What is a payfac?

A payment facilitator (Payfac) is a type of financial service provider that allows businesses to accept payments online without having to set up a merchant account. Payfacs aggregate transactions from multiple businesses under their own merchant account, simplifying the payment process for smaller businesses that may not meet the requirements for a traditional merchant account.

Payfacs typically charge a fee per transaction or a monthly fee for their services. They also provide payment processing tools, such as payment gateways and virtual terminals, to help businesses accept payments securely and efficiently.

Using a payfac can be a cost-effective and convenient option for businesses that are just starting out or have lower transaction volumes. However, it is important for businesses to carefully review the terms and fees associated with using a payfac to ensure they are getting the best value for their money.