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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). Some will actually pick up the phone when you call. Lets break it down. Eventually.
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What is a master merchant? A master merchant, often referred to as a payment facilitator or merchant aggregator, is a third-party agent that acts as the link between acquirers and onlinemerchants. Whats the relevance of a master merchant in software-led payments and financial services?
What is a payment processor? A payment processor facilitates the flow of transactions typically made with credit cards, debit cards, and other digital payments. To operate as an integrated software vendor (ISV) or payment facilitator, a software company requires a relationship with an acquiring bank and a payment processor.
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Automated Clearing House (ACH) payments are a type of electronic bank-to-bank payment system in the US. Unlike payments facilitated by card networks like Visa or Mastercard, ACH payments are managed by a body called the National Automated Clearing House Association (NACHA). Let’s get started.
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Nick realized that adding payments to the software product was the only way he could continue to compete in the space, so he took the opportunity. Nick considered partnering with an ISO, but was reluctant to hand off his studio owners — and the relationships he built with them — to a payment processor. It’s too much work,” Nick said.
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Real Green’s journey to embedded payments is also rooted in innovation. According to Kellie Kucik, Head of Payments, the company has spent the last decade focused on developing its Customer Assistant Website. Our first integrated payment solution was a referral agreement with a third-party ISO.
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