Unlike the other aggregator categories, a payment facilitator is more like a traditional payment processor in that its activities are not cardholder-facing. Aggregation is a payment facilitator that differs from the traditional model. It also helps onboard new customers easily and monetizes payments as an additional revenue stream. A series of questions and answers describing the main aspects of payment aggregation. Aggregator Mahipal Nehra The payment lifecycle has numerous gears, and several words to characterize them. UAE introduces licensing regime for payment service providers. What’s the difference between a payment facilitator (payfac) and a payment aggregator? Here’s what businesses should know. Some financial institutions can adopt the role of both merchant acquirer and processor. Also known as a payment service provider, a payment aggregator enables you to accept a variety of different payment options such as credit card, debit card, e-wallet and bank transfer, without creating extra work for you. PayFacs are essentially mini-payment. While there are many benefits to this model, payment facilitators and their sponsoring banks and processors should be aware of the potential money transmission risks. However, as fintech technology develops in the modern age, there has been more of. Payment Services Act. Rapyd offers fast onboarding, the ability to enable card-present. The Reserve Bank of India (RBI) issued the “Guidelines on Regulation of Payment Aggregators and Payment Gateways” in March 2020 and introduced various measures for payment aggregators operating in India, including requirements for licensing, governance, Know Your Customer (KYC) and onboarding, the settlement and maintenance of escrow. Di era digital seperti saat ini, banyak sekali perusahaan-perusahaan yang memiliki embel-embel 4. They offer payments to their merchant customers, known as submerchants, through their own links with payment processors. The CBE did issue several circulars and regulations addressing electronic payment services, including regulations on technical payment aggregators and payment facilitators ("PayFacs"), payment. 1. You own the payment experience and are responsible for building out your sub-merchant’s experience. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. 7. marketplaces, payment facilitators, bill payment aggregators, digital wallets and other third party agents like independent sales organizations (ISOs) and merchant servicers. The Basis for Regulating Acceptance Intermediaries 13 2. You own the payment experience and are responsible for building out your sub-merchant’s experience. The payment facilitator incorporates all necessary transaction and merchant identification data and sends this to the acquirer. You own the payment experience and are responsible for building out your sub-merchant’s experience. A Payment Facilitator, or PayFac, is a sub-merchant account used by merchant service providers to provide payment processing services to their own clients, known as sub-merchants. 7 trillion by 2026, and an entire industry has appeared to provide online payment processing services. Importantly, it will also reduce both the cost and the risk associated with acquiring, since the. So, becoming a MOR might be a step on the way to becoming a white-label or full-fledged payment facilitator. For example, Segpay authorization payments incur a $0. Sebagai contoh,. Optimize your finances and increase automation with our banking infrastructure. By aggregating multiple merchants under one master account, PayFacs allow these businesses to accept payments without. Instead, the aggregator manages one merchant account and combines all its clients under this umbrella account. For. On one hand, a payment aggregator allows merchants to start accepting payments online through their websites or mobile applications without having to create an in-house payment integration system. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. Agency lies at the heart of this model. It helps in facilitating swift and convenient online payments. To lead towards a more standardised and regulated payments ecosystem, the Reserve Bank of India (RBI) issued Guidelines on Regulation of Payment Aggregators and Payment Gateways, on March 17, 2020 (" Guidelines ”) . There are many different types of payment service providers, including payment facilitators (payfacs) and payment aggregators. The announcement of the marketplace designation comes at a time when “payment facilitation” has become a driving force in merchant acquiring. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. Limits - These will have limitations of monthly receivable payments, and could get. One classic example of a payment facilitator is Square. For. In a payment aggregator, all merchants use. Within the payment facilitator model, acquiring banks house the merchant account. A payment aggregator specializes in small businesses. PAs facilitate merchants to connect with acquirers. Functions of Payment Aggregators: PayPal, Stripe, Square, and Amazon Pay are examples of payment aggregators. Digital payments platform PhonePe has achieved an annualised total payment value run rate of $1 trillion, or ₹84 lakh crore, mainly on account of its lead in UPI transactions, the company said. You can provide your customers with 120+ payment method options via PayKun payment gateway checkout. What’s the difference between a payment facilitator (payfac) and a payment aggregator? Here’s what businesses should know. 3. The key difference lies in how the merchant accounts are structured. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. There are many different types of payment service providers, including payment facilitators (payfacs) and payment aggregators. 10. A Payment Facilitator, PayFac for short, is simply a sub-merchant account for a merchant service provider. There are many different types of payment service providers, including payment facilitators (payfacs) and payment aggregators. A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. This bank is liable for transactions processed through its payment facilitator customers, so it vets potential payment facilitators and dictates many of the rules that they must follow. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. A payment gateway is a payment software that allows the safe and secure transfer of. The Payment Facilitator decides who gets processing capabilities. How does payment transaction processing work? Here are the key players and components involved, and what businesses need to know. Payment facilitator model is more flexible and lucrative than MOR model, although it involves larger costs and more responsibilities. The handling of card data requires PAs to be empanelled as payment facilitators 12 with card networks. For. See all payments articles . It’s quicker to get started with a payment aggregator than it is with a payment processor because there is much less paperwork and often you can be. Billdesk. Payment Aggregator Cons. payment aggregator: How they’re different and how to choose onePayment facilitators are able to offer processing services to a broader range of small merchants, many of whom may not have otherwise been able to obtain a direct merchant account. Supported currencies. As merchant’s processing. One of the key differences between payment aggregators and payment facilitators is the size of sub-merchants they are servicing. Maintains policies and procedures with card networks (Visa, Mastercard, etc. Aggregation is a payment facilitator that differs from the traditional model. An issuing bank is the bank that issued the credit or debit card to the customer. 7 trillion by 2026, and an entire industry has appeared to provide online payment processing services. Generate your own physical or virtual payment cards to send funds instantly and manage spending. To. 2. Under the PayFac model, each client is assigned a sub-merchant ID. 5 benefits of using a bill and utility payment aggregators. The Regulations distinguish between technical payment aggregator services providers and payment facilitators. A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. The company claims to have digitised over 35 million offline merchants spread across tier 2, 3, 4 cities and beyond, covering 99 per. They maintain a master merchant account and let. A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. There are many different types of payment service providers, including payment facilitators (payfacs) and payment aggregators. A Payment Aggregator or Facilitator [Payfac] can be thought of as being a Master Merchant-facilitating credit, debit card and ACH transactions for sub-clients within their payment ecosystem. A Payment Facilitator (PayFac) is an intermediary organization that revolutionized the landscape of electronic payment processing by serving as a gateway for smaller merchants to accept credit card payments. , are thus already imposed. Payment aggregator vs. Infibeam Avenues Ltd’s flagship brand -- CCAvenue, has become India’s FIRST payment gateway player to process Central Bank Digital Currency (CBDC) or Digital Rupee transactions for online retail merchants, among payment gateway players. Instead, the aggregator manages one merchant account and combines all its clients under this umbrella account. ), offline payments, cash, and cheque. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. PAYMENT FACILITATORThe aggregators moved beyond the medical field into utilities, and then into other verticals. Choosing a payment processing provider has become more challenging in recent years, due to the sheer number of providers in this space. Rapyd charges 3. Aggregators as payment facilitators. They underwrite and onboard the submerchants and then provide them. The CBUAE published the Retail Payment Services and Card Schemes (RPSCS) Regulation. While both payment aggregators and facilitators help businesses accept payments, they operate differently and have distinct advantages and disadvantages…MORs, in contrast to PayFacs, do not perform merchant underwriting functions. How does payment transaction processing work? Here are the key players and components involved, and what businesses need to know. But there’s another banking entity that plays a crucial role in card transactions: the issuing bank. Thanks to their efforts, our payment success rates have increased while costs have been reduced by half. 194 of 2020 as well as its decrees, regulations and circulars, and namely (i) The Technical Payment Aggregators and Payment Facilitators Regulations issued on May 2019, (ii) The Due Diligence Procedures for Customers of Prepaid Cards. (Ex for transaction fees in the US: Cards and in digital wallets: 2. In this increasingly crowded market, businesses must take a. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. In this increasingly crowded market, businesses must. Payment aggregator vs payment facilitator. When you’re on the acceptance end of payments transactions as a merchant or a payment facilitator, you’re likely most familiar with the role of acquiring banks. Additionally, the Regulations distinguish between technical payment aggregator services providers and payment facilitators. Under the card brand rules, a payment facilitator is a merchant service provider that is permitted to process for a group of identified sub-merchants through its own merchant account. Also known as a “payfac” or “payment aggregator” is a merchant service provider that offers a merchant account under its own Mastercard, Visa and Discover credentials. What’s the difference between a payment facilitator (payfac) and a payment aggregator? Here’s what businesses should know. There are correct times to use a payment aggregator in comparison to individual merchant accounts, payment facilitators, and using other financial services providers. Fill out the contact form and someone from the team will be in touch. Let's break down what payment aggregator and payment facilitator have in common and where they vary. Example: Bill Desk, PayUMoney, etc. Variations on this model are in use by entities like Paypal, Square Stripe, Uber and Etsy; some, however, are moving towards licensure. Mastercard defines a payment facilitator as a service provider that is registered by an acquirer to facilitate transactions on behalf of submerchants. However, they differ from payment facilitators (PFs) in important ways. Paycaps. There are many different types of payment service providers, including payment facilitators (payfacs) and payment aggregators. Consolidate your reporting in one place and keep transactions in order. Do you know the differences between a payment aggregator and a payment facilitator? Understanding these terms can have a big impact on your payment processing… | 12 comments on LinkedInHow does payment transaction processing work? Here are the key players and components involved, and what businesses need to know. Head of Marketing, Helcim. What’s the difference between a payment facilitator (payfac) and a payment aggregator? Here’s what businesses should know. payment facilitator program, please consult the Visa Rules. But the cost and time investment involved means that any company considering the option should conduct an ROI analysis. They operate as mini-processors and can process transactions, underwrite sub-merchants, manage disputes, and make payouts to sub-merchants. Payment Facilitator Verify that a submerchant is a bona fide business operation, as set forth in section 7. Instead, the aggregator manages one merchant account and combines all its clients under this umbrella account. Rapyd is another emerging payment gateway available in the Philippines. One key difference between payment facilitators and aggregators is the size of businesses or merchants they work with. Payment facilitator. Discover Adyen issuing. The Visa® merchant aggregation model covers all commerce types, including the face-to-face and e-commerce environments, and helps to increase electronic payment acceptance for merchants. 7 trillion by 2026, and an entire industry has appeared to provide online payment processing services. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. The traditional method only dispurses one merchant account to each merchant. A payment facilitator is a merchant service provider that simplifies the merchant account enrollment process. The benefits of a merchant account — as compared to a payment aggregator — are threefold: It allows you to negotiate your prices individually with each and every payment method and card brand, which can save you a lot of money if you’re handling a high volume of transaction. Becoming a Payment Aggregator. The main difference between payment aggregator and a payment facilitators is that their sub-merchants all have different MIDs in a PayFac. 2. For. 3. org. payment aggregator: How they’re different and how to choose one; Local acquiring 101: A guide to strategic payments for global businesses; How to accept payments over the. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. What’s the difference between a payment facilitator (payfac) and a payment aggregator? Here’s what businesses should know. You see. Speed of boarding process: Being a Payment Facilitator allows you the ability to setup sub-merchants. See all payments articles . This is why smaller businesses benefit the most from these payment providers. payment gateway, you cannot choose one or the other. Please see Rule 7. Payment Facilitators. Dragonpay acts as a third-party facilitator for smooth payment transactions. The promoters of the entity must also satisfy the ‘Fit and Proper’ criteria prescribed by RBI. Merchant acquirer vs payment processor: differences. Oct 2020. This is where a payment aggregator comes into play. Using a merchant account may be a better idea for some companies depending on your limit needs and capacity. Saved cards improve payment success rate by 6-8%. Digital payments platform PhonePe has achieved an annualised total payment value run rate of USD 1 trillion, or Rs 84 lakh crore, mainly on account of its lead in UPI transactions, the company said on Saturday. In the debate of Payment aggregator vs. Instead, the aggregator manages one merchant account and combines all its clients under this umbrella account. 9. If the intermediary entity, which funds the sub-merchants, uses different MID for each merchant, it is called a payment facilitator. Digital Rupee: CBDC, is a robust, efficient, trusted and legal tenderbased real-time payment option. RBI has reduced the capital requirements for payment aggregators to ₹15 crore. What’s the difference between a payment facilitator (payfac) and a payment aggregator? Here’s what businesses should know. What are the sources of payments law in your jurisdiction? The sources of payments law, including FinTech, in Egypt are primary regulated by: a. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. MAY. apac@bambora. Payfacs. com One common point of confusion is the difference between the typical payment process stakeholders — payment aggregators and facilitators. Saudi Payments was established as a wholly owned subsidiary of SAMA with the mandate to continue the legacy of SAMA by. US retail ecommerce sales are expected to reach $1. Merchant aggregation has proven to be an effective way to reduce friction in processes related to boarding, pricing, and funding by aggregating sub-merchants under a. (DIR Series) Circular No. Payment Facilitator. 7 trillion by 2026, and an entire industry has appeared to provide online payment processing services. payment facilitator, payment facilitator model. Instead, the aggregator manages one merchant account and combines all its clients under this umbrella account. payment aggregator: How they’re different and how to choose one; Local acquiring 101: A guide to strategic payments for global businesses; How to accept payments over the phone: A quick-start guide for businesses US retail ecommerce sales are expected to reach $1. Companies that offer both services are often referred to as merchant acquirers, and they. By CNBCTV18. Both service providers offer technical platforms to collect payments on behalf of the merchants. com. or by phone: Australia - 1300 721 163. payment processors, it’s also essential to explore the role of the acquiring bank. facilitated by Online Export-Import Facilitators (OEIF) (erstwhile OPGSP) Attention of Authorised Dealer Category-I (AD) banks is invited to the A. 9. Instead, the aggregator manages one merchant account and combines all its clients under this umbrella account. A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. It works by. An aggregator account, also known as a payment facilitator account, is a type of payment processing service that allows businesses to accept credit card payments without having to set up their own merchant account. This follows the draft circular on 'Processing and settlement of small. The sources of payments law, including FinTech, in Egypt are primary regulated by: The new Central Bank Law No. The facilitator is also a payment service provider that enables payment. It aggregates payments from merchants, forwards them to payment processors to transact, and offers multiple services, such as new features and integration development, for which it charges its customers. The guidelines is a step towards making the fast-changing payment ecosystem more secure. The payment aggregator provides the customer with a dashboard consisting of an array of banks and payment options to choose from. 7 trillion by 2026, and an entire industry has appeared to provide online payment processing services. Its origin can be traced back to the early 2000s when the need for simplifying payment processing for smaller businesses became apparent. Payment Facilitators, or PayFacs, act as the point of entry for the modern payments ecosystem. 0 ( four point o). 4 Payment Gateways and Payment Aggregators engaged by a bank: Payment Gateways and Payment Aggregators may be engaged by a bank to enable the latter to provide its customers services like bill payments, card payments, etc. Ecommerce payment gateways can be compared to a cashier in a retail outlet or a PoS machine. ” In a nutshell, they’re different. Payment Gateway Terbaik Online Payment Termurah di Indonesia, 30 Detik klik ke semua virtual account bank, Alfamart &. It passes this data to the payment processor securely to be processed. If necessary, it should also enhance its KYC logic a bit. Payment aggregators collect and process payment information,. Payment facilitators assume liability for the merchants processing through their master accounts. When you choose Xendit as your payment provider, we can provide you with up to 999,999 Virtual Account numbers to start with. Increased success rates and 50% reduction in cost. Here are the key players in the chain and their roles in the facilitation model; 1. Payment Processor. ”. For. Identify the specific niche or target market you wish to serve and determine the unique value proposition you can offer. While the payment gateways are the entities that provide technology infrastructure to route and/or facilitate the processing of online payment transactions. Payment aggregators are easy to implement to start processing payments quickly. In 2007 it acquired Authorize. Step 2: The credit card processor that you’ve partnered with will then collect the credit card information and route it through a payment gateway to the credit card network (for example, Visa or Mastercard) to begin the authorization process. Step 1: The customer initiates a payment transaction on a merchant’s website or mobile app. ) Owners. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. Especially valuable for platforms and marketplaces looking to payout users faster in a preferred currency. A payment aggregator, also often referred to as a payment facilitator (payfac) or payment service provider (PSP), is a financial technology company that simplifies the process of accepting electronic payments for businesses. Authorization. Payment aggregators and facilitators are often confused. Sub-merchants operating under a PayFac do not have their own MIDs, and all transactions are processed through the. To obtain a Payment Aggregator License, the entity must provide address proof of the business, have a minimum net worth of Rs. For. Cybersource provides credit and debit card processing and claims to be used by over 450,000 businesses worldwide. I help payment facilitators and PSPs solve their various payment processing issues. It is a private payment system based in the UK that aims to simplify the digital payment methods for global technology firms, e-commerce, and marketplaces. Payment Aggregator: Pros and Cons. While the new payment aggregators should have a minimum net worth of INR. Invisible to most but essential to all,. Being the gateway for your transactions, Payflow allows you to use one. 15 Crores, they are required to achieve and maintain a net worth of INR. Payment Aggregators are service providers through which e-commerce merchants can process their payment transactions. The payment aggregator’s acquiring bank or acquirer then checks and sends the customer information to the respective card company (Mastercard, VISA, etc. 14. Worldwide payment gateways are mostly established and operated either by. Each transaction requires a small fee. The Reserve Bank of India (RBI) has released a list of 'online payment aggregators' i. PayFacs and payment aggregators work much the same way. In short, a payment facilitator plays a pivotal role of a master merchant that enables easy operations of card transactions and offers the necessary infrastructure to accept credit card payments. The new Central Bank Law No. “PayFac or merchant aggregator, a payment facilitator is a third party agent that contracts with an acquirer to provide payment services and solutions on its behalf. A payment aggregator (also known as a merchant aggregator or payment service provider) offers merchants a variety of payment options. Another numerous group of aggregators decided to perform the role of payment facilitators themselves, because. Read. Payment facilitation refers to the process of making transactions or payments easier, faster, and more convenient for all parties. What’s the difference between a payment facilitator (payfac) and a payment aggregator? Here’s what businesses should know. However, they have concerns about the process being too complex or time-consuming. Payment Facilitators (PF) A Payment Facilitator (PF) – also known as a “master merchant” or “merchant aggregator” – is a third-party agent that can both (i) sign a merchant acceptance agreement with a seller on behalf an acquirer, and (ii) receive settlement proceeds from an acquirer, on behalf of the underlying sellerThe OptBlue®️ Program from American Express helps you provide an easy, one-stop solution for your merchants, so they can accept American Express the same way they do for other card brands. aggregator, a payment facilitator is a third party agent that contracts with an acquirer to THE ACQUIRER A Visa Client licensed to provide card acceptance services. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. How does payment transaction processing work? Here are the key players and components involved, and what businesses need to know. For Payment Facilitator or Merchant Aggregators, the client must ensure that they review the list of all sponsored merchants and ensure the sponsored merchants comply with Visa Rules, local, country and regional laws or regulations. It's also the perfect model for marketplaces and software platforms that manage merchants, as much of the legwork and complexity of onboarding and underwriting is handled by the facilitator. Payfacs are registered (ISOs) that have been sponsored by an . There are many different types of payment service providers, including payment facilitators (payfacs) and payment aggregators. How does payment transaction processing work? Here are the key players and components involved, and what businesses need to know. While the regulation of the payments sector is in a state of flux, the CBE does have existing regulations governing some payment services. A payment aggregator, also known as a payment facilitator or merchant aggregator, serves as a go-between for the merchant and the payment processor. All major online paymentmodes to accept payments. Difference #1: Merchant Accounts. Sometimes referred to as an “acquiring bank” or "merchant bank. US retail ecommerce sales are expected to reach $1. In recent years, the largest payment facilitators and Stripe have expanded significantly. The payment facilitator undergoes the lengthy onboarding process—not the merchant. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. Payment facilitator vs. Fees include a one-time setup fee of Php 28,000 ($633); and per payment fee. 