Payfac vs iso. Avoid the slow, manual sub-merchant onboarding with other payfac solutions, and offload your payments compliance obligations to Stripe. Payfac vs iso

 
Avoid the slow, manual sub-merchant onboarding with other payfac solutions, and offload your payments compliance obligations to StripePayfac vs iso Payment Facilitator vs ISO

Sometimes a distinction is made between what are known as retail ISOs and. Set up merchant management systems such as dashboards,A payment facilitator, also known as a “payfac” or payment aggregator, is a payment model that has grown tremendously over the past few years. However, the setup process might be complex and time consuming. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. In this sub-merchant model, Payfac has a master merchant account under which merchants are signed up, as sub-merchants. For example, an artisan. 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 PayFac (Payment Facilitator) and ISO (Independent Sales Organization). Industries. For example, an. The most important difference between a PayFac and an ISO is that PayFacs “own” their merchants – entering into direct contracts with them (albeit on. Risk management. So naturally, any company considering the option needs to make sure the investment they’ll make in the Payfac model makes sense financially. However, the setup process might be complex and time consuming. Onboarding process Today’s PayFac model is much more understood, and so are its benefits. For example, an. The key aspects, delegated (fully or partially) to a. What is a payment facilitator? History of payfacs How to bring payments in-house Traditional payfac solutions Getting started Set up payment systems Set up merchant onboarding. 1. ) The PayFac takes on merchants as its own contracted “sub-merchants,” which process their transactions through the master merchant account. Stax Payments is thrilled to announce the appointment of our new Chief Executive Officer, Paulette Rowe. You must be logged in to post a comment. But to banks and merchants it. Payment Processors are responsible for authorization, authentication, data security, settlement, clearing, and reporting services, while ISOs focus on sales, marketing, merchant support, customer. S. Payscape is also a registered ISO/MSP for Fifth. The PayFac aggregates transactions and sends them to their processor, keeping operations streamlined. At the same time, more companies are implementing PayFac model and establishing PayFac payment gateway partnerships. Blog. This allows faster onboarding and greater control over your user. So naturally, any company considering the option needs to make sure the investment they’ll make in the Payfac model makes sense financially. 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. All ISOs are not the same, however. Since it is a franchise setup, there is only one. They’re more than just a payment provider. Once a sub-merchant has been through the onboarding process it is down to the PayFac to control payments adhering to the rules. So, the main difference between both of these is how the merchant accounts are structured and organized. Payment Facilitation as a Service, also known as PayFac as a Service or PFaaS, allows software platforms and SaaS providers the ability to act as a merchant account for their end users. 20 (Processing fee: $0. 3. Payment Facilitator. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. Moreover, in a sense, PayFac model relieved acquirers from merchant management functions, which they delegated to PayFacs. This site uses cookies to improve your experience. For example, an. Orange California Equipment Maintenance Agreement with an Independent Sales Organization. Difference #1: Merchant Accounts. Anti-Money Laundering or AML. 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. The most known examples are website-building companies which can provide integrated payment options, meaning ecommerce customers will see their experience improved as they will no longer need to actively look for third-party payment solutions. Under umbrella of. accounting for 35. Before outlining the similarities and commonalities of ISOs and ISVs, it’s helpful to recap their key differences: ISOs sell payment solutions to merchants, with wholesale ISOs offering additional services such as customer support. 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. When you want to accept payments online, you will need a merchant account from a Payfac. Generally, a PayFac is a good fit for businesses that process less than $1 million in payment volume annually, while an ISO is well-suited for larger businesses that process more than this. SaaS. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. PayFac registration may seem like the preferred option because of the higher earning potential. It runs about 40 minutes (really shooting to be less than 30) and we discuss the differences in payfac vs ISO and where payfac is heading. MSP = Member Service Provider. However, the setup process might be complex and time consuming. Thus, an ISO’s customers can access a wider range of processors, even if the onboarding experience is tedious. PayFac or payment facilitator model allows you to add a new revenue stream to the profit you get from selling your core product. When accepting payments online, companies generate payments from their customer’s debit and credit cards. The main difference between a payment aggregator and a PayFac is the type of merchant ID (MID) used to differentiate accounts. Aug 10, 2023. 