In this guide, we’ll explore what a payment facilitator (often abbreviated as payfac or PF) is, examine the considerations and costs of different types of payfac solutions, and identify the best ways to add payments to a platform or marketplace.

A PayFac is a third-party services provider that acts as an intermediary between merchants and payment processors. As well as reducing the administrative burden for sub-merchants, PayFacs have the flexibility to completely customize their payments program.

Nov 17, 2023 · PayFacs streamline payment processing by using their Master Merchant Account to handle payments for sub merchants. They manage the entire payment cycle, from accepting to processing electronic payments, while ensuring security and compliance. A critical function of PayFacs is risk management.

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. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries.

What is a PayFac Model? A payment facilitator, or PayFac, is a type of merchant services provider (MSP) that equips merchants with payment processing capabilities. In other words, it enables businesses to start processing electronic payments.

Nov 30, 2022 · As a PayFac, Waystar provides fast, accurate, and reliable payment consolidation, technology and hardware. Through practices like MID consolidation and streamlined KYC, we’re able to facilitate better, faster communications and payments.

Mar 28, 2025 · PayFac as a Service is a methodology that streamlines the extremely complicated process of becoming a Payment Facilitator. Historically, organizations that have wanted to be full Payment Facilitators have needed to set up extensive compliance, risk management, and operating structures.

Dec 6, 2023 · In essence, PayFac As A Service allows companies to act as sub-Payment Facilitators under a master merchant account managed by a full PayFac provider. This model is akin to a partnership, where the service provider handles the heavy lifting of compliance, risk management, and transaction processing.

PayFac-as-a-Service simplifies payment processing by handling the complex tasks for you. It streamlines merchant onboarding, manages compliance, and reduces your business’s risks and liabilities. This allows you to focus on your core business while offering a complete payment solution to your merchants.

What is a PayFac (Payment Facilitator)? A Payment Facilitator (PayFac) is a third-party service that lets merchants accept various forms of non-cash payments like credit/debit cards or digital payments. It offers the infrastructure for seamless payment processing. How do PayFacs work?