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.

SwipeSimple

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

Exatouch

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

APEXNow

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

Serving:

 

    • Brainerd Lakes Area

    • Pequot Lakes Area

    • Cuyuna Lakes Area

    • Crosslake Area

    • Communities throughout and adjoining Crow Wing County

Cuyuna Lakes Chamber

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It’s Time to start offering Contactless Payments

Contactless payments for your business

Do your customers still need to hand you their card so you can swipe it through your payment terminal? With a contactless reader customers can just tap their contactless cards on the screen – many new cards issued now are contactless. Customers can also use their smartphones to pay with Apple Pay or Samsung Pay. Since Covid it makes more sense than ever to offer contactless payments – your customers and staff will appreciate it. We have solutions available as a standalone terminal or integrated with a Point of Sale system.

Time to upgrade your Cash Register?

Swipe Simple Register
Swipe Simple Register

Not ready to make the leap to a Point of Sale System, but want to increase efficiency? Modernize with Swipe Simple Register – harness the power of your Android tablet or iPad to take both cash and credit card payments. Eliminate dual entry! You can enter any quick sale amount to take a payment or select a product and have the option to track your inventory. Don’t want to print reciepts? you can send via text, email or choose to print. For a fraction of the cost of a Point of Sale system you can join the digital revolution. Even better you can significantly reduce your processing fees with Cash Discount processing using Swipe Simple. Additionally you can use your Swipe simple reader with the app on your smart phone for taking mobile payments

Rev19 – Payments Should be Simple!

Rev19 Payments
Rev19 Payments - Payment Processing

As an Independent Payment Processing representative, I am able to select who to partner with, enabling me to match you to the provider that best fits your needs. Beginning in the Spring of 2020 I partnered with Rev19 Payments – Now Agile Financial Systems(AFS) to provide best of class payment processing to my clients. Rev19’s core values – Simple transparent pricing with no hidden fees, no long term contracts, and no equipment leases.

Rev19 Payments offers many services for business owners, including: Interchange Plus Pass-thru Processing, Dual Pricing, Surcharge Processing, Contactless Terminals, Wireless Terminals, Mobile Terminals, POS Systems, Virtual Terminals, and Payment Gateways.

Contact me to see how Merchant Partner and Rev19 can help you achieve your business goals. Merchant Partner serves the Brainerd Lakes and surrounding communities.

Online Ordering for Pickup & Delivery

Online Ordering

The pace restaurants and other business’ have been adapting online ordering to remain competitive or even just to keep their business alive has accelerated in recent months. For some partnering with one of the 40 plus new delivery services appears to be a good solution, others are finding those services to be cost prohibitive, just as many rural florists before them discovered in their industry as well.

Biteheist Ordering for the Web or Mobile App

One alternative is to take orders yourself through a service like Biteheist that allows you to load your menu online and get orders by email, text or directly to a POS ticket printer. You don’t need to have a POS system to use this service, however you can save on the monthly fees when you bundle your payment processing with Biteheist.

Paradise POS with Online Ordering

If you don’t have a POS yet, this maybe just the timing as many POS systems allow you to use your same menu to populate your online order menu. Systems like Paradise POS include online ordering as a standard feature for no additional cost, many other systems offer a delivery module for an additional fee. Paradise will even allow you to set expectations for when an order will be ready by allowing you to add additional wait times during peak hours and to update it on the fly. If you are providing delivery services Paradise will also print and additional ticket for the delivery driver with a QR Code they can scan to get delivery directions in Google Maps. Creating your menu once and having it maintained for online ordering will save you time in maintaining your pickup/delivery menu – you can also select which menu items you want to show online.

Contact

Contact us to discuss how Merchant Partner can help you. I can arrange POS demo’s to enable you to select the system that is right for your business.

Have you looked at your statement lately?

Statement

Take a quick moment to look over your monthly merchant statement -unexpected extra fees can pop up at any time. You should be familiar with what your standard monthly/quarterly/annual fees are you will notice if something has been added or increased. Also be sure to read processor notes commonly at the end of your statement this is where you can see a heads up for new fees and changes to your account. Call Support or your local rep to see what benefit these provide and if they are required.

One of the most common items I see is clients being charged a PCI non-validation fee month after month This can commonly run $19.95 a month to over $100. I just reviewed a clients statement and found they were charged and extra $19.95 in January even though they passed their compliance scan on the 1st of the year – apparently since their billing occurred the same day as the scan they didn’t show as being compliant. This was on top of finding and additional $18 dollars a month in new optional fees last Fall that were not required and were unwanted. An additional $40/month can really impact the effective rate paid by a small business.

If your rep is not looking out for you it maybe time to find one that will.