Merchants need to understand these differences, so they can decide which of these options may be better suited for their business. A PayFac, or payment facilitator, was originally defined by Visa® and Mastercard® to describe the entity that is officially doing business with the card brands. Although each of these methods offer their own distinct advantages, understanding how they differ and which option is right for your specific. For example, an. Even better? Funds are settled to the PayFac’s account and it’s determined by the PayFac to move those funds to the merchant. Payment Facilitator. PayFacs perform a wider range of tasks than ISOs. However, the setup process might be complex and time consuming. 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 a new series, Rich Aberman, co-founder of WePay, and Karen Webster set the record straight on what a PayFac is and isn’t, how a company can become one (and what it costs), the value equation. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. PSP and ISO are the two types of merchant accounts. Thus, it would arrange communication between both parties, the merchant and the acquiring bank. 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. The merchants can then register under this merchant account as the sub-merchants. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. 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. 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. Compare price, features, and reviews of the software side-by-side to make the best choice for your business. However, the setup process might be complex and time consuming. 1. PayFac Dynamic Payout Daily Operations Guide This document is intended for use by operations and financial professionals to assist with day-to-day monitoring and management of the Worldpay Dynamic Payout funding model. For example, an artisan. Maybe you are ready to become a full-fledged PayFac, maybe the answer is a managed PayFac, or maybe the best solution would be to act as an ISO. Independent sales organizations (ISOs) and payment facilitators (PayFacs) both act as intermediaries between merchants and payment processors, making them parallel channels in the overall payments ecosystem. ISV: An Independent Software Vendor (ISV) is a company that creates and sells software. Stripe By The Numbers. Assessing BNPL’s Benefits and Challenges. Almost every bank nowadays has a department dealing with merchant services. For example, an artisan. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. the scheme and interchange fees). As small business grows, MOR model might become too restraining, while payment facilitators provide robust APIs, which sometimes allow merchants to customize each function separately, according to their. Risk management. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent. (PayFac) Receives: $3. Under the PayFac model, each client is assigned a sub-merchant ID. In general, if you process less than one million. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. One of the key differences between PayFacs and ISO systems is the contractual agreement. By Ellen Cibula Updated on April 16, 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. A PayFac sets up and maintains its own relationship with all entities in the payment process. But how that looks can be very different. Processor relationships. For example, an. facilitator is that the latter gives every merchant its own merchant ID within its system. ISO serves as an intermediary between merchants and acquiring banks, taking responsibility for essential functions such as merchant onboarding, sales. A PSP, on the other hand, charges a variable fee in addition to the fixed fee. Payment facilitation (Payfac) is a service that allows businesses to accept payments from their customers in a variety of ways. Payment processors The PayFac model thrives on its integration capabilities, namely with larger systems. However, much of their functionality and procedures are very different due to their structure. This allows faster onboarding and greater control over your user. For example, an. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac as a Service providers differ from traditional Payfacs in that. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. This means providing. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. 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. Take the Savings Challenge today to see how much we can save you in interchange fees. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFac registration may seem like the preferred option because of the higher earning potential. Difference #1: Merchant Accounts. implementation of a payment facilitator model) calls for getting certified as one by the respective acquirer, and for. 4. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. They provide the systems and technology that process transactions. Registering as a payment facilitator (PayFac) or independent sales organization (ISO) have become popular options for SaaS companies looking for a comprehensive payment strategy. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. 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. Payments is an expert in embedded payment solutions, enabling SaaS businesses to monetize payments through its turnkey PayFac-as-a-Service solution. Extensive. You see. PayFac vs ISO: Key Differences Even though PayFacs and ISOs may seem to be quite similar on the surface, there are a few key differences between them. Payfac = a software product, platform, or marketplace that has in integrated payments into its product, and is responsible for the risk of transactions processed by its customers. 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. agent A specified good or service is a distinct good or service (or a distinct bundle of goods orPayment facilitator model allowed all categories of entities to benefit: merchants received fast and smooth underwriting, acquirers could save resources and service larger numbers of merchants. ISOs, unlike Payfacs, rely on a sponsor bank to. Checkout’s “gross profit” is the P&L line most comparable with Adyen’s “net revenue” line. It works by using one umbrella merchant account that allows every merchant to open as a sub-account underneath it. However, the setup process might be complex and time consuming. This model is ideal for software providers looking to. becoming a payfac. 