchants while creating a seamless customer experience. 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. These companies include owners of SaaS platforms, franchisors, ISO, marketplaces, and venture capital firms. Partnering with a PayFac-as-a-Service provider leaves the technical work like coding, compliance monitoring, and payment integration to industry. 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. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. 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). Under the PayFac model, each client is assigned a sub-merchant ID. MoneySend is the Mastercard transaction type (Transaction Code 28) designed. 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. Thus, it would arrange communication between both parties, the merchant and the acquiring bank. 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. An ISV can choose to become a payment facilitator and take charge of the payment experience. However, the setup process might be complex and time consuming. 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. PayFac is more flexible in terms of providing a choice to. 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. Payment Facilitators vs. 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. Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. The business has gone through the traditional setup of a merchant account in its name and is registered as a Merchant. On. 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 has emerged from payment companies and independent sales organizations (ISO) that have gone through the regulatory compliance of PayFac registration. PayFac vs Payment Processors. 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. Without ISOs, a relatively small handful of global and regional payment processors would each be forced to interact with thousands. A PayFac provides credit card processing services to merchants on behalf of a bank or other. While both types of merchant account providers can assist you with equipment and services, an ISO will provide you with your own merchant account, whereas a. ISO vs PayFac. . ISVs lease or sell their software, earning their money by providing Software-as-a-Service. While there is some overlap between a payment processor and a PayFac, there are also some important differences you should be aware of (although. As a result, PayFac or ISO must accept a higher level of accountability, which in the case of PayFacs maybe 100%. We would like to show you a description here but the site won’t allow us. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. One of the key differences between PayFacs and ISO systems is the contractual agreement. Payment processors do exactly what the name says. Table of Contents Visa Global Acquirer Risk Standards: Visa Supplemental Requirements vi Visa Public 1 October 2018 Notice: This is VISA PUBLIC information. the PayFac Model. (PayFac) Receives: $3. However, the setup process might be complex and time consuming. Even better? Funds are settled to the PayFac’s account and it’s determined by the PayFac to move those funds to the merchant. 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. a merchant to a bank, a PayFac owns the full client 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. For example, an. A Payment Facilitator or Payfac is a service provider for merchants. Payment facilitation requires the master merchant (usually the software provider) to take legal and financial responsibility for the transaction that occur under the primary merchant. PayFac-as-a-Service helps you hit the ground running and quickly onboard customers while adhering to compliance standards. An ISO is an intermediary entity that resells and markets payment processing services on behalf of banks and payment processors. Can an ISO survive without. 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. Payment Facilitator. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PSP and ISO are the two types of merchant accounts. 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. Stripe was founded in 2010 by two Irish siblings: then 22-year-old Patrick Collison and younger brother John, 20, positioning itself as the builder of economic infrastructure for the internet — launching their payfac flagship product in 2011. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. However, the setup process might be complex and time consuming. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. On. 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. Better processing terms and higher revenues. Acquirer = a payments company that. Sub-merchants sign an agreement with the PayFac for payment. Stripe. Payment Facilitator. 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. An ISO acts as a middleman, facilitating the relationship between the ISV and the payment. For example, an. But regardless of verticals served, all players would do well to look at. For example, an artisan. if ms form category == cat01 then save to My Docs/stuff/cat01. Digital payments like bankcards and mobile wallets can have significant positive impacts on small and medium businesses (SMBS) because they are cheaper to process than other payment types, enable increased marketing capability, and are preferred by consumers, a new study from ETA member Visa says. 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:. 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. 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. This was an increase of 19% over 2020,. For example, an artisan. This solution involves you partnering with either (1) an acquiring bank or (2) an acquirer and a payment facilitator vendor. If you want to take a full revenue model opposed to a commission based model anyway. Extensive. What is an ISO vs PayFac? Independent sales organizations (ISOs). PayFac vs. It becomes more lucrative for a PayFac to offer merchant, gateway, and other services in one package and to support a single acquirer/processor. 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 collaborates closely with the International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization. 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. This can include card payments, direct debit payments, and online payments. For example, an artisan. PayFacs work under one or more payment processors, operating in a layer of the industry between processors and merchants. The PayFac model allows a single entity to become the “merchant of record” and board sub-merchants with fewer data requirements and scrutiny. 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. The merchant fills out extensive paperwork in order to open their own merchant processing account. The differences of PayFac vs. Visa, Mastercard) around 2011 as a way for aggregators to provide more transparency into who their sub-merchants were. 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. Classical payment aggregator model is more suitable when the merchant in question is either 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. Both aggregators and facilitators offer similar benefits from the perspective of the end-user. Research firm Statista estimates payfac transaction volume totaled $88 billion last year,. 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. Thus, an ISO’s customers can access a wider range of processors, even if the onboarding experience is tedious. For example, an. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. 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. So, what. To learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. You own the payment experience and are responsible for building out your sub-merchant’s experience. For example, an. Jul 14, 2020 - Are you an ISO? Find out why you should become a PayFac and what options you have available for becoming a Payment Facilitator and providing merchant services. All ISOs are not the same, however. When accepting payments online, companies generate payments from their customer’s debit and credit cards. PayFac vs ISO. Here are the six differences between ISOs and PayFacs that you must know. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. ,), a PayFac must create an account with a sponsor bank. 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. When you enter this partnership, you’ll be building out. 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. Moreover, in a sense, PayFac model relieved acquirers from merchant management functions, which they delegated to PayFacs. Find a payment facilitator registered with Mastercard. This model is ideal for software providers looking to. 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. Payment Facilitator vs. For example, an. For example, an artisan. Today’s PayFac model is much more understood, and so are its benefits. 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. In other words, ISOs function primarily as middlemen (offering payment processing), while PayFacs are payment facilitation. At the same time, Paragon Payment Solutions assumes the majority of risk and responsibilities related to operational expenses, chargebacks,. Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. A Payment Facilitator or Payfac is a service provider for merchants. For example, an. A. 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. The first key difference between North America and Europe is the penetration of ISVs. However, the setup process might be complex and time consuming. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. A registered Payment Facilitator, also known as a “PayFac” or “merchant aggregator” is a third-party business or platform that contracts with an acquirer to provide payment services to their customers, referred to as “sub-merchants. Para ampliarlo, es una empresa que permite a sus clientes aceptar pagos electrónicos utilizando la plataforma del facilitador de pagos. If the intermediary entity, which funds the sub-merchants, uses different MID for each merchant, it is called a payment facilitator. The former, conversely only uses its own merchant ID to process transactions. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. As a result, the revenues, collected by a PayFac, are much larger than the revenues of a traditional ISO. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. The first is the traditional PayFac solution. 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. Each of these sub IDs is registered under the PayFac’s master merchant account. 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. Now let’s dig a little more into the details. 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. In this article we are going to explain why payment facilitator model is becoming so popular (attracting more and more entities) while ISO model is gradually dying out, vacating the space for new payment facilitators. But of course, there is also cost involved. 4. ISOs rely mainly on residuals, a percentage of each merchant transaction. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Stripe By The Numbers. 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. PayFacs take care of merchant onboarding and subsequent funding. Confusion often arises when distinguishing ISO vs. 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. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. For example, an artisan. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. A PayFac works by establishing one master merchant account, which can then be leveraged by multiple businesses for a small fee. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk—in short. Registering as a payment facilitator (PayFac) or independent sales organization (ISO) have become popular options for SaaS companies looking for a comprehensive payment strategy. 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. (Piense en Square, Stripe, Stax o PayPal). What is a Payment Facilitator (Payfac)? Payfacs are an evolution of a long-established distribution model in the payments industry. For example, an. 2) PayFac model is more robust than MOR model. 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. 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. At the same time, more companies are implementing PayFac model and establishing PayFac payment gateway partnerships. In general, if you process less than one million.