Payment facilitators enable the ability for merchants to quickly and easily accept payments by simplifying their platforms and integrating the payments experience. This helps remove friction in the application and onboarding process. For companies that choose to own the payments function in-house, the process involves becoming what’s known in the payments industry as a payment facilitator.
If you need a payment processor to extend your platform’s capabilities, you have the option to choose between using an ISO (Independent Sales Organization) or a payment facilitator. Partnering with an ISO allows your customers to accept payments. However, the vetting and onboarding process can take a long time. That’s where payment facilitators come in.
In addition to easing the payment processing experience, 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, more unified experience for your platform’s users without the hurdles inherent to the ISO model. This is how payment facilitators make your platform better.
What is Payment Facilitation?
Payment facilitation is a service that payment processors and Saas-based companies offer to allow other software solution providers to accept payments from their platform. 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 gives both your users and their customers a seamless user experience. Payments technology is embedded straight within your software infrastructure giving both software solution providers and their customers a seamless user experience. Merchants will be able to more efficiently manage their business, while customers will enjoy an easier way to pay.
Payment facilitators also offer 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.
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. This leaves new merchants often having to wait a week or more for underwriting and approval before they can begin accepting payments.
With a payment facilitator, the underwriting process is completed in-house allowing them to evaluate the data in real-time. Because users have already been vetted there is less information needed to get them approved for processing.
Payment facilitators often take advantage of technology to streamline this process, making a sub-merchant path to accepting payments much faster. PayFac also provides processing services, settlement of funds, and billing to the merchant.
Improve User Experience with a Payment Facilitator Partnership
As mentioned above, Payment facilitation expedites onboarding and underwriting for merchants. They can complete their application and have a live account usually on the same day. Partnering with a Payment Facilitator provides the shared power of setting up sub-merchants quickly. This streamlines new client acquisition since they don’t have to fill out paperwork or provide documentation in order to set up their account.
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, you’ll generate more revenue from the opportunity since the acquiring bank is no longer in the equation. This leaves a larger share of revenue between you and the payment facilitator.
The ability to earn more money from network and transactional fees, and potentially float a much larger amount of payments for a much longer time is a benefit that helps the merchant with cash flow.
Payment facilitators add value to your platform for your users. The integration between software and payments has opened up additional opportunities, such as EMV, mobile payments, and contactless payment solutions. There are also opportunities for NFC (Near Field Communication) based loyalty programs providing an overall enhanced customer experience thanks to these digital payment tools. The ability to integrate these payment functions directly into your platform not only allows you to deliver an enhanced customer experience, it differentiates your business from others in the marketplace.
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. Because of the way payment facilitators operate, developers reap the rewards of offering payment processing without taking on any of the risks.
Working 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.
Why Your Business Should Partner With Stax Connect For Payment Facilitation
Modernize your enterprise and stay ahead of the competition with an all-in-one, customizable payments experience. As your partner in payments, we make it simple for you to seamlessly accept payments straight from your platform.
Our suite of developer tools is available for you to begin development right now. No matter the platform your business can easily enable payments via the Stax Connect API. Stax Connect provides you with access to a full payments experience, including the latest in data optimizations and payment technology, analytics, and reporting.
With Stax Connect You’ll Have Access To:
- Access to the Stax Dashboard
- Award-winning 24/7 customer support
- No need for custom engineering resource requirements
- Save costs on implementation, with no additional fees
- Easy enrollment allowing you to onboard customers in 20 minutes
- Access to the lowest credit card processing fees, in addition to the ability to adjust customer pricing
- Revenue Sharing
Learn more about Stax Connect and find out more information on how you can quickly get started on monetizing payments today. We will be happy to answer any questions you have and help you leverage the best all-in-one software payment processing solution for your needs.