What is a Payment Facilitator and Why They are Key for Growing Companies

This “What is a Payment Facilitator and Why They are Key for Growing Companies” originally published March 30, 2022 by GETTRX.

Payment facilitators are a central pillar of successful businesses, and in this guide, we’ll cover everything there is to know about the topic.

Here are some of the key points we will cover:

1. What is a payment facilitator?
2. How does the payment facilitation model work?
3. What are the primary functions within payment facilitation?
4. What are the challenges of becoming a payment facilitator?
5. What is PayFac as a service, and how can it help companies overcome common payment facilitation challenges?

What is a Payment Facilitator?

What is a payment facilitator?

A payment facilitator, also called a PayFac, is an entity that helps companies accept electronic payments from customers via multiple channels by quickly onboarding them as submerchants. Thus, the company can use the PayFac’s infrastructure to easily collect payments from its customers while the PayFac manages all administrative and technical aspects of the infrastructure.

For instance, a SaaS platform that helps accountants manage their business can build or integrate a PayFac and offer payment acceptance options to its clients. The platform monitors transaction flow and conducts fraud checks through its PayFac module. Continue Reading