We get frequent inquiries from SaaS platforms and start ups about becoming a PayFac or Payment Facilitator.

If you’ve considered becoming a Payment Facilitator (PayFac) for your SaaS customer base, you’re familiar with the term “KYC,” or Know Your Customer. As the payment processing industry continues its trend of explosive growth, however, KYC might be more accurately termed “CYA.”

Steps to becoming a Payment Facilitator are outlined below.

EXECUTIVE SUMMARY

SaaS platforms and Software vendors have a unique opportunity. Whether you already offer some type of payment collectionoption or have an application that has the potential to leverage payments there has never been a better time to explore your options.

Payment facilitation or payment aggregation allows one entity, the master merchant, to process or facilitate payments for a base of sub-merchants. For SaaS providers these are typically application end users or customers.

Payment Facilitator Companies

A Payment Facilitator takes on the role of the  Master Merchant. The primary benefit to becoming a Payment Facilitator is that you can quickly and easily enroll your app users and enable processing of  credit, debit card and in some case ACH transactions .

As an example: A SaaS offers an invoicing solution eg QBooks. Businesses that want to leverage their invoicing solution complete a simple application and 15 minutes or so later they are approved and set up to accept customer payment. For our example let’s say the business name is “Best Landscapers”.  They applied and are now approved and ready to bill/invoice there customers using the QBooks platform.

How can an ACH Transfer API help your business or SaaS?

An ACH Transfer API provides an additional payment option: Using the ACH network allows a business to debit or credit checking and savings accounts.

We receive regular inquiries from start-ups as well as established businesses that believe they have a killer app that can be the next Venmo or Zelle.

Payment Facilitation Problems: What you should know about potential funding issues

Payment Facilitator Provider

Payment Facilitators [Payfacs] act as Master Merchants that process credit and debit card transactions for their sub-merchants within their payment application. Typically a Payment Facilitator would be a software platform that serves a specific vertical market eg Event ticketing.

A Payment Facilitator or PayFac assumes the role of Master Merchant. Payment Facilitating allows the Master Merchant to quickly and easily onboard their sub merchants or in the case of a SaaS platform Payment Facilitating allows platform users to the ability to accept credit, debit card and in some case ACH transactions for participants in their payment ecosystem.

Is Payment Facilitation a good option for your SAAS or Platform?

Payment Facilitator Programs

Payment Facilitators [Payfacs] are  Master Merchants that process credit and debit card transactions for their sub-merchants within their payment application.

Payment Facilitator Tools

A Payment Facilitator takes on the role of Master Merchant. This allows them to set up their application users to accept payments. The major benefit to becoming a Payment Facilitator is to quickly and easily onboard sub clients or SaaS platform users to facilitate credit, debit card  and in some case ACH transactions .

An example: A SaaS offers an business management solution for Yoga Studios. The software is call Yoga101.  Yoga 101 uses Payment Facilitator Tools to allow quick sign up and provide payout and compliance functionality.

Payment Facilitator versus Payment Processor : What’s the Difference

Payment Facilitator Systems

A Payment Facilitator assumes the role of the  Master Merchant. The major benefit to becoming a Payment Facilitator is to quickly and easily onboard sub clients or SaaS platform users to facilitate credit, debit card  and in some case ACH transactions .

Let’s use an example: A SaaS offers an invoicing solution eg MyBooks. Businesses that want to leverage their invoicing solution complete a simple application and 15 minutes or so later they are approved and set up to accept customer payment. For our example let’s say the business name is “Best Landscapers”.  They applied and are now approved and ready to bill/invoice there customers using the MyBooks platform.

Payment Facilitator Provider: Who do you work to become a Payment Facilitator?

A Payment Facilitator or PayFac  acts as a the Master Merchant. The  Payment Facilitator role is to quickly and easily onboard their sub merchants or SaaS platform users to facilitate credit, debit card  and in some case ACH transactions for participants in their payment ecosystem. The Payment Facilitator is responsible for regulatory compliance and has financial risk of their sub-users.

In the past the only Payment Facilitator Provider offering was to become a  “True PayFac”. Becoming a true Payment Facilitator is expensive, time consuming and requires staffing to meet compliance and risk mitigation demands. In essence you become a payment business in addition to to your core SaaS offering.

IVR Phone Payments- 24/7/365 Automated Customer Payment Center

IVR Billing - 24/7/365 Automated Customer Payment Center

PCI Compliant IVR Tokenization Solutions – Interactive Voice Response for Phone Based Customer Payments

Credit card data is required to be handled in a PCI compliant manner. IVR Tokenization is the process that securely exchanges full credit card number for a non-sensitive replacement value in an IVR Payment Solution.

PCI Compliant IVR Gateway Solutions – Interactive Voice Response for Phone Based Customer Payments

An IVR Gateway provides automated phone based payment acceptance solution for organizations.

IVR Payment Software: What are your options in your IVR Payment Solution search

IVR Payment  Software Solutions offer payment options that allow clients to pay bills or invoices via self service. Customers dial into a  phone and connect to an automated IVR system and interact via voice prompts, allowing customers them to pay amounts due without human interaction from the business side.

Best IVR Payment Systems: What to look for in your IVR Payment search

An IVR Payment Solution creates new customer option that allows customers to pay bills or invoices without involving business staff or resources. Customers dial into a  phone and connect to an automated IVR system that interacts via voice prompts with the caller, allowing them to pay amounts due without human interaction from the business side.

IVR Transactions: Interactive Voice Response for Inbound Customer Payment Transactions

IVR Transactions occur when customers call into an IVR Payment Solution.