Payment facilitator (PayFac)
A company that signs merchants under its own acquiring relationship and takes responsibility for them, so each merchant becomes a sub-merchant rather than holding their own account. It is the model behind sign-up-in-an-afternoon onboarding. The facilitator carries the underwriting and the risk, which is why it also sets the limits, the settlement terms and the decision to stop serving a sub-merchant.
Why it matters to a merchant
The word explains why two providers can quote wildly different onboarding times without either of them exaggerating. Under a facilitator you are joining an existing relationship, which is fast; on your own account you are being underwritten, which is not. Neither is wrong — but they leave you in different positions afterwards, and the position is the part worth asking about.
Read more: How to check a payment provider is actually licensed
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