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 will function as a payment facilitator in this general sense (though it's important to note the differences outlined above), and you can use a payment gateway to translate data between the PayFac and the credit card providers. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. At first it may seem that merchant on record and payment facilitator concepts are almost the same. However, the setup process might be complex and time consuming. A three-party scheme consists of three main parties. GETTRX absorbs the stress of fraud monitoring and compliance reporting while you focus on your business. A merchant of record is an entity that accepts cardholders’ payments and assumes liability for processing of these payments on the merchant’s behalf. Watch. April 12, 2021. For example, an. 1. What is an ISO vs PayFac? Independent sales organizations (ISOs). For example, an artisan. And this is, probably, the main difference between an ISV and a PayFac. A prospective PayFac has to meet more rigorous requirements and incur large upfront costs. PayFacs perform a wider range of tasks than ISOs. 3. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. An ISO or acquirer processes payments on behalf of its clients that are call merchants. A PayFac provides credit card processing services to merchants on behalf of a bank or other. What’s the difference in an ISO and a PayFac? While an ISO merely connects a merchant to a bank, a PayFac owns the full client experience. Below we break down the key benefits of the PayFac model for software. PayFacs provide a similar. Acquiring banks willingly delegated them to payment facilitators in exchange for part of liabilities and residual revenues. Payfac is a type of payment facilitator, while ISO stands for Independent Sales Organization. However, the setup process might be complex and time consuming. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an. Enabling businesses to outsource their payment processing, rather than constructing and maintaining their own. PayFac offers clients a choice if they wish to pay by cheque or bank transfer. 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. Can an ISO survive without. Lower. The Traditional Merchant Onboarding Process vs. You own the payment experience and are responsible for building out your sub-merchant’s experience. Payfac-as-a-service vs. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Sub-merchants sign an agreement with the PayFac for payment. In addition to serving as Payroc ’ s SVP Payfac Trusty,. PayFac vs. if ms form category == cat01 then save to My Docs/stuff/cat01. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 3. 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. PayFac Solution Types. Onboarding workflow. However, the setup process might be complex and time consuming. 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’s the Difference Between a Payment Facilitator, a Payment Processor, and an Independent Sales Organization (ISO) At a glance, a facilitator, a processor, and an ISO may seem to be similar, but the differences are notable. 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. Payment Facilitators vs. The speed at which a merchant can start processing payments with a PayFac is vastly different than the rate at which this could be done in the legacy ISO model. In other words, ISOs function primarily as middlemen (offering payment processing), while PayFacs are payment facilitation. To help your referral partners be as successful as possible, you need a smooth onboarding process. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. For example, 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. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Under the PayFac model, each client is assigned a sub-merchant ID. On the one hand, these services unlock purchasing power, helping customers manage their finances. To ensure maximum relevancy, the logical structural models, assets, threats and security objectives in this document are based. Touch device users, explore by. However, the setup process might be complex and time consuming. 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. Also, unlike an ISO, the PayFac provides the processing services, settlement of funds, and billing to the merchant. You own the payment experience and are responsible for building out your sub-merchant’s experience. The facilitator company collects and manages the money. It could be a product that is yet to reach the buyer,. To put it another way, PIN input serves as an extra layer of protection. In particular the different approval criteria needed for the different. Also Read: Evaluating the Differences Between an ISO and a PayFac . Uber corporate is the merchant of record. 2 Payfac counts exclude unidentifiable or defunct companies. Cons. The differences of PayFac vs. Payscape is also a registered ISO/MSP for Fifth. However, the setup process might be complex and time consuming. In fact, when a merchant is seen as potentially liable for fraudulent activity, an ISO and/or processor are sometimes named as codefendants, along with people at the ISO or processor who. While we’ll discuss costs below, PayFacs can onboard merchants much more quickly than a traditional ISO model. IRIS CRM Blog ISO vs. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. I SO. 3. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. ISOs function primarily as sales agents or. Thought Leadership, Whitepapers Build Vs. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFac vs. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. A Payment Facilitator or Payfac is a service provider for merchants. A PayFac will function as a payment facilitator in this general sense (though it's important to note the differences outlined above), and you can use a payment gateway to translate data between the PayFac and the credit card providers. 