Every online business needs an efficient payment processing solution. That’s where payment facilitators (PayFacs) come in.
Payment facilitators help you avoid the inconveniences that come with setting up and using conventional merchant accounts.
PayFacs are essentially third-party processors that act as intermediaries between merchants and banks or other payment networks.
They cover all the necessary processes involved in payments from start to finish. This includes everything from verifying the customer and the merchant to managing fraud, compliance, and settlement.
PayFacs are becoming increasingly popular for their flexibility and convenience. Here are some of the key benefits of using a PayFac as a service:
1. Streamlined onboarding process
Signing up with a traditional merchant account can be a complicated and time-consuming process. PayFac companies, like Tilled, on the other hand, simplify this process by providing an easier onboarding solution. They typically only require basic information about your business for approval.
Once approved, you can start accepting payments instantly. The PayFac will own a merchant account, making it possible for the merchants who use your platform to sign up as sub-merchants.
2. Less risk to your business
PayFacs are responsible for managing the risk associated with online payments. By signing up with an established PayFac, you can be assured that all transactions will be handled securely and compliantly.
Reliable PayFacs also guarantee chargeback protection, ensuring that your business is safeguarded against fraud and other risks.
As if that’s not enough, fees for transactions are only charged when the transaction has been successfully processed. That’s why PayFac-as-a-service works perfectly when you don’t have a large transaction volume.
3. You can monetize payments
One of the greatest benefits of using PayFac-as-a-service is that you can actually monetize the payments facilitation process.
By using a payment infrastructure like Tilled, you can offer your own white-labeled payment processing services to end users.
This allows you to generate income and increase brand visibility while freeing up resources that would otherwise be tied up in managing the actual payments process.
Alternative options such as shared revenue also work perfectly when it comes to increasing the overall profit of your online business.
4. Seamless integration with existing systems
Using a PayFac solution allows you to easily integrate the payment processing system into your existing setup.
This eliminates the need for additional infrastructure and ensures that you can start accepting payments quickly.
You also don’t have to worry about designing customized payment systems or connecting them with other systems such as accounting software, CRMs, and more. With PayFac-as-a-service, all the necessary integrations are already taken care of.
5. Enhanced customer experience
When customers make payments, they want to do it securely and quickly. PayFacs ensure that their transactions are fast, secure, and successful.
And even when they encounter issues, your PayFac should be able to handle such. That way, the customer does not have to seek assistance from a third-party payments handler.
This helps boost your reputation as a reliable service provider and enhances the overall customer experience. It also encourages customers to trust your services and increases the probability of repeat purchases.
6. Custom payment capabilities
Using a PayFac as a service provides you with more control over your payment capabilities. This includes the ability to accept different currencies, configure payment options, and even set up recurring payments.
Most importantly, these features are completely configurable according to your needs. Regardless of the payment needs that you have, an experienced PayFac will offer a custom solution that works for you.
To sum it all up,
Using a PayFac-as-a-service offers many benefits and can be a great way to streamline payment processing while reducing costs and risk.
With the right partner, you can offer an efficient payment solution that meets the needs of both merchants and customers alike.
Tilled is committed to helping you realize the full potential of your online business by offering reliable, secure, and cost-effective payment processing solutions. Sign up today to experience the benefits of PayFac-as-a-service for yourself.
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