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. Payment facilitators, aka PayFacs, are essentially mini payment processors. However, the setup process might be complex and time consuming. 00 Payment processor/ merchant acquirer Receives: $98. PayFacs perform a wider range of tasks than ISOs. ISO Versus the PayFac Payment Model. One of the reasons for this phenomenon is that many companies (including former independent sales organizations (ISO)) find it more profitable to combine the functions of an online gateway provider and a merchant service provider (MSP). Establish connectivity to the acquirer’s systems Two-way information flow: • Th Payfac pushes messages the acquirer (transaction info). PayFac vs ISO: which one to choose for your business? 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. One of the key differences between payment aggregators and payment facilitators is the size of sub-merchants they are servicing. What is a Payment Facilitator (Payfac)? Payfacs are an evolution of a long-established distribution model in the payments industry. Instant merchant underwriting and onboarding. Top content on Payfac, SaaS and SaaS Payments as selected by the SaaS Brief community. Software companies that focus on specific verticals, such as healthcare or childcare, are natural PayFac candidates. Payment facilitation, or PayFac allows a SaaS company to act as a master merchant for its client base. The main advantage of becoming a Payment Facilitator is that you can quickly and easily enroll your application, enabling a smooth onboarding experience. PayFac is more flexible in terms of providing a choice to. The new PIN on Glass technology, on the other hand, is becoming more widely available. Here are several benefits: As a hybrid PayFac, your company can handle client onboarding in minutes or hours instead of the usual 48-72-hour time-frame required for merchant account setup. The customer views the Payfac as their payments provider. However, the setup process might be complex and time consuming. The enabler is essentially an acquirer in the traditional term. Integrated Payments 1. ISVs lease or sell their software, earning their money by providing Software-as-a-Service. It runs about 40 minutes (really shooting to be less than 30) and we discuss the differences in payfac vs ISO and where payfac is heading. Wide range of functions. PayFac vs ISO: When Does One Make Sense over The Other? Add comment. I SO. Ongoing Costs for Payment Facilitators. PayFac vs Payment Processor. The payfac model is a framework that allows merchant-facing companies to. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. ”. the PayFac Model. It’s an easy choice for the ISV or PayFac that wants to boost its growth and dip its toes into a very easy international market. Becoming a payment facilitator is a change to your operational and support models, has and it pays long-term benefits. A PayFac (payment facilitator) has a single account with. Transaction Monitoring. You see. Proven application conversion improvement. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. To help us insure we adhere to various. This is because PayFacs or master merchants must have a market or domestic entity wherever they are providing. But a lot has. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. A PayFac is a processing service provider for ecommerce merchants. Part 1 charted PayFac’s evolution from “fast onboarding for ISOs” to more nuanced, vertically focused, customizable solutions. PayFac-as-a-service delivers a competitive payment program with instant onboarding of merchants while creating a seamless customer experience. Each ID is directly registered under the master merchant account of the payment facilitator. However, the setup process might be complex and time consuming. These companies have proven to the acquiring bank they can satisfy those regulatory requirements and, as a result, may board as many of the SaaS’s. Most businesses that process less than one million euros annually will opt for a PSP. The main difference between these two technologies,. Ensure that the ISO offers solutions that play nicely with the tools and platforms you’re using in your business. By viewing our content, you are accepting the use of cookies. Why more and more acquirers are choosing the PayFac model. PayFac-as-a-Service; Pricing. Massive technological leaps have made it easier than ever for software providers to explore new opportunities and expand their offering, such as becoming a PayFac as a service. For example, an. Lean on our payments expertise and offer your customers an end-to-end solution. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payment facilitation requires the master merchant (usually the software provider) to take legal and financial responsibility for the transaction that occur under the primary merchant. For example, an artisan. ISO: What Is the Optimal Integrated Payment Strategy in SaaS? Advertisement. Visa vs. This series, “Just the FACs,” tracks the development and progression of ISVs and PayFacs. responsible for moving the client’s money. Typically, the ISO stays out of the contract between the two and instead focuses on the relationship with the payment processor. 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. 70. 