Payment Facilitator

tags :

Summary #

This is a layer on top of a . Payments Faclitators can typically onboard Merchants very quickly and offer out-of-the-box hardware software to enable a Merchant to start accepting card-based payments quickly.

They help the merchants to get a sub-merchant account to get started with electronic payments quickly.

kindle

Examples #

• Square
• Toast

Pros and Cons #

Pros #

• Easy to setup
• Flat fee, easier calculations
• Cashback processing
• Dont’ have to interact directly with

Cons #

• PayFac have their own cut in the transactions fee
• Delay in settlement

How they make money? #

Revenue from software and hardware #

Payment Terminals, etc, Gateway

Revenue from each transaction #

Charged To merchant

Direct Merchant #

Pros and Cons #

Pros #

• Revenue from each transaction

• Can choose hardware and software

• Save money per transaction

• Negotiate pricing with

  Based on merchant type and nature of business.

• Faster Fund settlement

Cons #

• Manage own fraud and