Moving from Managed PayFac Providers to a PayFac-as-a-Service: A Game-Changer for ISVs

Moving from Managed PayFac Providers to a PayFac-as-a-Service

As an ISV CTO, you are constantly looking for ways to streamline payment processing and generate revenue for your company. With the rise of the PayFac model, you may have considered becoming a Payment Facilitator yourself or using a “PayFac-in-a-Box” solution. While the idea of owning your payment processing and earning a percentage of the fees charged to your customers may seem enticing, there are several drawbacks to consider before taking this step.

Firstly, the cost of setting up and maintaining a PayFac-in-a-Box solution can be significant. You will need to invest in software development, compliance, and security measures, which can quickly add up. Additionally, ongoing maintenance and support costs can be substantial, and it may take years to recoup the initial investment.

Secondly, becoming a PayFac also requires a significant staffing investment. You will need to hire and train personnel to manage the payment processing system, including compliance officers, risk management specialists, and technical support staff. This can be a considerable expense, both in terms of salaries and benefits and the time required to recruit and train qualified personnel.

Thirdly, becoming a PayFac also entails taking on significant financial risk. As a Payment Facilitator, you will be responsible for all chargebacks and refunds, which can quickly add up and eat into your profits. Additionally, managing compliance with industry regulations and staying up to date with changing rules can be a significant challenge, which requires expertise and resources.

Given these challenges, many ISVs are turning to PayFac-as-a-Service providers as a more cost-effective and efficient solution. By partnering with a PayFac-as-a-Service provider, ISVs can benefit from the advantages of the PayFac model without the upfront costs, staffing, and risk associated with becoming a Payment Facilitator.

A PayFac-as-a-Service provider can offer the same convenience, control, and revenue sharing benefits as a PayFac-in-a-Box solution, without requiring the same level of investment. Instead of building and maintaining your own payment processing infrastructure, you can leverage a provider’s existing system, which has already been vetted for compliance and security.

Furthermore, a PayFac-as-a-Service provider offers additional benefits, such as access to multiple payment processors and currencies, better negotiating power for transaction fees, and ongoing support and maintenance. By partnering with a PayFac-as-a-Service provider, ISVs can focus on their core business activities, while leaving payment processing to the experts.

In conclusion, while the idea of owning your payment processing as a PayFac may seem attractive, the costs, staffing requirements, and risks involved can be significant. Instead, many ISVs are turning to PayFac-as-a-Service providers to reap the benefits of the PayFac model without the burden of investment and management. By partnering with a PayFac-as-a-Service provider, you can focus on your core business activities and generate revenue through a seamless payment processing experience for your customers.

Benefits of PayFac-as-a-Service for ISVs and their Customers

Benefits of PayFac-as-a-Service

Part 3 or 3

In the previous post, we discussed how PayFac-as-a-Service works and the advantages it provides for software companies. Now, let’s explore the benefits of PayFac-as-a-Service for ISVs and their customers.

First and foremost, PayFac-as-a-Service allows ISVs to provide a more seamless and integrated payment experience for their customers. This creates a better user experience and increases customer loyalty.

Additionally, PayFac-as-a-Service provides ISVs with a new revenue stream. By becoming a PayFac, software companies can earn revenue from payment processing fees. With PayFac-as-a-Service, software companies can enjoy all the benefits of becoming a PayFac without any of the hard work or upfront investment.

For customers, PayFac-as-a-Service provides a fast and secure payment option that integrates seamlessly with the ISV’s platform. This saves time and eliminates the need to enter payment information multiple times.

In conclusion, PayFac-as-a-Service is revolutionizing the payment industry for ISVs by providing a cost-effective and efficient way to become a PayFac. By leveraging PayFac-as-a-Service, ISVs can create a better user experience for their customers and unlock new revenue streams for their business.

How PayFac-as-a-Service Works

How PayFac-as-a-Service Works

Part 2 of 3

In the previous post, we discussed the basics of the PayFac model and how PayFac-as-a-Service is making it accessible to ISVs. Now, let’s dive deeper into how PayFac-as-a-Service works.


PayFac-as-a-Service provides ISVs with an all-in-one platform that handles the complexities of payment processing. The platform provides developer-friendly APIs and SDKs that can be implemented in a matter of days, allowing for a rapid and streamlined onboarding experience for customers. This creates a more integrated and frictionless payment experience, providing a better user experience and unlocking new revenue streams for software companies.


