Global expansion. 3. Cards and wallets. See our complete list of APIs. A facilitator provides merchants with their own Merchant ID under a master. Gateway Service Provider. Typically, it’s necessary to carry all. This crucial element underwrites and onboards all sub. Think debit, credit, EFT, or new payment technologies like Apple Pay. A gateway may have standalone software which you connect to your processor(s). That said, the PayFac is. Both offer ways for businesses to bring payments in-house, but the similarities. The majority of our customers use credit, debit, or prepaid cards to pay for their services. 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. Amazon Pay. A PayFac will smooth the path. 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. Choose your gateway, processor: By facilitating open, interoperable service models, PayFac 2. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Payroc’s Integrated Payments Platform allows us to provide our customers with a set of solutions like Next Day Funding, which means our customers receive their funds faster. Both offer ways for businesses to bring payments in-house, but the similarities. Many large banks, for example, issue credit. Fortis manages everything for you – underwriting, fraud monitoring, funding, gateway reporting, and chargeback management. Stripe benefits vs merchant accounts. Cardknox Go (PayFac) – Become a Payment Facilitator, without the hassle;. Owners of many software platforms face the need to embed. We promised a payfac podcast so you’re getting a payfac podcast. With a. It is the mechanism that reads a customer’s payment information. The timeout indicates that connection with the back end is impossible, and the server, to which the data needs to be transferred, cannot be reached. Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. The arrangement made life easier for merchants, acquirers, and PayFacs alike. A payment facilitator, commonly known as a payfac, occupies one of the central roles within the payment processing ecosystem, yet it causes significant confusion. To manage payments for its submerchants, a Payfac needs all of these functions. A merchant account is an account provided by your payment processor that receives the funds from your online. White-label payfac services offer scalability to match the growth and expansion of your business. PayFac is software that enables payments from one vendor to one merchant. 🌐 Simplifying Payments: PayFac vs. Using payment facilitation, customers can be onboarded and verified quickly, with a faster underwriting process. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Onboarding processA payment facilitator (or PayFac) is a payment service provider for merchants. UniPay Gateway is the leading Omnichannel payment processing and management solution for PayFacs, Saas and equity firms operating worldwide. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. Independent sales organizations (ISOs) are a more traditional payment processor. 5. However, they do not assume. The difference is that a payment processor can provide a single gateway for multiple payment methods. WorldPay. The Job of ISO is to get merchants connected to the PSP. One classic example of a payment facilitator is Square. Why PayFac model increases the company’s valuation in the eyes of investors. PayFac vs ISO: 5 significant reasons why PayFac model prevails. PayFacs perform a wider range of tasks than ISOs. It accepts all payment types, ranging from direct credit/debit to PayPal, Skrill, Paytm, etc. It can also. PayFac vs merchant of record vs master merchant vs sub-merchant. 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 aggregator is a 3rd-party payment service provider (PSP) that allows merchants to process payments without having a merchant account. It also means that payment risk is moved from individual merchants to the PayFac, as they own the master merchant account. At the same time, more companies are implementing PayFac model and establishing PayFac payment gateway partnerships. The payment facilitators themselves: which are companies providing the necessary infrastructure and allows their sub-merchants to accept payments via credit card. A Payment Facilitator, commonly known as, a Payfac, has one master merchant account under which all the merchants join as sub-merchants. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Simplify funding, collection, conversion, and disbursements to drive borderless. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. These companies include owners of SaaS platforms, franchisors, ISO, marketplaces, and venture capital firms. Cons. In this hybrid payment facilitation model, the Payfac payment service provider becomes a Payfac with Sponsor Banks; they act as a master merchant account and are able to set up sub-accounts for merchants same-day. Grow with the experts. A Payment Facilitator or Payfac is a service provider for merchants. It also means that payment risk is moved from individual. Optimize your finances and increase automation with our banking infrastructure. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent that. Strategies. 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 relationship with an acquirer will provide much of what a Payfac needs to operate. 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. Contact our Internet Attorneys with the form on this page or call us at 855-473-8474. A SaaS or PayFac, usually, needs to dedicate much more considerable effort to integration and certification. This means businesses only need Stripe to accept payments and deposit funds into their business bank account. Integrate in days, not weeks. This blog post explores some of the key differences between PayFac vs. 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. PayFacs take care of merchant onboarding and subsequent funding. 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. While there are many benefits of integrating to a Payfac, two of the most notable are frictionless onboarding and risk, liability and costs associated. ), and merchants. 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. A Payment Facilitator or Payfac is a service provider for merchants. In almost every case the Payments are sent to the Merchant directly from the PSP. Global expansion. Moreover, in a sense, PayFac model relieved acquirers from merchant management functions, which they delegated to PayFacs. 