However, the setup process might be complex and time consuming. This simplifies the onboarding process and enables smaller. 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. Onboarding workflow. ISO: An Independent Sales Organization (ISO) is a company that refers businesses that need to accept card payments to processors and acquiring banks. However, much of their functionality and procedures are very different due to their structure. This model is ideal for software providers looking to. 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 businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and. Payment Facilitators offer merchants a wide range of sophisticated online platforms. The arrangement made life easier for merchants, acquirers, and PayFacs alike. PayFacs are generally more suitable for smaller businesses or those looking for a streamlined, integrated payment platform with faster funding times. Before offering customers payment methods from popular card networks (Visa, Mastercard, etc. You own the payment experience and are responsible for building out your sub-merchant’s experience. Until recently, SoftPOS systems didn’t enable PINs to be inputted. In a similar manner, they offer merchants services to help make the selling process much more manageable. Want to know the difference between ISO and payment facilitator? ️ Read this summary to find out why payment facilitator concept has been rapidly gaining popularity. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Massive technological leaps have made it easier than ever for software. 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. The procedures used to develop this document and those intended for its further maintenance are described in the ISO/IEC Directives, Part 1. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Payfac and ISO (Independent Sales Organization) are two terms that are often confused with each other when it comes to payment processing. 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. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. The merchants can then register under this merchant account as the sub-merchants. 4. 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. 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. So naturally, any company considering the option needs to make sure the investment they’ll make in the Payfac model makes sense financially. For example, an. PSP = Payment Service Provider. However, the setup process might be complex and time consuming. Confusion often arises when distinguishing ISO vs. Merchant accounts for credit card processing are used by businesses to accept credit cards and there are different models. The PayFac model allows a single entity to become the “merchant of record” and board sub-merchants with fewer data requirements and scrutiny. In other words, ISOs function primarily as middlemen. A PayFac supports a large portfolio of sub-merchants throughout all their lifecycle — from underwriting to funding to chargeback disputing — and gets its reward for all these services (from every sub-merchant). However, the setup process might be complex and time consuming. 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. July 12, 2023. At the same time, more companies are implementing PayFac model and establishing PayFac payment gateway partnerships. In an ever-changing economic world, we are helping businesses be successful today and well into the future. One of the key differences between PayFacs and ISO systems is the contractual agreement. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. g. For example, an. No more, no less, and are typically a standalone service. Para ampliarlo, es una empresa que permite a sus clientes aceptar pagos electrónicos utilizando la plataforma del facilitador de pagos. 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. 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. Most businesses that process less than one million euros annually will opt for a PSP. The ISO is an intermediary signing up the merchants for the acquirer’s payment processing 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 Facilitator. Why more and more acquirers are choosing the PayFac model. The main difference between these two technologies,. Each client is the merchant of record for transactions. Smaller. 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. For example, an. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. For example, an. becoming a payfac. However, the setup process might be complex and time consuming. The PSP in return offers commissions to the ISO. 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 Merchant Account vs. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. In general, if you process less than one million. e. Thus, in contrast to an ISO, a PayFac model can consolidate transaction processing volume and unify internal processes. Read More. Today’s PayFac model is much more understood, and so are its benefits. For SaaS providers, this gives them an appealing way to attract more 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. Payment processors The PayFac model thrives on its integration capabilities, namely with larger systems. But regardless of verticals served, all players would do well to look at. You own the payment experience and are responsible for building out your sub-merchant’s experience. A best-in-class payment solution. While all of these options allow you to integrate payment processing and grow your. Blog Exact Payments CEO, Phil Levy, Discusses the Future of Fintech With The Strawhecker Group. e. Overall, ISOs work as intermediary “resellers” of payment processors or acquiring banks to merchants, while PayFacs have a single account and absorb greater. However, the setup process might be complex and time consuming. Payment Facilitators vs. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. Traditional – where banks and credit card. Research firm Statista estimates payfac transaction volume totaled $88 billion last year,. The road to becoming a payments facilitator, according to WePay founder Rich Aberman, is long, expensive and technologically complex. An ISO or PayFac can earn millions of dollars from a portfolio of hundreds or even thousands of merchants, all taking hundreds or thousands of electronic payments per day. 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. 2. A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. However, the setup process might be complex and time consuming. e. For example, an. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. ,), a PayFac must create an account with a sponsor 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. For example, an. For example, an. Some ISOs also take an active role in facilitating payments. ISO. e. “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. This is because the per-transaction payment processing rates are typically better for merchant accounts—as opposed to sub-merchant accounts. The bank receives data and money from the card networks and passes them on to PayFac. . Read More. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Beyond that lies the customer experience. GETTRX’s Zero and Flat Rate packages offer transparent billing, competitive rates, and industry-leading customer service, making them ideal choices for businesses seeking a seamless payment experience. 4. ISO serves as an intermediary between merchants and acquiring banks, taking responsibility for essential functions such as merchant onboarding, sales. A payment facilitator is a merchant services business that initiates electronic payment processing. 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. Payment Facilitator. And this is, probably, the main difference between an ISV and a PayFac. Strategies. PayFac vs ISO: 5 significant reasons why PayFac model prevails. A payment facilitator (or payfac) is the owner of a master merchant identification number who registers merchants as sub-merchants and enables their payment acceptance. It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank. What Is An ISO? ISOs are independent sales. However, much of their functionality and procedures are very different due to their structure. For example, an artisan. For example, an. Better processing terms and higher revenues. 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 artisan. Fortis manages everything for you – underwriting, fraud monitoring, funding, gateway reporting, and chargeback management. This article is part of Bain's report on Buy Now, Pay Later in the UK. PayFac vs. 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. Contracts. For example, an artisan. Payfac as a Service providers differ from traditional Payfacs in that. To ensure maximum relevancy, the logical structural models, assets, threats and security objectives in this document are based. They offer merchants a variety of services, including. 00 Payment processor/ merchant acquirer Receives: $98. On balance, the benefits are substantial and the risks manageable. 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. Business Size & Growth. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. However, the setup process might be complex and time consuming. 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. However, the setup process might be complex and time consuming. ISO question. However, the setup process might be complex and time consuming. , May 26, 2021 /PRNewswire/ -- PayFac-as-a-Service startup Tilled today announced the close of $11 million in Series A funding to empower software companies. 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. When you want to accept payments online, you will need a merchant account from a Payfac. Both the PayFac and ISO acquisition models have unique benefits and drawbacks. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. The bank receives data and money from the card networks and passes them on to PayFac. Here are the six differences between ISOs and PayFacs that you must know. While there are advantages to taking on high risks, such as greater flexibility. However, the setup process might be complex and time consuming. Click here to learn more. In other words, processors handle the technical side of the merchant services, including movement of funds. For example, an artisan. The way Terminal creates API objects depends on whether you use direct charges or destination charges. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. When it comes to choosing between a PayFac and an ISO, the best option depends on your business's specific needs and preferences. ISV: An Independent Software Vendor (ISV) is a company that creates and sells software. However, the setup process might be complex and time consuming. For example, an. For example, an artisan. 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. PayFacs perform a wider range of tasks than ISOs. If a partner can "see" the benefits of. 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 payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of 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. 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. The key aspects, delegated (fully or partially) to a. Very rarely, said Mielke, do ISVs win with the “knee-jerk reaction of becoming a PayFac and capturing those additional revenues. Is a PayFac a merchant acquirer? A PayFac contracts with an. For example, an. Processor relationships. ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization. Payment facilitation helps. Now let’s dig a little more into the details. 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. 26 May, 2021, 09:00 ET. ISO. Avoiding The ‘Knee Jerk’. 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. PayFac is more flexible in terms of providing a choice to. Segregated accounts are legally segregated from the firm's assets, meaning the company cannot use the funds stored to conduct business operations. Checkout. What PayFacs Do In the Payments Industry. Stripe Terminal is fully compatible with Connect, enabling your platform or marketplace to accept in-person payments. ISV: An Independent Software Vendor (ISV) is a. Also, unlike an ISO, the PayFac provides the processing services, settlement of funds, and billing to the merchant. 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. For example, an. Before offering customers payment methods from popular card networks (Visa, Mastercard, etc. In contrast, PayFacs have one or two processor relationships and onboard ISVs as referral agents. Understanding the differences between an ISO versus a PayFac will help you see why using a plug-and-play PayFac-as-a-Service solution is the most effective payment acceptance choice. PayFac vs ISO. However, there are instances where discrepancies arise. If you're wondering what the difference is between Payfac and ISO, the answer is simple: The Payfac solution provider is directly responsible to MasterCard and. PSPs facilitate payments and act as a proverbial middleman between you and the merchant. However, the setup process might be complex and time consuming. The name of the MOR, which is not necessarily the name of the product seller, is specified by. Generally speaking, a PayFac might be suitable for. For their part, FIS reported net earnings of $4. 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. 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. Merchants need to understand these differences, so they can decide which of these options may be better suited for their business. 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 does not send the payments to the merchant. 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. 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. For example, an. For example, an artisan. 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. For example, an. 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. 00 Retains: $1. For example, an. Thought Leadership, Whitepapers Build Vs. 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. The types of new entities an ordinary ISO can turn into include a PayFac, a wholesale ISO, a next-generation ISO, or a merchant services consultant. A PayFac is a processing service provider for ecommerce merchants. Click here to learn more. Digital payments like bankcards and mobile wallets can have significant positive impacts on small and medium businesses (SMBS) because they are cheaper to process than other payment types, enable increased marketing capability, and are preferred by consumers, a new study from ETA member Visa says. This solution involves you partnering with either (1) an acquiring bank or (2) an acquirer and a payment facilitator vendor. In the current downturn, said Mielke, the PayFac or ISV that is diversified will be better positioned to weather the storm. PayFacs provide a similar. Pinterest. The Worldpay PayFac® experience goes the distance from boarding sub-merchants to collecting payments, reducing risk, and more. In essence, a PayFac is an agent for a payment processor, but a unique twist to the. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. 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. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. For example, an. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. A PayFac (payment facilitator) has a single account with. All ISOs are not the same, however. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. 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. 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. Like payment facilitators, ISOs serve as intermediaries to provide merchants with access to the payments system on behalf of their acquiring bank partners, often serving specific markets with solutions tailored to their needs. 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. For example, an artisan. Thus, an ISO’s customers can access a wider range of processors, even if the onboarding experience is tedious. 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. 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. For example, an. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an. However, the setup process might be complex and time consuming. A PayFac, or payment facilitator, is a merchant services model that streamlines the merchant account enrollment process by onboarding a merchant as a sub-account under the PayFac’s master account. 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 merchantsA Payment Facilitator (PayFac) is a type of merchant services company that provides business owners with a way to accept electronic payments, both online and in-store. Payfac-as-a-service vs. The differences of PayFac vs. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an artisan. These companies have. Stripe was founded in 2010 by two Irish siblings: then 22-year-old Patrick Collison and younger brother John, 20, positioning itself as the builder of economic infrastructure for the internet — launching their payfac flagship product in 2011. One of the most significant differences between Payfacs and ISOs is the flow of funds. the PayFac Model. Learn more: PayFac vs ISO: which one to choose for your business? Benefits of becoming a PayFac. 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. In the scope of implementing its ISO 9001 quality policy, the Central Bank has made it a priority to increase participants. implementation of a payment facilitator model) calls for getting certified as one by the respective acquirer, and for. Can an ISO survive without becoming a PayFac? Becoming a PayFac (i. A PayFac works by establishing one master merchant account, which can then be leveraged by multiple businesses for a small fee. 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. No matter what your size, we can help enhance your business with streamlined, intuitive payment options for your customers, backed by a suite of payment tools to help you: Streamline billing and. For example, an. For example, an. For example, an. com explains everything you need to know. To help your referral partners be as successful as possible, you need a smooth onboarding process. The PayFac model thrives on its integration capabilities, namely with larger systems. Visa and Mastercard allow sub-merchants to process up to $1 million in annual charge volume before requiring them to establish their own, independent merchant accounts. ISOs mostly resell merchant accounts, issued by multiple acquiring banks. 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. For example, an. For example, an. Can an ISO survive without. Clover vs Square. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Payment Facilitators (commonly known as PayFacs or PFs) have risen in popularity over the recent years. Payroc LLC is a registered independent sales organization (ISO/MSP) for Fifth Third and Wells Fargo Bank, N. The payfac accepts and processes payments on behalf of merchants (called submerchants in this context), through a contract with an acquirer. However, the setup process might be complex and time consuming. Examples. 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. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. We would like to show you a description here but the site won’t allow us. While we’ll discuss costs below, PayFacs can onboard merchants much more quickly than a traditional ISO model. 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. Payment. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. 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 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. You own the payment experience and are responsible for building out your sub-merchant’s experience. However, the setup process might be complex and time consuming. Becoming a PayFac allows the business to deliver more customized, branded, and better-integrated payments experiences entirely within their own app. An ISO acts as a middleman, facilitating the relationship between the ISV and the payment. According to SMB estimates. The most known examples are website-building companies which can provide integrated payment options, meaning ecommerce customers will see their experience improved as they will no longer need to actively look for third-party payment solutions. For example, an. Shop. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The first is the traditional PayFac solution. PayFac vs merchant of record vs master merchant vs sub-merchant. 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 merchant to a bank, a PayFac owns the full client experience. For example, an artisan. Registering as a payment facilitator (PayFac) or independent sales organization (ISO) have become popular options for SaaS companies looking for a comprehensive payment strategy. . Payment aggregator vs. 3. Checkout’s “gross profit” is the P&L line most comparable with Adyen’s “net revenue” line. However, the setup process might be complex and time consuming. Mastercard PayFac Models: The Ins and Outs of the “Big Two” Payment Facilitator Programs. A merchant of record is an entity that accepts cardholders’ payments and assumes liability for processing of these payments on the merchant’s behalf. 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. 1. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Since it is a franchise setup, there is only one. 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. PayFac vs ISO: Contractual Process. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. It becomes more lucrative for a PayFac to offer merchant, gateway, and other services in one package and to support a single acquirer/processor. However, the setup process might be complex and time consuming. e. . For some ISOs and ISVs, a PayFac is the best path forward, but. However, the setup process might be complex and time consuming. ISO vs. However, the setup process might be complex and time consuming. 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. 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 artisan. However, the setup process might be complex and time consuming. , it will enable disbursements and P2P payments to and from nearly any U. PayFac offers clients a choice if they wish to pay by cheque or bank transfer. 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. 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. 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. Payfac’s immediate information and approval makes a difference to a merchant. 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.