Set up merchant management systems such as dashboards,A payment facilitator, also known as a “payfac” or payment aggregator, is a payment model that has grown tremendously over the past few years. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. PayFac vs Payment Processor. What is a payment facilitator? History of payfacs How to bring payments in-house Traditional payfac solutions Getting started Set up payment systems Set up merchant onboarding. The main advantage of becoming a Payment Facilitator is that you can quickly and easily enroll your application, enabling a smooth onboarding experience. Independent sales organizations (ISOs) and payment facilitators (PayFacs) both act as intermediaries between merchants and payment processors, making them parallel channels in the overall payments ecosystem. 1. 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. For example, an. Gateway Service Provider. leveraging third party vendors. However, the setup process might be complex and time consuming. PayFac vs merchant of record vs master merchant vs sub-merchant. Moreover, in a sense, PayFac model relieved acquirers from merchant management functions, which they delegated to PayFacs. ISO = Independent Sales Organization. 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 facilitators, aka PayFacs, are essentially mini payment processors. Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. Acquirer = a payments company that. To manage payments for its submerchants, a Payfac needs all of these functions. PayFac vs ISO: 5 significant reasons why PayFac model prevails. 83% of card fraud despite only contributing 22. Smaller. PayFac vs ISO: Weighing Your Payment Options . In banking and payments, ISO stands for Swipesum get all to need to see about Payfac. com. We promised a payfac podcast so you’re getting a payfac podcast. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. There are two types of merchant account providers: independent sales organizations (ISO) and payment facilitators (PayFac), also known as payment service providers (PSP). If you want to take a full revenue model opposed to a commission based model anyway. 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. They typically work with a variety of acquiring banks, using those relationships to "resell" merchant accounts to merchants. And this is, probably, the main difference between an ISV and a PayFac. One of the reasons for this phenomenon is that many companies (including former independent sales organizations (ISO)) find it more profitable to combine the functions of an online gateway provider and a merchant service provider (MSP). A. Examples. The underlying role that these fill for a business is to provide merchant services, and you can read our reviews of various merchant service providers here. However, the setup process might be complex and time consuming. The PayFac must properly follow KYC practices and correctly assess the sub-merchants as all transactions can be aggregated under a single merchant ID. In fact, ISOs don’t even need to be a part of the merchant’s contract. Payscape is also a registered ISO/MSP for Fifth. ISO: An Independent Sales Organization (ISO) is a company that refers businesses that need to accept card payments to processors and acquiring banks. In fact, they broke the mold when they offered Toast a payfac at $0. They provide the systems and technology that process transactions. Onboarding workflow. But of course, there is also cost involved. In almost every case the Payments are sent to the Merchant directly from the PSP. As merchant’s processing amounts grow, it might face the legally imposed. Blog. Both aggregators and facilitators offer similar benefits from the perspective of the end-user. next-level service: 24/7, every day of the year. It also must be able to. . The Job of ISO is to get merchants connected to the PSP. For example, an artisan. As a PayFac, Segpay handles the sub-merchant onboarding and provides a fully managed payment processing solution. Payment Facilitators offer merchants a wide range of sophisticated online platforms. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. However, the setup process might be complex and time consuming. Besides that, a PayFac also takes an active part in the merchant lifecycle. A payfac has a much more flexible payment system and a wider variety of payment methods, so much so that it can be carried out through the linked bank account. The types of new entities an ordinary ISO can turn into include a PayFac, a wholesale ISO, a next-generation ISO, or a merchant services consultant. PayFac vs Payment Processors. An ISO, or independent sales organization, is a company that resells payment services to merchants on behalf of a payment processor or acquiring bank. Independent sales organizations (ISOs) are a more traditional payment processor. Now let’s dig a little more into the details. PayFac vs ISO: When Does One Make Sense over The Other? Add comment. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. A PayFac provides credit card processing services to merchants on behalf of a bank or other. Even within the payments industry, ISOs and the role they play are. This allows the businesses under the payfac’s umbrella to focus on their core operations rather than deal with the complexities of the. Examples of Payment Facilitators. Each client is the merchant of record for transactions. The choice between a PayFac and a payment processor depends on your business needs, industry, and desired level of support. ISO vs. I SO. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFac is software that enables payments from one vendor to one merchant. You own the payment experience and are responsible for building out your sub-merchant’s experience. Payment Facilitator (PFAC, PayFac, PF): A merchant service provider who can facilitate transactions and simplify the merchant account enrollment process on behalf of the sub-merchant. The name of the MOR, which is not necessarily the name of the product seller, is specified by. To put it another way, PIN input serves as an extra layer of protection. Contracts. PayFac vs. Sub-merchants sign an agreement with the PayFac for payment. Top content on Payment Facilitation and SaaS Payments as selected by the SaaS Brief community. Blog. While there are many benefits of integrating to a Payfac, two of the most notable are frictionless onboarding and risk, liability and costs associated. What is a merchant of record? Read article. For businesses, the difference between using payfac-as-a-service compared to becoming a payfac comes down to time, cost, and risk. 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. If the intermediary entity, which funds the sub-merchants, uses different MID for each merchant, it is called a payment facilitator. ISV: An Independent Software Vendor (ISV) is a company that creates and sells software. To photographers, it describes the light sensitivity of a differential camera or a piece to picture. Becoming a payment facilitator is a change to your operational and support models, has and it pays long-term benefits. 0 began. Cancel reply. Owners of many software platforms face the need to embed. 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. Payment facilitators (PFs) were created to make a more streamlined path to electronic payment acceptance for small and medium-sized businesses. Business Size & Growth. April 12, 2021. A payfac is a type of payment aggregator, but it typically provides a more comprehensive suite of services. 2. A Payment Aggregator or Facilitator [Payfac] can be thought of as being a Master Merchant-facilitating credit, debit card and ACH transactions for sub-clients within their payment ecosystem. PayFac: How the Two Most Common Types of Payment Intermediaries Differ. A. Payfac and payfac-as-a-service are related but distinct concepts. In addition to serving as Payroc ’ s SVP Payfac Trusty,. merchants look at the long-term TCO on buying vs. Payment facilitation helps you monetize. Difference #1: Merchant Accounts. In fact, when a merchant is seen as potentially liable for fraudulent activity, an ISO and/or processor are sometimes named as codefendants, along with people at the ISO or processor who. 9% and 30 cents the potential margin is about 1% and 24 cents. 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. ISOs. 2. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. So, revenues of PayFac payment platforms remain high. Also, unlike an ISO, the PayFac provides the processing services, settlement of funds, and billing to the merchant. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. Payment processors do exactly what the name says. This was around the same time that NMI, the global payment platform, acquired IRIS. . Both offer companies a means of accepting and processing payments, and while they may appear to be the same, they are. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. ISOs rely mainly on residuals, a percentage of each. So naturally, any company considering the option needs to make sure the investment they’ll make in the Payfac model makes sense financially. With an ISO, you’ll. Those who implement the PayFac model get their residual revenue share for handling both business and technical aspects of merchant lifecycle. Extensive. Payroc LLC is a registered independent sales organization (ISO/MSP) for Fifth Third and Wells Fargo Bank, N. However, the setup process might be complex and time consuming. PayFac-as-a-Service; Pricing. ISO vs. Lower. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. ”. For example, an. If you need to contact us you can by email: support. 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. Browse Payfac, SaaS and SaaS Payments content selected by the SaaS Brief community. 2. Supports multiple sales channels. Establish connectivity to the acquirer’s systems Two-way information flow: • Th Payfac pushes messages the acquirer (transaction info). Reduced cost per application. Since it is a franchise setup, there is only one. 07% + $0. One of the most significant differences between Payfacs and ISOs is the flow of funds. Most businesses that process less than one million euros annually will opt for a PSP. There’s not much disclosure on the ‘cost of sales’ (i. For SaaS providers, this gives them an appealing way to attract more customers. The merchant interacts directly with the ISO and follows their set processes to register and become. Click here to learn more. However, the setup process might be complex and time consuming. 1. By viewing our content, you are accepting the use of cookies. PayFac-as-a-service delivers a competitive payment program with instant onboarding of merchants while creating a seamless customer experience. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its. This site uses cookies to improve your experience. If necessary, it should also enhance its KYC logic a bit. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Instant merchant underwriting and onboarding. In contrast, a PayFac is responsible for the submerchants. Registered payment facilitators earn 20-40 basis points more per transaction than they would riding the rails of another wholesale PayFac. Part 1 charted PayFac’s evolution from “fast onboarding for ISOs” to more nuanced, vertically focused, customizable solutions. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. 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. Depending on your processing volumes there are two different types of merchant accounts that you will qualify for, either a PSP and an ISO. Payfac’s immediate information and approval makes a difference to a merchant. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. This is because PayFacs or master merchants must have a market or domestic entity wherever they are providing. 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). Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. For example, an. For example, an. In general, if you process less than one million. 1. 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. For example, an artisan. 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. an ISO. 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. 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. May 24, 2023. Payment facilitator model is a lucrative option for many present-day companies. SaaS. Modern PayFacs find it more profitable to integrate with just one processor/gateway and provide merchant processing services (onboarding, chargeback. 20 (Processing fee: $0. (PayFac) Receives: $3. This includes underwriting, level 1 PCI compliance requirements,. Identifying these incidents via the Infinicept system quickly is an easy first step to take in halting such. Avoid the slow, manual sub-merchant onboarding with other payfac solutions, and offload your payments compliance obligations to Stripe. PayFacs provide a similar service to standard merchant accounts, but with a few important differences. Article September, 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. Payment Facilitator. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent that. One is an ISO or independent sales organization, and another is a PayFac or payment facilitator. ISO, so you can choose one of the two, or you’re looking for a PayFac solution for your business. PayFac vs ISO: When Does One Make Sense over The Other? Add comment. However, the setup process might be complex and time consuming. But for this purpose, it needs to build a strong relationship with an acquirer that will underwrite it as a PayFac. But a lot has. ISOs are an exceptionally important part of the payments ecosystem, serving a critical role that supports both their processing partners and their merchants. 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. Jun 29, 2023. The contract is typically between the sponsor and the merchant, but the ISO may sometimes be included in a three-party agreement. As a seasoned global executive with strategic leadership experience across banking, #. Payfac Pitfalls and How to Avoid Them. First popularized by firms like PayPal and Square, the payments facilitator (payfac) model is reshaping the payments ecosystem, allowing nonpayments companies that adopt it to participate more fully in the payments revenue stream. They offer merchants a variety of services, including. Here are the six differences between ISOs and PayFacs that you must know. ISO: Key Differences & Roles In Payment Processing The world of payment processing has its fair share of acronyms, and two of the most popular are. Becoming a payment facilitator is a change to your operational and support models, has and it pays long-term benefits. Global Electronic Technology, Inc. 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. 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. Recently, the concepts of PayFac and aggregators have started converging. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. 40% in card volume globally. The acquirer receives funds from the issuer and pays them into the master merchant account of the PayFac. While all of these options allow you to integrate payment processing and grow your. Aug 10, 2023. Our belief remains that all payfacs will inevitably write directly to the networks and avoid the processors for so many reasons. In order to provide a plausible explanation, we need to understand the evolution of the merchant services industry. ISOs and ISVs are both B2B providers, working with merchants and the companies who serve them. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. 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). If the merchant fits the requirements, PayFac onboards is a sub-merchant under the master MID. Both offer ways for businesses to bring payments in-house, but the similarities end there. Clover vs Square. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. Generally speaking, you will. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Payment Facilitators contract directly with the sub-merchant for processing services and perform key payment activities in-house. A payment facilitator (PayFac) is a merchant services business that sets up electronic payment and processing services for business owners, so they can accept electronic payments online or in-person. In short, a PayFac or payment facilitator, is a master merchant that supports sub-merchants. responsible for moving the client’s money. The Payment Aggregator can quickly onboard a new merchant (typically a user of the SaaS offering) and they can begin. When choosing between a Payment Facilitator (Payfac) and a Merchant of Record (MoR) for your business, several key factors should be carefully considered: 1. If you are an existing Bambora customer who needs assistance there are our support guides that can be found here. Payfac is a contracted Independent Sales Organisation (ISO), so they have the responsibility to manage their own sales agents and underwriters and adhere to the rules of the card associations. an ISO. Maybe you want to learn about PayFac vs. In order to understand how. Marketplaces that leverage the PayFac strategy will have an integrated. ISO are important for your business’s payment processing needs. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. A PayFac is one of the types of a payment service provider (PSP). or by phone: Australia - 1300 721 163. But how that looks can be very different. While there are advantages to taking on high risks, such as greater flexibility. For example, an. 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. When you want to accept payments online, you will need a merchant account from a Payfac. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. On. As mentioned, the primary difference between payment facilitators & payment processors lies in how merchant accounts are organized. Unlike PayFac technologies, ISO agreements must include a third-party bank to sponsor the contract. Whatever information you need, we can help. Payment Facilitator. For starters, ISOs function only as resellers. The PayFac model revolutionized the payments industry by streamlining the onboarding process and providing a one-stop solution for SaaS businesses. The payment facilitator model was created by the card networks (i. The payment facilitator works directly with the. Very few PayFac as Service providers publish pricing to sub PayFac’s and there is a reason. Independent sales organizations (ISOs) and resellers of merchant services are examples of payment service providers in the industry. This also means the Payfac assumes the merchant’s credit liability, but they diversify this risk by aggregating a large pool of merchants under them. For example, an artisan. Square has been one of the most disruptive technology companies in the past decade, yet they recently caught the media’s attention for the wrong reason. Payment Facilitators are 100% responsible for PCI Compliance, risk underwriting, funding and providing payment support. 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. Payfac’s immediate information and approval makes a difference to a merchant. The new PIN on Glass technology, on the other hand, is becoming more widely available. July 12, 2023. Top content on Payfac, SaaS and SaaS Payments as selected by the SaaS Brief community. A guide to payment facilitation for platforms and marketplaces. Payment Processors and ISOs have a symbiotic relationship, with each party benefiting from the collaboration. In essence, they become a sub-merchant, and they face fewer complexities when setting. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. June 26, 2020. Our belief remains that all payfacs will inevitably write directly to the networks and avoid the processors for so many reasons. You may have also heard the name “Member Service Provider (MSP)”, which is the term Mastercard uses to call ISO. According to an canvass leaded by payment processing mammoth TSYS, 80% of consumers pick debit and believe show compared to exactly 14% who said they favorites cash. 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. Learning the meaning of the following terms will help you evaluate PayFac-as-a-Service providers and choose the one best suited to your needs. At Payline, we’re experts when it comes to payment processing solutions. For example, an. Our comprehensive article delves into the merits and challenges of Payment Facilitators (PayFac) versus Independent Sales Organization (ISO) registration. April 12, 2021. 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. However, much of their functionality and procedures are very different due to their structure. ISOs never directly touch a merchant’s money as the money will flow directly from the payment processor to the merchant’s merchant. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. Our payment-specific solutions allow businesses of all sizes to. For example, an. PayFac vs. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFac vs ISO: Key Differences. 00 Payment processor/ merchant acquirer Receives: $98. Difference #1: Merchant Accounts. ; Re-uniting merchant services under a single point of contact for the merchant. However, the setup process might be complex and time consuming. ISO Versus the PayFac Payment Model. However, they do not assume. PayFac vs. However, the setup process might be complex and time consuming. This is because the. For example, an artisan. a Payment Service Provider (PSP), aka a Payment Facilitator (PayFac). 00 Retains: $1. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Below we break down the key benefits of the PayFac model for software. The PayFac model is also very attractive to independent software vendors. Payfac: A payfac operates under a master merchant account and creates subaccounts for each business it services. Payfac conducts oversight on all the transactions on its platform to ensure that all payments operate under legal and network regulations. Worldpay was one of the first processors to offer payfac extensibility. Cutting-edge payment technology: Extensive. 