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. Becoming a payment facilitator is a change to your operational and support models, has and it pays long-term benefits. January 25 th, 2022 – Atlanta, GA and Tulsa, OK – Payfactory, a fintech payment facilitator for software platforms, has announced a growth investment from Bluefin, the recognized integrated payments leader in P2PE encryption and vaultless tokenization technologies. 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 best-in-class payment solution. Prepare your application. Here are the best alternatives to Stripe from providers like Square, Helcim, and Treati. It manages the transfer of funds so you get paid for your sale. One of the key differences between payment aggregators and payment facilitators is the size of sub-merchants they are servicing. Relationships of modern humans with other human. Chances are, you won’t be starting with a blank slate. PayFac vs ISO. Wide range of functions. Aggregate processing means the funds from transactions are paid out to the PayFac first, who then distribute them to. Your credit, debit, or prepaid card information is safe with us. Payment gateway selection is a tricky process. That allows you to get certified by the respective gateway or. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. 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. Onboarding processWhat is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. An ISO works as the Agent of the PSP. Here are the best crypto payment gateway providers, including Coinbase Commerce, BitPay, and CoinGate. Finally, web. Our payment-specific solutions allow businesses of all sizes to. North America’s leading healthcare organizations, revenue cycle management and accounts receivables management companies trust RevSpring to maximize their financial results. 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. Global expansion. Gateway 💳🛍️ Let's go diving into the payment realm 💡 You want smooth checkouts 🤔, but the payment landscape holds more than meets the eye. 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. Conclusion. GATEWAY STANDARD. 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. 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. PayFac-as-a-Service (PFAAS) combines easy-to-integrate payment technology, full-service offerings, and transparent pricing to deliver Independent Software Vendors a simple way to harness the full power of payment facilitation – minus. Also, many PSP’s/Payfac’s offer better integration with online businesses, as the payment gateway tends to be seamlessly bundled in. RevSpring leads the market in financial communications and payment solutions that inspire action—from the front-office to the back office to the collections office. Our restaurant PayFac and gateway offer all of the features you need to ensure your payments are secure and on time. SoftwareRight now, Stax offers three software plans for small businesses starting at $49 USD (Starter), and moving up to $89 USD (Growth), or $129 USD (Pro) per month. Further, by integrating payments functionality into a software. Our suite of scalable issuer solutions provides the next generation platform for origination, processing and risk management. Nium moves money, manages foreign exchange, and mitigates fraud so your business can send and receive funds in real-time. Each of these sub IDs is registered under the PayFac’s master merchant account. But size isn’t the only factor. Online Payment System Software and Global Payment Processor - UniPay Gateway. The future of integrated payments, today. It also needs a connection to a platform to process its submerchants’ transactions. New Zealand - 0508 477 477. So to sum it all up: payment processors offer the functionality for merchants to start accepting payments and route. Using payment facilitation, customers can be onboarded and verified quickly, with a faster underwriting process. A major difference between PayFacs and ISOs is how funding is handled. Revolutionize Business. becoming 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. Potential risk of. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. July 12, 2023. This was an increase of 19% over 2020,. The expansion of marketplaces has allowed the emergence of integration of payment services via the PayFac concept. Business Size & Growth. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent. It offers the. Key Function ; Functional Descriptions . Whether to become a Payment Aggregator or Payment Facilitator has far reaching implications for a SAAS application provider. Especially, for PayFac payment platforms and SaaS companies. Discover Adyen issuing. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. As a result of the first. The PSP in return offers commissions to the ISO. In other words, processors handle the technical side of the merchant services, including movement of funds. You own the payment experience and are responsible for building out your sub-merchant’s experience. 1. The main difference between a payment aggregator and a PayFac is the type of merchant ID (MID) used to differentiate accounts. There are two ways to payment ownership without becoming a stand-alone payment facilitator. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. Fueling growth for your software payments. These methods can simplify payment as well as minimize fraud and mistakes for both businesses and consumers. PayFac vs ISO is an illustrative example of natural selection and adaptation in the fintech world. 70. The payment gateway provider must be able to offer you the liberty to get anyone on board and do business with them. Clients or sub-merchants skip the traditional merchant account application process, thus enabling. With companies like Stripe, Square and PayPal pioneering the payment facilitator or “PayFac” model, the era of Integrated Payments 2. Typically a payfac offers a broader suite of services compared to a payment aggregator. 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. 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. As a PayFac, Segpay handles the sub-merchant onboarding and provides a fully managed payment processing solution. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. 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. Seamless graduation to a full payment facilitator. If you're using a direct provider, your customers can. Create sandbox. Just to clarify the PayFac vs. 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. Payments. 5%. 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. Mar 19, 2019 2:09:00 PM. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. What SaaS & E-commerce Companies Need to Know About Payment Facilitator Regulations, and what key regulations. PINs may now be entered directly on the glass screen of a smartphone using this new technology. Bank/ credit or debit company. Stripe. Payment method Payment method fee. Global expansion. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. The platform becomes, in essence, a payment facilitator (payfac). €0. becoming 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. It provides a technology, allowing to authorize transactions and, potentially, receive transaction settlement information. The gateway encrypts the information it received from the buyer and sends the transaction data to a card association. A merchant can simply partner with a large provider and get all the gateway features it needs within a standardized offering. Payfac and payfac-as-a-service are related but distinct concepts. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. The best way to choose between a payfac and a payment processor is to consider your specific needs and requirements. Technology: PayFacs offer proprietary technology solutions — in the form of gateways, hardware, and/or other. When you’re using PayFac as a service, there are two different solution types available. A Payment Facilitator [Payfac] is essentially a Master Merchant that processes credit and debit card transactions for sub-merchants within their payment. Send payouts to 190+ markets with real-time payments infrastructure for on-demand business. They can apply and be approved and be processing in 15 minutes. The ideal business for UniPay Gateway PayFac program has a large number of clients, as this will allow the business to generate a significant amount of revenue through the fees associated with each transaction. Partnering with a PayFac vs becoming a PayFac with a technology partner. Payfac and payfac-as-a-service are related but distinct concepts. 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 merchantsThese may encompass payment gateway, intelligent routing and cascading, fraud prevention, reporting and analytics, payment monitoring, subscription billing, payment integrations through an open Application Programming Interface (API), and more offerings. 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. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. PayFacs are based on the merchant aggregator model created by Visa and MasterCard to provide support for payment card acceptance in marketplaces. A payfac is a platform that intermediates payments between consumers, payment operators (card operators, banks, PSPs, etc. 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. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Here, ISOs (Independent Sales Organizations if on the Visa network), or MSPs (Member Service Providers if Mastercard) sell credit card processing services to merchants on behalf of an acquiring bank. Payment facilitator’s role is to handle merchant lifecycle-related functions (from underwriting and onboarding to funding and chargeback handling) instead of the acquirer. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. When you start accepting payments online, you need a merchant account from a payment facilitator with sufficient infrastructure and proper compliance to process payments . Stripe provides a way for you to whitelabel and embed payments and financial services in your software. ,the leading company in the payment processing service industry (3769: Tokyo Stock Exchange Prime Market),releases. Suitability Payment aggregator: Particularly suitable for small and medium-sized businesses that seek a simplified onboarding process and cost-effective payment. No-Cost Merchant Services: Your Gateway to Success with Visa CBPS and PayFac. Payfac-as-a-service vs. Registered payment facilitators earn 20-40 basis points more per transaction than they would riding the rails of another wholesale PayFac. Let us take a quick look at them. An ISO works as the Agent of the PSP. Payment Facilitation offers the SaaS application the ability to control the end customer's payment experience. Onboarding processExact Payments is an expert in embedded payment solutions, enabling SaaS businesses to monetize payments through its turnkey PayFac-as-a-Service solution. When you enter this partnership, you’ll be building out systems. 20 (Processing fee: $0. Payfac and ISO models involve much more regulatory and compliance overhead than payfac-alternative models. Payment Facilitator. A payment processor sends card information from a merchant’s POS system to the card networks and banks involved in the transaction. Visit our TSYS Developer Portal today and unlock the. These systems will be for risk, onboarding, processing, and more. Our payment-specific solutions allow businesses of all sizes to. Priding themselves on being the easiest payfac on the internet, famously starting. A payment gateway and merchant account often cost between $750 to $1,200 in set-up expenses, $0. The traditional method of bringing payments in-house involves integrating a payment gateway or processor into the platform, allowing for seamless transactions within the platform. ISOs. In the ever-evolving landscape of the payment processing industry, businesses grapple with challenges that often feel like uncharted territory. Just like some businesses choose to use a third-party HR firm or accountant, some. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Thanks to its flexibility and profitability, PayFac model seems to perfectly adjust to the present-day market requirements. A payment facilitator (or payfac) is the owner of a master merchant identification number who registers merchants as sub-merchants and enables their payment acceptance. Global expansion. Onboarding processBefore offering customers payment methods from popular card networks (Visa, Mastercard, etc. Payfac and payfac-as-a-service are related but distinct concepts. Stripe By The Numbers. A payment gateway on the other hand is technology that verifies payments between merchants or vendors. The Global Infrastructure For Real-Time Payments. The value of all merchandise sold on a marketplace or platform. Put simply, the acquiring bank is the bank on the merchant end of the transaction, and the issuing bank is the cardholder or consumer’s bank. Let’s examine the key differences between payment gateways and payment aggregators below. Stripe operates as both a payment processor and a payfac. 