Payment facilitators have emerged to become a service in the finance industry that is revolutionising the merchant services space. A payments facilitator, otherwise known as a PayFac, essentially allows any entity to offer merchant services on a sub-merchant platform. A PayFac can then help onboard those service-providers so that they can use the master MID of the Payment Facilitator (rather than having to try and seek their own MID) as the PayFac is sponsored by the bank.
This allows the Payment Facilitator to operate in an incredibly efficient manner, as they are able to underwrite merchants continuously as they keep on processing transactions for them. This is much preferred to underwriting the merchant upfront before the services can be carried out, as this takes much more time and can hold things up.
Payments Facilitators hold a number of different roles that ultimately help streamline merchant services in the payments ecosystem. The role of a Payment Facilitator typically includes:
In order for a Payments Facilitator to operate smoothly and effectively, they must work very closely with a number of key players in the payments ecosystem. It is this level of cooperation that has allowed Payment Facilitators to emerge and play such a key role in the merchant services space. These key partnerships include:
Payment Processors. A PayFac will use a payment processor to authorise transactions and route these to the appropriate card network.
For more information on how Imburse Payments can help you access the global payments ecosystem, integration-free, contact us today where our team of experts will be more than happy to answer any questions.