A payfac or PF, short for payment facilitator, makes it possible for you to accept payments from customers in a variety of ways, including card payments, direct debits, local payment methods, and alternative payment methods like mobile and digital wallets including Apple Pay and Google Pay. DENVER, October 10, 2023 — Infinicept, a leading provider of embedded payments, and Payment Visor, a payment management consulting firm, today announced a partnership that brings together critical payments expertise with Infinicept’s Payfac -as-Service and embedded payments platform. This business model enables the organization, now a payment facilitator, to bring their merchants a seamless and instantaneous onboarding process, as well as flat-rate. The reports, records, and dashboard help the. But payment processing is a small part of the merchant of record. Our digital solution allows merchants to process payments securely. PayFacs pay merchants directly and can often process payments faster, whereas ISOs don’t touch any money directly. The merchant then goes through the PayFac’s underwriting process—a fairly quick one. A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. By Michael Bradley, Senior Vice President of Growth, Infinicept The embedded payments conversation right now is downright confusing. S. It’s used to provide payment processing services to their own merchant clients. payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. While a software company can pursue multiple pathways to offer payments to its customers, the only way to fully capture the benefits of FinTech 2. Instead, a payfac aggregates many businesses under one master merchant account. Financial Responsibility. Merchant of record vs. Here’s how: Merchant of record See full list on pymnts. Sub-merchants sign an agreement with the PayFac for payment services. Effectively, Lightspeed has become the Merchant of Record to. Here’s how: Merchant of record. Here’s how: Merchant of record A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. We promised a payfac podcast so you’re getting a payfac podcast. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. With a Payfac, it is easy for the merchant to get niche treatment because the software determines the structure, eliminating the need for laborious documentation. In contrast, PayFacs have one or two processor relationships and onboard ISVs as referral agents. As a sub-merchant of a payfac, you can still offer payment processing services and allow your clients to take electronic payments, online payments, mobile payments and process transactions. Essentially, a payfac is a company that allows its customers to accept electronic payments using their platform. Merchant of record vs. This allows faster onboarding and greater control over your user. The PayFac owns the direct relationship with the payment processor and acquiring bank. It used to take weeks to get a merchant account, but then Payfacs came around and simplified the enrollment process by creating a sub-merchant platform. As your clients conduct credit and debit card payments, the funds from each payment are saved in your merchant account. Instead, the payfac has a master merchant account that it uses to process payments for all the “sub-merchants. Sub-merchants, on the other hand. Select Add Sub-Merchant. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. A merchant of record is an entity that is legally authorised and responsible for processing customer payments – here's what businesses should know about it. Instead of each individual business needing to set up its own merchant account , a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its larger master merchant. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. Settlement must be directly from the sponsor to the merchant. payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. , invoicing. You see. For example, an artisan who sells handmade jewelry online may find the process of setting up their own merchant account daunting or unnecessary, given their lower transaction volume. Merchant of record vs. On merchant-owned e-commerce websites, they'll need a checkout interface with a payment gateway that can accept credit and debit card details. Surely, the payment facilitator model promises added revenue from each transaction your software processes, however, it demands capital and time. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. Payment facilitators (acting as the master merchant) control the onboarding process for their customers, which are referred to as sub-merchants. 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. platforms vs. 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. A return is initiated by the receiving. A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Payment Facilitator Model Definition. Here, the Payfacs are themselves the merchants of record. With Punchey, you are the merchant of record. With PayFacs, one size does not fit all, and different types of PayFacs have emerged throughout the years. ISOs may be a better fit for larger, more established. Merchant of record vs. A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Merchant of record vs. A Payfac provides PSP merchant accounts. Payfac-as-a-service is a turn-key payment facilitation model in which an external company provides businesses with the necessary tools and infrastructure to accept electronic payments, such as credit and debit cards, ACH, and echecks. The MoR is responsible for processing customer payments on behalf of the business, taking on numerous legal and financial. PayFacs provide a similar service to standard merchant accounts, but with a few important differences. It is simple, easy, and fast to process the payments with Payment Aggregators. 