Payment Facilitators and Sub-Merchants
A payment facilitator signs up businesses as sub-merchants under its own merchant account. That is quicker than a direct account, and the rules that come with it are different.
These pages explain the model and where a high-risk business fits in it.
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Payment Facilitator vs Marketplace Risk
Visa treats payment facilitators and marketplaces as two different models. This guide explains who carries the risk in each.
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Mastercard Payment Facilitator Rules
Mastercard sets its own rules for payment facilitators and the acquirers behind them. Here is what its manual requires, and what it means for your business.
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Merchant of Record vs PayFac Model
Both models let you take cards without your own acquiring contract. They sit in different spots in the payment chain and split the duties in different ways.
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Payment Facilitator vs Payment Processor
A processor moves your transactions. A payment facilitator holds your merchant relationship and the duties that come with it. Here is how the roles differ.
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Payment facilitator vs merchant account
A PayFac signs you up under its own contract. A merchant account is yours. Here is how the two models differ, in Visa's own words.
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Visa Payment Facilitator Rules
Visa's payment facilitator rules set out who is liable, who holds reserves and what a PayFac must check before it signs you.