Priding themselves on being the easiest payfac on the internet, famously starting. Payment aggregator vs. Read More. agent A specified good or service is a distinct good or service (or a distinct bundle of goods orPayment facilitator model allowed all categories of entities to benefit: merchants received fast and smooth underwriting, acquirers could save resources and service larger numbers of merchants. PayFac vs ISO. However, the setup process might be complex and time consuming. As PSPs must pay acquirers and banks and still have some profit margin, the fees can be higher than what can be directly negotiated with banks and acquirers. 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 businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and. To learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. We wrote an earlier piece that discussed the history of PayFacs if you want to get caught up, so for the purposes of this […]5. Payment Facilitator vs Payment Processor. Cons. Payment Facilitators (commonly known as PayFacs or PFs) have risen in popularity over the recent years. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. So, MOR model may be either a long-term solution, or a. In contrast, a PayFac is responsible for the submerchants. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. 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. 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. The business has gone through the traditional setup of a merchant account in its name and is registered as a Merchant. Processor relationships. 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. However, the setup process might be complex and time consuming. The ISO is tasked with facilitating the relationship between the two parties and getting merchants signed up with a merchant account. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. 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: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an. The key difference between a payment aggregator 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. Difference #1: Merchant Accounts. For example, an. 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. When accepting payments online, companies generate payments from their customer’s debit and credit cards. Can an ISO survive without. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. ISO does not send the payments to the merchant. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. This solution involves you partnering with either (1) an acquiring bank or (2) an acquirer and a payment facilitator vendor. So, what. 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). 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. Besides that, a PayFac also. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. The differences of PayFac vs. 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. In other words, ISOs function primarily as middlemen. It works by using one umbrella merchant account that allows every merchant to open as a sub-account underneath it. Payment Processors: 6 Key Differences. For example, an. Jorge started his payment journey 15 years ago. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. For example, an. 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. Both aggregators and facilitators offer similar benefits from the perspective of the end-user. For example, an. (ISO). (ii)during any period of two consecutive years, individuals who at the beginning of such period constitute the board of directors of the Company (the “Board”) and any new directors whose election by the Board or nomination for election by the Company’s stockholders was approved by at least two-thirds of the directors then still in office who either were. PayFacs are generally more suitable for smaller businesses or those looking for a streamlined, integrated payment platform with faster funding times. Payment facilitation helps. You own the payment experience and are responsible for building out your sub-merchant’s experience. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. Under the PayFac model, each client is assigned a sub-merchant ID. PayFac vs. It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank. For example, an. A payment facilitator is a merchant services business that initiates electronic payment processing. The bank receives data and money from the card networks and passes them on to PayFac. Next-generation ISO (or next-gen ISO) is a. PayFac-as-a-Service has emerged from payment companies and independent sales organizations (ISO) that have gone through the regulatory compliance of PayFac registration. 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. In the U. However, the setup process might be complex and time consuming. For example, an. Click here to learn more. 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. The value of all merchandise sold on a marketplace or platform. 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. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. Both PayFacs and ISO’s (independent sales organizations) act as intermediaries between merchants and payment processors . Sub-merchants sign an agreement with the PayFac for payment. Traditional – where banks and credit card. For example, an. For example, an. Shop. In other words, processors handle the technical side of the merchant services, including movement of funds. Under the PayFac model, each client is assigned a sub-merchant ID. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Before offering customers payment methods from popular card networks (Visa, Mastercard, etc. One of the main benefits to adopting the Payfac ® model is the increase in revenue you get from each transaction processed using your software. Wider range of featuresA payment facilitator or payfac is a service provider that affords small and medium-sized merchants the means to process debit or credit card payments more quickly, efficiently, and securely, allowing them more room to focus on their core business objectives. The Job of ISO is to get merchants connected to the PSP. Higher fees: a payment gateway only charges a fixed fee per transaction. An ISO acts as a middleman, facilitating the relationship between the ISV and the payment. 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. Although each of these methods offer their own distinct advantages, understanding how they differ and which option is right for your specific. 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. The downside of this speed is the risk exposure in a breach; if a retail ISO is breached the acquirer steps in and shoulders most of the load. Click here to learn more. A Payment Facilitator or Payfac is a service provider for merchants. Payment Facilitator (PayFac) vs Payment Aggregator. 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 merchantsA 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. For example, an. To learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. 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. A PayFac works by establishing one master merchant account, which can then be leveraged by multiple businesses for a small fee. Independent sales organizations (ISOs) and resellers of merchant services are examples of payment service providers in the industry. Each of these sub IDs is registered under the PayFac’s master merchant account. 2 Payfac counts exclude unidentifiable or defunct companies. What is an ISO vs PayFac? Independent sales organizations (ISOs). July 12, 2023. 