But of course, there is also cost involved. PayFacs are often more suitable for SMEs seeking a quick and straightforward setup. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 5. 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. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFacs perform a wider range of tasks than ISOs. Independent sales organizations (ISOs) are a more traditional payment processor. Payfac. 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. It becomes more lucrative for a PayFac to offer merchant, gateway, and other services in one package and to support a single acquirer/processor. Now let’s dig a little more into the details. For example, an. July 12, 2023. If the intermediary entity, which funds the sub-merchants, uses different MID for each merchant, it is called a payment facilitator. A merchant of record is an entity that accepts cardholders’ payments and assumes liability for processing of these payments on the merchant’s behalf. An ISO works as the Agent of the PSP. It could be a product that is yet to reach the buyer,. While all of these options allow you to integrate payment processing and grow your. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. For example, an. When the form is submitted I am using a flow to generate an approval, this works as expected. Visa, Mastercard) around 2011 as a way for aggregators to provide more transparency into who their sub-merchants were. 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. 4. However, the setup process might be complex and time consuming. There isn’t much of a debate in terms of functionality in the larger payment processor vs. So naturally, any company considering the option needs to make sure the investment they’ll make in the Payfac model makes sense financially. Payfac’s immediate information and approval makes a difference to a merchant. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Merchants need to understand these differences, so they can decide which of these options may be better suited for their business. Step 3: The Network (Mastercard) conducts due diligence on Transaction Originator, originates the transaction, routes to PIN Debit networks and provides transaction controls. What is an ISO vs PayFac? Independent sales organizations (ISOs). Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. When it comes to choosing between a PayFac and an ISO, the best option depends on your business's specific needs and preferences. What Is An ISO? ISOs are independent sales. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. Both PayFacs and ISO’s (independent sales organizations) act as intermediaries between merchants and payment processors . However, the setup process might be complex and time consuming. This can include card payments, direct debit payments, and online payments. Some ISOs also take an active role in facilitating payments. MSP = Member Service Provider. However, the setup process might be complex and time consuming. When choosing between a Payment Facilitator (Payfac) and a Merchant of Record (MoR) for your business, several key factors should be carefully considered: 1. Read More. We would like to show you a description here but the site won’t allow us. For example, an artisan. 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. PayFac vs ISO. The PayFac is the merchant of record for transactions. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. Use this document after completing your integration and certification testing and have started processing live transactions. Our payment-specific solutions allow businesses of all sizes to. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. BOULDER, Colo. GETTRX absorbs the stress of fraud monitoring and compliance reporting while you focus on your business. For example, an. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Before offering customers payment methods from popular card networks (Visa, Mastercard, etc. However, the setup process might be complex and time consuming. For example, an. ISVs create software for companies in the payments industry. sales and maintain loyalty. 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. 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. For example, an. This is because the per-transaction payment processing rates are typically better for merchant accounts—as opposed to sub-merchant accounts. So, revenues of PayFac payment platforms remain high. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. Besides that, a PayFac also. Traditional Merchant Account vs. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. 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. However, the setup process might be complex and time consuming. For example, an. Can an ISO survive without becoming a PayFac? Becoming a PayFac (i. PayFac registration may seem like the preferred option because of the higher earning potential. ISO. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Our digital solution allows merchants to process payments securely. Under the PayFac model, each client is assigned a sub-merchant ID. (ii)during any period of two consecutive years, individuals who at the beginning of such period constitute the board of directors of the Company (the “Board”) and any new directors whose election by the Board or nomination for election by the Company’s stockholders was approved by at least two-thirds of the directors then still in office who either were. Payfac and ISO models involve much more regulatory and compliance overhead than payfac-alternative models. 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. 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. One classic example of a payment facilitator is Square. Jeff Miller Payments! Growth Leader, Coles Data Xdates Insurance 300,000+ high-quality leads annually,R&D Tax Credit Money BackPassionate about Marketing!Step #6: Track the Results of Your Program & Provide Value. Learn more: PayFac vs ISO: which one to choose for your business? Benefits of becoming a PayFac. The road to becoming a payments facilitator, according to WePay founder Rich Aberman, is long, expensive and technologically complex. Also, unlike an ISO, the PayFac provides the processing services, settlement of funds, and billing to the merchant. Difference #1: Merchant Accounts. In exchange for the user fees, PayFac underwrites these new merchants and assumes the risk of any payments made through its platform. the PayFac Model. The bank receives data and money from the card networks and passes them on to PayFac. The key aspects, delegated (fully or partially) to a. PayFac = Payment Facilitator. 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. You own the payment experience and are responsible for building out your sub-merchant’s experience. 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, or payment facilitator, is essentially a third-party payment system that allows businesses and organizations to receive and process online and in-store payments. 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. Processor relationships. 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. Payment Facilitator. (PayFac) Receives: $3. ,), a PayFac must create an account with a sponsor bank. “Plus, you have a consumer base that is extremely savvy when it. e. PayFac vs ISO: Contractual Process. 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 learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. 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. 