Additionally, PayFac-as-a-Service eliminates the need for software companies to become a fully registered payment facilitator. This saves time, money, and resources that can be allocated to other areas of the business.


In the next post, we’ll explore the benefits of PayFac-as-a-Service for ISVs and their customers.

Understanding the PayFac Model

Understanding the PayFac Model

Part 1 of 3

As an Independent Software Vendor (ISV), you know how important it is to provide a seamless payment experience for your customers. In today’s digital world, customers expect fast and secure payment options that integrate seamlessly with your platform. That’s where Payment Facilitators (PayFacs) come in.

In this series, we will explore how PayFac-as-a-Service is revolutionizing the payment industry for ISVs. But first, let’s start with the basics. The PayFac model allows businesses to process payments on behalf of their customers without the need for a traditional merchant account.

Historically, becoming a fully registered payment facilitator took several years and millions of dollars, making it out of reach for most software companies. However, PayFac-as-a-Service has changed the game for ISVs. With easy-to-use developer tools and APIs, software companies can quickly and easily integrate payments into their products, providing a better user experience and unlocking new revenue streams.

In the next post, we’ll dive deeper into how PayFac-as-a-Service works and the benefits it provides for ISVs of any scale.

Payment Solutions For Contractors

Payment Solutions for Contractors

Merchant Partner offers several payment solutions designed to meet the needs of Brainerd Lakes Area contractors allowing you to take payments on the job or back at the office.


Simple is in the name and it’s what you get, with SwipeSimple you can take payments at the jobsite using their mobile app your Android or IOS Device turns into a secure credit card terminal. Pair your phone or tablet with their contactless card reader you can effortlessly enter your customers credit card for payment.

For the Office

Use their virtual terminal to turn on your office PC to take payments, invoice clients or create a payments link for taking online payments. If you accept business cards you can also qualify for better processing rates by entering additional cardholder information for your transaction, this can be substantial for larger transactions.

SwipeSimple For Contractors

Smart Terminal/Mobile Payments

You can also run SwipeSimple on a wireless or mobile smart terminal so you run cards in the office or in the field without having to use your phone or connecting it to a card reader. Smart terminals have the card reader build in and can accept contactless cards, Chip cards, magnetic strip cards, or payments from your customers smartphone.

Manage Your Payments

Access SwipeSimple on your office PC to see all your cash and credit payments entered regardless of whether they were taken at the job site, in the office or paid through a payment link that you emailed to your client or taken through a payments page on your website. Generate reports to track all your sales in one place.

Card On File

Getting a card on file when you add new clients for repeat services such as lawncare or snowplowing can significantly improve your cash flow and get you out of the collections business. Our virtual terminal solutions enable you to add cards for your repeat customers simplifying how you get paid so you aren’t spending your time billing and running down payments

Selling Products & Services

Do you have products or services you bill out regularly in addition to labor? You can create them in SwipeSimple and add them to your billing to simplify taking payments for your services.

Ideal Solution For:


    • Home Improvement Services

    • Plumbers

    • Electricians

    • HVAC Contractors

    • General Contractors

    • Lawn Service

    • Restoration Services

    • Landscapers

    • Property Maintenance

    • Roofers

    • Drywallers

    • Siding Contractors

    • Rain Gutter Installation

    • Window Sales

    • Carpet & Tile Installers

    • Painters

    • Carpenters

    • Concrete Contractors

    • Dock Service

    • Other onsite or in person services


If you also need to schedule appointments you may want to look at EXATOUCH POS, this can also allow you to enter inventory for sale and generate/read barcode for quick transaction and tracking inventoy levels and when to re-order products. You can pair it with a Mobile Smart terminal for taking payments in the field or a Virtual terminal for taking payments over the phone and electronic billing. Provides support for your POS and payment processing with one provider.

Ideal For:


    • Contractors who need to Schedule Appointments

    • Contractor who inventory and retail products or services


This new and growing suite offers mobile payments, through your Android, IOS or Amazon devices in addition to supporting smart credit card terminals and POS capabilities. Also includes a Virtual terminal option for taking payments on a PC/laptop, or generating electronic billing and payment links/pages.

Contact Merchant Partner to see how we can help your Lakes Area business. Find us on Facebook



    • Brainerd Lakes Area

    • Pequot Lakes Area

    • Cuyuna Lakes Area

    • Crosslake Area

    • Communities throughout and adjoining Crow Wing County

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