On. You may also like. PayFac-as-a-service delivers a competitive payment program with instant onboarding of merchants while creating a seamless customer experience. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Payment facilitation, or PayFac allows a SaaS company to act as a master merchant for its client base. However, the setup process might be complex and time consuming. A PayFac, or payment facilitator, was originally defined by Visa® and Mastercard® to describe the entity that is officially doing business with the card brands. The speed at which a merchant can start processing payments with a PayFac is vastly different than the rate at which this could be done in the legacy ISO model. Now let’s dig a little more into the details. Also known as a “PayFac” or merchant aggregator, a payment facilitator is a third party agent that contracts with an acquirer to THE ACQUIRER A Visa Client licensed to provide card acceptance services. This can include card payments, direct debit payments, and online payments. Transaction Monitoring. For example, an. ISVs create software for companies in the payments industry. Click here to learn more. Some stay where they are (like, again, Uber or Amazon), while others decide to implement the PayFac model. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. Both offer companies a means of accepting and processing payments, and while they may appear to be the. PINs may now be entered directly on the glass screen of a smartphone using this new technology. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. For example, an artisan. To put it another way, PIN input serves as an extra layer of protection. In this article we are going to explain why payment facilitator model is becoming so popular (attracting more and more entities) while ISO model is gradually dying out, vacating the space for new payment facilitators. A Payment Facilitator or Payfac is a service provider for merchants. While we’ll discuss costs below, PayFacs can onboard merchants much more quickly than a traditional ISO model. Blog. Payfac-as-a-service vs. This model is ideal for software providers looking to. Also, unlike an ISO, the PayFac provides the processing services, settlement of funds, and billing to the merchant. ISO vs. Worldpay was one of the first processors to offer payfac extensibility. Fast, efficient boarding solutions that orchestrate third-party and internal systems to help you turn prospects to customers – face-to-face, on the phone, or online. Also take a look at some of the primary regulations payfacs face, such as those from the Financial Crimes Enforcement Network, Office of Foreign Assets Control, and USA PATRIOT Act. Even though PayFacs and ISOs may seem to be quite similar on the surface, there are a few key differences between them. PayFac vs. In contrast, a PayFac is responsible for the submerchants. 1. A guide to marketplace payments. Blog. Without ISOs, a relatively small handful of global and regional payment processors would each be forced to interact with. Becoming a Payment Aggregator. The ISO acts as an intermediary between the merchant and the payment processor, taking care of merchant recruitment, sales, and ongoing merchant support, while the processor handles transactions behind the scenes. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Software users can begin. The PayFac, he said, has emerged, and evolved from its 1990s underpinnings where merchant acquirers had handled that merchant enrollment, boarding, underwriting and even settlement. a PSP/PayFac. A payment facilitator allows sub-merchants under one master merchant to process payments easily, with less hassle. Jun 29, 2023. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. ) The PayFac takes on merchants as its own contracted “sub-merchants,” which process their transactions through the master merchant account. PayFac vs ISO. It’s an easy choice for the ISV or PayFac that wants to boost its growth and dip its toes into a very easy international market. Payfac and payfac-as-a-service are related but distinct concepts. This is because the per-transaction payment processing rates are typically better for merchant accounts—as opposed to sub-merchant accounts. It also must be able to. (PayFac) Receives: $3. Visa and Mastercard allow sub-merchants to process up to $1 million in annual charge volume before requiring them to establish their own, independent merchant accounts. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. PayFac vs ISO: which one to choose for your business? Read article. In other words, ISOs function primarily as middlemen. The size and growth trajectory of your business play an important role. Gateway Service Provider. Becoming a payment facilitator is a change to your operational and support models, has and it pays long-term benefits. This doesn’t happen with ISO, as it never handles money directly. Traditionally, a business that wanted to accept card payments would need to set up a merchant account with a bank, which can be a complex and time. While there are many benefits of integrating to a Payfac, two of the most notable are frictionless onboarding and risk, liability and costs associated. PSP and ISO are the two types of merchant accounts. Before outlining the similarities and commonalities of ISOs and ISVs, it’s helpful to recap their key differences: ISOs sell payment solutions to merchants, with wholesale ISOs offering additional services such as customer support. When PayFac became a buzzword among software platforms and the many businesses trying to sell to them, the meaning of the word started to blur. Reduced cost per application. Payment facilitation, or “payfac,” continues to grow in popularity among software providers and is designed to facilitate payment card acceptance without requiring individual merchants to go through the lengthy process of establishing traditional merchant accounts. However, the setup process might be complex and