What is PayFac: A Guide to Payment Facilitation
Starting a new payment facilitator (PayFac) is not easy for anyone involved and especially for the acquirer – as a ‘pseudo-regulator’. The acquirer is legally and contractually responsible for managing many aspects of the payment ecosystem risks directly or through the third parties that it engages.
When other parties are involved, such as a payment facilitator, ISO, gateway or marketplace amongst many others, it is also almost always the acquirer that has full responsibility to the card schemes and regulators.
Becoming a PayFac comes with understanding these different terminologies, the various responsibilities and ecosystem risks involved to make sure that the systems always ‘work’, and that all global laws complied with.