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). The merchant acquirer accepts payments on behalf of your business, while the payment processor takes care of processing the payments. A service provider typically provides a single service with no role in settling funds to a merchant. According to these rules, the contract with the technical payment aggregators and the facilitators of the electronic payment processes should include the clear identification of the contractual. What is a payment aggregator? A payment aggregator is a service provider that allows businesses to process card payments and mobile transactions without setting up a merchant account with a bank or card network. – Jordan Hale, Fr. Rather than requiring each business to open their own merchant account , a payment aggregator simplifies the process by allowing many shops to process payments through a single master merchant. 7 trillion by 2026, and an entire industry has appeared to provide online payment processing services. Accepted Payment. US retail ecommerce sales are expected to reach $1. Payment facilitator model is suitable and. What is a payment aggregator? A payment aggregator is a service provider that allows businesses to process card payments and mobile transactions without setting up a merchant account with a bank or card network. What is a payment aggregator? A payment aggregator is a service provider that allows businesses to process card payments and mobile transactions without setting up a merchant account with a bank or card network. This streamlined process allows the sub-merchants. Payment facilitators (payfacs) vs independent sales organizations (ISOs): How they’re different and how to choose one; Payment facilitator vs. , invoicing. ). A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. 7 trillion by 2026, and an entire industry has appeared to provide online payment processing services. 7 trillion by 2026, and an entire industry has appeared to provide online payment processing services. View payments, data, and terminal information in one place. ; Functions: They typically provide a range of payment options. There are many different types of payment service providers, including payment facilitators (payfacs) and payment aggregators. Subject to compliance with such procedures and requirements, the Central Bank of Egypt then permits the relevant bank to contract with the payment aggregator or facilitator. Particularly, the Guidelines highlights, among other things, that all entities must put in place sufficient data security infrastructure and systems for prevention and detection of fraud, that agreements for the. The master. Gaining interest from the incoming flow over the Payment Facilitator’s account. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. First, a PayFac needs to establish a partnership with an acquiring bank, and get sponsorship to process payments for sub-merchants. A payment facilitator needs a merchant account to hold its deposits. The Visa® merchant aggregation model covers all commerce types, including the face-to-face and e-commerce environments, and helps to increase electronic payment acceptance for merchants. The master merchant account represents tons of sub-merchant accounts. – across its various banking channels and through use of cards / bank accounts. 1: If a payment facilitator exceeds US $50 million in annual Visa transaction volume, the. Madam/Sir, Processing and settlement of small value Export and Import related payments. US retail ecommerce sales are expected to reach $1. A payment facilitator underwrites, manages, and settles processing funds to the clients. THIRD PARTY AGENT An entity that provides payment related services on behalf of a Visa Client. It obtains this through an acquiring bank, also known as an acquirer. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. While both payment aggregators and facilitators help businesses accept payments, they operate differently and have distinct advantages and disadvantages…2/15/2023, 11:25:48 PM. If you need to contact us you can by email: support. By opting for a payment facilitator, these companies can group all their services, including payments and invoicing, under one. 3. Payment facilitator vs. A PayFac will smooth the path. It’s safe to say becoming a payment facilitator is a highly complex and resource-intensive process. 75% per transaction). Instead, the aggregator manages one merchant account and combines all its clients under this umbrella account. Facilitators: The Differences, Similarities, and Advantages of Each Connor Brooke Tech Expert Disclosure Published August 14, 2017. In other words, calling eBay a “demand aggregator” is more accurate when referring to #1 (Aggregation Theory), as opposed to #2 (aggregator vs platform), but a lot of people conflate the two. Unlimited payment options (UPI, Wallet, Net-banking, bank transfers, cards, etc. Whereas, a payment aggregator chosen after proper research would be beneficial to you as they do not charge many types of fees, like PayKun, only charges a TDR (transaction discount rate). And your sub-merchants benefit from the. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. Fast forward to today, and “the payment facilitator,” noted Porter, “is really an entity that. These guidelines include details outlining different procedures and requirements that must be complied with by banks when contracting with payment aggregators and facilitators.