time consuming. Now let’s dig a little more into the details. The facilitator company collects and manages the money. ISVs create software for companies in the payments industry. PayFac registration may seem like the preferred option because of the higher earning potential. It’s where the funds land after a completed transaction. ISO: An Independent Sales Organization (ISO) is a company that refers businesses that need to accept card payments to processors and acquiring banks. Besides that, a PayFac also takes an active part in the merchant lifecycle. Click at read more about what an OBO is and what it has to do with make processing! don’t provide any processing infrastructure, nor do they continually control any on their merchants’ money directly. The main advantage of becoming a Payment Facilitator is that you can quickly and easily enroll your application, enabling a smooth onboarding experience. Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. the PayFac Model. ISO vs. July 12, 2023. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Very rarely, said Mielke, do ISVs win with the “knee-jerk reaction of becoming a PayFac and capturing those additional revenues. Becoming a full payfac typically requires an agreement with a sponsoring merchant acquirer such as Worldpay, registering as a payfac with the card networks, becoming compliant with the Payment Card Industry Data Security Standard (PCI DSS. For example, an artisan. This model gives your users the ability to seamlessly accept payments directly from your platform and allows you to own and monetize the payments experience. Independent sales organizations (ISOs) are a more traditional payment processor. However, the setup process might be complex and time consuming. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. Identifying these incidents via the Infinicept system quickly is an easy first step to take in halting such. Merchants possess lang verstehen how. And a payment processor determines the perfect payment alternatives to serve the customers. An ISO (Independent Sales Organization) is similar to a PayFac in a lot of ways. The Visa Global Registry of Service Providers is the payment industry's designated source for information on registered and compliant agents that provide payment-related services to Visa clients and merchants. Very few PayFac as Service providers publish pricing to sub PayFac’s and there is a reason. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. 1 comment. Payment facilitation helps you monetize. Below the ‘ISO agent’ chunk of the pyramid would be the shopkeepers and then the customers [email protected]. However, the setup process might be complex and time consuming. Offering similar services to popular payment processing tools like Stripe and PayPal, PayFac is a third-party merchant service provider. To help us insure we adhere to various. In general, if you process less than one million. PSP = Payment Service Provider. This is a clear indicator that fraud monitoring should be a priority in 2022 and beyond, and why it’s vital to work with a PayFac like. The PayFac aggregates transactions and sends them to their processor, keeping operations streamlined. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. On. For example, an. If necessary, it should also enhance its KYC logic a bit. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. Moreover, in a sense, PayFac model relieved acquirers from merchant management functions, which they delegated to PayFacs. While both types of merchant account providers can assist you with equipment and services, an ISO will provide you with your own merchant account, whereas a. In this sub-merchant model, Payfac has a master merchant account under which merchants are signed up, as sub-merchants. Jun 29, 2023. PayFac = Payment Facilitator. In essence, PFs serve as an intermediary, gathering. Proven application. ; For now, it seems that PayFacs have. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. Here are the six differences between ISOs and PayFacs that you must know. 20) Card network Cardholder Merchant Receives: $9. next-level service: 24/7, every day of the year. To photographers, it describes the light sensitivity of a differential camera or a piece to picture. What’s the Difference? Before payment facilitators began enabling smaller merchants to accept payments, acquiring banks relied on another. The downside of this speed is the risk exposure in a breach; if a retail ISO is breached the acquirer steps in and shoulders most of the load. Next-generation ISO (or next-gen ISO) is a. ISO. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. One of the key differences between PayFacs and ISO systems is the contractual agreement. ”. 00 Payment processor/ merchant acquirer Receives: $98. A. The merchant interacts directly with the ISO and follows their set processes to register and become. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. While an ISO, or independent sales organization, is similar to a Payfac, there are some key differences. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. Sub-merchants sign an agreement with the PayFac for payment. That is why the model seems so attractive for different. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Each client is the merchant of record for transactions. PayFac or payment facilitator model allows you to add a new revenue stream to the profit you get from selling your core product. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Risk management. While there is some overlap between a payment processor and a PayFac, there are also some important differences you should be aware of (although this isn’t a fully exhaustive list!) Here are the top 6 differences: The electronic payment cycle The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. At the same time, more companies are implementing PayFac model and establishing PayFac payment gateway partnerships. For example, an. However, the setup process might be complex and time consuming. If a marketplace or any other company (ISO, SaaS provider, ISV, franchisor, venture capital firm) decides that it is the right time for it to become a white-label or full-fledged PayFac, it can do so. The Visa® merchant aggregation model covers all commerce types, including the face-to-face and e-commerce environments, and helps to increase electronic payment acceptance for merchants The differences of PayFac vs. You own the payment experience and are responsible for building out your sub-merchant’s experience. Generally, a PayFac is a good fit for businesses that process less than $1 million in payment volume annually, while an ISO is well-suited for larger businesses that process more than this. However, they do not assume. A PayFac, or payment facilitator, is a merchant services model that streamlines the merchant account enrollment process by onboarding a merchant as a sub-account under the PayFac’s master account. Onboarding workflow. PayFac vs ISO: Weighing Your Payment Options . The PayFac model thrives on its integration capabilities, namely with larger systems. As part of the agreement, the PayFac obtains the right to onboard sub-merchants. Without ISOs, a relatively small handful of global and regional payment processors would each be forced to interact with thousands. However, the setup process might be complex and time consuming. The PayFac model has gained popularity in recent years, as it allows businesses to simplify their payment processing and reduce costs, while also providing a better customer experience. Payfac and payfac-as-a-service are related but distinct concepts. Our digital solution allows merchants to process payments securely. . For example, an artisan. You own the payment experience and are responsible for building out your sub-merchant’s experience. Top content on Payfac, SaaS and SaaS Payments as selected by the SaaS Brief community. The key aspects, delegated (fully or partially) to a. There are DEF benefits to. Both PayFacs and ISO’s (independent sales organizations) act as intermediaries between merchants and payment processors . Once a sub-merchant has been through the onboarding process it is down to the PayFac to control payments adhering to the rules. The name of the MOR, which is not necessarily the name of the product seller, is specified by. In this post, we break down the differences between a few of the most common routes you can take when it comes to integrated payment models: independent sales organization (ISO), full-fledged payment facilitator (PayFac), or PayFac-as-a-Service (PFaaS) models. Now that you’ve learned about what a PayFac is, you might want more information. Go female, it describes the daylight sensitivity of a digital camera or a chunks of film. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. PayFacs vs ISOs. Cancel reply. Hardware and Software. In the current downturn, said Mielke, the PayFac or ISV that is diversified will be better positioned to weather the storm. Now that you’ve learned about what a PayFac is, you might want more information. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Estimated costs depend on average sale amount and type of card usage. Those who implement the PayFac model get their residual revenue share for handling both business and technical aspects of merchant lifecycle. There’s not much disclosure on the ‘cost of sales’ (i. PayFac vs ISO: Contractual Process. There are several ways for businesses to go about accepting payments, and two of the most popular provider options are PayFacs and Independent Sales Organizations (ISOs). Our belief remains that all payfacs will inevitably write directly to the networks and avoid the processors for so many reasons. The ISO is an intermediary signing up the merchants for the acquirer’s payment processing services. However, the setup process might be complex and time consuming. The Traditional Merchant Onboarding Process vs. responsible for moving the client’s money. Just to clarify the PayFac vs. However, the setup process might be complex and time consuming. It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank. Almost every bank nowadays has a department dealing with merchant services. e. This site uses cookies to improve your experience. One of the main benefits to adopting the Payfac ® model is the increase in revenue you get from each transaction processed using your software. The PayFac model thrives on its integration capabilities, namely with larger systems. 40% in card volume globally. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. Establish connectivity to the acquirer’s systems Two-way information flow: • Th Payfac pushes messages the acquirer (transaction info). Whatever information you need, we can help. For example, an artisan. A PayFac works by establishing one master merchant account, which can then be leveraged by multiple businesses for a small fee. Payfac = a software product, platform, or marketplace that has in integrated payments into its product, and is responsible for the risk of transactions processed by its customers. 1. Supports multiple sales channels. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Our comprehensive article delves into the merits and challenges of Payment Facilitators (PayFac) versus Independent Sales Organization (ISO) registration. Anti-Money Laundering or AML. Technology has fundamentally changed how businesses, acquiring banks, and card networks work together. While there are one lot of roles ISOs handle in that payments space, they Swipesum details all you must go know about Payfac vs ISO. However, the setup process might be complex and time consuming. Through our payment facilitation platform, Treati we're able to provide a full-stack payments API for B2B companies structured in a one-to-many model. ISO vs. Although each of these methods offer their own distinct advantages, understanding how they differ and which option is right for your specific. A Payfac, or payment facilitator, is essentially a third-party payment system that allows businesses and organizations to receive and process online and in-store payments. And this is, probably, the main difference between an ISV and a PayFac. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. becoming a payfac. PayFac vs. We promised a payfac podcast so you’re getting a payfac podcast. However, payment processing can quickly become overwhelming and complicated, often leaving. Blog. For example, an. In 2021, global payment facilitators processed over $500 billion in transactions – a 75% increase over the previous year. 20) Card network Cardholder Merchant Receives: $9. However, the setup process might be complex and time consuming. When you want to accept payments online, you will need a merchant account from a Payfac. Blog. See moreWhat is a payment facilitator (payfac)? What is an independent sales organization (ISO)? What are the differences between ISOs and payfacs? Do I need an. Contracts. So naturally, any company considering the option needs to make sure the investment they’ll make in the Payfac model makes sense financially. However, the setup process might be complex and time consuming. The SaaS provider onboards clients via a non-intrusive application process -- making it simple for the user base to quickly begin accepting customer payments by credit card. One classic example of a payment facilitator is Square. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. PayFac vs ISO: When Does One Make Sense over The Other? Now’s Your Chance to Suggest 2020 Article Topics. Typically, the ISO stays out of the contract between the two and instead focuses on the relationship with the payment processor. Equip your business with the knowledge to choose the right payment strategy. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. When choosing between a Payment Facilitator (Payfac) and a Merchant of Record (MoR) for your business, several key factors should be carefully considered: 1. Revenue Share*. And this makes a difference for several reasons, when it comes to the pros and cons of using a ISO/MSP vs. Square, Stripe, PayPal, AirBnB and Uber are well-known examples of PayFacs. Before this model was available, businesses would often partner with an ISO to enable payment acceptance for its clients—and many still do today. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. Payfacs are registered independent sales organizations (ISOs) that have been sponsored by an acquiring bank. Most businesses that process less than one million euros annually will opt for a PSP. The PayFac does not have to underwrite all merchants upfront — they are instead, underwriting the merchants essentially as they continue to process transactions for them on an ongoing basis. Read article. NPC is Vantiv's nationwide ISO merchant distribution business serving over 220,000 small-to-medium-sized merchants. Since it is a franchise setup, there is only one. Part 1 charted PayFac’s evolution from “fast onboarding for ISOs” to more nuanced, vertically focused, customizable solutions. PayFac vs Payment Processors. Under the PayFac model, each client is assigned a sub-merchant ID. 1. Click to read more nearly thing an ISO the real what it has to do with payment processing! 7. This model is ideal for software providers looking to. Payment facilitation helps. The arrangement made life easier for merchants, acquirers, and PayFacs alike. Payment Facilitators are 100% responsible for PCI Compliance, risk underwriting, funding and providing payment support. Here are the six differences between ISOs and PayFacs that you must know. Each ID is directly registered under the master merchant account of the payment facilitator. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run. Understanding the Payment Facilitator model The payment facilitator model was created as a way of streamlining business’ processes in a way that would allow them to accept electronic. . subscribing, and for some of these “old heads” (I’m in that group…. To learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. However, the setup process might be complex and time consuming. Both the PayFac and ISO acquisition models have unique benefits and drawbacks. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. Principal vs. However, the setup process might be complex and time consuming. It provides a technology, allowing to authorize transactions and, potentially, receive transaction settlement information. ISOs, unlike Payfacs, rely on a sponsor bank to. To help us insure we adhere to various privacy regulations, please select your country/region of residence. In a similar manner, they offer merchants services to help make the selling process much more manageable. PayFac: ISO: Merchant onboarding timeline : Instant account approvals: Days or weeks : Sign-up process: Quick and easy. PSPs facilitate payments and act as a proverbial middleman between you and the merchant. Since the start of COVID-19, Square has begun to hold back 20 to 30 percent of some of their client’s revenues for up to 4 months. 007 per transacation. As a seasoned global executive with strategic leadership experience across banking, #. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Want to know the difference between ISO and payment facilitator? ️ Read this summary to find out why payment facilitator concept has been rapidly gaining popularity. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. They are agents of the banks and therefore only. While an ISO product will sometimes take weeks to approve a merchant due to the more stringent and quite often paper-based application process, PayFacs are able to. At Payline, we’re experts when it comes to payment processing. The PayFac does not have to underwrite all merchants upfront — they are instead, underwriting the merchants essentially as they continue to process transactions for them on an ongoing basis. They provide services that allow software platforms to accept credit and debit card payments and make it easier and faster for them to start accepting payments as they handle most of the work for you. A PayFac will function as a payment facilitator in this general sense (though it's important to note the differences outlined above), and you can use a payment gateway to translate data between the PayFac and the credit card providers. One classic example of a payment facilitator is Square. For example, an. What is a Payment Facilitator (Payfac)? Payfacs are an evolution of a long-established distribution model in the payments industry. All in all, the payment facilitator has the master merchant account (MID). leveraging third party vendors. The payment facilitator works directly with the. San Jose California Equipment Maintenance Agreement with an Independent Sales Organization. Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. 3. Principal vs. 6 differences between an ISO and a PayFac Why a PayFac might be a better choice for your business Frequently asked questions about ISOs versus PayFacs Is an ISO a PayFac? An ISO is a. At Payline, we’re experts when it comes to payment processing solutions. To learn more about the differences between these payment models, see our blog: PayFac vs ISO: Weighing Your Payment Options. an ISO. Difference #1: Merchant Accounts. It assumes liability for losses or non-compliance. Even though PayFacs and ISOs may seem to be quite similar on the surface, there are a few key differences between them. An ISO is a sales partner for payment processors, while a payment facilitator offers payment processing services to merchants by aggregating them under one master account. When PayFac became a buzzword among software platforms and the many businesses trying to sell to them, the meaning of the word started to blur. Stripe’s payfac solution. Top content on Payfac and Payments as selected by the SaaS Brief community. Top content on Payment Facilitation and SaaS Payments as selected by the SaaS Brief community. Indeed, PayFac model is a beneficial solution for merchants, acquirers, and, of course, payment facilitators themselves. Massive technological leaps have made it easier than ever for software providers to explore new opportunities and expand their offering, such as becoming a PayFac as a service. However, the setup process might be complex and time consuming. Ongoing Costs for Payment Facilitators. To know that your payfac relationship is completely above-board, first know what a payment facilitator is and the issues related to money transmission. At first it may seem that merchant on record and payment facilitator concepts are almost the same. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Why more and more acquirers are choosing the PayFac model. However, the setup process might be complex and time consuming. We get white glove treatment from Global Payments Integrated—they put clients first. Generally, a PayFac is a good fit for businesses that process less than $1 million in payment volume annually, while an ISO is well-suited for larger businesses that process more than this. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. What is a payfac? A payfac, short for payment facilitator, is a type of provider in the payments industry that simplifies the process for other businesses to accept credit and debit card payments. The merchant interacts directly with the ISO and follows their set processes to register and become. The ISO is tasked with facilitating the relationship between the two parties and getting merchants signed up with a merchant account. For example, an. Payfac conducts oversight on all the transactions on its platform to ensure that all payments operate under legal and network regulations. One of the most significant differences between Payfacs and ISOs is the flow of funds. Wide range of functions. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. A Payfac, or payment facilitator, is essentially a third-party payment system that allows businesses and organizations to receive and process online and in-store payments. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. PayFacs perform a wider range of tasks than ISOs. If your rev share is 60% you can calculate potential income. However, the setup process might be complex and time consuming. As he noted, among the firms that most commonly move down the PayFac path – ISOs, ISVs and platform businesses – the benefits stand out quite brightly: easier. Aug 10, 2023. Toward the middle person, ISO is the acronym used by the International Arrangement for Standards. ISO vs. Acquiring banks willingly delegated them to payment facilitators in exchange for part of liabilities and residual revenues. The rise of software platforms and online marketplaces has accelerated the change: increasingly, these businesses are connecting buyers and. Payment Facilitator vs Payment Processor. Each of these sub IDs is registered under the PayFac’s master merchant account. Research firm Statista estimates payfac transaction volume totaled $88 billion last year,. The new PIN on Glass technology, on the other hand, is becoming more widely available. 5. 4. I/C Plus 0. Some ISOs also take an active role in facilitating payments. FIS’ rival, Fiserv, acquired the remaining stake of Finxact for $650 million, while another company, Fintech Amount, bought Linear for $175 million. This means that there is no need for any charges between the issuer and the acquirer. Both offer companies a means of accepting and processing payments, and while they may appear to be the. It runs about 40 minutes (really shooting to be less than 30) and we discuss the differences in payfac vs ISO and where payfac is heading. The terms aren’t quite directly comparable or opposable. By setting up its own merchant account via an ISO, the retailer can negotiate specific terms and rates, potentially saving money in the long run.