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. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. This includes underwriting, level 1 PCI compliance requirements,. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Acquirer = a payments company that. July 12, 2023. Since it is a franchise setup, there is only one. For example, an. Most businesses that process less than one million euros annually will opt for a PSP. We would like to show you a description here but the site won’t allow us. Traditional – where banks and credit card. 2. They build the integration and then lean on the processing partner to. Learn more: PayFac vs ISO: which one to choose for your business? Benefits of becoming a PayFac. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. North America is a Mature ISV Market, Europe is Not. In general, if you process less than one million. PayFac vs ISO: Contractual Process. While some software providers starting out as an ISO or referral partner may elect a managed payfac solution as the next logical tech enablement progression, other providers may not want to relinquish visibility and control to a third. 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. The business has gone through the traditional setup of a merchant account in its name and is registered as a Merchant. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. However, the setup process might be complex and time consuming. The value of all merchandise sold on a marketplace or platform. However, the setup process might be complex and time consuming. All ISOs are not the same, however. A PayFac is a processing service provider for ecommerce merchants. Payfac and payfac-as-a-service are related but distinct concepts. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. 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. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Para ampliarlo, es una empresa que permite a sus clientes aceptar pagos electrónicos utilizando la plataforma del facilitador de pagos. With a. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. Payfac-as-a-service vs. Payment Facilitators vs. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. PayFac vs. April 12, 2021. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Payment facilitator model is suitable and effective in cases when the sub-merchant in question is a medium- or large-size business. One classic example of a payment facilitator is Square. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. The PayFac model thrives on its integration capabilities, namely with larger systems. When it comes to choosing between a PayFac and an ISO, the best option depends on your business's specific needs and preferences. Typically ISOs provide you with your own MID or merchant account, whereas Payfacs set you up with a sub-merchant account under their master account. Payment Processors are responsible for authorization, authentication, data security, settlement, clearing, and reporting services, while ISOs focus on sales, marketing, merchant support, customer service, and value-added services. However, the setup process might be complex and time consuming. First, it means tiny commissions can add up extremely quickly. This is because the per-transaction payment processing rates are typically better for merchant accounts—as opposed to sub-merchant accounts. 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. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. To become a Mastercard merchant, simply contact an acquirer for a merchant account application. Confusion often arises when distinguishing ISO vs. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Without ISOs, a relatively small handful of global and regional payment processors would each be forced to interact with thousands. The key aspects, delegated (fully or partially) to a. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. For example, an. For example, an. Higher fees: a payment gateway only charges a fixed fee per transaction. PayFac vs Payment Processors. Until recently, SoftPOS systems didn’t enable PINs to be inputted. For example, an. According to SMB estimates. Both offer ways for businesses to bring payments in-house, but the similarities end there. You may have also heard the name “Member Service Provider (MSP)”, which is the term Mastercard uses to call ISO. The ISO is an intermediary signing up the merchants for the acquirer’s payment processing services. ISOs. In contrast, a PayFac is responsible for the submerchants. 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 Quick Overview of What Provisional Credit Entails. PayFacs are often more suitable for SMEs seeking a quick and straightforward setup. However, the setup process might be complex and time consuming. A payment processor serves as the technical arm of a merchant acquirer. For example, an artisan. 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. The Payment Facilitator Registration Process. 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. So how much. Payment Facilitator Paradigm and Beyond: VAR, ISV, Next-generation ISO; Gateway Selection for SaaS and PayFac Payment Platforms; Best Crypto Payment Gateway Solutions for Platforms; How PayFac Model Increases Your Company’s Valuation; Payment Advice. 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. However, the setup process might be complex and time consuming. The way Terminal creates API objects depends on whether you use direct charges or destination charges. Pinterest. However, the setup process might be complex and time consuming. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. This article is part of Bain's report on Buy Now, Pay Later in the UK. PayFac vs. . For example, an artisan. The underlying role that these fill for a business is to provide merchant services, and you can read our reviews of various merchant service providers here. Traditionally, a business that wanted to accept card payments would need to set up a merchant account with a bank, which can be a complex and time. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Independent sales organizations (ISOs) and resellers of merchant services are examples of payment service providers in the industry. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. Owners of many software platforms face the need to embed. In this the ninth episode of PayFAQ: The Embedded Payments Podcast brought to you by Payrix, Host Bob Butler interviews Jorge Lozano, VP of Underwriting and Lloyd Fernandez, VP of Product at Payrix, about all of the decisions a software company must make when embedding or integrating payments. becoming a payfac. A Payment Facilitator, or PayFac, is a company that provides payment processing services to merchants looking to accept credit and debit cards. Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. Some ISOs also take an active role in facilitating payments. Some ISOs also take an active role in facilitating payments. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Cutting-edge payment technology: Extensive. ISO. As he noted, among the firms that most commonly move down the PayFac path – ISOs, ISVs and platform businesses – the benefits stand out quite brightly: easier. So, revenues of PayFac payment platforms remain high. PINs may now be entered directly on the glass screen of a smartphone using this new technology. Below we break down the key benefits of the PayFac model for software. One of the main benefits to adopting the Payfac ® model is the increase in revenue you get from each transaction processed using your software. 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. Onboarding workflow. FIS’ rival, Fiserv, acquired the remaining stake of Finxact for $650 million, while another company, Fintech Amount, bought Linear for $175 million. Generally speaking, a PayFac might be suitable for. July 12, 2023. For example, an. You own the payment experience and are responsible for building out your sub-merchant’s experience. ISO are important for your business’s payment processing needs. Clover vs Square. A best-in-class payment solution. Checkout. 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. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. However, PayFac concept is more flexible. The ISO acts as an intermediary between the merchant and the payment processor, taking care of merchant recruitment, sales, and ongoing merchant support, while the processor handles transactions behind the scenes. Each ID is directly registered under the master merchant account of the payment facilitator. There’s not much disclosure on the ‘cost of sales’ (i. However, the setup process might be complex and time consuming. Mastercard PayFac Models: The Ins and Outs of the “Big Two” Payment Facilitator Programs. g. Contracts ISOs and PayFacs sign different contracts with their clients. Both PayFacs and ISO’s (independent sales organizations) act as intermediaries between merchants and payment processors . Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. They are typically small businesses that work with a limited number of banks. You own the payment experience and are responsible for building out your sub-merchant’s experience. The North American market for integrated. ISO vs. The payment facilitator model was created by the card networks (i. 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. Sometimes a distinction is made between what are known as retail ISOs and. With Fortis’ PayFac solution, software developers and merchants can leverage award-winning APIs and leading payment technology to scale their business. When it comes to choosing between a PayFac and an ISO, the best option depends on your business's specific needs and preferences. 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. The first is the traditional PayFac solution. Principal vs. For their part, FIS reported net earnings of $4. PayFacs for short, are esoteric merchant acquiring entities that are really picking up momentum. For example, an artisan. For example, an. For example, an. For example, an artisan. 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. The size and growth trajectory of your business play an important role. 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. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. PayFac is more flexible in terms of providing a choice to. For example, an. 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. ISO vs. Becoming a full payfac typically requires an agreement with a sponsoring merchant acquirer such as Worldpay, registering as a payfac with the card networks, becoming compliant with the Payment Card Industry Data Security Standard (PCI DSS. However, the setup process might be complex and time consuming. While there is some overlap between a payment processor and a PayFac, there are also some important differences you should be aware of (although. ”. PayFac vs ISO: Key Differences Even though PayFacs and ISOs may seem to be quite similar on the surface, there are a few key differences between them. When PayFac became a buzzword among software platforms and the many businesses trying to sell to them, the meaning of the word started to blur. For example, an. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. 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. The payment facilitator model was created by the card networks (i. One is an ISO or independent sales organization, and another is a PayFac or payment facilitator. In a similar manner, they offer merchants services to help make the selling process much more manageable. Payment Facilitators offer merchants a wide range of sophisticated online platforms. The differences of PayFac vs. Visa vs. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. “One of the largest challenges a new PayFac will face is meeting the rigorous demands of its sponsorship bank,” says CJ Schneller, Vice President of Enterprise Risk at MerchantE. BOULDER, Colo. After the approval is true, I want to save the attachment to a specific folder in my OneDrive. They offer merchants a variety of services, including.