About 50 thousand years ago, several humanities co-existed on our planet. So to sum it all up: payment processors offer the functionality for merchants to start accepting payments and route. Owners of many software platforms face the need to embed. becoming a payfac. What ISOs Do. đ Simplifying Payments: PayFac vs. The road to becoming a payments facilitator, according to WePay. Using payment facilitation, customers can be onboarded and verified quickly, with a faster underwriting process. Your credit, debit, or prepaid card information is safe with us. Chances are, you wonât be starting with a blank slate. When PayFac became a buzzword among software platforms and the many businesses trying to sell to them, the meaning of the word started to blur. Partnering with a PayFac vs becoming a PayFac with a technology partner. Stripe benefits vs merchant accounts. Within the payment industry, VAR model emerged as the product of ISO evolution. This means businesses only need Stripe to accept payments and deposit funds into their business bank account. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Here are the best alternatives to Stripe from providers like Square, Helcim, and Treati. One key difference between payment facilitators and aggregators is the size of businesses or merchants they work with. The best crypto payment gateways provide convenient interfaces for accepting multiple types of cryptocurrencies, flexible settlement options, and low fees. A sub-merchant platform involves a Payfac that has been pre-approved for one master merchant account with an acquirer, like TD. Cardknox is the leading, developer-friendly payment gateway integration provider for in-store, online, or mobile transactions â hassle-free. The B2B FinTech company, WALBING, has obtained a Payment Service License from the German Federal Financial Supervisory Authority. Further, by integrating payments functionality into a software. Payrix enables vertical SaaS companies to: Unlock greater revenue by monetizing your payments; Create better UX through payments with our white labeled, powerful platformPayment gateway. Traditional payment facilitator (payfac) model of embedded payments. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. Stripe benefits vs merchant accounts. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Your provider should be able to recommend realistic metrics and targets. Mastercard PayFac Models: The Ins and Outs of the âBig Twoâ Payment Facilitator Programs. The full-function platform has been designed to deliver Acquirers with a comprehensive Third Party Payment Facilitator programme,. Information Flow. Just to clarify the PayFac vs. The payment processor also typically provides the credit card machines and other equipment needed to accept credit card payments. Payfac and payfac-as-a-service are related but distinct concepts. Global expansion. An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. Whether you are building a mobile app, a web portal, or a point-of-sale system, you can find the documentation, code samples and support you need to get started. For their part, FIS reported net earnings of $4. Posted at 5:43 pm in Operations, Payment Processing. From £19pm. So, what. See morePayment gateway vs payment processor: whatâs the difference? The difference between a payment processor and a payment gateway lies in the fact that. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. If your platform needs to operate internationally and support sub-merchants in other regions, partnerships with local acquirers, gateways, and other service providers may be necessary. To ensure the correct money flow, the payment. Create sandbox. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively ârents outâ merchant account functionality under its. PayFacs are based on the merchant aggregator model created by Visa and MasterCard to provide support for payment card acceptance in marketplaces. A payment processor serves as the technical arm of a merchant acquirer. Generally speaking, a PayFac might be suitable for bigger businesses that need to process a large volume of transactions, and an ISO might be more suitable for smaller businesses. All businesses looking to sell products online need to open a merchant account to accept card payments. Sub Menu Item 4 of 8, Payment Gateway. Clients or sub-merchants skip the traditional merchant account application process, thus enabling. These marketplace environments connect businesses directly to customers, like PayPal,. Unlike payfacs, ISOs set up individual merchant accounts for each business they service. An ISV can choose to become a payment facilitator and take charge of the payment experience. But regardless of verticals served, all players would do well to look at. A merchant acquirer or an acquiring bank is a bank that underwrites (and later funds) a merchant and (what is important) assumes the liability and risk, associated with credit card fraud and chargebacks. Private Sector Support. Operating on a platform that acts as a payfac means that thereâs no need to work with an acquiring bank, payment gateway, and other service providers. In a comprehensive white paper on the subject we explained PayFac meaning and how to become a payment facilitator. What are the differences between payment facilitators and payment technology solutions, and how do you know. When you want to accept payments online, you will need a merchant account from a Payfac. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting, and customer support. This solution involves you partnering with either (1) an acquiring bank or (2) an acquirer and a payment facilitator vendor. + 0. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. It can also. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. The white-label payment facilitator model ( PayFac in a box) is a try-it-before-buy-it solution for prospective PayFacs. Becoming a payment facilitator is a change to your operational and support models, has and it pays long-term benefits. Many large banks, for example, issue credit. Global expansion. Stripe By The Numbers. Payment facilitator (payfac) A payment facilitator is an entity that is authorized to onboard merchants to an acquirer's platform and receive settlement funds for them on behalf of an acquirer. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Onboarding processExact Payments is an expert in embedded payment solutions, enabling SaaS businesses to monetize payments through its turnkey PayFac-as-a-Service solution. 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. The rise of PayFac for marketplaces seeking to provide payment services đĄ. July 12, 2023. PayFacs take care of merchant onboarding and subsequent funding. Without a. In other words, ISOs function primarily as middlemen (offering payment processing), while. So, the acquiring bank is in charge of the PayFac customersâ transaction processing. A best-in-class payment solution. Under the PayFac model, a merchant is set up under the PayFacâs master account, but they are onboarded with their own unique MID. Payment. Stripe benefits vs. The first thing to do is register. There are two ways to payment ownership without becoming a stand-alone payment facilitator. Operating on a platform that acts as a payfac means thereâs no need to work with an acquiring bank, payment gateway, and other service providers. 5-fold improvement in payment take rate [FN10]. In almost every case the Payments are sent to the Merchant directly from the PSP. Payfac as a Service is the newest entrant on the Payfac scene. Leading company listed on the TSE. If you want to offer payments or payments-related. Onboarding processBefore offering customers payment methods from popular card networks (Visa, Mastercard, etc. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting, and customer support. Grow with the experts. This means businesses only need Stripe to accept payments and deposit funds into their business bank account. 11 + 4%. PayFac model is easier to implement if you are a SaaS platform or a. Typically a payfac offers a broader suite of services compared to a payment aggregator. You own the payment experience and are responsible for building out your sub-merchantâs experience. Typically a payfac offers a broader suite of services compared to a payment aggregator. Fiserv offers a full range of efficient in-house. 6. Payfac and payfac-as-a-service are related but distinct concepts. PayFac vs ISO. We accept most major cards, including Visa, MasterCard, American Express, Discover, JCB, Diners Club International and UnionPay. Sub Menu Item 5 of 8, Mobile Payments. Some say, a VAR is an evolutionary stage between a traditional ISO and a SaaS provider. However, businesses of all sizes can gain profit from UniPay PayFac Model, as it provides a mere and efficient way to accept payments. When you enter this partnership, youâll be building out. Registered payment facilitators earn 20-40 basis points more per transaction than they would riding the rails of another wholesale PayFac. Banks can and commonly do hold both roles. Learn the similarities and the key differences in how they operate. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Stripe, a tech-enabled evolution on the traditional payfac model, offers a complete solution that combines the functionality of a merchant account and a gateway all in one. Braintree became a payfac. Payroc LLC, together with its wholly-owned affiliate Payroc Processing Systems, LLC, is a registered Visa third party processor (TPP), Mastercard third party servicer (TPSV), payment facilitator. The key aspects, delegated (fully or partially) to a. Contact our Internet Attorneys with the form on this page or call us at 855-473-8474. The difference is that a payment processor can provide a single gateway for multiple payment methods. The main difference between these two technologies, the Payment Facilitator and the Payment Processor, is the difference in the organization of merchant accounts. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively ârents outâ merchant account functionality under its. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. A Payment Facilitator, or PayFac, is a sub-merchant account used by merchant service providers to provide payment processing services to their own clients, known as sub-merchants. A Payment Facilitator or PayFac simplifies merchant account enrollment which allows smaller companies to quickly gain the upper hand. The PayFac manages regulatory compliance, merchant onboarding, funding to bank accounts, and more on behalf of sub-merchants. Processors will act as a gateway setting their clients up with an individual merchant account while the merchant will still have a direct relationship with the acquiring bank. Simplify funding, collection, conversion, and disbursements to drive borderless. Under the payment facilitators, the merchants are provided with PayFacâs MID. In total, they sent 19 marketing & logistics emails in 2023, leading to nearly 10,000 views of their RunSignup website. When choosing between a Payment Facilitator (Payfac) and a Merchant of Record (MoR) for your business, several key factors should be carefully considered: 1. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. 