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. This solution involves you partnering with either (1) an acquiring bank or (2) an acquirer and a payment facilitator vendor. The Kiflo PRM vendor dashboard keeps partnership teams up-to-date on all partner activity. Independent sales organizations (ISOs) are a more traditional payment processor. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Both offer ways for businesses to bring payments in-house, but the similarities end there. If you're wondering what the difference is between Payfac and ISO, the answer is simple: The Payfac solution provider is directly responsible to MasterCard and. Call it the Amazon. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. A. However, the setup process might be complex and time consuming. 3. Onboarding workflow. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. 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 want to accept payments online, you will need a merchant account from a Payfac. 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. La respuesta corta; es un proveedor de servicios de pago para comerciantes. So, revenues of PayFac payment platforms remain high. According to SMB estimates. (Piense en Square, Stripe, Stax o PayPal). Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. ; Selecting an acquiring bank — To become a PayFac, companies. Payfac Model. The Payment Facilitator Registration Process. For example, an artisan. For example, an. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an. the PayFac Model. All ISOs are not the same, however. PayFac offers clients a choice if they wish to pay by cheque or bank transfer. 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, much of their functionality and procedures are very different due to their structure. PayFacs for short, are esoteric merchant acquiring entities that are really picking up momentum. 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. Visa, Mastercard) around 2011 as a way for aggregators to provide more transparency into who their sub-merchants were. Traditionally, a business that wanted to accept card payments would need to set up a merchant account with a bank, which can be a complex and time. com explains everything you need to know. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. When you enter this partnership, you’ll be building out systems. However, PayFac concept is more flexible. For example, an. This relatively new payfac business model is experiencing rapid growth. One of the most significant differences between Payfacs and ISOs is the flow of funds. A PayFac, or payment facilitator, is a merchant services model that streamlines the merchant account enrollment process by onboarding a merchant as a sub-account under the PayFac’s master 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. You own the payment experience and are responsible for building out your sub-merchant’s 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. Below we break down the key benefits of the PayFac model for software. In fact, when a merchant is seen as potentially liable for fraudulent activity, an ISO and/or processor are sometimes named as codefendants, along with people at the ISO or processor who. if ms form category == cat01 then save to My Docs/stuff/cat01. ISO: An Independent Sales Organization (ISO) is a company that refers businesses that need to accept card payments to processors and acquiring banks. payment gateway; Payment aggregator vs. 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. NPC is Vantiv's nationwide ISO merchant distribution business serving over 220,000 small-to-medium-sized merchants. Qualpay offers a fully-integrated payment processing solution, including merchant account, payment gateway, invoicing and recurring payments. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. Before offering customers payment methods from popular card networks (Visa, Mastercard, etc. In contrast, PayFacs have one or two processor relationships and onboard ISVs as referral agents. See moreWhile ISOs and payfacs both facilitate electronic payments for businesses, they cater to different needs. Touch device users, explore by. 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. To ensure maximum relevancy, the logical structural models, assets, threats and security objectives in this document are based. 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. In this post, we break down the differences between a few of the most common routes you can take when it comes to integrated payment models: independent sales organization (ISO), full-fledged payment facilitator (PayFac), or PayFac-as-a-Service (PFaaS) models. However, the setup process might be complex and time consuming. 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. An ISO or acquirer processes payments on behalf of its clients that are call merchants. A payment facilitator allows sub-merchants under one master merchant to process payments easily, with less hassle. See image of current working flow. PayFacs are businesses that resell merchant services on behalf of a payment processor, lightening the processor’s load and earning a slice of every transaction fee – known as a residual – in the process. 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. Some ISOs also take an active role in facilitating payments. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFac = Payment Facilitator. 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. Our digital solution allows merchants to process payments securely. Visa and Mastercard allow sub-merchants to process up to $1 million in annual charge volume before requiring them to establish their own, independent merchant accounts. Payment Processors: 6 Key Differences. 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. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. As a result of the first two. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. The ISO is an intermediary signing up the merchants for the acquirer’s payment processing 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. responsible for moving the client’s money. Explore. PSP and ISO are the two types of merchant accounts. For example, an. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an. PayFacs perform a wider range of tasks than ISOs. sales and maintain loyalty. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 4. 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. Payments is an expert in embedded payment solutions, enabling SaaS businesses to monetize payments through its turnkey PayFac-as-a-Service solution. Find a payment facilitator registered with Mastercard. The PayFac model allows a single entity to become the “merchant of record” and board sub-merchants with fewer data requirements and scrutiny. 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: 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. Thus, an ISO’s customers can access a wider range of processors, even if the onboarding experience is tedious. 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. Typically, it’s necessary to carry all. At first it may seem that merchant on record and payment facilitator concepts are almost the same. FinTech innovators love the payment facilitator (PayFac), a shift that WePay co-founder Rich Aberman outlined in Episode 1 of the Payment Facilitators series with Karen Webster, CEO of PYMNTS. IRIS CRM Blog ISO vs. Gross revenues grew considerably faster. PayFacs take care of merchant onboarding and subsequent funding. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. This means that a SaaS platform can accept payments on behalf of its users. One of the key differences between PayFacs and ISO systems is the contractual agreement. Fortis manages everything for you – underwriting, fraud monitoring, funding, gateway reporting, and chargeback management. 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. On balance, the benefits are substantial and the risks manageable. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. And this is, probably, the main difference between an ISV and a PayFac. Estos tipos de cuentas agregan fondos de muchos comerciantes en una. 4. Checkout’s UK & Europe net revenues in FY2019 were $55M and grew 52% yoy. For example, an artisan. 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 start accepting payments online, you need a merchant account from a payment facilitator with sufficient infrastructure and proper compliance to process payments . PayFac is more flexible in terms of providing a choice to. A Payment Facilitator or Payfac is a service provider for merchants. Avoiding The ‘Knee Jerk’. FIS’ rival, Fiserv, acquired the remaining stake of Finxact for $650 million, while another company, Fintech Amount, bought Linear for $175 million. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. Read More. 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. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. However, much of their functionality and procedures are very different due to their structure. The distinction between wholesale ISO and PayFac is thusly less critical than the distinction between being a technology company and being a troglodyte. The PSP in return offers commissions to the ISO. ISV: An Independent Software Vendor (ISV) is a company that creates and sells software. For example, an. 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. Learn more: PayFac vs ISO: which one to choose for your business? Benefits of becoming a PayFac. 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. Like payment facilitators, ISOs serve as intermediaries to provide merchants with access to the payments system on behalf of their acquiring bank partners, often. The ongoing, lifetime aspect of residuals is important for two reasons. 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. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent. PayFac vs ISO: Key Differences Even though PayFacs and ISOs may seem to be quite similar on the surface, there are a few key differences between them. 2) PayFac model is more robust than MOR model. The first is the traditional PayFac solution. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent that. 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. It’s more PayFac versus wholesale ISO model or full liability ISO. One classic example of a payment facilitator is Square. 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. What PayFacs Do In the Payments Industry. ISO = Independent Sales Organization. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. You could also work with an existing ISO and get a buy rate, then make X over that Buyrate but you wouldn’t be able to be in the agreement or have any access to claim the discount or. 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. Difference #1: Merchant Accounts. Payments for software platforms. One of the key differences between PayFacs and ISO systems is the contractual agreement. The Worldpay PayFac® experience goes the distance from boarding sub-merchants to collecting payments, reducing risk, and more. S. Payment processors do exactly what the name says. Payment Facilitator. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. The facilitator company collects and manages the money. e. For example, an artisan. There isn’t much of a debate in terms of functionality in the larger payment processor vs. For example, an. 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. For example, an. For example, an. an ISO. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Also, unlike an ISO, the PayFac provides the processing services, settlement of funds, and billing to the merchant. 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. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Within the ARM industry, PayFac models can provide an especially significant benefit – these models can be used to enable full compliance for convenience fee solutions, in order to protect collection agencies from non-compliance risks including lawsuits,. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. At ETA PayFac Day, we hosted a session that highlighted the pros and cons of becoming a PayFac and shed light on complimentary partnership models that offer similar degrees of control and increased profits. Today’s PayFac model is much more understood, and so are its benefits. PayFac vs ISO: 5 significant reasons why PayFac model prevails. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. Generally speaking, a PayFac might be suitable for. Let’s figure it out! ISO vs. 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 vs. Propelling High Performance Digital Commerce. It could be a product that is yet to reach the buyer,. PayPal using this comparison chart. 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. Stripe. If you use direct charges, all Terminal API objects belong. In an ever-changing economic world, we are helping businesses be successful today and well into the future. In a new series, Rich Aberman, co-founder of WePay, and Karen Webster set the record straight on what a PayFac is and isn’t, how a company can become one (and what it costs), the value equation. Typically, the ISO stays out of the contract between the two and instead focuses on the relationship with the payment processor. 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. However, the setup process might be complex and time consuming. BOULDER, Colo. payment processing. The merchant provides a few basic details to their PayFac provider. For example, an. Buy: Becoming a Payment Facilitator Versus PayFac-as-a-ServiceOne of the main benefits to adopting the Payfac ® model is the increase in revenue you get from each transaction processed using your software. PayFac: Key Differences & Roles in Payment Processing Read more Top 4 Benefits of Being an Independent Sales Agent Read more Why Becoming a Sales Agent in the Payments Industry is a Great Job Opportunity! Read more How to Become a Successful Sales Agent in the Payments Industry. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. 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. A PayFac supports a large portfolio of sub-merchants throughout all their lifecycle — from underwriting to funding to chargeback disputing — and gets its reward for all these services (from every sub-merchant). However, the setup process might be complex and time consuming. becoming a payfac. You own the payment experience and are responsible for building out your sub-merchant’s experience. Exact handles the heavy. As he noted, among the firms that most commonly move down the PayFac path – ISOs, ISVs and platform businesses – the benefits stand out quite brightly: easier. This allows faster onboarding and greater control over your user. Gateway Service Provider. Payfac’s immediate information and approval makes a difference to a merchant.