#payment facilitator

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.  

Looking to become a Payment Facilitator as a SaaS application? How to become a Payment Facilitator as an SaaS application? The steps to becoming a PayFac or Payment Facilitator are outlined below. First it’s important to ask: Is your business a good candidate? The potential for revenue and being able to onboard clients is very attractive but there are many questions that must be addressed in order to embark on the path to becoming a Payment Facilitator. The vast majority of platforms that aspire to become a true payment facilitator | PayFac or aggregator aren’t good fits for MANY reasons. You will need: --Money. You can easily spend $50k+ -easy to spend over 100k --Payments understanding and especially risk mitigation --Resources to devote to ongoing compliance and risk-both staff and $ --User base that has the potential to generate enough transactional revenue to offset costs. Without this forget everything else. So how do you become a Payment Facilitator? Register w/Sponsor Bank Approval by Sponsor Bank Connect with Technology platform. Integrate via API Sponsor bank issues PayFac / aggregation credentials Go to market | Refine This process can take 6+ months or more. Hybrid Payment Aggregation or even a Payment Partnership may be better fits especially if your app does not have the “gravity” needed for true aggregation. Again MOST platforms aren’t ready for true payment facilitation BUT you can get most of the benefits without the cumbersome drawbacks if you find the right partner. Good luck.