Agile Payments Blog

Top 75 SaaS Blog.png

Payfac Companies

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.

They email their customer an invoice for $100, that customers clicks to secure payment page and makes payment. Best will not  be funded the entire $100. The payment fees are taken from this so they might see $96.80 assuming a 2.9% and 30 cent processing fee.Payment Facilitation-1

QBooks would receive a portion of the $3.20 fee being assessed. The amount will vary but a typical amount could be 40 cents.

So you have two attractive components: first the ease of enrolling a new client and second a revenue stream from every payment processed.

So how do Payment Facilitator Companies work?

  • Register w/Sponsor Bank
  • Approval by Sponsor Bank
  • Connect with Technology platform. Integrate via API
  • Sponsor bank issues PayFac / aggregation credentials
  • Go to market
  • Refine

In summary your search for Payment Facilitator Companies should start with a conversation.Our strength is creating partnerships that help your business be more profitable.

That’s a question best answered by having a conversation with you guessed it: Agile Payments. Our strength is creating partnerships that help your business be more profitable.

 

Follow me

Wayne Akey

Wayne Akey works collaboratively with SAAS providers whose clients have recurring billing needs to create innovative payment solutions and new revenue..

Contact Us

Follow Us On Social!

Subscribe to Our Blog – Strategies and Insights for SaaS