“You’re giving the payment facilitator the rights to generate liability that you as the bank are going to be responsible for,” Spalinger said. When you want to accept payments online, you will need a merchant account from a Payfac. 1. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. Next-generation ISO (or next-gen ISO) is a. “So, your policies and procedures have to guide how you are going to. 20 (Processing fee: $0. 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. ISO Versus the PayFac Payment Model. However, the setup process might be complex and time consuming. Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. Revenue Share*. But no matter the vertical, the build versus buy question — that perennial. Until recently, SoftPOS systems didn’t enable PINs to be inputted. 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. THIRD PARTY AGENT An entity that provides payment related services on behalf of a Visa Client. PayFac vs. e. All ISOs are not the same, however. Industries. One of the key differences between payment aggregators and payment facilitators is the size of sub-merchants they are servicing. Thus, an ISO’s customers can access a wider range of processors, even if the onboarding experience is tedious. Typically, the ISO stays out of the contract between the two and instead focuses on the relationship with the payment 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. An ISV can choose to become a payment facilitator and take charge of the payment experience. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. 007 per transacation. One of the key differences between PayFacs and ISO systems is the contractual agreement. PayFac vs merchant of record vs master merchant vs sub-merchant. Blog. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. PayFac vs ISO: When Does One Make Sense over The Other? Now’s Your Chance to Suggest 2020 Article Topics. 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. But to banks and merchants it means something very different. Avoiding The ‘Knee Jerk’. Even though PayFacs and ISOs may seem to be quite similar on the surface, there are a few key differences between them. ISO: What Is the Optimal Integrated Payment Strategy in SaaS? Advertisement. 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. You see. The merchant fills out extensive paperwork in order to open their own merchant processing account. Payroc LLC is a registered independent sales organization (ISO/MSP) for Fifth Third and Wells Fargo Bank, N. However, they do not assume. SaaS. This can include card payments, direct debit payments, and online payments. Merchants need to. Payment Facilitation as a Service or as it commonly known PayFac as a Service, offers software platforms the ability to both monetize payments and onboard new users instantly. Swipesum details all you need till get about Payfac vs ISO. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. an ISO. June 14, 2023 PayFac Vs. Since it is a franchise setup, there is only one. For their part, FIS reported net earnings of $4. PayFac vs. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. In addition to serving as Payroc ’ s SVP Payfac Trusty,. In short, Payment Facilitation is an operating model that affects the acquiring side of the payment ecosystem. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. This doesn’t happen with ISO, as it never handles money directly. 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. Maybe you want to learn about PayFac vs. 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. Classical payment aggregator model is more suitable when the merchant in question is either an. There are two types of merchant account providers: independent sales organizations (ISO) and payment facilitators (PayFac), also known as payment service providers (PSP). 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 Payment Facilitator or Payfac is a service provider for merchants. The road to becoming a payments facilitator, according to WePay founder Rich Aberman, is long, expensive and technologically complex. Episode 2 is live! Our guest on this episode is Menda Sims, Chief Payments Officer at Stax Payments. Let us take a quick look at them. 70. 3. 20) Card network Cardholder Merchant Receives: $9. FIGURE 6: SaaS Provider & Platforms – Observed PayFac Model Progression Journeys . For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. VAR, ISV, Next-generation ISO: Outside Payment Facilitator Paradigm. The ISO is an intermediary signing up the merchants for the acquirer’s payment processing services. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Both aggregators and facilitators offer similar benefits from the perspective of the end-user. A Payfac, or payment facilitator, is essentially a third-party payment system that allows businesses and organizations to receive and process online and in-store payments. Software companies that focus on specific verticals, such as healthcare or childcare, are natural PayFac candidates. However, the setup process might be complex and time consuming. 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. ISO: An Independent Sales Organization (ISO) is a company that refers businesses that need to accept card payments to processors and acquiring banks. The PayFac aggregates transactions and sends them to their processor, keeping operations streamlined. ISO. Fully managed payment operations, risk, and. A three-party scheme consists of three main parties. 5. ”. They offer payments to their merchant customers, known as submerchants, through their own links with payment processors. For example, an artisan. April 12, 2021. The Payment Facilitator uses a sub-merchant platform to provide two types of merchant accounts, a PSP and an ISO. Wider range of featuresThe value of all merchandise sold on a marketplace or platform. Both offer companies a means of accepting and processing payments, and while they may appear to be the same, they are. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. 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. Costs, including engineering, security, and maintenance are just a few expenses to consider when determining whether or not to offer payfac-as-a-service. Whatever information you need, we can help. However, the setup process might be complex and time consuming. PSP = Payment Service Provider. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. For example, an. A relationship with an acquirer will provide much of what a Payfac needs to operate. Contracts. The customer views the Payfac as their payments provider. Reduced cost per application. 