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. Without ISOs, a relatively small handful of global and regional payment processors would each be forced to interact with thousands. Recommended for companies processing less than $50M of annual payments volume (APV) 66%. PSPs facilitate payments and act as a proverbial middleman between you and the merchant. San Jose California Equipment Maintenance Agreement with an Independent Sales Organization. Mastercard PayFac Models: The Ins and Outs of the “Big Two” Payment Facilitator Programs. While there are one lot of roles ISOs handle in that payments space, they Swipesum details all you must go know about Payfac vs ISO. For example, an artisan. Most businesses that process less than one million euros annually will opt for a PSP. Optimized across years of experience onboarding and verifying millions of individuals and businesses, our payfac solution includes real-time KYC checks, sanctions screening, secure card data tokenization and vaulting,. PayFacs are often more suitable for SMEs seeking a quick and straightforward setup. Although each of these methods offer their own distinct advantages, understanding how they differ and which option is right for your specific. They’ll listen to you and guide you in developing the solutions your customers want and need. Both offer companies a means of accepting and processing payments, and while they may appear to be the same, they are. For example, if you’re selling in-store, then your ISO should offer you a point of sale software and. ) paying Toast, or Revel, or Clover FOREVER is a tough pill to swallow. The merchants can then register under this merchant account as the sub-merchants. Delve deeper into. A guide to marketplace payments. 5. The name of the MOR, which is not necessarily the name of the product seller, is specified by. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. However, the setup process might be complex and time consuming. While an ISO, or independent sales organization, is similar to a Payfac, there are some key differences. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. This means that a SaaS platform can accept payments on behalf of its users. 00 Retains: $1. For example, an. A. Maybe you want to learn about PayFac vs. If you are an existing Bambora customer who needs assistance there are our support guides that can be found here. 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. 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. Worldpay was one of the first processors to offer payfac extensibility. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Both offer companies a means of accepting and processing payments, and while they may appear to be the. We get white glove treatment from Global Payments Integrated—they put clients first. 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. Research firm Statista estimates payfac transaction volume totaled $88 billion last year,. FIS’ rival, Fiserv, acquired the remaining stake of Finxact for $650 million, while another company, Fintech Amount, bought Linear for $175 million. For example, an. 007 per transacation. However, much of their functionality and procedures are very different due to their structure. Payment Facilitator. 9% and 30 cents the potential margin is about 1% and 24 cents. Through our payment facilitation platform, Treati we're able to provide a full-stack payments API for B2B companies structured in a one-to-many model. The payments landscape has changed a lot in the last 20 years and your customers deserve modern payment processingInfinicept provides the method by which to monitor for these transactions within its exception reporting capabilities. It’s where the funds land after a completed transaction. PayFac vs ISO: When Does One Make Sense over The Other? Add comment. ISO are important for your business’s payment processing needs. To manage payments for its submerchants, a Payfac needs all of these functions. 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. 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. 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. The contract is typically between the sponsor and the merchant, but the ISO may sometimes be included in a three-party agreement. 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 PayFac is one of the types of a payment service provider (PSP). Maybe you want to learn about PayFac vs. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. In almost every case the Payments are sent to the Merchant directly from the PSP. The PayFac is the merchant of record for transactions. One classic example of a payment facilitator is Square. Cutting-edge payment technology: Extensive. 70. Estimated costs depend on average sale amount and type of card usage. To know that your payfac relationship is completely above-board, first know what a payment facilitator is and the issues related to money transmission. 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: traditional acquirers and independent software vendors. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. In banking and payments, ISO stands for Swipesum get all to need to see about Payfac. 