By Shannon LeDuff, SVP of Sales & Business Development, Nuvei
Having the ability to accept payments online is crucial for many businesses to run smoothly and to continue to grow. Independent software companies are faced with the challenge of how to incorporate payments into the software they create for their clients. Previously, the client would need to setup a merchant account with a payment processor. The process of doing that could be time-consuming, expensive and sometimes challenging if the client had difficulty meeting the processor’s criteria, especially if they were considered a high-risk business. To avoid these issues that could put the process flow to a grinding halt, the idea of being a payment facilitator came about.
A payment facilitator, also known as a PayFac for short, is a company that provides sub-merchant accounts for SaaS companies and software providers. And this service is quickly becoming an option for independent software companies to offer their clients to make it easier for them to streamline their processing in-house credit card payments.