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. I SO. 00 Payment processor/ merchant acquirer Receives: $98. Each client is the merchant of record for transactions. They are typically small businesses that work with a limited number of banks. According to an canvass leaded by payment processing mammoth TSYS, 80% of consumers pick debit and believe show compared to exactly 14% who said they favorites cash. They provide services that allow software platforms to accept credit and debit card payments and make it easier and faster for them to start accepting payments as they handle most of the work for you. 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. 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:. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. Both offer companies a means of accepting and processing payments, and while they may appear to be the. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. Also known as a “PayFac” or merchant aggregator, a payment facilitator is a third party agent that contracts with an acquirer to THE ACQUIRER A Visa Client licensed to provide card acceptance services. 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. While the. 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. Click to read more about what an ISO has both what it has to do for payment processing! Services. Checkout’s UK & Europe net revenues in FY2019 were $55M and grew 52% yoy. The most important difference between a PayFac and an ISO is that PayFacs “own” their merchants – entering into direct contracts with them (albeit on behalf of an acquiring partner. Marketplace vs ecommerce platform: What's the difference? Read article. The SaaS provider onboards clients via a non-intrusive application process -- making it simple for the user base to quickly begin accepting customer payments by credit card. PayFac-as-a-Service has emerged from payment companies and independent sales organizations (ISO) that have gone through the regulatory compliance of PayFac registration. In contrast, a PayFac is responsible for the submerchants. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. 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. Payfac’s immediate information and approval makes a difference to a merchant. With a. 00 Retains: $1. Payment Processors: 6 Key Differences. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The main advantage of becoming a Payment Facilitator is that you can quickly and easily enroll your application, enabling a smooth onboarding experience. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. For example, an. For example, an artisan. One of the key differences between PayFacs and ISO systems is the contractual agreement. However, the setup process might be complex and time consuming. With Visa, you’ll be applying to be a registered ISO, but with Mastercard, you’ll technically be applying to be a registered MSP, or member service provider. While an ISO, or independent sales organization, is similar to a Payfac, there are some key differences. Top content on Payment Facilitation and SaaS Payments as selected by the SaaS Brief community. Research firm Statista estimates payfac transaction volume totaled $88 billion last year,. e. VC Funding Hit a 5+ Year Low in Q1’23: CBInsights and Carta vs. Also, unlike an ISO, the PayFac provides the processing services, settlement of funds, and billing to the merchant. For example, an. 4. This allows faster onboarding and greater control over your user. The arrangement made life easier for merchants, acquirers, and PayFacs alike. To help us insure we adhere to various. Mastercard PayFac Models: The Ins and Outs of the “Big Two” Payment Facilitator Programs. And this is, probably, the main difference between an ISV and a PayFac. By owning these operational components,. However, the setup process might be complex and time consuming. This site uses cookies to improve your experience. a PSP/PayFac. The tool approves or declines the application is real-time. 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. With an ISO, you’ll. The PayFac uses an underwriting tool to check the features. In this article: 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 offers clients a choice if they wish to pay by cheque or bank transfer. PSP and ISO are the two types of merchant accounts. So naturally, any company considering the option needs to make sure the investment they’ll make in the Payfac model makes sense financially. Start earning payments revenue in less than a week. What is a payment facilitator? History of payfacs How to bring payments in-house Traditional payfac solutions Getting started Set up payment systems Set up merchant onboarding. For example, an. For example, if you’re selling in-store, then your ISO should offer you a point of sale software and. As a PayFac, Segpay handles the sub-merchant onboarding and provides a fully managed payment processing 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. Payfac Pitfalls and How to Avoid Them. PSP and ISO are the two types of merchant accounts. In exchange for the user fees, PayFac underwrites these new merchants and assumes the risk of any payments made through its platform. 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. There are several ways for businesses to go about accepting payments, and two of the most popular provider options are PayFacs and Independent Sales Organizations (ISOs). Payment processors do exactly what the name says. payment processor question, in case anyone is wondering. 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). Payment facilitators have a registered and approved merchant account with the acquiring bank. If you want to take a full revenue model opposed to a commission based model anyway. Just to clarify the PayFac vs. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its. This was an increase of 19% over 2020,. This means that a SaaS platform can accept payments on behalf of its users. GETTRX absorbs the stress of fraud monitoring and compliance reporting while you focus on your business. 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. While some software providers starting out as an ISO or referral partner may elect a managed payfac solution as the next logical tech enablement progression, other providers may not want to relinquish visibility and control to a third. 