#payment facilitation

Managed PayFac or Managed Payment Facilitation

A  Payment Facilitator [Payfac] https://www.agilepayments.com/managed-payfac is essentially a Master Merchant

Managed PayFac : Options for SaaS platforms to leverage payments as revenue drivers

Managed PayFacs https://www.agilepayments.com/managed-payfac can be thought of as “sub PayFacs.” A true PayFac

assumes all of the compliance, regulatory and infrastructure costs. These costs can easily exceed 100k.

The Managed PayFac option creates a platform for you to leverage these tools and have your business act as a sub

More money, more control: How property management SaaS companies are using payment facilitation to improve their business

https://www.agilepayments.com/

For the SaaS provider, potential advantages in becoming a Payment Facilitator are compelling: payment facilitation drives ease in client onboarding and unlocks a new stream of revenue generation.

The ability to bypass onboarding friction by enabling customers to immediately accept credit cards through your app is a competitive differentiator. As well, customers’ ability to forgo burdensome application processes drives up your engagement and adoption. These dynamics mean more revenue derived from the payment facilitation solution.

But payment processing is inherently risky, even on the traditional merchant processor level.  

Those risks are compounded exponentially for a SaaS organization who becomes a payment facilitator, particularly one with a high volume client base that processes primarily subscriptions on credit card transaction basis.  

Knowing your customer is critical. Chargebacks are of critical concern, and ultimately it’s the SaaS company that carries the burden on them.  While the benefits of payment facilitation are attractive, without the compliance and supporting infrastructure, the risks can quickly compromise the engagement. In some cases it’s worth exploring a hybrid facilitation model where underwriting and compliance concerns are transferred, while opportunities for revenue generation remain. Contact Agile Payments as [email protected] to explore your options

Becoming a PayFac or Payment Facilitator: What can go wrong?

For the SaaS provider, potential advantages in becoming a Payment Facilitator are compelling: payment facilitation drives ease in client onboarding and unlocks a new stream of revenue generation.