650 Pre-Registered Entrants. And this is, probably, the main difference between an ISV and a PayFac. When accepting payments online, companies generate payments from their customerâs debit and credit cards. Just like some businesses choose to use a third-party HR firm or accountant,. Maybe you are ready to become a full-fledged PayFac, maybe the answer is a managed PayFac, or maybe the best solution would be to act as an ISO. It then needs to integrate payment gateways to enable online. A Payment Facilitator or Payfac is a service provider for merchants. Online Payments. It also means that payment risk is moved from individual. The PayFac then redistributes funds to its sub-merchants, and handles any future refunds or chargebacks. Typically a payfac offers a broader suite of services compared to a payment aggregator. What is a PayFac? Benefits & Reasons Why Businesses Need One in 2023. becoming a payfac. Payment Gateway: A payment gateway is technology used to accept integrated payments. Priding themselves on being the easiest payfac on the internet, famously starting. Payment Gateway Articles describing the key fintech news, innovative solutions, and various aspects of the industry. Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. Just to clarify the PayFac vs. NMIâs gateway, merchant relationship management and embedded payments solutions provide PayFacs, ISOs and software developers with everything they need to offer elevated merchant services. Key Function ; Functional Descriptions . A combination of intermediate solutions might help if the costs are too high or the requirements seem too hard to fulfill. I SO. While an ISO product will sometimes take weeks to approve a merchant due to the more stringent and quite often paper-based application process, PayFacs are able to. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a businessâs website and the payment processor. The terms arenât quite directly comparable or opposable. PayFac vs. Both offer ways for businesses to bring payments in-house, but the similarities. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. No-Cost Merchant Services: Your Gateway to Success with Visa CBPS and PayFac. The 5 Best Crypto Payment Gateways For Businesses. Payment gateway vs payment processor: whatâs the difference? The difference between a payment processor and a payment gateway lies in the fact that oneâpayment the processorâis the service provider facilitating the transaction, while the otherâthe payment gatewayâis the communication channel responsible for securely transmitting the. Both offer ways for businesses to bring payments in-house, but the similarities. This means that a SaaS platform can accept payments on behalf of its users. Payment facilitators, aka PayFacs, are essentially mini payment processors. For most merchants, it makes sense to go with a merchant services account and. 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. Stripe. Stripe benefits vs merchant accounts. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Becoming a PayFac With NMI. Read and Know more about Payment Aggregators in this blog of Basic Points of Difference between the Payment Gateway and Payment Aggregator A PayFac will function as a payment facilitator in this general sense (though it's important to note the differences outlined above), and you can use a payment gateway to translate data between the PayFac and the credit card providers. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. Fortis also. using your providerâs built. A payment gateway on the other hand is technology that verifies payments between merchants or vendors. The payment facilitator model was created by the card networks (i. However, they do not assume financial. merchant accounts. For Public Sector pricing, please contact us. âOne of the largest challenges a new PayFac will face is meeting the rigorous demands of its sponsorship bank,â says CJ Schneller, Vice President of Enterprise Risk at MerchantE. It manages the transfer of funds so you get paid for your sale. In essence, they become a sub-merchant, and they face fewer complexities when setting. Typically a payfac offers a broader suite of services compared to a payment aggregator. Like a phone plan, Stax offers add ons to their base plans, like same day funding and custom branding for invoices-but. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting, and customer support. Payfac-as-a-service vs. This was an increase of 19% over 2020,. Onboarding processA payment facilitator (or PayFac) is a payment service provider for merchants. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively ârents outâ merchant account functionality under its. If your platform needs to operate internationally and support sub-merchants in other regions, partnerships with local acquirers, gateways, and other service providers may be necessary. The PayFac executes all the tasks a payment processor needs to onboard a client and gives the ISV a seamless experience. The value of all merchandise sold on a marketplace or platform. To ensure high security and performance levels, providers may make their own recommendations but can also honor existing gateway and processor relationships. The payment facilitator, or âPayFacâ, model of merchant acquiring is growing extremely rapidly. Gateway đłđď¸ Let's go diving into the payment realm đĄ You want smooth checkouts đ¤, but the payment landscape holds more than meets the eye. payment processor question, in case anyone is wondering. Third-party payment providers If you're not using Shopify Payments and you want to accept credit cards, you can choose from over 100 credit card payment providers for your Shopify store. He drives the strategic direction of the company and supports. A PayFac is a processing service provider for ecommerce merchants. The MoR is also the name that appears on the consumerâs credit card statement. You own the payment experience and are responsible for building out your sub-merchantâs experience. A merchant of record is an entity that accepts cardholdersâ payments and assumes liability for processing of these payments on the merchantâs behalf. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively ârents outâ merchant account functionality under its. If you are an existing Bambora customer who needs assistance there are our support guides that can be found here. The PayFac model has gained popularity in recent years, as it allows businesses to simplify their payment processing and reduce costs, while also providing a better customer experience. Stripe benefits vs merchant accounts. 8% of the transaction amount plus $0. However, it is difficult to determine whether this price is high or low without knowing what features the gateway offers. To become a Mastercard merchant, simply contact an acquirer for a merchant account application. Connection timeout. June 3, 2021 by Caleb Avery. New Zealand - 0508 477 477. Our payment-specific solutions allow businesses of all sizes to. Whatever your industry, scale or ambition, weâll help you configure the ideal solution for you. Payfac-as-a-service vs. Payfac: Whatâs the difference? Independent Sales Organization (ISO) is a third-party entity that partners with payment processors or acquiring banks to facilitate merchant services. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. Global expansion. 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. The PSP in return offers commissions to the ISO. Both PayFacs and ISOâs (independent sales organizations) act as intermediaries between merchants and payment processors . Facilitators for short are called âPayFacâ. 00 Payment processor/ merchant acquirer Receives: $98. 1 billion for 2021. Relationships of modern humans with other human. What is a payment facilitator? A payment facilitator, also known as a âpayfacâ or payment aggregator, is a payment model that has grown tremendously over the past few years. This is a clear indicator that fraud monitoring should be a priority in 2022 and beyond, and why itâs vital to work with a PayFac like. Our suite of tools and services offers a choice of funding options, settlement, revenue generation, and risk management capabilities for payment facilitators. Payfacs work by having a master merchant account (and a master MID) through its relationship with acquiring banks. In this article we are going to explain why payment facilitator model is becoming so popular (attracting more and more entities) while ISO model is gradually dying out, vacating the space for new payment facilitators. While both models allow businesses to accept payments, a payfac might provide additional services such as payment gateway integration, hardware for in-person payments, fraud protection, transaction reporting and customer support. 01274 649 893. PayFac® solutions, at your service Worldpay from FIS is your advocate for payment facilitator solutions. net; Merchant of RecordRenew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. With UniPay Platform you have the options of an affordable white label payment gateway solution, a full on-premise software. Whatâs the distinction between Payfac and PSP? A payment Facilitator is a third-party payment service provider (PSP). The first is the traditional PayFac solution. 7-Eleven Malaysia. 2. The PayFac model has gained popularity in recent years, as it allows businesses to simplify their payment processing and reduce costs, while also providing a better customer experience. Issues with connection can be caused by DNS problems, server failure, Firewall rules blocking specific port, or some other. The former, conversely only uses its own merchant ID to. A Payment Facilitator or PayFac simplifies merchant account enrollment which allows smaller companies to quickly gain the upper hand. Some ISOs also take an active role in facilitating payments. becoming a payfac. Independent sales organizations are a key component of the overall payments ecosystem. How White-Labeled Payment Facilitation-as-a-Service Solutions Help Ambitious ISOs Grow December 20, 2022. If you are looking for a more robust solution with a wider range of features, a payment processor may be a. It works by using one umbrella merchant account that allows every merchant to open as a sub-account underneath it. But size isnât the only factor. a merchant to a bank, a PayFac owns the full client experience. Payfac-as-a-service vs. What is a Payment Facilitator (Payfac)? Payfacs are an evolution of a long-established distribution model in the payments industry. In short, Payment Facilitation is an operating model that affects the acquiring side of the payment ecosystem. The customer views the Payfac as their payments provider. Payment Facilitator (PFAC, PayFac, PF): A merchant service provider who can facilitate transactions and simplify the merchant account enrollment process on behalf of the sub-merchant. Payfac and ISO models involve much more regulatory and compliance overhead than payfac-alternative models. Then the PayFac needs to build a number of other tools or go through compliance processes, like becoming PCI Level 2 certified, but as soon as they. Becoming a full payfac typically requires an agreement with a sponsoring merchant acquirer such as Worldpay, registering as a payfac with the card networks, becoming compliant with the Payment Card Industry Data. Respond to times of unprecedented speed and always look to the future. However, becoming a payfac requires a significant amount of up-front and ongoing work, like opening a merchant account, obtaining a merchant ID (MID), and getting your PCI DSS certification. An ISV can choose to become a payment facilitator and take charge of the payment experience. Cardknox Go (PayFac) â Become a Payment Facilitator, without the hassle;. accounting for 35. ISO does not send the payments to the merchant. âŹ0. Its FACe gateway platform accelerates time to market for new payfacs. A relationship with an acquirer will provide much of what a Payfac needs to operate. At first it may seem that merchant on record and payment facilitator