A Payment Facilitator is a type of payment processor that simplifies payment acceptance for small businesses by acting as a merchant. Instead of each business needing to set up its own merchant account with a bank, a Payment Facilitator allows multiple businesses (sub-merchants) to process payments under its umbrella.
How Does a Payment Facilitator Work:
Traditional payment processing requires each business to set up a merchant account.
PayFacs allows businesses to use a shared master account, reducing the need for complex banking relationships.
Businesses can onboard quickly and start accepting payments without extensive compliance requirements.
Payment Facilitator helps startups and small businesses streamline payment processing without lengthy approvals and banking integrations.
Why It’s Beneficial for Small Businesses & SaaS Companies:
Faster setup – No need to go through complex underwriting for a traditional merchant account.
Lower compliance burden – Payment Facilitator handles fraud prevention, chargebacks, and PCI compliance.
Scalability – Ideal for SaaS platforms, marketplaces, and subscription businesses that want to offer built-in payment processing.
Simplified pricing – Businesses often pay a flat transaction fee instead of complex banking fees.
