At the same time, Paragon Payment Solutions assumes the majority of risk and responsibilities related to operational expenses, chargebacks,. 20) Card network Cardholder Merchant Receives: $9. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The Visa® merchant aggregation model covers all commerce types, including the face-to-face and e-commerce environments, and helps to increase electronic payment acceptance for merchants The differences of PayFac vs. The merchant provides a few basic details to their PayFac provider. Some ISOs also take an active role in facilitating payments. ISO are important for your business’s payment processing needs. They offer merchants a variety of services, including. In contrast, PayFacs have one or two processor relationships and onboard ISVs as referral agents. responsible for moving the client’s money. They typically work. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. Relationships of modern humans with other human species, such as Neanderthal etc, ranged from killing and eating each other to interbreeding. For example, an artisan. One of the key differences between PayFacs and ISO systems is the contractual agreement. PayFac vs ISO: When Does One Make Sense over The Other?In this article, you'll get an in-depth analysis of the pros and cons of #PayFac vs. However, the setup process might be complex and time consuming. But to banks and merchants it. But of course, there is also cost involved. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. A payfac is also responsible for underwriting and risk assessment, settling funds with submerchants, dealing with chargebacks and disputes, and ensuring compliance with regulations in the payment industry. Traditionally, a business that wanted to accept card payments would need to set up a merchant account with a bank, which can be a complex and time. ISOs. El ISO se encarga de facilitar la relación entre las dos partes y de conseguir que los comerciantes contraten una cuenta de vendedor. A Payment Facilitator or Payfac is a service provider for merchants. ISO does not send the payments to the merchant. Menda chats with Deana Rich about two main topics. 2. A payfac has a much more flexible payment system and a wider variety of payment methods, so much so that it can be carried out through the linked bank account. ISOs are sometimes compared to archaic human species becoming extinct and. Global Electronic Technology, Inc. Below the ‘ISO agent’ chunk of the pyramid would be the shopkeepers and then the customers [email protected]. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. In order to understand how. Payment Processors and ISOs have a symbiotic relationship, with each party benefiting from the collaboration. To help us insure we adhere to various. The ISO acts as an intermediary between the merchant and the payment processor, taking care of merchant recruitment, sales, and ongoing merchant support, while the processor handles transactions behind the scenes. Blog. Go female, it describes the daylight sensitivity of a digital camera or a chunks of film. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent. Fully managed payment operations, risk, and. Payfac is the abbreviated term often used in the payments industry to describe a company that provides payment processing services to. payment processor question, in case anyone is wondering. A Payment Facilitator, or PayFac, is a company that provides payment processing services to merchants looking to accept credit and debit cards. In other words, ISOs function primarily as middlemen (offering payment processing), while PayFacs are payment facilitation. 1 comment. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. The main difference between a payment aggregator and a PayFac is the type of merchant ID (MID) used to differentiate accounts. Although each of these methods offer their own distinct advantages, understanding how they differ and which option is right for your specific. What’s the Difference? Before payment facilitators began enabling smaller merchants to accept payments, acquiring banks relied on another business model to work directly with SMBs: the independent sales organization, or ISO. However, with each merchant processing hundreds or thousands of transactions a day, and potentially hundreds of merchants in an ISO’s portfolio, residuals snowball and can be exceptionally. Totango AI innovations set to boost customer success productivityCheckout’s “gross profit” is the P&L line most comparable with Adyen’s “net revenue” line. Without ISOs, a relatively small handful of global and regional payment processors would each be forced to interact with. Contracts. accounting for 35. A PayFac, or payment facilitator, is a merchant services model that streamlines the merchant account enrollment process by onboarding a merchant as a sub-account under the PayFac’s master account. In this model, the issuer (having the relationship with the cardholder) and the acquirer (having the relationship with the Merchant) is the same entity. To manage payments for its submerchants, a Payfac needs all of these functions. 0 began. PayFac-as-a-Service has emerged from payment companies and independent sales organizations (ISO) that have gone through the regulatory compliance of PayFac registration. Under umbrella of. 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. Industries. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk. The PayFac uses an underwriting tool to check the features. PayFac vs. Even though PayFacs and ISOs may seem to be quite similar on the surface, there are a few key differences between them. Mastercard PayFac Models: The Ins and Outs of the “Big Two” Payment Facilitator Programs. PayFac vs Payment Processors. ISO. May 24, 2023. As a seasoned global executive with strategic leadership experience across banking, #. If the intermediary entity, which funds the sub-merchants, uses different MID for each merchant, it is called a payment facilitator. What is a payment facilitator? A payment facilitator, also known as a “payfac” or payment aggregator, is a payment model that has grown tremendously over the past few years. Independent sales organizations (ISOs) and payment facilitators (PayFacs) both act as intermediaries between merchants and payment processors, making them parallel channels in the overall payments ecosystem. Uber could easily masquerade as a PayFac, but it would never choose to become one. The SaaS provider onboards clients via a non-intrusive application process -- making it simple for the user base to quickly begin accepting customer payments by credit card. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. ISV: An Independent Software Vendor (ISV) is a company that creates and sells software. . With the payment facilitator or PayFac model, every user gets a sub-merchant ID. For example, an. ”. Merchants possess lang verstehen how. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. a Payment Service Provider (PSP), aka a Payment Facilitator (PayFac). An ISO is a sales partner for payment processors, while a payment facilitator offers payment processing services to merchants by aggregating them under one master account. Risk management. PayFac vs ISO: Differences, Similarities, and How to Choose the Right One 11 Like Comment Share Copy; LinkedIn; Facebook; Twitter; To view or add a comment, sign in. When you want to accept payments online, you will need a merchant account from a Payfac. You own the payment experience and are responsible for building out your sub-merchant’s experience. Since it is a franchise setup, there is only one. After the vetting process, the PayFac entity adds the sub-merchant to its master list of sub-merchants or customers. It assumes liability for losses or non-compliance. 0. A PayFac works by establishing one master merchant account, which can then be leveraged by multiple businesses for a small fee. At Payline, we’re experts when it comes to payment processing solutions. However, the setup process might be complex and time consuming. Understanding the differences between an ISO versus a PayFac will help you see why using a plug-and-play PayFac-as-a-Service solution is the most effective payment acceptance choice. June 14, 2023 PayFac Vs. What is a merchant of record? Read article. PSPs facilitate payments and act as a proverbial middleman between you and the merchant. To help us insure we adhere to various privacy regulations, please select your country/region of residence. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Since it is a franchise setup, there is only one. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. Payroc LLC is a registered independent sales organization (ISO/MSP) for Fifth Third and Wells Fargo Bank, N. While some software providers starting out as an ISO or referral partner may elect a managed payfac solution as the next logical tech enablement progression, other providers may not want to relinquish visibility and control to a third. To fully understand the benefits of the payment facilitator model, it’s important to first take a look at what goes into creating a standard payment processing agreement. Registered payment facilitators earn 20-40 basis points more per transaction than they would riding the rails of another wholesale PayFac. And this makes a difference for several reasons, when it comes to the pros and cons of using a ISO/MSP vs. To know that your payfac relationship is completely above-board, first know what a payment facilitator is and the issues related to money transmission. Payment facilitator model is suitable and effective in cases when the sub-merchant in question is a medium- or large-size business. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. The PayFac, he said, has emerged, and evolved from its 1990s underpinnings where merchant acquirers had handled that merchant enrollment, boarding, underwriting and even settlement. 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. However, the setup process might be complex and time consuming. Independent sales organizations (ISOs) and resellers of merchant services are examples of payment service providers in the industry. Payment facilitation helps. The new PIN on Glass technology, on the other hand, is becoming more widely available. The underlying role that these fill for a business is to provide merchant services, and you can read our reviews of various merchant service providers here. As small business grows, MOR model might become too restraining, while payment facilitators provide robust APIs, which sometimes allow merchants to customize each function separately, according to their. Read article. A payment facilitator is a merchant services business that initiates electronic payment processing. The main difference between these two technologies,. In Part 2, experts . By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. And this is, probably, the main difference between an ISV and a PayFac. Payfac is a contracted Independent Sales Organisation (ISO), so they have the responsibility to manage their own sales agents and underwriters and adhere to the rules of the card associations. This doesn’t happen with ISO, as it never handles money directly. The key aspects, delegated (fully or partially) to a. For example, an. The rise of software platforms and online marketplaces has accelerated the change: increasingly, these businesses are connecting buyers and. In this post, we break down the differences between a few of the most common routes you can take when it comes to integrated payment models: independent sales organization (ISO), full-fledged payment facilitator (PayFac), or PayFac-as-a-Service (PFaaS) models. To learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. Extensive. On. Fast, efficient boarding solutions that orchestrate third-party and internal systems to help you turn prospects to customers – face-to-face, on the phone, or online. PSPs facilitate payments and act as a proverbial middleman between you and the merchant. Our belief remains that all payfacs will inevitably write directly to the networks and avoid the processors for so many reasons. Think off ISOs as official service providers on behalf of the cardmember. Top content on Payment Facilitation and SaaS Payments as selected by the SaaS Brief community. A three-party scheme consists of three main parties. Standard. Becoming a Payment Aggregator. 