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. Payment processors do exactly what the name says. 1) A PayFac always acts on sub-merchant’s (retailer’s) behalf, while an MOR might be the actual retailer. No more, no less, and are typically a standalone service. To help us insure we adhere to various privacy regulations, please select your. The road to becoming a payments facilitator, according to WePay founder Rich Aberman, is long, expensive and technologically complex. The terms aren’t quite directly comparable or opposable. ISO, so you can choose one of the two, or you’re looking for a PayFac solution for your business. In other words, ISOs function primarily as middlemen (offering payment processing), while PayFacs are payment facilitation. ; For now, it seems that PayFacs have. When you are listed, you help secure the promise of a trusted payment system by highlighting your investment in data security and the. The downside of this speed is the risk exposure in a breach; if a retail ISO is breached the acquirer steps in and shoulders most of the load. An ISV can choose to become a payment facilitator and take charge of the payment experience. Independent sales organizations (ISOs) and resellers of merchant services are examples of payment service providers in the industry. In other words, processors handle the technical side of the merchant services, including movement of funds. 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. 0. Now that you’ve learned about what a PayFac is, you might want more information. GETTRX Zero; Flat Rate; Interchange; Learn. One key difference between payment facilitators and aggregators is the size of businesses or merchants they work with. The most known examples are website-building companies which can provide integrated payment options, meaning ecommerce customers will see their experience improved as they will no longer need to actively look for third-party payment solutions. The ISO is tasked with facilitating the relationship between the two parties and getting merchants signed up with a merchant account. This includes underwriting, level 1 PCI compliance requirements,. PayFac-as-a-Service helps you hit the ground running and quickly onboard customers while adhering to compliance standards. PayFac vs ISO. An ISO works as the Agent of the PSP. For example, an. The submerchants and the PayFac enter into an agreement, and that agreement is not related to the PayFac’s agreement with the payment processing partner. All in all, the payment facilitator has the master merchant account (MID). However, the setup process might be complex and time consuming. 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. At Payline, we’re experts when it comes to payment processing solutions. 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. e. The PayFac uses an underwriting tool to check the features. PayFac-as-a-service delivers a competitive payment program with instant onboarding of merchants while creating a seamless customer experience. 40% in card volume globally. Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. If a marketplace or any other company (ISO, SaaS provider, ISV, franchisor, venture capital firm) decides that it is the right time for it to become a white-label or full-fledged PayFac, it can do so. e. 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 participate more fully in the payments revenue stream. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Besides that, a PayFac also. So, what. However, the setup process might be complex and time consuming. Each client is the merchant of record for transactions. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Whatever information you need, we can help. 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. In short, a PayFac or payment facilitator, is a master merchant that supports sub-merchants. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. 2. 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. The unique relationship PayFacs have with their merchants exposes them to more risk than your average ISO – even more than most wholesale ISOs – but, in return, PayFacs gain a lot of control over how they price and who they work with. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. During Jim's tenure with NPC and Vantiv, he also drove the development of and relationship with several key NPC ISOs, as well as oversight and management of specific. So, the main difference between both of these is how the merchant accounts are structured and organized. Episode 2 is live! Our guest on this episode is Menda Sims, Chief Payments Officer at Stax Payments. However, the setup process might be complex and time consuming. Now let’s dig a little more into the details. 1. The PayFac aggregates transactions and sends them to its processor, keeping operations streamlined. Besides that, a PayFac also takes an active part in the merchant lifecycle. When you want to accept payments online, you will need a merchant account from a Payfac. 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. . ISO vs. The types of new entities an ordinary ISO can turn into include a PayFac, a wholesale ISO, a next-generation ISO, or a merchant services consultant. A payment facilitator allows sub-merchants under one master merchant to process payments easily, with less hassle. PAYMENT FACILITATORStep 5) Apply for Registration with the Major Card Companies. That is why the model seems so attractive for different. However, the setup process might be complex and time consuming. This site uses cookies to improve your experience. 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. Some ISOs also take an active role in facilitating payments. To photographers, it describes the light sensitivity of a differential camera or a piece to picture. To learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. Each of these sub IDs is registered under the PayFac’s master merchant account. 