Understanding Express Payment Solutions: PayFac Solution Options

Businesses that operate as Software as a Service providers (SaaS) can benefit greatly from becoming Payment Facilitators (PayFacs). PayFacs, or “Master Merchants,” control the credit and debit card payments for their sub-merchants. In recent years mainstream PayFac Solutions have emerged as extremely successful businesses such as Square, PayPal, and Stripe. In order to understand what being a PayFac means, let's use a home service provider (HSP) as an example. Traditionally, an HSP’s payment collection would go as follows: Gathering a customers business info Gather bank account information Complete an arduous merchant account application Wait for approval If the HSP becomes a PayFac, or Payment Service Provider (PSP),  the home service provider only needs to provide enough info to satisfy “know your customer” guidelines and provide bank account information. The platform…
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