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. payment processor question, in case anyone is wondering. In 2021, global payment facilitators processed over $500 billion in transactions – a 75% increase over the previous year. ISO, so you can choose one of the two, or you’re looking for a PayFac solution for your business. Though they seem similar on the surface, there are key differences in how they operate. Blog. Payfac Pitfalls and How to Avoid Them. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. For example, if you’re selling in-store, then your ISO should offer you a point of sale software and. Here, ISOs (Independent Sales Organizations if on the Visa network), or MSPs. We promised a payfac podcast so you’re getting a payfac podcast. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. The merchants can then register under this merchant account as the sub-merchants. Contracts ISOs and PayFacs sign different contracts with their clients. 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 Security Standard (PCI DSS. However, the setup process might be complex and time consuming. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. PayFac vs ISO: Key Differences. An ISO works as the Agent of the PSP. Principal vs. Learn more: What is an ISO? PayFac vs marketplace: what’s the difference? A PayFac is similar to a marketplace in that it provides a platform for merchants to sell their goods or. Our comprehensive article delves into the merits and challenges of Payment Facilitators (PayFac) versus Independent Sales Organization (ISO) registration. Chances are, you won’t be starting with a blank slate. This site uses cookies to improve your experience. In fact, ISOs don’t even need to be a part of the merchant’s contract. Maybe you want to learn about PayFac vs. The PayFac aggregates transactions and sends them to its processor, keeping operations streamlined. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. PayFacs perform a wider range of tasks than ISOs. Becoming a payment facilitator is a change to your operational and support models, has and it pays long-term benefits. However, the setup process might be complex and time consuming. One classic example of a payment facilitator is Square. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. next-level service: 24/7, every day of the year. Our PayFac platform offers secure integration. To put it another way, PIN input serves as an extra layer of protection. Toward the average human, ISO is the acronym employed by the Global Organization for Standards. However, the setup process might be complex and time consuming. Now that you’ve learned about what a PayFac is, you might want more information. For example, an. But no matter the vertical, the build versus buy question — that perennial. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. What’s the difference in an ISO and a PayFac? While an ISO merely connects a merchant to a bank, a PayFac owns the full client experience. Software companies that focus on specific verticals, such as healthcare or childcare, are natural PayFac candidates. One of the most significant differences between Payfacs and ISOs is the flow of funds. Payment facilitation (Payfac) is a service that allows businesses to accept payments from their customers in a variety of ways. While there are many benefits of integrating to a Payfac, two of the most notable are frictionless onboarding and risk, liability and costs associated. June 26, 2020. The facilitator company collects and manages the money. Both the PayFac and ISO acquisition models have unique benefits and drawbacks. Why more and more acquirers are choosing the PayFac model. What is a payment facilitator (payfac)? What is an independent sales organization (ISO)? What are the differences between ISOs and payfacs? Do I need an ISO or a payfac? Is Stripe an ISO or a payfac? Payment Facilitator vs ISO. ) paying Toast, or Revel, or Clover FOREVER is a tough pill to swallow. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. PayFac vs merchant of record vs master merchant vs sub-merchant. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. One of the main benefits to adopting the Payfac ® model is the increase in revenue you get from each transaction processed using your software. April 12, 2021. Read article. The Visa Global Registry of Service Providers is the payment industry's designated source for information on registered and compliant agents that provide payment-related services to Visa clients and merchants. However, the setup process might be complex and time consuming. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. PayFac vs ISO: Weighing Your Payment Options . Gross revenues grew considerably faster. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. Onboarding workflow. The ISVs that look at the long. PayFac vs. However, the setup process might be complex and time consuming. ISO, so you can choose one of the two, or you’re looking for a PayFac solution for your business. They’re more than just a payment provider. Examples of Payment Facilitators. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. Both aggregators and facilitators offer similar benefits from the perspective of the end-user. For example, an. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Blog. Difference #1: Merchant Accounts. It’s where the funds land after a completed transaction. The Visa® merchant aggregation model covers all commerce types, including the face-to-face and e-commerce environments, and helps to increase electronic payment acceptance for merchantsThe differences of PayFac vs. At Finix, we're active participants in the payments market and educate whoever wants to get into it with us -- don't miss our PayFac vs ISO write up! We also…Payment Facilitator (PayFac): 大商户模式，是商户而不是收单机构。Payfac可以对接一些子商户。 二、 收单费. A guide to payment facilitation for platforms and marketplaces. On. PayFac: ISO: Merchant onboarding timeline : Instant account approvals: Days or weeks : Sign-up process: Quick and easy. ” A PayFac can have a two-party agreement, meaning it enters into a direct contractual relationship with its merchants (with or without a. So how much. While the PayFac model comes with some unique risks, the benefits of additional control and potentially higher margins have seen its popularity grow among two major categories of operators:. By viewing our content, you are accepting the use of cookies. Top content on Payfac, SaaS and SaaS Payments as selected by the SaaS Brief community. 5. PSPs, including PayFacs, are entities, to which acquiring banks and payment network providers delegate merchant lifecycle management functions in. ISVs create software for companies in the payments industry. However, the setup process might be complex and time consuming. Jun 29, 2023. Payment facilitation, or “payfac,” continues to grow in popularity among software providers and is designed to facilitate payment card acceptance without requiring individual merchants to go through the lengthy process of establishing traditional merchant accounts. ISOs sold merchant accounts to applicants on behalf of different acquiring banks and were integrated with multiple payment gateways, that were connected to specific acquirers and processors. The most important difference between a PayFac and an ISO is that PayFacs “own” their merchants – entering into direct contracts with them (albeit on. Next-generation ISO (or next-gen ISO) is a. Gateway Service Provider. becoming a payfac. Each ID is directly registered under the master merchant account of the payment facilitator. June 3, 2021 by Caleb Avery. Payfac’s immediate information and approval makes a difference to a merchant. You see. The merchant fills out extensive paperwork in order to open their own merchant processing account. A PayFac is one of the types of a payment service provider (PSP). A registered Payment Facilitator, also known as a “PayFac” or “merchant aggregator” is a third-party business or platform that contracts with an acquirer to provide payment services to their customers, referred to as “sub-merchants. In fact, when a merchant is seen as potentially liable for fraudulent activity, an ISO and/or processor are sometimes named as codefendants, along with people at the ISO or processor who. This allows faster onboarding and greater control over your user. However, the setup process might be complex and time consuming. Payment Facilitation as a Service or as it commonly known PayFac as a Service, offers software platforms the ability to both monetize payments and onboard new users instantly. Payfac solutions can be a critical source of revenue generation, allowing ISVs to differentiate their product and service offerings in a crowded space. Enabling businesses to outsource their payment processing, rather than constructing and maintaining their own. Even better? Funds are settled to the PayFac’s account and it’s determined by the PayFac to move those funds to the merchant. Before this model was available, businesses would often partner with an ISO to enable payment acceptance for its clients—and many still do today. Typically, the ISO stays out of the contract between the two and instead focuses on the relationship with the payment processor. However, the setup process might be complex and time consuming. Once you have everything in order, you’re ready to apply to be a registered ISO with Visa and Mastercard. To learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. Episode 2 is live! Our guest on this episode is Menda Sims, Chief Payments Officer at Stax Payments. SaaS. 1. 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 approve. The payment facilitator model was created by the card networks (i. It’s more PayFac versus wholesale ISO model or full liability ISO. It also needs a connection to a platform to process its submerchants’ transactions. Processor relationships. Now that you’ve learned about what a PayFac is, you might want more information. A PayFac provides credit card processing services to merchants on behalf of a bank or other. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. However, the setup process might be complex and time consuming. They are typically small businesses that work with a limited number of banks. Now let’s dig a little more into the details. However, the setup process might be complex and time consuming. 1. So, the main difference between both of these is how the merchant accounts are structured and organized. Software companies that focus on specific verticals, such as healthcare or childcare, are natural PayFac candidates. A three-party scheme consists of three main parties. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. When you are listed, you help secure the promise of a trusted payment system by highlighting your investment in data security and the. Our belief remains that all payfacs will inevitably write directly to the networks and avoid the processors for so many reasons. ISO: Key Differences & Roles In Payment Processing The world of payment processing has its fair share of acronyms, and two of the most popular are. Cancel reply. the PayFac Model. Instant merchant underwriting and onboarding. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. If your rev share is 60% you can calculate potential income. Browse Payfac, SaaS and SaaS Payments content selected by the SaaS Brief community. ISOs, unlike Payfacs, rely on a sponsor bank to. This is a clear indicator that fraud monitoring should be a priority in 2022 and beyond, and why it’s vital to work with a PayFac like. Also take a look at some of the primary regulations payfacs face, such as those from the Financial Crimes Enforcement Network, Office of Foreign Assets Control, and USA PATRIOT Act. Understanding the Payment Facilitator model The payment facilitator model was created as a way of streamlining business’ processes in a way that would allow them to accept electronic. A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. Payment processors do exactly what the name says. This site uses cookies to improve your experience. 5. The payfac model is a framework that allows merchant-facing companies to. Payment facilitators (PFs) were created to make a more streamlined path to electronic payment acceptance for small and medium-sized businesses. This relatively new payfac business model is experiencing rapid growth. Conocidas como organizaciones de ventas independientes, las ISO actúan como intermediarias entre el banco patrocinador y el comerciante. Instead of relying on an ISO program that's heavily focused on payments as a service, we're changing the concept of what service actually means. Examples. For example, an artisan. What is an ISO vs PayFac? Independent sales organizations (ISOs) and payment facilitators (PayFacs) play important intermediary roles in the payments ecosystem. 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. In the scenario of a SaaS company operating as a PayFac, you are the master merchant and your customers are the sub-merchants. And a payment processor determines the perfect payment alternatives to serve the customers. Payfac 45. While all of these options allow you to integrate payment processing and grow your. If your sell rate is 2. Supports multiple sales channels. Both offer ways for businesses to bring payments in-house, but the similarities end there. Swipesum details all you need till get about Payfac vs ISO. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. the PayFac Model. Just to clarify the PayFac vs. An ISV can choose to become a payment facilitator and take charge of the payment experience. In the current downturn, said Mielke, the PayFac or ISV that is diversified will be better positioned to weather the storm. PayFac registration may seem like the preferred option because of the higher earning potential. Payfac and ISO models involve much more regulatory and compliance overhead than payfac-alternative models. Payment facilitators conduct an oversight role once they have approved a sub merchant. However, the setup process might be complex and time consuming. 70. When you want to accept payments online, you will need a merchant account from a Payfac. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. Under the PayFac model, a merchant is set up under the PayFac’s master account, but they are onboarded with their own unique MID. 9% and 30 cents the potential margin is about 1% and 24 cents. For example, payment facilitators typically perform underwriting, boarding, and transaction monitoring. PayFac vs. An ISO contract with banks to provide credit card processing services. or by phone: Australia - 1300 721 163. Some ISOs also take an active role in facilitating payments. THIRD PARTY AGENT An entity that provides payment related services on behalf of a Visa Client. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Establish connectivity to the acquirer’s systems Two-way information flow: • Th Payfac pushes messages the acquirer (transaction info). However, the setup process might be complex and time consuming. There are several ways for businesses to go about accepting payments, and two of the most popular provider options are PayFacs and Independent Sales Organizations (ISOs). With a. PayFac vs ISO: Weighing Your Payment Options . For example, an. They provide services that allow software platforms to accept credit and debit card payments and make it easier and faster for them to start accepting payments as they handle most of the work for you. Research firm Statista estimates payfac transaction volume totaled $88 billion last year,. 4. One classic example of a payment facilitator is Square. However, the setup process might be complex and time consuming. Each client is the merchant of record for transactions. As he noted, among the firms that most commonly move down the PayFac path – ISOs, ISVs and platform businesses – the benefits stand out quite brightly: easier. 07% + $0. The merchant interacts directly with the ISO and follows their set processes to register and become. merchants look at the long-term TCO on buying vs. Banks. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. But of course, there is also cost involved. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The customer views the Payfac as their payments provider. To help us insure we adhere to various privacy regulations, please select your country/region of residence. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. One of the key differences between payment aggregators and payment facilitators is the size of sub-merchants they are servicing. Payment Facilitator (PayFac) vs Payment Aggregator. NPC is Vantiv's nationwide ISO merchant distribution business serving over 220,000 small-to-medium-sized merchants. Payfac’s immediate information and approval makes a difference to a merchant. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. This site uses cookies to improve your experience. Click to read more nearly thing an ISO the real what it has to do with payment processing! 7.