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. Payment Processors and ISOs have a symbiotic relationship, with each party benefiting from the collaboration. Even better? Funds are settled to the PayFac’s account and it’s determined by the PayFac to move those funds to the merchant. Each ID is directly registered under the master merchant account of the payment facilitator. PayFac, which is short for Payment Facilitation, is still a relatively new concept. PayFac is more flexible in terms of providing a choice to. So, what. Blog. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. It assumes liability for losses or non-compliance. If you need to contact us you can by email: support. The PayFac must properly follow KYC practices and correctly assess the sub-merchants as all transactions can be aggregated under a single merchant ID. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. 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. Aug 10, 2023. For example, an artisan. the PayFac Model. Payfac as a Service is the newest entrant on the Payfac scene. The former, conversely only uses its own merchant ID to process transactions. Avoid the slow, manual sub-merchant onboarding with other payfac solutions, and offload your payments compliance obligations to Stripe. However, the setup process might be complex and time consuming. 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. For example, an artisan. 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. Our comprehensive article delves into the merits and challenges of Payment Facilitators (PayFac) versus Independent Sales Organization (ISO) registration. But a lot has. For example, an. While there are many benefits of integrating to a Payfac, two of the most notable are frictionless onboarding and risk, liability and costs associated. You must be logged in to post a comment. Payment facilitators, aka PayFacs, are essentially mini payment processors. Toward the middle person, ISO is the acronym used by the International Arrangement for Standards. You may also like. We get white glove treatment from Global Payments Integrated—they put clients first. A guide to payment facilitation for platforms and marketplaces. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. The distinction between wholesale ISO and PayFac is thusly less critical than the distinction between being a technology company and being a troglodyte. The payment facilitator model was created by the card networks (i. Almost every bank nowadays has a department dealing with merchant services. The main difference between a payment aggregator and a PayFac is the type of merchant ID (MID) used to differentiate accounts. A payment facilitator allows sub-merchants under one master merchant to process payments easily, with less hassle. However, much of their functionality and procedures are very different due to their structure. I/C Plus 0. They provide services that allow software platforms to accept credit and debit card payments and make it easier and faster for them to start accepting payments as they handle most of the work for you. PayFac vs ISO: 5 significant reasons why PayFac model prevails. Acquiring banks willingly delegated them to payment facilitators in exchange for part of liabilities and residual revenues. 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. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. 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. Merchants need to understand these differences, so they can decide which of these options may be better suited for their business. Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. 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. Identifying these incidents via the Infinicept system quickly is an easy first step to take in halting such. So, what. In fact, they broke the mold when they offered Toast a payfac at $0. A PayFac (payment facilitator) has a single account with. . In the current downturn, said Mielke, the PayFac or ISV that is diversified will be better positioned to weather the storm. (ISO). Another distinction between PayFacs and ISOs is in the “fine print. Registered payment facilitators earn 20-40 basis points more per transaction than they would riding the rails of another wholesale PayFac. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. In essence, PFs serve as an intermediary, gathering. In fact, ISOs don’t even need to be a part of the merchant’s contract. Payfac-as-a-service vs. In fact, they broke the mold when they offered Toast a payfac at $0. One is an ISO or independent sales organization, and another is a PayFac or payment facilitator. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. They typically work. One classic example of a payment facilitator is Square. Payment processors do exactly what the name says. In recent years payment facilitator concept has been rapidly gaining popularity. While all of these options allow you to integrate payment processing and grow your. Blog. 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, so you can choose one of the two, or you’re looking for a PayFac solution for your business. Payment Processors are responsible for authorization, authentication, data security, settlement, clearing, and reporting services, while ISOs focus on sales, marketing, merchant support, customer service, and value-added services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an artisan. One key difference between payment facilitators and aggregators is the size of businesses or merchants they work with. A payment processor is a company that works with a merchant to facilitate. Worldpay was one of the first processors to offer payfac extensibility. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. Estimated costs depend on average sale amount and type of card usage. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. To the extent that a Payment Facilitator wishes to identify and review every unmatched refund it has that capability. There are several ways for businesses to go about accepting payments, and two of the most popular provider options are PayFacs and Independent Sales Organizations (ISOs). The enabler is essentially an acquirer in the traditional term. This simplifies the onboarding process and enables smaller. Our team has over 30 years experience. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk. A three-party scheme consists of three main parties. 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. implementation of a payment facilitator model) calls for getting certified as one by the respective acquirer, and for. 