Merchant accounts for credit card processing are used by businesses to accept credit cards and there are different models. In essence, a PayFac is an agent for a payment processor, but a unique twist to the. As he noted, the banks’ PayFac clients are demanding the changes, in an industry where Square and Stripe are boosting payments acceptance across any number of verticals. As a result of the first two. the scheme and interchange fees). Are you a business looking to expand your payment acceptance options? Have you heard of payment facilitators, also known as PayFacs? These modern payment solutions offer more flexible and cost-effective options. 2. So, the main difference between both of these is how the merchant accounts are structured and organized. Learn more: PayFac vs ISO: which one to choose for your business? Benefits of becoming a PayFac. If necessary, it should also enhance its KYC logic a bit. PayFacs are often more suitable for SMEs seeking a quick and straightforward setup. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. It’s more PayFac versus wholesale ISO model or full liability ISO. 4. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. The key difference between a payment aggregator vs. Traditional – where banks and credit card. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. For SaaS providers, this gives them an appealing way to attract more customers. Payfac: What’s the difference? Independent Sales Organization (ISO) is a third-party entity that partners with payment processors or acquiring banks to facilitate merchant services. Wide range of functions. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. Payment processors do exactly what the name says. PayFac: Key Differences & Roles in Payment Processing Read more Top 4 Benefits of Being an Independent Sales Agent Read more Why Becoming a Sales Agent in the Payments Industry is a Great Job Opportunity! Read more How to Become a Successful Sales Agent in the Payments Industry. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Cons. e. Modern PayFacs find it more profitable to integrate with just one processor/gateway and provide merchant processing services (onboarding, chargeback. When PayFac became a buzzword among software platforms and the many businesses trying to sell to them, the meaning of the word started to blur. Generally, a PayFac is a good fit for businesses that process less than $1 million in payment volume annually, while an ISO is well-suited for larger businesses that process more than this. PayFac vs ISO. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The unique relationship PayFacs have with their merchants exposes them to more risk than your average ISO – even more than most wholesale ISOs – but, in return, PayFacs gain a lot of control over how. It’s where the funds land after a completed transaction. You own the payment experience and are responsible for building out your sub-merchant’s experience. PayFac: Key Differences & Roles in Payment Processing A payment facilitator (payfac) is a service provider for businesses that simplifies the merchant-account enrollment process. What is a card ISO? An ISO (independent sales organization) is a term Visa uses to refer to a person or organization that isn’t a Credit Card Association (i. Risk management. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. For example, an artisan. PayFac vs ISO: Contractual Process. ISOs offer greater control and potential cost savings for. However, the setup process might be complex and time consuming. Our digital solution allows merchants to process payments securely. For example, an artisan. Let’s figure it out! ISO vs. , Concord, California (“Wells”). PayFac vs. Difference #1: Merchant Accounts. As a result, PayFac or ISO must accept a higher level of accountability, which in the case of PayFacs maybe 100%. (Piense en Square, Stripe, Stax o PayPal). Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Compare PayFast vs. When you want to accept payments online, you will need a merchant account from a Payfac. The ISO acts as an intermediary between the merchant and the payment processor, taking care of merchant recruitment, sales, and ongoing merchant support, while the processor handles transactions behind the scenes. In this the ninth episode of PayFAQ: The Embedded Payments Podcast brought to you by Payrix, Host Bob Butler interviews Jorge Lozano, VP of Underwriting and Lloyd Fernandez, VP of Product at Payrix, about all of the decisions a software company must make when embedding or integrating payments. A PayFac, or payment facilitator, was originally defined by Visa® and Mastercard® to describe the entity that is officially doing business with the card brands. Partnering with a PayFac-as-a-Service provider leaves the technical work like coding, compliance monitoring, and payment integration to industry. However, the setup process might be complex and time consuming. Embedding payments into your software platform is a powerful value driver. Some ISOs also take an active role in facilitating payments. Independent sales organizations (ISOs) are a more traditional payment processor. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. A PayFac processes payments on behalf of its clients, called sub-merchants. Step 2: Transaction Originator collects debit card information and initiates transaction to Mastercard. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. The PayFac is the merchant of record for transactions. For example, an. However, the setup process might be complex and time consuming. ISO vs. ISO are important for your business’s payment processing needs. An ISO is a sales partner for payment processors, while a payment facilitator offers payment processing services to merchants by aggregating them under one master account. Sometimes a distinction is made between what are known as retail ISOs and. For example, an. Payfac is a contracted Independent Sales Organisation (ISO), so they have the responsibility to manage their own sales agents and underwriters and adhere to the rules of the card associations. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. A Payment Facilitator or Payfac is a service provider for merchants. However, the setup process might be complex and time consuming. 