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. ”. ISO vs. 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. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. However, in terms of payment processing, the end result is largely the same for your organization. Acquirer = a payments company that. For example, an. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. the scheme and interchange fees). The first is the traditional PayFac solution. 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 Worldpay PayFac® experience goes the distance from boarding sub-merchants to collecting payments, reducing risk, and more. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Moreover, in a sense, PayFac model relieved acquirers from merchant management functions, which they delegated to PayFacs. Payment Facilitators vs. For example, an. When you want to accept payments online, you will need a merchant account from a Payfac. However, the setup process might be complex and time consuming. , it will enable disbursements and P2P payments to and from nearly any U. La respuesta corta; es un proveedor de servicios de pago para comerciantes. Square, Stripe, PayPal, AirBnB and Uber are well-known examples of PayFacs. Checkout. For example, an. When you swipe a credit card, transfer money, or make an online purchase, there’s an inherent belief that the system will handle these transactions efficiently and accurately. Strategies. 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. Research firm Statista estimates payfac transaction volume totaled $88 billion last year,. 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. 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. The contract is typically between the sponsor and the merchant, but the ISO may sometimes be included in a three-party agreement. They build the integration and then lean on the processing partner to. Priding themselves on being the easiest payfac on the internet, famously starting. See moreWhile ISOs and payfacs both facilitate electronic payments for businesses, they cater to different needs. For example, an. One of the key differences between payment aggregators and payment facilitators is the size of sub-merchants they are servicing. Owners of many software platforms face the need to embed. 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. You own the payment experience and are responsible for building out your sub-merchant’s experience. For example, an. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. Segregated accounts are legally segregated from the firm's assets, meaning the company cannot use the funds stored to conduct business operations. 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. implementation of a payment facilitator model) calls for getting certified as one by the respective acquirer, and for. becoming a payfac. Recently, the concepts of PayFac and aggregators have started converging. The size and growth trajectory of your business play an important role. However, the setup process might be complex and time consuming. Stripe By The Numbers. Watch. Both offer ways for businesses to bring payments in-house, but the similarities end there. 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. 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. 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. Becoming a PayFac allows the business to deliver more customized, branded, and better-integrated payments experiences entirely within their own app. Today’s PayFac model is much more understood, and so are its benefits. Explore. 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 processors The PayFac model thrives on its integration capabilities, namely with larger systems. The contract is typically between the sponsor and the merchant, but the ISO may sometimes be included in a three-party agreement. Fortis manages everything for you – underwriting, fraud monitoring, funding, gateway reporting, and chargeback management. Payment facilitation helps you monetize. A. Payment aggregator vs. To learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. 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. For example, an. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. We wrote an earlier piece that discussed the history of PayFacs if you want to get caught up, so for the purposes of this […]5. However, the setup process might be complex and time consuming. Compare price, features, and reviews of the software side-by-side to make the best choice for your business. Payfac’s immediate information and approval makes a difference to a merchant. Visa vs. What is a PayFac? Benefits & Reasons Why Businesses Need One in 2023. ISO serves as an intermediary between merchants and acquiring banks, taking responsibility for essential functions such as merchant onboarding, sales. However, the setup process might be complex and time consuming. Our digital solution allows merchants. 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. Payment facilitators, aka PayFacs, are essentially mini payment processors. . However, the setup process might be complex and time consuming. The merchant provides a few basic details to their PayFac provider. A registered Payment Facilitator, also known as a “PayFac” or “merchant aggregator” is a third-party business or platform that contracts with an acquirer to provide payment services to their customers, referred to as “sub-merchants. 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. Stripe is an ISO with First Data Merchant Services (FDMS, I believe now owned or controlled by Wells Fargo) doing the actual processing and, as such, assumes a different legal role than PayPal (which is a VAR for Paymentech). payment processing. 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 Kiflo PRM vendor dashboard keeps partnership teams up-to-date on all partner activity. The North American market for integrated. However, the setup process might be complex and time consuming. 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. 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. Payments is an expert in embedded payment solutions, enabling SaaS businesses to monetize payments through its turnkey PayFac-as-a-Service solution. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an. responsible for moving the client’s money. Independent sales organizations (ISOs) and resellers of merchant services are examples of payment service providers in the industry. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. In contrast, a PayFac is responsible for the submerchants. They are typically small businesses that work with a limited number of banks. , Concord, California (“Wells”). 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. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. In other words, ISOs function primarily as middlemen (offering payment processing), while PayFacs are payment facilitation. A. Payment Processors: 6 Key Differences. The differences of PayFac vs. Payfac and payfac-as-a-service are related but distinct concepts. 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. One of the key differences between PayFacs and ISO systems is the contractual agreement. When you want to accept payments online, you will need a merchant account from a Payfac. ISO = Independent Sales Organization. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. Payment Facilitators vs. 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. Each ID is directly registered under the master merchant account of the payment facilitator. 