The terms aren’t quite directly comparable or opposable. What is a payment facilitator? A payment facilitator, also known as a “payfac” or payment aggregator, is a payment model that has grown tremendously over the past few years. Payment processors do exactly what the name says. “You’re giving the payment facilitator the rights to generate liability that you as the bank are going to be responsible for,” Spalinger said. Until recently, SoftPOS systems didn’t enable PINs to be inputted. Top content on Payment Facilitation and SaaS Payments as selected by the SaaS Brief community. The underlying role that these fill for a business is to provide merchant services, and you can read our reviews of various merchant service providers here. In fact, ISOs don’t. ISO vs. 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. PayFac vs ISO: Differences, Similarities, and How to Choose the Right One 11 Like Comment Share Copy; LinkedIn; Facebook; Twitter; To view or add a comment, sign in. Payment facilitator model is suitable and effective in cases when the sub-merchant in question is a medium- or large-size business. Here are several benefits: As a hybrid PayFac, your company can handle client onboarding in minutes or hours instead of the usual 48-72-hour time-frame required for merchant account setup. PayFac vs ISO: Key Differences. In a similar manner, they offer merchants services to help make the selling process much more manageable. One of the key differences between payment aggregators and payment facilitators is the size of sub-merchants they are servicing. PINs may now be entered directly on the glass screen of a smartphone using this new technology. Owners of many software platforms face the need to embed. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. There are several ways for businesses to go about accepting payments, and two of the most popular provider options are PayFacs and Independent Sales Organizations (ISOs). PayFac: Key Differences & Roles in Payment Processing Read more Top 4 Benefits of Being an Independent Sales Agent Read more Why Becoming a Sales Agent in the Payments Industry is a Great Job. For example, an. Most businesses that process less than one million euros annually will opt for a PSP. 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. If necessary, it should also enhance its KYC logic a bit. However, the setup process might be complex and time consuming. ” A PayFac can have a two-party agreement, meaning it enters into a direct contractual relationship with its merchants (with or without a. One classic example of a payment facilitator is Square. Now let’s dig a little more into the details. The differences are subtle, but important. a Payment Service Provider (PSP), aka a Payment Facilitator (PayFac). The acquirer receives funds from the issuer and pays them into the master merchant account of the PayFac. Those who implement the PayFac model get their residual revenue share for handling both business and technical aspects of merchant lifecycle. It also needs a connection to a platform to process its submerchants’ transactions. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. With a. ) The PayFac takes on merchants as its own contracted “sub-merchants,” which process their transactions through the master merchant account. SaaS. What is a Payment Facilitator (Payfac)? Payfacs are an evolution of a long-established distribution model in the payments industry. PayFac vs ISO: Key Differences. However, the setup process might be complex and time consuming. If the merchant fits the requirements, PayFac onboards is a sub-merchant under the master MID. Thus, an ISO’s customers can access a wider range of processors, even if the onboarding experience is tedious. Extensive. A PayFac works by establishing one master merchant account, which can then be leveraged by multiple businesses for a small fee. Maybe you want to learn about PayFac vs. ISO: What Is the Optimal Integrated Payment Strategy in SaaS? Advertisement. Business Size & Growth. Payment facilitation (Payfac) is a service that allows businesses to accept payments from their customers in a variety of ways. 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 facilitation, or “payfac,” continues to grow in popularity among software providers and is designed to facilitate payment card acceptance without requiring individual merchants to go through the lengthy process of establishing traditional merchant accounts. 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. PayFac vs. For example, an. 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. 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. The new PIN on Glass technology, on the other hand, is becoming more widely available. ”. It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank. Fast, efficient boarding solutions that orchestrate third-party and internal systems to help you turn prospects to customers – face-to-face, on the phone, or online. You own the payment experience and are responsible for building out your sub-merchant’s experience. So, revenues of PayFac payment platforms remain high. Payment facilitators (PFs) were created to make a more streamlined path to electronic payment acceptance for small and medium-sized businesses. 20) Card network Cardholder Merchant Receives: $9. 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. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent. The payments landscape has changed a lot in the last 20 years and your customers deserve modern payment processingInfinicept provides the method by which to monitor for these transactions within its exception reporting capabilities. You own the payment experience and are responsible for building out your sub-merchant’s experience. Also take a look at some of the primary regulations payfacs face, such as those from the Financial Crimes Enforcement Network, Office of Foreign Assets Control, and USA PATRIOT Act. 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. You own the payment experience and are responsible for building out your sub-merchant’s experience. The payment facilitator, or “PayFac”, model of merchant acquiring is growing extremely rapidly. For their part, FIS reported net earnings of $4. To put it another way, PIN input serves as an extra layer of protection. To know that your payfac relationship is completely above-board, first know what a payment facilitator is and the issues related to money transmission. For example, an artisan. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. 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. Can an ISO survive without becoming a PayFac? Becoming a PayFac (i. So how much. The key difference between a payment aggregator vs. To learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. 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. A payfac or PF, short for payment facilitator, makes it possible for you to accept payments from customers in a variety of ways, including card 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. Examples. In general, if you process less than one million. 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. But to banks and merchants it means something very different. 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). Cutting-edge payment technology: Extensive. Conclusion: The PayFac model significantly simplified the delivery of merchant services to its sub-merchants by: Utilizing sub-merchant aggregation to streamline the credit application, underwriting, and onboarding process. PayFacs take care of merchant onboarding and subsequent funding. Risk management. Risk management. Moreover, in a sense, PayFac model relieved acquirers from merchant management functions, which they delegated to PayFacs. In the world of payment processing, the turn of the decade represented a massive transition for the industry. 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. Gateway Service Provider. Our belief remains that all payfacs will inevitably write directly to the networks and avoid the processors for so many reasons. However, the setup process might be complex and time consuming. NPC is Vantiv's nationwide ISO merchant distribution business serving over 220,000 small-to-medium-sized merchants. Independent sales organizations (ISOs) are a more traditional payment processor. Examples of Payment Facilitators. Principal vs. For example, an. Episode 2 is live! Our guest on this episode is Menda Sims, Chief Payments Officer at Stax Payments. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. It assumes liability for losses or non-compliance. Once you’ve been authorized as a payment facilitator, the ongoing costs continue often exceeding $100,000 a year. Payment processors do exactly what the name says. Partnering with a PayFac-as-a-Service provider leaves the technical work like coding, compliance monitoring, and payment integration to industry. This model is ideal for software providers looking to. For example, an artisan. The PayFac, he said, has emerged, and evolved from its 1990s underpinnings where merchant acquirers had handled that merchant enrollment, boarding, underwriting and even settlement. Enabling businesses to outsource their payment processing, rather than constructing and maintaining their own. Marketplace vs ecommerce platform: What's the difference? Read article. They typically work. 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. Fully managed payment operations, risk, and. Until recently, SoftPOS systems didn’t enable PINs to be inputted. Very few PayFac as Service providers publish pricing to sub PayFac’s and there is a reason. A Payment Facilitator (PayFac) is a type of merchant services company that provides business owners with a way to accept electronic payments, both online and in-store. However, the setup process might be complex and time consuming. Here, the Payfacs are themselves the merchants of record. PayFac vs Payment Processor. Payfac solutions can be a critical source of revenue generation, allowing ISVs to differentiate their product and service offerings in a crowded space. There are DEF benefits to. 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. One is an ISO or independent sales organization, and another is a PayFac or 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. Supports multiple sales channels. While the. Both offer ways for businesses to bring payments in-house, but the similarities end there. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. 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 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. Aug 10, 2023. They provide services that allow software platforms to accept credit and debit card payments and make it easier and faster for them to start accepting payments as they handle most of the work for you. The PayFac is the merchant of record for transactions. For example, an. payment processor question, in case anyone is wondering. If you need to contact us you can by email: support. The ISVs that look at the long. Payfac and payfac-as-a-service are related but distinct concepts. The PayFac uses an underwriting tool to check the features. The Traditional Merchant Onboarding Process vs. Payment facilitation, or “payfac,” continues to grow in popularity among software providers and is designed to facilitate payment card acceptance without requiring individual merchants to go through the lengthy process of establishing traditional merchant accounts. PayFacs perform a wider range of tasks than ISOs. There are two types of merchant account providers: independent sales organizations (ISO) and payment facilitators (PayFac), also known as payment service providers (PSP). PayFac vs. With Visa, you’ll be applying to be a registered ISO, but with Mastercard, you’ll technically be applying to be a registered MSP, or member service provider. An ISO acts as a middleman, facilitating the relationship between the ISV and the payment. PayFac vs merchant of record vs master merchant vs sub-merchant. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. ISO. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. Optimized across years of experience onboarding and verifying millions of individuals and businesses, our payfac solution includes real-time KYC checks, sanctions screening, secure card data tokenization and vaulting,. PayFac is software that enables payments from one vendor to one merchant. Browse Payfac and Payments content selected by the SaaS Brief community. 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 is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. ISO = Independent Sales Organization. Acquiring banks willingly delegated them to payment facilitators in exchange for part of liabilities and residual revenues. Here, ISOs (Independent Sales Organizations if on the Visa network), or MSPs. Proven application conversion improvement. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. To help us insure we adhere to various privacy regulations, please select your country/region of residence. Both offer companies a means of accepting and processing payments, and while they may appear to be the. Establish connectivity to the acquirer’s systems Two-way information flow: • Th Payfac pushes messages the acquirer (transaction info). 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. Card Brands also authorize payment facilitators to accept settlement funds on behalf of their sub-merchants. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. The PayFac model is also very attractive to independent software vendors. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. Payment Facilitators contract directly with the sub-merchant for processing services and perform key payment activities in-house. That is why the model seems so attractive for different. It’s where the funds land after a completed transaction. Table of Contents [ hide] 1. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. Contracts. VC Funding Hit a 5+ Year Low in Q1’23: CBInsights and Carta vs. 6 differences between an ISO and a PayFac Why a PayFac might be a better choice for your business Frequently asked questions about ISOs versus PayFacs Is an ISO a PayFac? An ISO is a. Often, ISVs will operate as ISOs. What’s The Difference Between A PayFac vs ISO? Posted at 11:39 am in Fundraising , Payment Processing As intermediary technologies between a payment system and merchant, Independent Sales Organizations (ISOs) and Payment Facilitators (PayFacs) serve a very similar purpose. Gross revenues grew considerably faster. ISO: An Independent Sales Organization (ISO) is a company that refers businesses that need to accept card payments to processors and acquiring banks. Our digital solution allows merchants to process payments securely. #ISO registration. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. • The acquirer has access to Payfac system to oversee their performance and compliance. 007 per transacation. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. Clover vs Square. While some software providers starting out as an ISO or referral partner may elect a managed payfac solution as the next logical tech enablement progression, other providers may not want to relinquish visibility and control to a third. What is a payment facilitator (payfac)? A payment facilitator (payfac) is a type of merchant services provider that simplifies the payment process for businesses. Software users can begin. A PayFac sets up and maintains its own relationship with all entities in the payment process. B2B. There’s not much disclosure on the ‘cost of sales’ (i. ISO vs. Toward the middle person, ISO is the acronym used by the International Arrangement for Standards. the scheme and interchange fees). This site uses cookies to improve your experience. PayFac: Key Differences & Roles in Payment ProcessingPayFac vs ISO. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. For example, an. In this sub-merchant model, Payfac has a master merchant account under which merchants are signed up, as sub-merchants. Visa, Mastercard) around 2011 as a way for aggregators to provide more transparency into who their sub-merchants were. No more, no less, and are typically a standalone service. next-level service: 24/7, every day of the year. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. 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. This was an increase of 19% over 2020,. This means that there is no need for any charges between the issuer and the acquirer. Skaleet's Core Banking Platform helps marketplaces launch their PayFac solution by opening a merchant bank account and receiving a merchant category code (MCC) to acquire and aggregate payments for a group of smaller merchants, typically called sub-merchants. Avoiding The ‘Knee Jerk’. I SO. Each of these sub IDs is registered under the PayFac’s master merchant account. ISO vs. Estimated costs depend on average sale amount and type of card usage. This allows the businesses under the payfac’s umbrella to focus on their core operations rather than deal with the complexities of the. 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. Software companies that focus on specific verticals, such as healthcare or childcare, are natural PayFac candidates. However, the setup process might be complex and time consuming. PayFac vs ISO is an illustrative example of natural selection and adaptation in the fintech world. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. PAYMENT FACILITATORStep 5) Apply for Registration with the Major Card Companies. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. While we’ll discuss costs below, PayFacs can onboard merchants much more quickly than a traditional ISO model. Each ID is directly registered under the master merchant account of the payment facilitator. Jun 29, 2023. ISO serves as an intermediary between merchants and acquiring banks, taking responsibility for essential functions such as merchant onboarding, sales. Avoiding The ‘Knee Jerk’. Payment Facilitators offer merchants a wide range of sophisticated online platforms. Payfac’s immediate information and approval makes a difference to a merchant. Payment Facilitator vs ISO. implementation of a payment facilitator model) calls for getting certified as one by the respective acquirer, and for. 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. This simplifies the onboarding process and enables smaller. ISO vs. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Chances are, you won’t be starting with a blank slate. Cancel reply. Ongoing Costs for Payment Facilitators. Whatever works best for them. ISO, so you can choose one of the two, or you’re looking for a PayFac solution for your business. In fact, when a merchant is seen as potentially liable for fraudulent activity, an ISO and/or processor are sometimes named as codefendants, along with people at the ISO or processor who. New Zealand -. PayFac-as-a-Service has emerged from payment companies and independent sales organizations (ISO) that have gone through the regulatory compliance of PayFac registration. While there are advantages to taking on high risks, such as greater flexibility. The Traditional Merchant Onboarding Process vs. Payfac: What’s the difference? Independent Sales Organization (ISO) is a third-party entity that partners with payment processors or acquiring banks to facilitate merchant services. e. Swipesum details all you need till get about Payfac vs ISO. Payment Facilitator (PFAC, PayFac, PF): A merchant service provider who can facilitate transactions and simplify the merchant account enrollment process on behalf of the sub-merchant. PayFacs work under one or more payment processors, operating in a layer of the industry between processors and merchants. However, the setup process might be complex and time consuming. The merchants can then register under this merchant account as the sub-merchants. Payment Facilitators vs. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. the PayFac Model. PayFac-as-a-Service (PFAAS) combines easy-to-integrate payment technology, full-service offerings, and transparent pricing to deliver Independent Software Vendors a simple way to harness the full power of payment facilitation – minus. The PayFac, he said, has emerged, and evolved from its 1990s underpinnings where merchant acquirers had handled that merchant enrollment, boarding, underwriting and even settlement. 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. About 50 thousand years ago, several humanities co-existed on our planet. One of the key differences between PayFacs and ISO systems is the contractual agreement. While there are many benefits of integrating to a Payfac, two of the most notable are frictionless onboarding and risk, liability and costs associated. Mastercard PayFac Models: The Ins and Outs of the “Big Two” Payment Facilitator Programs. If necessary, it should also enhance its KYC logic a bit. In short, a PayFac or payment facilitator, is a master merchant that supports sub-merchants. ISO vs. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. 5. Payment Processors: 6 Key Differences. And this makes a difference for several reasons, when it comes to the pros and cons of using a ISO/MSP vs. Recently, the concepts of PayFac and aggregators have started converging. 1. Marketplace vs ecommerce platform: What's the difference? Read article. Anti-Money Laundering or AML. However, the setup process might be complex and time consuming. As a seasoned global executive with strategic leadership experience across banking, #. For example, if you’re selling in-store, then your ISO should offer you a point of sale software and. 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. What’s The Difference Between A PayFac vs ISO? Posted at 11:39 am in Fundraising, Payment Processing. PayFac vs. April 12, 2021. ISOs rely mainly on residuals, a percentage of each merchant transaction. . Generally speaking, you will. Underwriting is a risk assessment practice that helps the PayFac entity understand the nature of the sub-merchant business and the risks involved in onboarding such a profile. 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. ”. Modern PayFacs find it more profitable to integrate with just one processor/gateway and provide merchant processing services (onboarding, chargeback. The biggest downside to using a PSP is cost. Can an ISO survive without becoming a PayFac? Becoming a PayFac (i. This allows faster onboarding and greater control over your user. You see. First popularized by firms like PayPal and Square, the payments facilitator (payfac) model is reshaping the payments ecosystem, allowing nonpayments companies that adopt it to participate more fully in the payments revenue stream. 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. 20 (Processing fee: $0. 05 per transaction + $6 per monthly active account. Orange California Equipment Maintenance Agreement with an Independent Sales Organization. You must be logged in to post a comment. Worldpay was one of the first processors to offer payfac extensibility. 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. 2. an ISO. This allows faster onboarding and greater control over your user. 1 comment. e. Wide range of functions. 0 vs. 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. Sub-merchants sign an agreement with the PayFac for payment. A guide to marketplace payments. Besides that, a PayFac also. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. ISV: An Independent Software Vendor (ISV) is a company that creates and sells software. . agent A specified good or service is a distinct good or service (or a distinct bundle of goods orBy setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. GETTRX Zero; Flat Rate; Interchange; Learn. However, the setup process might be complex and time consuming. ISVs lease or sell their software, earning their money by providing Software-as-a-Service. The main difference between a payment aggregator and a PayFac is the type of merchant ID (MID) used to differentiate accounts. However, the setup process might be complex and time consuming. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. In this article: Payfac is a contracted Independent Sales Organisation (ISO), so they have the responsibility to manage their own sales agents and underwriters and adhere to the rules of the card associations. ISO. leveraging third party vendors. Each client is the merchant of record for transactions. In the scenario of a SaaS company operating as a PayFac, you are the master merchant and your customers are the sub-merchants. Industries. One classic example of a payment facilitator is Square. Read article. One classic example of a payment facilitator is Square. An ISO contract with banks to provide credit card processing services. Checkout’s UK & Europe net revenues in FY2019 were $55M and grew 52% yoy. What’s the difference in an ISO and a PayFac? While an ISO merely connects a merchant to a bank, a PayFac owns the full client experience. The PayFac model thrives on its integration capabilities, namely with larger systems. 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. 1) A PayFac always acts on sub-merchant’s (retailer’s) behalf, while an MOR might be the actual retailer. For example, an. 40% in card volume globally. In almost every case the Payments are sent to the Merchant directly from the PSP. A. The Job of ISO is to get merchants connected to the PSP. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. In banking and payments, ISO stands for independent sales organization – a type of merchant services company that acts as an intermediary and matches merchants with the payment processing services they need. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Merchants possess lang verstehen how. PayFac: ISO: Merchant onboarding timeline : Instant account approvals: Days or weeks : Sign-up process: Quick and easy. Payment Facilitation as a Service or as it commonly known PayFac as a Service, offers software platforms the ability to both monetize payments and onboard new users instantly.