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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). So, which fintechs offer the best PayFac-as-a-Service? Lets break it down.
Working on behalf of the acquiring bank, the payment processor performs multiple functions at once, from connecting merchants, customers, payment networks, and financial institutions to managing authorizations and settlements. But at the most basic level, this is how the payment processor is involved in a credit card transaction: 1.
Perhaps your platform is specifically designed for HVAC businesses and does everything from route management to inventory to CRM all while processing and reconciling one-time and recurringpayments. This is common when outsourcing payments.
Working on behalf of the acquiring bank, the payment processor performs multiple functions at once, from connecting merchants, customers, payment networks, and financial institutions to managing authorizations and settlements. But at the most basic level, this is how the payment processor is involved in a credit card transaction: 1.
Its payfac-as-a-service solution — Payrix Pro — enabled Nick to control the onboarding and customer service, while Payrix managed the processing, compliance, and most of the risk and liability. I’m a studio management company. I didn’t want the liability issues either.” Get started today. GET A DEMO
At a very high level, a referral partnership is an integrated payments model. You as the software company make an agreement with a payment processor to become one of their referral partner s. We will explore the risk s in more detail in the next section. What is PayFac-as-a-Service?
Access to technology: sub-merchants benefit from an integrated payment solutions, such as point-of-sale systems or online payment gateways, provided by the master merchant. The master merchant model is common in industries that involve marketplaces or platforms with multiple sellers or service providers.
Point-to-point encryption (P2PE) Technology standard created to secure electronic financial transactions. P2PE solutions are designed to maximize the security of payment card transactions by encrypting transaction data from the point of interaction through the transaction lifecycle. eCheck, PayPal, etc.)
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