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. To put it another way, PIN input serves as an extra layer of protection. El ISO se encarga de facilitar la relación entre las dos partes y de conseguir que los comerciantes contraten una cuenta de vendedor. Avoiding The ‘Knee Jerk’. Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. Payment Facilitators contract directly with the sub-merchant for processing services and perform key payment activities in-house. An ISV can choose to become a payment facilitator and take charge of the payment experience. PayFac vs ISO: Key Differences. 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. Payment Facilitator (PFAC, PayFac, PF): A merchant service provider who can facilitate transactions and simplify the merchant account enrollment process on behalf of the sub-merchant. It provides a technology, allowing to authorize transactions and, potentially, receive transaction settlement information. ISOs rely mainly on residuals, a percentage of each merchant transaction. Payment Processors and ISOs have a symbiotic relationship, with each party benefiting from the collaboration. 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. Some ISOs also take an active role in facilitating payments. Similar to PayPal or Square, merchants don’t get their own. 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. In the scenario of a SaaS company operating as a PayFac, you are the master merchant and your customers are the sub-merchants. Payment Facilitators vs. 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. com. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. 8–2% is typically reasonable. Payfac-as-a-service vs. The payment facilitator model was created by the card networks (i. Our comprehensive article delves into the merits and challenges of Payment Facilitators (PayFac) versus Independent Sales Organization (ISO) registration. It enters a contractual agreement with its customer, the PayFac, which is the master merchant. If the merchant fits the requirements, PayFac onboards is a sub-merchant under the master MID. In a similar manner, they offer merchants services to help make the selling process much more manageable. Here, the Payfacs are themselves the merchants of record. 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. ISO. PayFac vs ISO: When Does One Make Sense over The Other? Now’s Your Chance to Suggest 2020 Article Topics. Payfac-as-a-service vs. If necessary, it should also enhance its KYC logic a bit. Blog. Recently, the concepts of PayFac and aggregators have started converging. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. agent A specified good or service is a distinct good or service (or a distinct bundle of goods orBy setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. They provide the systems and technology that process transactions. Table of Contents [ hide] 1. However, the setup process might be complex and time consuming. This relatively new payfac business model is experiencing rapid growth. 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. 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. Top content on Payment Facilitation and SaaS Payments as selected by the SaaS Brief community. Generally, a PayFac is a good fit for businesses that process less than $1 million in payment volume annually, while an ISO is well-suited for larger businesses that process more than this. . Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. In fact, they broke the mold when they offered Toast a payfac at $0. At Payline, we’re experts when it comes to payment processing. facilitator is that the latter gives every merchant its own merchant ID within its system. A. Toward the middle person, ISO is the acronym used by the International Arrangement for Standards. Very rarely, said Mielke, do ISVs win with the “knee-jerk reaction of becoming a PayFac and capturing those additional revenues. Payment facilitator model is suitable and effective in cases when the sub-merchant in question is a medium- or large-size business. April 12, 2021. a PSP/PayFac. Here are the six differences between ISOs and PayFacs that you must know. Learn more: PayFac vs ISO: which one to choose for your business? Benefits of becoming a PayFac. The arrangement made life easier for merchants, acquirers, and PayFacs alike. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. The payment facilitator works directly with the. While there are many benefits of integrating to a Payfac, two of the most notable are frictionless onboarding and risk, liability and costs associated. In this model, the issuer (having the relationship with the cardholder) and the acquirer (having the relationship with the Merchant) is the same entity. The main difference between payment aggregator and a payment facilitators is that their sub-merchants all have different MIDs in a PayFac. This model gives your users the ability to seamlessly accept payments directly from your platform and allows you to own and monetize the payments experience. Until recently, SoftPOS systems didn’t enable PINs to be inputted. However, the setup process might be complex and time consuming. On. 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. With a. 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. Here, ISOs (Independent Sales Organizations if on the Visa network), or MSPs.