concepts are almost the same. A merchant of record (MoR) is the entity that is authorized, and held liable, by a financial institution to process a consumerâs credit and debit card transactions. The payfac model is a framework that allows merchant-facing companies to. In a nutshell, the business problem that the PayFac, as an entity, and payments facilitation, as a concept, seeks to solve, and which has existed stretching. Simultaneously, Stripe also fits the broad. Once approved, the sub-merchant can process payments using the PayFacâs payment gateway and infrastructure while remaining aggregated under the master merchant account. Global expansion. ISO providers so that you can make an informed decision about which payment processing option makes the most. 01332 477 853. It can also. Timely settlements and simplified fee payments. ) and network cards (credit/debit cards). Revolutionize Business. You own the payment experience and are responsible for building out your sub-merchantâs experience. This includes underwriting, level 1 PCI compliance requirements,. ,the leading company in the payment processing service industry (3769: Tokyo Stock Exchange Prime Market),releases. The merchant of record is responsible for maintaining a merchant account, processing all payments. PINs may now be entered directly on the glass screen of a smartphone using this new technology. This blog post explores some of the key differences between PayFac vs. The full-function platform has been designed to deliver Acquirers with a comprehensive Third Party Payment Facilitator programme, as well as a. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a businessâs website and the payment processor. We have APIs for all business types, whatever your size or location and whether you take payments online or at point of sale. You own the payment experience and are responsible for building out your sub-merchantâs experience. The Global Infrastructure For Real-Time Payments. You essentially become a master merchant and board your clientâs as sub merchants. PayFac vs merchant of record vs master merchant vs sub-merchant. A closer look at the economics from each $1 of payment volume. New PayFacs will. A payment gateway and merchant account often cost between $750 to $1,200 in set-up expenses, $0. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. 1. The easy-to-use and instantaneous nature of the Payment Facilitator makes it such a popular choice among merchants. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively ârents outâ merchant account functionality under its. Especially valuable for platforms and marketplaces looking to payout users faster in a preferred currency. The differences are subtle, but important. In many of our previous articles we addressed the benefits of PayFac model. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively ârents outâ merchant account functionality under its. Small/Medium. The PayFac model eliminates these issues as well. High transaction costs, complex fee structures, and the need for seamless payment solutions have become. Benefit from fault-tolerant, scalable services plus rapid, safe, data-driven product enhancements on a. It accepts all payment types, ranging from direct credit/debit to PayPal, Skrill, Paytm, etc. The information flow for Batch is illustrated below: Your integration aggregates payer operations into a batch and uploads the batch of operations using HTTPS PUT over the Internet to the MasterCard Payment Gateway via the MasterCard Payment GatewayBatch service. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Seamless graduation to a full payment facilitator. 0 began. The biggest advantage is you will get approved far quicker, and in some cases immediately. The arrangement made life easier for merchants, acquirers, and PayFacs alike. 5. FISâ rival, Fiserv, acquired the remaining stake of Finxact for $650 million, while another company, Fintech Amount, bought Linear for $175 million. A payment gateway ensures that a customerâs credit card is valid. Payment facilitatorâs role is to handle merchant lifecycle-related functions (from underwriting and onboarding to funding and chargeback handling) instead of the acquirer. They can apply and be approved and be processing in 15 minutes. Stripe operates as both a payment processor and a payfac. In the world of payment processing, the turn of the decade represented a massive transition for the industry. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. You own the payment experience and are responsible for building out your sub-merchantâs experience. By adopting a white-label payment gateway, a payment facilitator can eliminate the need to develop their own payment system from the ground up and. Letâs examine the key differences between payment gateways and payment aggregators below. At the same time, more companies are implementing PayFac model and establishing PayFac payment gateway partnerships. PayFac vs ISO: 5 significant reasons why PayFac model prevails. While Tilledâs PayFac offerings will bring a lucrative new revenue stream to your business through payment monetization, we do more than write you a check each month and wish you luck with this new aspect of your business. Typically a payfac offers a broader suite of services compared to a payment aggregator. Payfacs are a type of aggregator merchant. If necessary, it should also enhance its KYC logic a bit. Typically a payfac offers a broader suite of services compared to a payment aggregator. Payment service provider is a much broader term than payment gateway. As a result of the first. When it comes to choosing between a PayFac and an ISO, the best option depends on your business's specific needs and preferences. Global expansion. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. becoming a payfac. It offers the.