0 is to become a payment facilitator (payfac). As merchant numbers and workflow complexity grows, using white-labeled PayFac-as-a-Service can set your ISO apart. The two have some shared features, but they are ultimately very different models. 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. In-person;. Merchant of record vs. A Payment Facilitator or Payfac is a service provider for merchants. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. What comes to mind is a picture of some large software company, incorporating payment. Moreover, in a sense, PayFac model relieved acquirers from merchant management functions, which they delegated to PayFacs. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. Using this account, the company can aggregate payments for its portfolio of merchants. Take Uber as an example. A payment facilitator must also verify the identities of the sub-merchant and check if the business details provided are in accordance with the incorporation details recorded in the federal records. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. Payfacs eliminate the need for individual businesses to set up their own merchant accounts with a bank or a card network. Facilitates payments for sub-merchants. A merchant of record is an entity that accepts cardholders’ payments and assumes liability for processing of these payments on the merchant’s behalf. Stripe's payfac solutions can empower businesses to accept payments online without a merchant account or merchant identification number (MID) of their own. 40% in card volume globally. Here’s how: Merchant of record. In other words, ISOs function primarily as middlemen (offering payment processing), while PayFacs are payment facilitation. Payment Facilitators (Payfacs) and Merchants of Record (MoRs) are two different ways to process payments. Thanks to the emergence of. This also means the Payfac assumes the merchant’s credit liability, but they diversify this risk by aggregating a large pool of merchants under them. The MoR is liable for the financial, legal, and compliance aspects of transactions. The MoR is liable for the financial, legal, and compliance aspects of transactions. An example would be a SaaS platform that provides plumbers and home service providers an application that help them. A merchant of record is an entity that accepts cardholders’ payments and assumes liability for processing of these payments on the merchant’s behalf. payment facilitator (payfac) MoRs and payfacs both play significant roles in the e-commerce payment process, but their responsibilities and the scope of their services differ. com 1) A PayFac always acts on sub-merchant’s (retailer’s) behalf, while an MOR might be the actual retailer. Acts as a merchant of record. The platform becomes, in essence, a payment facilitator (payfac). payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. Merchant of record vs. Here’s how: Merchant of record. To clarify the matter, we will offer a clear and comprehensive explanation of what is a payment facilitator, its primary functions and business model in this complete guide. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. Businesses can choose to be their own MoR,. Upon approval, the PayFac aggregates the merchant into a pool, so they can conduct business under the PayFac’s umbrella. payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. The MoR is liable for the financial, legal, and compliance aspects of transactions. Chances are, you won’t be starting with a blank slate. Registered payment facilitators earn 20-40 basis points more per transaction than they would riding the rails of another wholesale PayFac. Here’s how: Merchant of record Merchant of record vs. A sub-merchant platform involves a Payfac that has been pre-approved for one master merchant account with an acquirer, like TD. PayFac vs merchant of record vs master merchant vs sub-merchant. Based on that definition, PayFacs take over the merchant underwriting process from the acquiring bank. 4. FinTech 2. Here's how: Merchant of record The term “merchant of record” refers to the entity that is legally authorized and responsible for processing customer payments —including credit and debit card transactions and digital wallet transactions —for goods or services on behalf of a business. If your rev share is 60% you can calculate potential income. 7%, however, nearly matched the merchant division’s 48. The MoR is responsible for processing customer payments on behalf of the business, taking on numerous legal and financial. payment facilitator (payfac) MoRs and payfacs both play significant roles in the e-commerce payment process, but their responsibilities and the scope of their services differ. Merchant of record vs. A payment processor sits at the center of the payment cycle. Paypal is an example of a payfac, and while Paypal is highly convenient and can be great for specific business models, they do not work with certain industries that can be deemed high-risk. Most payments providers that fill. Here's how: Merchant of record Merchant of record vs. From there, PayFacs assign businesses as sub-merchants under the PayFac’s master merchant account. Merchant of record vs. For this reason, payment facilitators’ merchant customers are known as submerchants. Later, they’ll explore what it takes to become a PayFac. The Add Sub-Merchant screen appears, as shown in the following figure. An ACH return is not the same as an ACH cancellation. payment aggregator. The MoR is liable for the financial, legal, and compliance aspects of transactions. To accept payments online, you will need a merchant account from a Payfac. Merchant of record vs. Understandably, the PayFac model has grown rapidly in popularity with software vendors in a wide variety of categories. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its larger master merchant. Merchant of record vs. This model is ideal for software providers looking to. The MoR is responsible for processing customer payments on behalf of the business, taking on numerous legal and financial. Sub-merchants, on the other hand. The PayFac uses their connections to connect their submerchants to payment processors. And this is, probably, the main difference between an ISV and a PayFac. This means that Clover is the equipment and software you can use to physically accept credit card payments and other methods of payment processing, but your merchant account will be through another payment processor, whether Fiserv or one of its resellers. For. But now, said Mielke. Uber corporate is the merchant of record. 00 Purchase price less payfac transaction fee and payment processor/ merchant acquirer fee Transaction data Present card for payment Goods or services Authorization and transaction data $10 (Bill. The term “merchant of record” refers to the entity that is legally authorized and responsible for processing customer payments —including credit and debit card transactions and digital wallet transactions —for goods or services on behalf of a business. Merchant of record vs. The PF may choose to perform funding from a bank account that it owns and / or controls. Merchant of record vs. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. They use the PayFac’s merchant account to process their transactions, and they pay a fee to the PayFac for. Here's how: Merchant of record. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. 1. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. Fast forward to today, Lightspeed has become a payment facilitator (“payfac”) under its ‘Lightspeed Payments’ offering. PayFac model is easier to implement if you are a SaaS platform or a. In our due diligence work with investors, we have seen businesses with over $1 billion in annual card volume that were acting in a payfac capacity by disbursing split payments. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. Stripe's payfac solutions can empower businesses to accept payments online without a merchant account or merchant identification number (MID) of their own. This sounds complicated, but at the most basic level, a payments facilitator is a way of outsourcing part of your business to an intermediary contractor. Because of those privileges, they're required to meet industry. Here’s how: Merchant of record The PF may choose to perform funding from a bank account that it owns and / or controls. From the iQ Bar of the Merchant Onboarding Page, click the Operations icon and select PayFac Portal. They handle all payments and take on the associated liabilities, such as collecting sales tax, ensuring Payment Card Industry (PCI) compliance, and honoring refunds and chargebacks. Not all that long ago, that same software company would have gone all the way to becoming a merchant of record or a PayFac in the drive to offer payments and push margins. The marketplace also manages the. Merchant accounts are provided by acquiring banks, often through payment processors or independent sales organizations (ISOs). What Does Merchant of Record Mean? Merchant Services By Roberto Sato. The MoR is liable for the financial, legal, and compliance aspects of transactions. Insiders. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. Traditional payfacs have embedded payment systems and register their master MID with an acquiring bank. This story and the numbers are a little dated now, but from 2013 to 2016, Shopify’s merchant base nearly doubled to 200,000 from about 120,000, yet revenues increased almost 10X – all while. Platforms using a traditional payfac solution open a merchant bank account and receive a merchant ID (MID) to acquire and aggregate payments for a group of smaller merchants, typically called sub-merchants. payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. On merchant-owned e-commerce websites, they'll need a checkout interface with a payment gateway that can accept credit and debit card details. That was up 5% year-over-year on a constant-currency basis. This also means the Payfac assumes the merchant’s credit liability, but they diversify this risk by aggregating a large pool of merchants under them. A merchant of record is an entity that is legally authorised and responsible for processing customer payments – here's what businesses should know about it. A PayFac is a merchant services model in which an organization opens a processing account with an acquiring bank so that it can serve a myriad of merchant clients. 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. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its larger master merchant. PayFacs pay merchants directly and can often process payments faster, whereas ISOs don’t touch any money directly. So, what. Most payments providers that fill. Platforms using a traditional payfac solution open a merchant bank account and receive a merchant ID (MID) to acquire and aggregate payments for a group of smaller merchants, typically called sub-merchants. payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. Payment Facilitators, or PayFacs, act as the point of entry for the modern payments ecosystem. 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. PayFacs can also use white-label payment orchestration software and offer it to their clients to create a. Think of a payment facilitator as a regulated entity that manages card network relationships, sub-merchant onboarding, and payment services for merchants. If you don't have a very large volume of transactions but still are planning not to use a PayFac, this or an ISO is probably the type of service you. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. A payment processor’s job is to ensure that money flows correctly; the payment facilitator must collaborate with the payment processor. Stripe's payfac solutions can empower businesses to accept payments online without a merchant account or merchant identification number (MID) of their own. PayFac vs. The MoR is responsible for processing customer payments on behalf of the business, taking on numerous legal and financial. Here’s how: Merchant of record. ) are accepted through the master merchant account. A Payment Facilitator (PayFac) is a type of merchant services company that provides business owners with a way to accept electronic payments, both online and in-store. A merchant of record (MoR) is a legal entity responsible for selling goods or services to an end customer. Payment facilitators (PayFacs) or payment service providers (PSPs) serve as the merchant of record with acquirers and processors, operating a single merchant account. Merchant of record vs. The road to becoming a payments facilitator, according to WePay founder Rich Aberman, is long, expensive and technologically complex. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. However, if the business experiences rapid growth and needs to onboard a large number of merchants, the payfac may face scalability challenges. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. Merchant account Payfacs also provide a merchant account, a type of bank account that allows businesses to accept and process electronic payments. Traditional payfacs have embedded payment systems and register their master MID with an acquiring bank. Here’s how: Merchant of record A merchant account is a type of business bank account that is used to process electronic and payment card transactions. There are several benefits to this model. That said, the PayFac is. The PayFac model allows a single entity to become the “merchant of record” and board sub-merchants with fewer data requirements and scrutiny. Here’s how: Merchant of record. The term “merchant of record” refers to the entity that is legally authorized and responsible for processing customer payments —including credit and debit card transactions and digital wallet transactions —for goods or services on behalf of a business. MOR is liable to authorize and process card payments. Payment Facilitator. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. Here's how: Merchant of record Merchant of record vs. Merchant of record vs. First popularized by firms like PayPal and Square, the payments facilitator (payfac) model is reshaping the payments ecosystem, allowing nonpayments companies that adopt it to. PayFac vs. accounting for 35. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. A Payment Facilitator (PayFac) is a third-party service that lets merchants accept various forms of non-cash payments like credit/debit cards or digital payments. Businesses that choose to work with a payfac are essentially submerchants under this master account. PayFac vs ISO. Merchant of record vs. Merchant of record vs. To our knowledge, the term MOR is not a formal designation, although it does provide a useful shorthand for platforms, marketplaces, and others whose business model involves meeting the criteria to be a merchant. 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. The MoR is responsible for processing customer payments on behalf of the business, taking on numerous legal and financial. So, the main difference between both of these is how the merchant accounts are structured and organized. At first it may seem that merchant on record and payment facilitator concepts are almost the same. Settlement must be directly from the sponsor to the merchant. . Here’s how: Merchant of record. Here, the Payfacs are themselves the merchants of record. Rather, the money is passed from the processor to the merchant’s account. Here’s how: Merchant of record. They are then able. Also known as a “PayFac” or merchant aggregator, a payment facilitator is a third party agent that contracts with an acquirer to THE ACQUIRER. With the PayFac model, the ISV can instead offer those same users the option to become sub-merchants, reducing friction and tapping into a new revenue source – the valuable transaction fees generated by each sub-merchant sale. The MoR is responsible for processing customer payments on behalf of the business, taking on numerous legal and financial. The key participants in this model are the acquirer, payment facilitator, and sponsored merchant. For example, aggregators facilitate transaction processing and other merchant services. One key difference between payment facilitators and aggregators is the size of businesses or merchants they work with. The merchant of record is responsible for maintaining a merchant account, processing all payments. 9% and 30 cents the potential margin is about 1% and 24 cents. A merchant of record is an entity that is legally authorised and responsible for processing customer payments – here's what businesses should know about it. This was an increase of 19% over 2020,. Based on that definition, PayFacs take over the. It needs to obtain a merchant account, and it must be sponsored into the card networks by a bank. A master merchant account is issued to the payfac by the acquirer. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. In simple terms, the MOR is. The PayFac does not have to underwrite all merchants upfront — they are instead, underwriting the merchants essentially as they continue to process transactions for them on an ongoing basis. merchant of record”—not the underlying retailers. Here’s how: Merchant of record. The main difference between these two technologies, the Payment Facilitator and the Payment Processor, is the difference in the organization of merchant accounts. The MoR is responsible for processing customer payments on behalf of the business, taking on numerous legal and financial. A payment processor receives the initial authorization request when the card is swiped to make a purchase. Payfac 45. Here’s how: Merchant of record Merchant of record vs. For some ISOs and ISVs, a PayFac is the best path forward, but. Payfacs, which are frequently chosen by startups and smaller companies, make the. 