What is Payment Facilitator as a Service or PayFac-as-a-Service?

PayFac-as-a-service is a hybrid payment Facilitation model where payment service providers become a PAYFAC with banks and extend them as services to businesses.?

It’s a master merchant account that enables customers to quickly open sub-accounts without having to obtain the traditional merchant account that can take days and require supporting documentation like bank statements and tax returns].

PayFac-as-a-service delivers a competitive payment program with instant onboarding of merchants while creating a seamless customer experience. This model is ideal for software providers looking to get the benefits of PayFac without the burden.

Payment-Facilitation-as-a-service fills the gap between business management and payment acceptance. With this, users can accept credit and debit cards in minutes after filling out a simple application.?

Businesses using PayFac-as-a-service don’t need to maintain:

• Upfront Capital
• In-house payment expertise
• Bank Sponsorship
• PCI Audits
• Visa and Mastercard registration
• Assumed Risks and Liabilities

All this is taken care of by Payment Service Providers who provide PayFac-as-a-service to businesses.

When instant customer onboarding is needed, then PayFac as a Service is the best option.

PayFac-as-a-Service (PFAAs) - Why Should You Choose It Over Becoming a PayFac?

The process of becoming a PayFac is long and tedious, requiring you to:

• Register with an Acquiring Bank: The first step includes finding an acquiring bank to facilitate PayFac on your account.?

This includes audits of;

1. Business plans
2. Financials
3. Technology
4. Systems and processes

• Select the Payment Gateway: The next step is to select a payment gateway for processing payments. Adding a gateway to your software can be done in two ways:

1. By building your own (which is time-consuming and expensive)
2. Or by using a prebuilt solution.

Related Read: Importance of Payment Processing

• Comply with PCI: To prevent fraud and ensure security and speed of payment processing, merchants must comply with PCI compliance.
• Build or Buy your Merchant Management System: The next step is to set up a merchant management system, for which you need a third-party provider.
• Underwriting and Compliance Policies: This requires you to develop compliance policies for fraud monitoring, chargebacks, underwriting, and ensuring that your underwriting policies comply with KYC, AML, and anti-money laundering laws.
• Costs Associated with Setting up an Account:
• A significant initial investment in compliance and infrastructure is another major barrier to becoming a payment facilitator. An average payment facilitation cost is $750,000. This includes a money transmitter license, initial PCI assessment, registration fee, setup costs, PCI program manager, and annual PCI audit.

?Creating your own PayFac technology may not be the best or most cost-effective solution due to the associated costs.

However, PayFac as a service is much more convenient and faster. It can give more benefits without added cost and risk.

PayFac as a service requires you to follow only three steps;

• Sign up as a sub-merchant with a PayFac as a service
• Verify the account
• Start using the services immediately

PayFac as a service is more convenient and faster than becoming a PayFac. You get the same benefits offered by a PayFac, but without the risk. Let's now examine how PayFac as a Service can benefit you:?

Benefits Of Using PayFac As A Service?

PayFac as a service is an excellent option for businesses that need an easy way to accept credit cards. Suppose you are thinking about how it is better than other payment options. Here are five benefits you should consider before making such a decision.

Increase Revenue Shares

PayFac-as-a-Service enables you to monetize the transactions that occur on your platform. And by implementing PayFac-as-a-Service, you could quickly generate an additional revenue stream for your business.

Easy to Implement:?

Any software company, SAAS, or technology-based company can use a payment facilitation solution like PayFac-as-a-Service. PayFac-as-a-Service can be customized to match your pricing model, sales approach, and business strategy in a few days.

Developer Friendly APIs:?

With a developer-friendly API, you can accept payments, manage payouts, and onboard merchants—all in the same place quickly.?

Fully Managed Payment Services:?

A PayFac as a service allows you to focus on your core business while the service provider manages all the hassles and liabilities of operating a PayFac for you. That means there is no programming required, no implementation hassle, no compliance burden, and no intensive training required.

Transparent Customer Onboarding:?

PayFac-as-a-Service lets you offer your users a simple, elegant signup process so they can start accepting payments immediately.

Ready to Experience PayFac-as-a-Service?

PayFac as a service is best suited for businesses that wish to accept payments immediately without undergoing a lot of paperwork. Instead, you allow someone else to handle your company's payment processing capabilities while you concentrate on running your core business.

Before choosing a PayFac as a service provider, you should consider the following:

• First, you must find a company that facilitates and processes payments.
• Ensure the PCI compliance of the company you select.
• Analyze customer support turnaround time, API integrations, and data analytics.
• Some payment facilitators limit the number of transactions they can process per month, so be sure to check before proceeding.

GETTRX is one of the leading Payment Facilitators that enables businesses of all sizes to leverage their solutions efficiently. Regardless of your industry, we have a payment solution that will meet your needs. Contact our team for more information on what type of model is right for your business.

Would you like to see how GETTRX PayFac can work for your business in action? Enter your email address, and you'll be able to schedule an appointment after clicking Submit.?