Payfac (Payment Facilitator)
A Payment Facilitator (Payfac) is a merchant service provider that aggregates payments on behalf of multiple sub-merchants. Payfacs simplify payment processing for small businesses by handling onboarding, compliance, and transaction processing.
Applications
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
E-commerce:
Reduces fraud in online card payments by verifying the cardholder's identity
Advantages
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
- Enhanced security: Reduces unauthorised transactions by verifying that the genuine account holder is authorising the payment
Challenges
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
- User Experience: Additional authentication steps can cause friction and increase checkout abandonment