4. PayFac is more flexible in terms of providing a choice to. However, the setup process might be complex and time consuming. Since it is a franchise setup, there is only one. For example, an. They may offer more or different services than a processor. These first few days or weeks sets the tone for how your partners will best. On. However, the setup process might be complex and time consuming. To become a Mastercard merchant, simply contact an acquirer for a merchant account application. However, the setup process might be complex and time consuming. You own the payment experience and are responsible for building out your sub-merchant’s experience. The submerchants and the PayFac enter into an agreement, and that agreement is not related to the PayFac’s agreement with the payment processing partner. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. ; Selecting an acquiring bank — To become a PayFac, companies. However, the setup process might be complex and time consuming. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. debit card account, including non-Mastercard debit cards. For example, an. However, the setup process might be complex and time consuming. PayPal using this comparison chart. For example, an artisan. ISO are important for your business’s payment processing needs. Sometimes a distinction is made between what are known as retail ISOs and. Examples. The size and growth trajectory of your business play an important role. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. While an ISO product will sometimes take weeks to approve a merchant due to the more stringent and quite often paper-based application process, PayFacs are able to. See image of current working flow. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. PayFacs are businesses that resell merchant services on behalf of a payment processor, lightening the processor’s load and earning a slice of every transaction fee – known as a residual – in the process. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. One of the most significant differences between Payfacs and ISOs is the flow of funds. An ISO is an intermediary entity that resells and markets payment processing services on behalf of banks and payment processors. ”. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. The merchants can then register under this merchant account as the sub-merchants. For example, an artisan. The PayFac model allows a single entity to become the “merchant of record” and board sub-merchants with fewer data requirements and scrutiny. Payfac. One of the reasons for this phenomenon is that many companies (including former independent sales organizations (ISO)) find it more profitable to combine the functions of an online gateway provider and a merchant service provider (MSP). 4. April 12, 2021. When you enter this partnership, you’ll be building out systems. The PayFac model has gained popularity in recent years, as it allows businesses to simplify their payment processing and reduce costs, while also providing a better customer experience. PayFac vs ISO: 5 significant reasons why PayFac model prevails. PayFacs are generally. However, the setup process might be complex and time consuming. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. Payfac and ISO models involve much more regulatory and compliance overhead than payfac-alternative models. During Jim's tenure with NPC and Vantiv, he also drove the development of and relationship with several key NPC ISOs, as well as oversight and management of specific. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. ISO vs. All ISOs are not the same, however. For example, an. For example, an. It works by using one umbrella merchant account that allows every merchant to open as a sub-account underneath it. Visa vs. For example, an. ISO: An Independent Sales Organization (ISO) is a company that refers businesses that need to accept card payments to processors and acquiring banks. Payment Facilitator. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. PayFac Dynamic Payout Daily Operations Guide This document is intended for use by operations and financial professionals to assist with day-to-day monitoring and management of the Worldpay Dynamic Payout funding model. In recent years payment facilitator concept has been rapidly gaining popularity. e. Payment facilitation helps. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. PayFac Solution Types. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. g. As PSPs must pay acquirers and banks and still have some profit margin, the fees can be higher than what can be directly negotiated with banks and acquirers. So how much. Very rarely, said Mielke, do ISVs win with the “knee-jerk reaction of becoming a PayFac and capturing those additional revenues. PayFac registration may seem like the preferred option because of the higher earning potential. Blog 6 Ways Embedded Payments Benefit B2B Accounting SaaS. Massive technological leaps have made it easier than ever for software providers to explore new opportunities and expand their offering, such as becoming a PayFac as a service. 2) PayFac model is more robust than MOR model. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. A PayFac supports a large portfolio of sub-merchants throughout all their lifecycle — from underwriting to funding to chargeback disputing — and gets its reward for all these services (from every sub-merchant). Often, ISVs will operate as ISOs. However, the setup process might be complex and time consuming. PayFac vs Payment Processors. This can include card payments, direct debit payments, and online payments. In general, if you process less than one million. For example, an. No matter what your size, we can help enhance your business with streamlined, intuitive payment options for your customers, backed by a suite of payment tools to help you: Streamline billing and. A payfac or PF, short for payment facilitator, makes it possible for you to accept payments from customers in a variety of ways, including card payments,. One of the key differences between payment aggregators and payment facilitators is the size of sub-merchants they are servicing. It could be a product that is yet to reach the buyer,. A payment facilitator (or payfac) is the owner of a master merchant identification number who registers merchants as sub-merchants and enables their payment acceptance. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PSP and ISO are the two types of merchant accounts. Cutting-edge payment technology: Extensive. The merchant provides a few basic details to their PayFac provider. However, the setup process might be complex and time consuming. Payment Facilitator vs. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. While there is some overlap between a payment processor and a PayFac, there are also some important differences you should be aware of (although. Here are the six differences between ISOs and PayFacs that you must know. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. When accepting payments online, companies generate payments from their customer’s debit and credit cards. For example, an. For example, an artisan. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. facilitator is that the latter gives every merchant its own merchant ID within its system. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. In simple terms, the MOR is the name that the customer (cardholder) sees on the receipt. Also Read: Evaluating the Differences Between an ISO and a PayFac . Payfac-as-a-service vs. Payments is an expert in embedded payment solutions, enabling SaaS businesses to monetize payments through its turnkey PayFac-as-a-Service solution. For example, an. MoneySend is the Mastercard transaction type (Transaction Code 28) designed. Companies large and small rely on their accounting/finance, billing, cash. Payfac: What’s the difference?. For example, an artisan. The payfac accepts and processes payments on behalf of merchants (called submerchants in this context), through a contract with an acquirer. Although each of these methods offer their own distinct advantages, understanding how they differ and which option is right for your specific. . Second, because residuals are earned on. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. ISVs lease or sell their software, earning their money by providing Software-as-a-Service. The Visa® merchant aggregation model covers all commerce types, including the face-to-face and e-commerce environments, and helps to increase electronic payment acceptance for merchantsA Payment Facilitator (PayFac) is a type of merchant services company that provides business owners with a way to accept electronic payments, both online and in-store. For example, an. On balance, the benefits are substantial and the risks manageable. The distinction between wholesale ISO and PayFac is thusly less critical than the distinction between being a technology company and being a troglodyte. However, much of their functionality and procedures are very different due to their structure. The PayFac does not have to underwrite all merchants upfront — they are instead, underwriting the merchants essentially as they continue to process transactions for them on an ongoing basis. This allows faster onboarding and greater control over your user. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Here, ISOs (Independent Sales Organizations if on the Visa network), or MSPs (Member Service Providers if Mastercard) sell credit card processing services to merchants on behalf of an acquiring bank. Like payment facilitators, ISOs serve as intermediaries to provide merchants with access to the payments system on behalf of their acquiring bank partners, often serving specific markets with solutions tailored to their needs. ISO does not send the payments to the merchant. FinTech innovators love the payment facilitator (PayFac), a shift that WePay co-founder Rich Aberman outlined in Episode 1 of the Payment Facilitators series with Karen Webster, CEO of PYMNTS. Thus, in contrast to an ISO, a PayFac model can consolidate transaction processing volume and unify internal processes. Now let’s dig a little more into the details. The way Terminal creates API objects depends on whether you use direct charges or destination charges. For example, an. The ISO is tasked with facilitating the relationship between the two parties and getting merchants signed up with a merchant account. implementation of a payment facilitator model) calls for getting certified as one by the respective acquirer, and for. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. For some ISOs and ISVs, a PayFac is the best path forward, but. FIGURE 6: SaaS Provider & Platforms – Observed PayFac Model Progression Journeys . Payment Facilitator vs Payment Processor. PayFac vs. In contrast, PayFacs have one or two processor relationships and onboard ISVs as referral agents. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. ISO collaborates closely with the International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization. For example, an. The submerchants and the PayFac enter into an agreement, and that agreement is not related to the PayFac’s agreement with the payment processing partner. For example, an. What is an ISO vs PayFac? Independent sales organizations (ISOs). PayFac-as-a-service delivers a competitive payment program with instant onboarding of merchants while creating a seamless customer experience. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Recently, the concepts of PayFac and aggregators have started converging. 00 Retains: $1. ISO vs. As he noted, among the firms that most commonly move down the PayFac path – ISOs, ISVs and platform businesses – the benefits stand out quite brightly: easier. For example, an. For example, an. Payment Facilitators (commonly known as PayFacs or PFs) have risen in popularity over the recent years. What is a payfac? A payfac, short for payment facilitator, is a type of provider in the payments industry that simplifies the process for other businesses to accept credit and debit card payments. To ensure maximum relevancy, the logical structural models, assets, threats and security objectives in this document are based. Payfac’s immediate information and approval makes a difference to a merchant. 5. “One of the largest challenges a new PayFac will face is meeting the rigorous demands of its sponsorship bank,” says CJ Schneller, Vice President of Enterprise Risk at MerchantE. For example, an. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. For example, an artisan. However, the setup process might be complex and time consuming. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. However, the setup process might be complex and time consuming. sales and maintain loyalty. The PayFac, he said, has emerged, and evolved from its 1990s underpinnings where merchant acquirers had handled that merchant enrollment, boarding, underwriting and even settlement. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. . Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent. Now let’s dig a little more into the details. It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank. When the form is submitted I am using a flow to generate an approval, this works as expected. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. e. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. You own the payment experience and are responsible for building out your sub-merchant’s experience. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Before offering customers payment methods from popular card networks (Visa, Mastercard, etc. For example, an artisan. The Payment Aggregator can quickly onboard a new merchant (typically a user of the SaaS offering) and they can begin. Becoming a full payfac typically requires an agreement with a sponsoring merchant acquirer such as Worldpay, registering as a payfac with the card networks, becoming compliant with the Payment Card Industry Data Security Standard (PCI DSS. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. What’s the difference in an ISO and a PayFac? While an ISO merely connects a merchant to a bank, a PayFac owns the full client experience. The facilitator company collects and manages the money. In this model, the issuer (having the relationship with the cardholder) and the acquirer (having the relationship with the Merchant) is the same entity. At first it may seem that merchant on record and payment facilitator concepts are almost the same. The procedures used to develop this document and those intended for its further maintenance are described in the ISO/IEC Directives, Part 1. Step 1: Sender initiates P2P transaction to Transaction Originator. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. BOULDER, Colo. While there are advantages to taking on high risks, such as greater flexibility. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. Read More. 3. Typically, the ISO stays out of the contract between the two and instead focuses on the relationship with the payment processor. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. However, the setup process might be complex and time consuming. 3. Within the ARM industry, PayFac models can provide an especially significant benefit – these models can be used to enable full compliance for convenience fee solutions, in order to protect collection agencies from non-compliance risks including lawsuits,. The first is the traditional PayFac solution. With a. When accepting payments online, companies generate payments from their customer’s debit and credit cards. Stripe is an ISO with First Data Merchant Services (FDMS, I believe now owned or controlled by Wells Fargo) doing the actual processing and, as such, assumes a different legal role than PayPal (which is a VAR for Paymentech). Processor relationships. However, the setup process might be complex and time consuming. NPC is Vantiv's nationwide ISO merchant distribution business serving over 220,000 small-to-medium-sized merchants. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Mastercard PayFac Models: The Ins and Outs of the “Big Two” Payment Facilitator Programs. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Payfac is the abbreviated term often used in the payments industry to describe a company that provides payment processing services to. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Almost every bank nowadays has a department dealing with merchant services. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. The Payment Facilitator uses a sub-merchant platform to provide two types of merchant accounts, a PSP and an ISO. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Blog 6 Ways Embedded Payments Benefit B2B Accounting SaaS. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. What is a PayFac? Benefits & Reasons Why Businesses Need One in 2023. For example, an. For example, an. A PayFac is a processing service provider for ecommerce merchants. The most important difference between a PayFac and an ISO is that PayFacs “own” their merchants – entering into direct contracts with them (albeit on behalf of an acquiring partner. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Here are the six differences between ISOs and PayFacs that you must know. However, they do not assume. While all of these options allow you to integrate payment processing and grow your. With Fortis’ PayFac solution, software developers and merchants can leverage award-winning APIs and leading payment technology to scale their business. However, the setup process might be complex and time consuming. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Each client is the merchant of record for transactions. Typically, it’s necessary to carry all. It becomes more lucrative for a PayFac to offer merchant, gateway, and other services in one package and to support a single acquirer/processor. For example, an artisan. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. However, the setup process might be complex and time consuming. A three-party scheme consists of three main parties. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Segregated accounts are legally segregated from the firm's assets, meaning the company cannot use the funds stored to conduct business operations. At the same time, Paragon Payment Solutions assumes the majority of risk and responsibilities related to operational expenses, chargebacks,. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Thus, an ISO’s customers can access a wider range of processors, even if the onboarding experience is tedious. For example, an. (ii)during any period of two consecutive years, individuals who at the beginning of such period constitute the board of directors of the Company (the “Board”) and any new directors whose election by the Board or nomination for election by the Company’s stockholders was approved by at least two-thirds of the directors then still in office who either were. For example, an. The road to becoming a payments facilitator, according to WePay founder Rich Aberman, is long, expensive and technologically complex. In comparison, ISO only allows for cheque payments. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming. However, the setup process might be complex and time consuming.