Traditional Merchant Services vs. Payment Facilitation

Traditional Merchant Services vs. Payment Facilitation

In today’s electronic ecosystem, software companies have an array of options to create unique payment experiences for consumers. Two prominent options are traditional merchant processing and payment facilitation. Let’s explore their differences and implications.

Traditional Merchant Processing

Since 1973, traditional merchant processing has been the norm. Businesses obtain a Merchant ID (MID) from a sponsoring bank, unique to each location or entity. This involves an underwriting application process, typically taking 2–3 days for approval.

Traditional processing offers various point-of-sale and e-commerce solutions, including integration with hardware or payment partners. Billing options range from flat rate to interchange plus pricing models.

Payment Facilitation

Payment facilitation streamlines merchant onboarding and settlement. Software companies apply to become facilitators, obtaining a master MID to onboard sub-merchants swiftly. Sub-merchants can start processing within minutes of approval.

Payment facilitation supports split payments, enabling transactions to be divided between multiple recipients pre-settlement. It also facilitates marketplace processing, though with some limitations on billing options, primarily offering flat rate or tiered pricing.

Discover the Payarc Difference

At Payarc, we collaborate with software companies to craft unique payment experiences. Our suite of options, from APIs to iFrames, seamlessly integrates into existing workflows. Our sales engineers ensure customization for each software experience.

Explore Payarc’s Payment Facilitator Platform

• Split Payments: Gain control with our Split Payments API or Virtual Terminal, dividing transactions into smaller accounts or holding without processing.
• Payment Integration Options: Elevate automation with our APIs, offering simplified onboarding and faster funding times. Seamlessly split payments across multiple parties in a single transaction.
• Dashboard Experience: Each ISV sub-merchant receives a unique ID for a fully customized dashboard, managing tasks from reconciling transactions to handling chargebacks.
• ID Provisioning/Onboarding: Choose from flexible onboarding options with real-time automated checks for a quick, digital experience.
• Electronic Payment Acceptance Options: Our program offers various options, from cards to ACH transactions, tailored to meet specific needs.
• Methods of Payment Acceptance: Partnering directly with ISV developers, we offer bespoke payment interfaces through APIs and iFrames, seamlessly integrating into existing systems.

Fuel Your Growth with Payarc’s Platform

Empowering merchants and technology providers, our platform drives growth through versatile solutions. Whether through traditional merchant integration or payment facilitation, Payarc offers cutting-edge technology.

Experience the Payarc Difference Today