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. TSYS Developer Portal is your gateway to access the APIs, tools and resources you need to integrate with TSYS payment solutions. Payfac-as-a-service vs. This solution involves you partnering with either (1) an acquiring bank or (2) an acquirer and a payment facilitator vendor. Find a payment facilitator registered with Mastercard. In other words, ISOs function primarily as middlemen (offering payment processing), while PayFacs are payment facilitation. The terms agent, gateway, service provider, third party processor are all various terms for third party agents. Both offer ways for businesses to bring payments in-house, but the similarities. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. This crucial element underwrites and onboards all sub-merchants. 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. Payfac: What’s the difference? Independent Sales Organization (ISO) is a third-party entity that partners with payment processors or acquiring banks to facilitate merchant services. Payment gateway Payfacs provide a payment gateway, a software that acts as an intermediary between a business’s website and the payment processor. merchant accounts. When you connect with BlueSnap’s Global Payment Orchestration Platform, we provide you with the merchant account. Without a. This model is ideal for software providers looking to. Instead of each individual business. A payment processor serves as the technical arm of a merchant acquirer. The price is the same for all cards and digital wallets. The differences are subtle, but important. 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. A payment facilitator, also known as a PayFac, is a sub-merchant account for a merchant service provider. 3% leading. A powerful payment gateway that supports an extensive combination of devices, and operating systems for point of sale payments. PayFac model is easier to implement if you are a SaaS platform or a. Discover flexible, scalable solutions that fuel your growth and transform the payments experience to delight your customers. Proven payment technology helps businesses pay and get paid so they can focus on what matters most. Besides that, a PayFac also takes an active part in the merchant lifecycle. . Firstly, a payment aggregator is a financial organization that offers. However, PayFac concept is more flexible. A sub-merchant platform involves a Payfac that has been pre-approved for one master merchant account with an acquirer, like TD. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. 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. These terms are often used interchangeably, but while they’re interconnected, they can’t be used to describe the same thing. Both offer ways for businesses to bring payments in-house, but the similarities. Global expansion. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. Online Payments. This means businesses only need Stripe to accept payments and deposit funds into their business bank account. Simplifying Payments Around the Globe. A PayFac (payment facilitator) has a single account with. A payment facilitator is a merchant services business that initiates electronic payment processing. This is. Typically a payfac offers a broader suite of services compared to a payment aggregator. Onboarding processPayrix is the only PayFac ® as a service platform built by a payment facilitator, exclusively for software platforms. What the PayFac builds in the above analogy are the APIs that allow merchants to integrate into its platform, the payment gateway that’s responsible for tokenization and secure transmission of card data, and the tech behind such features as reporting and merchant onboarding. as a national independent sales organization in 1989. We would like to show you a description here but the site won’t allow us. They offer payments to their merchant customers, known as submerchants, through their own links with payment processors. (PayFac) Receives: $3. Global reach. However, it is difficult to determine whether this price is high or low without knowing what features the gateway offers. Mastercard PayFac Models: The Ins and Outs of the “Big Two” Payment Facilitator Programs. 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. This includes underwriting, level 1 PCI compliance requirements,. If you need to contact us you can by email: support. A payfac vs. Onboarding process responsible for moving the client’s money. net; Merchant of Record Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. Gateways charge fixed fees per transaction, whereas payment service providers charge both fixed. In a PayFac model, however, the merchant will establish a business relationship with the payment facilitator, and it is the latter who will maintain the relationship with. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. The terms aren’t quite directly comparable or opposable. Processors follow the standards and regulations organised by credit card associations. 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. 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. 2CheckOut (now Verifone) 7. Instead, in the PayFac model, a small business gets a submerchant account under the master merchant. 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. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. 8% of the transaction amount plus $0. PayFac vs ISO. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. You own the payment experience and are responsible for building out your sub-merchant’s experience. Payfac and payfac-as-a-service are related but distinct concepts. A PayFac is the official merchant of record with the major card brands such as Visa and Mastercard and holds the relationship with the acquiring bank. First, a PayFac needs to establish a partnership with an acquiring bank, and get sponsorship to process payments for sub-merchants. The B2B FinTech company, WALBING, has obtained a Payment Service License from the German Federal Financial Supervisory Authority. This means that businesses only need Stripe to accept payments and deposit funds into their business bank account. See morePayment gateway vs payment processor: what’s the difference? The difference between a payment processor and a payment gateway lies in the fact that. 2. 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. slide 1 to 3 of 3. S. There is then additional time ensuring the payment gateway or application using the payment processing has all the appropriate merchant account credentials provisioned. 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. When it comes to choosing between a PayFac and an ISO, the best option depends on your business's specific needs and preferences.