If you need a payment processor to extend your platform’s capabilities, you can choose between using an ISO and a payment facilitator. Partnering with an ISO allows your users to accept payments. However, the vetting and onboarding process can take a long time. That’s where payment facilitators come in.
In addition to payment processing, payment facilitators also take on the risk – resulting in faster set-up and a more streamlined experience for your users.
When you partner with a payment facilitator, you create a seamless and integrated experience for your platform’s users without the hurdles inherent to the ISO model. We’ll break down how they work.
What is Payment Facilitation?
Payment facilitation is a service that payment processors offer to allow other technology providers to accept payments. For instance, a software provider that developed an app to schedule salon appointments could partner with a payment facilitator to allow their salons to accept payments right in the app.
Using a payment facilitator to accept payments in your existing website, product, or app gives both your users and their customers a great experience. Users will be able to more efficiently manage their business, while customers will enjoy an easier way to pay.
Payment facilitators also have some unique advantages over the traditional model of using an ISO. The most impactful difference for your users is cutting down the time waiting for underwriting to sign off on a new merchant account. Instead of waiting to be approved to accept payments, your users will be up and running in hours.
No Wait: Same-Day Processing
When processing with an ISO a new merchant needs their own Merchant ID. This means that once they finish their application, a risk and underwriting team has to review their documentation before they can start taking payments. New merchants often have to wait a week or more for underwriting and approval.
Instead, with a payment facilitator, there is no underwriting process because they take on the risk. Because you have already vetted your users, there is less information needed to get them approved for processing.
Improve User Experience with a Payment Facilitator Partnership
Payment facilitation expedites onboarding and underwriting for merchants. They can complete their application and have a live account on the same day.
You’ll enjoy more revenue opportunities with a payment facilitator. With an ISO, the acquiring bank takes a share of the revenue, so it’s split three ways. But with a payment facilitator, the acquiring bank is out of the equation. This leaves a larger share of revenue between you and the payment facilitator.
Payment facilitators add value to your platform for your users. When you partner with a payment facilitator, you’ll be able to integrate payments directly into your platform, ensuring a smooth experience for your users.
You also have access to features that make your application or platform attractive to new users, such as:
- Instant onboarding for your customers to accept payments instantly
- Text to pay options for billing
- Split payments
- One-time and recurring billing
- Enhanced security and compliance
- All-in-one comprehensive solution
Partnering with a payment facilitator gives your users a quick and simple onboarding experience while adding value to your platform. Unlike an ISO model, you can instantly onboard users and have them up and running in the same day. Because of the way payment facilitators operate, developers reap the rewards of offering payment processing without taking on any of the risk.
Partnering with a payment facilitator is a low-risk, high-reward investment for any platform. Ready to add payments to your platform? Learn more about our integrated partnerships.