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. The PayFac model is also very attractive to independent software vendors. However, the setup process might be complex and time consuming. PayFac vs Payment Processors. Now let’s dig a little more into the details. 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. 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. PayFac vs ISO. Relationships of modern humans with other human species, such as Neanderthal etc, ranged from killing and eating each other to interbreeding. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. A PayFac sets up and maintains its own relationship with all entities in the payment process. The Visa® merchant aggregation model covers all commerce types, including the face-to-face and e-commerce environments, and helps to increase electronic payment acceptance for merchantsThe differences of PayFac vs. Payment Facilitator vs ISO. Top content on Payfac and Payments as selected by the SaaS Brief community. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. ISO serves as an intermediary between merchants and acquiring banks, taking responsibility for essential functions such as merchant onboarding, sales. As a seasoned global executive with strategic leadership experience across banking, #. The main difference between these two technologies,. However, the setup process might be complex and time consuming. 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. Learn more: What is an ISO? PayFac vs marketplace: what’s the difference? A PayFac is similar to a marketplace in that it provides a platform for merchants to sell their goods or. Now let’s dig a little more into the details. But to financial and merchants it means something high different. Learn more: PayFac vs ISO: which one to choose for your business? Benefits of becoming a PayFac. 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. The payment facilitator works directly with the. Both offer ways for businesses to bring payments in-house, but the similarities end there. The payfac model is a framework that allows merchant-facing companies to. PayFac-as-a-service delivers a competitive payment program with instant onboarding of merchants while creating a seamless customer experience. However, the setup process might be complex and time consuming. ; Re-uniting merchant services under a single point of contact for the merchant. or by phone: Australia - 1300 721 163. This includes underwriting, level 1 PCI compliance requirements,. Processor relationships. This. This site uses cookies to improve your experience. responsible for moving the client’s money. implementation of a payment facilitator model) calls for getting certified as one by the respective acquirer, and for. Payfac as a Service providers differ from traditional Payfacs in that. Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. 07% + $0. An ISV can choose to become a payment facilitator and take charge of the payment experience. April 12, 2021. The Visa® merchant aggregation model covers all commerce types, including the face-to-face and e-commerce environments, and helps to increase electronic payment acceptance for merchants The differences of PayFac vs. 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. Payment Facilitators contract directly with the sub-merchant for processing services and perform key payment activities in-house. Recommended for companies processing less than $50M of annual payments volume (APV) 66%. About 50 thousand years ago, several humanities co-existed on our planet. For example, an. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Principal vs. But no matter the vertical, the build versus buy question — that perennial. They’ll listen to you and guide you in developing the solutions your customers want and need. Once upon a time, cash where king, but includes today’s direct world, elektronic transactions have usurped the toilet. a Payment Service Provider (PSP), aka a Payment Facilitator (PayFac). It runs about 40 minutes (really shooting to be less than 30) and we discuss the differences in payfac vs ISO and where payfac is heading. Our payment-specific solutions allow businesses of all sizes to. 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 the merchant fits the requirements, PayFac onboards is a sub-merchant under the master MID. In fact, ISOs don’t even need to be a part of the merchant’s contract. PayFacs perform a wider range of tasks than ISOs. 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. The merchant interacts directly with the ISO and follows their set processes to register and become. 1) A PayFac always acts on sub-merchant’s (retailer’s) behalf, while an MOR might be the actual retailer. 1. Whatever works best for them. However, the setup process might be complex and time consuming. Why more and more acquirers are choosing the PayFac model. One of the most significant differences between Payfacs and ISOs is the flow of funds. 05 per transaction + $6 per monthly active account. Payment Facilitator. Totango AI innovations set to boost customer success productivityCheckout’s “gross profit” is the P&L line most comparable with Adyen’s “net revenue” line. 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. What’s The Difference Between A PayFac vs ISO? Posted at 11:39 am in Fundraising , Payment Processing As intermediary technologies between a payment system and merchant, Independent Sales Organizations (ISOs) and Payment Facilitators (PayFacs) serve a very similar purpose. When you start accepting payments online, you need a merchant account from a payment facilitator with sufficient infrastructure and proper compliance to process payments . 收单行收取费用，有时称为Merchant Discount Rate ， 该费用通常为每笔交易额的百分比。复杂之处在于，一般收单行收取的总交易费用可以分为多个不同部分，由. 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. The merchant provides a few basic details to their PayFac provider. Software users can begin. Toward the average human, ISO is the acronym employed by the Global Organization for Standards. , Concord, California (“Wells”). Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. To put it another way, PIN input serves as an extra layer of protection. Payfac Pitfalls and How to Avoid Them. For SaaS providers, this gives them an appealing way to attract more customers. In contrast, PayFacs have one or two processor relationships and onboard ISVs as referral agents. For starters, ISOs function only as resellers. For example, an. 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.