Payment Facilitator

A payment facilitator is a company that enables other businesses (often called sub-merchants) to accept electronic payments — such as credit cards, debit cards, or ACH transfers — without having to apply for their own merchant account with a traditional bank or payment processor.

Instead of going through a long underwriting process, sub-merchants can sign up with the PayFac and start accepting payments almost instantly.

✅ Think of a PayFac as a "master merchant" that onboards and manages multiple sub-merchants under its umbrella.

How Does It Work?

Here’s how the PayFac model operates in a simplified flow:

1. The Payment Facilitator (PayFac) — is registered with an acquiring bank and payment network (like Visa or Mastercard).
2. Sub-Merchants — sign up with the PayFac and are onboarded under the PayFac’s master merchant account.
3. Transactions — are processed through the PayFac’s system, and payments are routed to each sub-merchant.
4. Compliance & Risk — The PayFac is responsible for KYC (Know Your Customer), fraud prevention, and regulatory compliance for its sub-merchants.

Benefits of the PayFac Model

✅ Faster Onboarding
Traditional merchant accounts can take days or even weeks to approve. PayFacs can onboard sub-merchants in minutes.

✅ Simplified Setup
No need to deal with multiple banks, processors, or third-party vendors. The PayFac handles the heavy lifting.

✅ Lower Barrier to Entry
Small businesses, startups, and independent contractors can start accepting payments quickly and affordably.

✅ Unified Experience
PayFacs provide a branded, seamless payment experience — often with customizable APIs and dashboards.

✅ Built-in Compliance
From PCI compliance to fraud checks, PayFacs manage much of the risk and regulation behind the scenes.****

How Does my PayFac integrate PaidYET

Contact PaidYET to learn more about this process. We use Payfachub.com as our preferred partner for our settlement program. Find out more here https://payfachub.com/