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Becoming your own Payment Facilitator (PayFac) sounds greatuntil you realize its a regulatory nightmare , a financial black hole , and takes longer than your last DIY home improvement project (which, lets be honest, is still unfinished). Biggest Perk: Generous revenue share (up to $1M+ per year for some partners). Lets break it down.
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Checkout (including paymentprocessing and gathering sales tax, GST, and VAT). Handling failed payments and customer notifications. Reconciling payment with accounts and remitting sales tax, GST, and VAT. The second factor to consider is whether or not the solution was built for your type of business.
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I thought it’s also worth giving you some sense of scale for how much the US government takes in in revenue every year. In revenue, the US government takes in 3.5 So the amount that we’ve handed out just in money going out of the US government is equal to 86% of the total revenue we take in in a year.
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