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. In simple terms, the MOR is the name that the customer (cardholder) sees on the receipt. 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. payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. Here’s how: Merchant of record. a merchant to a bank, a PayFac owns the full client experience. lasercannonbooty • 2 mo. net; Merchant of Record A merchant of record is an entity that is legally authorised and responsible for processing customer payments – here's what businesses should know about it. Here’s how: Merchant of record. Software users can begin accepting payments almost immediately while. with Merchant $98. Sub-merchants, on the other hand. The Payment Facilitator Registration Process. An MoR acts as a payment processing service that is essentially a reseller of the merchant’s goods or services, and a payfac assumes responsibility for establishing and managing the relationships that the merchant needs to start taking payments. The MoR is liable for the financial, legal, and compliance aspects of transactions. A merchant of record is an entity that is legally authorised and responsible for processing customer payments – here's what businesses should know about it. payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. When a company decides to operate as a payment facilitator, it obtains a payment facilitator account from an acquirer and aggregates payment transactions for its merchant portfolio through that account. Payment Facilitators (Payfacs) and Merchants of Record (MoRs) are two different ways to process payments. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. Here’s how: Merchant of record Technically, a PayFac can be used to set up an ISO, but this is usually reserved for online businesses. Traditional payfacs have embedded payment systems and register their master MID with an acquiring bank. The term “merchant of record” refers to the entity that is legally authorized and responsible for processing customer payments —including credit and debit card transactions and digital wallet transactions —for goods or services on behalf of a business. About Us; FAQs; Blogs; Sponsorships; Careers; Contact Us Get Started. 1. 5. A payment facilitator is a merchant services business that initiates electronic payment processing. As a provider of dedicated merchant accounts, Punchey is able to provide faster payment processing. Rather then setting up each of their clients with their own merchant account, the Payfac lets them piggyback on the. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. The sub-merchant agreement includes mandatory provisions. It offers the. PayFac: A PayFac essentially takes on some of the duties of a payment processor and a payment gateway and acts as the merchant-of-record for the acquirer, servicing its submerchants (customers). The marketplace also manages the. A PayFac will smooth the path. Here’s how: Merchant of record. A PayFac will smooth. 8–2% is typically reasonable. Cardknox Go delivers flexibility with payment options for in-store, online. Traditionally, businesses that wanted to accept credit card payments had to complete a lengthy, complex process of setting up a merchant account with a bank or a payment processor. The PayFac owns the direct relationship with the payment processor and acquiring bank. Merchant of record vs. The most significant difference when it comes to merchant funding is visibility into settlements. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. The payment facilitator has already undergone major. Merchant of Record. The. A Payment Facilitator or PayFac simplifies merchant account enrollment which allows smaller companies to quickly gain the upper hand. ”. Clover is not a PayFac and does not own its payments platform or anything they sell. A merchant of record is an entity that is legally authorized and responsible for processing customer payments—here’s what businesses should know about it. responsible for moving the client’s money. Processor relationships. The MoR is liable for the financial, legal, and compliance aspects of transactions. Gateway Service Provider. The MoR is responsible for processing customer payments on behalf of the business, taking on numerous legal and financial. ; Selecting an acquiring bank — To become a PayFac, companies. A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. 83% of card fraud despite only contributing 22. The MoR is responsible for processing customer payments on behalf of the business, taking on numerous legal and financial. The MoR is liable for the financial, legal, and compliance aspects of transactions. Payments news: Rich Aberman, co-founder of WePay, teaches Karen Webster what a PayFac is, why it differs from a merchant of record and how to become one. A PayFac is an intermediary entity, performing a set of functions (delegated by the acquiring bank) for multiple merchants. Stripe's payfac solutions can empower businesses to accept payments online without a merchant account or merchant identification number (MID) of their own. Because merchant accounts are required to process debit and credit card transactions, it’s. What is a payfac? A payfac, short for payment facilitator, is a type of provider in the payments industry that simplifies the process for other businesses to accept credit and debit card payments. It also needs a connection to a platform to process its submerchants’ transactions. In this article, we explore various forms of payment facilitation, the commercial opportunity for payfacs, the maturation process of select payfac models, and the key features and functionalities to look for in PSPs. PayFac or the Payment Facilitator is the third-party payment services provider (PSP). A PayFac assumes all the risk involved in payment processing – including fraud loss, chargebacks, and non-payment.