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. ISO vs PayFac: What’s the difference? An ISO is a third-party company that refers merchants to acquiring banks or payment service providers. Contracts. 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. Without ISOs, a relatively small handful of global and regional payment processors would each be forced to interact with. Payfac: A payfac operates under a master merchant account, and creates subaccounts for each business it services. PayFac-as-a-service delivers a competitive payment program with instant onboarding of merchants while creating a seamless customer experience. PayFac vs ISO: Differences, Similarities, and How to Choose the Right One 11 Like Comment Share Copy; LinkedIn; Facebook; Twitter; To view or add a comment, sign in. Typically, the ISO stays out of the contract between the two and instead focuses on the relationship with the payment processor. You own the payment experience and are responsible for building out your sub-merchant’s experience. A payment facilitator allows sub-merchants under one master merchant to process payments easily, with less hassle. Transaction Monitoring. Once upon a time, cash where king, but includes today’s direct world, elektronic transactions have usurped the toilet. This means that there is no need for any charges between the issuer and the acquirer. What is a payment facilitator (payfac)? What is an independent sales organization (ISO)? What are the differences between ISOs and payfacs? Do I need an ISO or a payfac? Is Stripe an ISO or a payfac? Payment Facilitator vs ISO. And a payment processor determines the perfect payment alternatives to serve the customers. You must be logged in to post a comment. Swipesum data all you need in know about Payfac vs ISO. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. Conocidas como organizaciones de ventas independientes, las ISO actúan como intermediarias entre el banco patrocinador y el comerciante. Merchants get underwritten more efficiently, while acquirers are relieved of some merchant services, delegated to PayFacs for a reward. Thus, an ISO’s customers can access a wider range of processors, even if the onboarding experience is tedious. One of the key differences between PayFacs and ISO systems is the contractual agreement. The ISVs that look at the long. In fact, ISOs don’t even need to be a part of the merchant’s contract. For example, in an ISO relationship, you’re unable to customize the onboarding experience for your customers, but with managed payment facilitation, you can. Also, it’s essential to mention that PayFac is a Mastercard model, while the one for Visa is a payment service provider. In contrast, PayFacs have one or two processor relationships and onboard ISVs as referral agents. This doesn’t happen with ISO, as it never handles money directly. ISO: Key Differences & Roles In Payment Processing The world of payment processing has its fair share of acronyms, and two of the most popular are PayFac (Payment Facilitator) and ISO (Independent Sales Organization). May 24, 2023. So, the main difference between both of these is how the merchant accounts are structured and organized. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. Read article. In contrast, a PayFac is responsible for the submerchants. Payment facilitation helps. . To help us insure we adhere to various privacy regulations, please select your country/region of residence. 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. implementation of a payment facilitator model) calls for getting certified as one by the respective acquirer, and for. the PayFac Model. In simple terms, the MOR is the name that the customer (cardholder) sees on the receipt. Here’s how Visa defines payment facilitators and sponsored merchants: “PayFac or merchant aggregator, a payment facilitator is a third party agent. 20) Card network Cardholder Merchant Receives: $9. While some software providers starting out as an ISO or referral partner may elect a managed payfac solution as the next logical tech enablement progression, other providers may not want to relinquish visibility and control to a third. 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. In this model, the issuer (having the relationship with the cardholder) and the acquirer (having the relationship with the Merchant) is the same entity. At Finix, we're active participants in the payments market and educate whoever wants to get into it with us -- don't miss our PayFac vs ISO write up! We also…Payment Facilitator (PayFac): 大商户模式，是商户而不是收单机构。Payfac可以对接一些子商户。 二、 收单费. ISOs are sometimes compared to archaic human species becoming extinct and. By viewing our content, you are accepting the use of cookies. This site uses cookies to improve your experience. Third-party integrations to accelerate delivery. ISO. Some ISOs also take an active role in facilitating payments. ISO vs. Reducing. Recommended for companies processing less than $50M of annual payments volume (APV) 66%. Ongoing Costs for Payment Facilitators. In a new series, Rich Aberman, co-founder of WePay, and Karen Webster set the record straight on what a PayFac is and isn’t, how a company can become one (and what it costs), the value equation. One of the key differences between PayFacs and ISO systems is the contractual agreement.