4. For example, an. Companies large and small rely on their accounting/finance, billing, cash. PayFac vs. S. 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. Before offering customers payment methods from popular card networks (Visa, Mastercard, etc. To help your referral partners be as successful as possible, you need a smooth onboarding process. 1. However, the setup process might be complex and time consuming. This means providing. Payment facilitation helps. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. 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. However, the setup process might be complex and time consuming. 70. Wider range of featuresA payment facilitator or payfac is a service provider that affords small and medium-sized merchants the means to process debit or credit card payments more quickly, efficiently, and securely, allowing them more room to focus on their core business objectives. ISV: An Independent Software Vendor (ISV) is a. 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. 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. As a PayFac, Segpay handles the sub-merchant onboarding and provides a fully managed payment processing solution. ISO question. 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. For example, an. PayFac vs ISO: Contractual Process. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Take the Savings Challenge today to see how much we can save you in interchange fees. It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank. 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. 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. 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. While there is some overlap between a payment processor and a PayFac, there are also some important differences you should be aware of (although. However, the setup process might be complex and time consuming. 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. 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. Typically, it’s necessary to carry all. PayFac vs ISO. For example, an. In 2021, global payment facilitators processed over $500 billion in transactions – a 75% increase over the previous year and. Overall, ISOs work as intermediary “resellers” of payment processors or acquiring banks to merchants, while PayFacs have a single account and absorb greater. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. ISOs sold merchant accounts to applicants on behalf of different acquiring banks and were integrated with multiple payment gateways, that were connected to specific acquirers and processors. To put it another way, PIN input serves as an extra layer of protection. 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. The facilitator company collects and manages the money. 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. Traditional – where banks and credit card. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. Below we break down the key benefits of the PayFac model for software. For example, an. Payment Processors and ISOs have a symbiotic relationship, with each party benefiting from the collaboration. ISVs create software for companies in the payments industry. The way Terminal creates API objects depends on whether you use direct charges or destination charges. Thus, it would arrange communication between both parties, the merchant and the acquiring bank. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an artisan. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The new PIN on Glass technology, on the other hand, is becoming more widely available. Lower. Step 1: Sender initiates P2P transaction to Transaction Originator. ISOs offer greater control and potential cost savings for larger businesses with high transaction volumes, while payfacs provide a simpler, all-in-one solution for smaller businesses or those with fewer needs. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. When you start accepting payments online, you need a merchant account from a payment facilitator with sufficient infrastructure and proper compliance to process payments . 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. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an. 1. 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. 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. However, their functions are different. The payment facilitator model was created by the card networks (i. At ETA PayFac Day, we hosted a session that highlighted the pros and cons of becoming a PayFac and shed light on complimentary partnership models that offer similar degrees of control and increased profits. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Checkout’s UK & Europe net revenues in FY2019 were $55M and grew 52% yoy. Payfac as a Service is the newest entrant on the Payfac scene. For example, an. For SaaS providers, this gives them an appealing way to attract more customers. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payment processors do exactly what the name says. However, the setup process might be complex and time consuming. At the same time, more companies are implementing PayFac model and establishing PayFac payment gateway partnerships. 3. If you want to take a full revenue model opposed to a commission based model anyway. In general, if you process less than one million. However, the setup process might be complex and time consuming. On the one hand, these services unlock purchasing power, helping customers manage their finances. For example, an. As a result, the revenues, collected by a PayFac, are much larger than the revenues of a traditional ISO. In an ever-changing economic world, we are helping businesses be successful today and well into the future. Sub-merchants sign an agreement with the PayFac for payment. However, the setup process might be complex and time consuming. Learn more: PayFac vs ISO: which one to choose for your business? Benefits of becoming a PayFac. ISO are important for your business’s payment processing needs. 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. A PayFac (payment facilitator) has a single account with. 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. When setting up your referral partner program, remember to set tangible marketing and sales goals and do so in a way that makes sense for your partner. 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. These systems will be for risk, onboarding, processing, and more. However, the setup process might be complex and time consuming. A PayFac provides credit card processing services to merchants on behalf of a bank or other. The ISVs that look at the long. For example, an artisan. PayFac vs ISO: Contractual Process. When you enter this partnership, you’ll be building out. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an. At the same time, Paragon Payment Solutions assumes the majority of risk and responsibilities related to operational expenses, chargebacks,. 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. North America is a Mature ISV Market, Europe is Not. ) The PayFac takes on merchants as its own contracted “sub-merchants,” which process their transactions through the master merchant account. Estos tipos de cuentas agregan fondos de muchos comerciantes en una. July 12, 2023. 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. Payment Facilitators (commonly known as PayFacs or PFs) have risen in popularity over the recent years. Find a payment facilitator registered with Mastercard. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized.