A Payment Facilitator (PayFac) is a merchant that holds a payment processing account or a master merchant identification number. The PayFac can then onboard sub-merchants and allow them to operate under the master MID, greatly simplifying payment processing for the sub-merchant.
The MerchantE Sub-Merchant API provides a route PayFacs to onboard new sub-merchants to their platform. It is a streamlined version of the onboarding process which automatically populates many fields, requiring the manual entry of far fewer fields in the application. The issuance of a sub-merchant MID is quickly accomplished following the standard risk assessment procedure.
MechantE offers two options for PayFacs depending on the underwriting provider. The type will also determine the information required when onboarding Sub-Merchants.
- PayFac-as-a-Service (PaaS) - MerchantE underwrites the transactions and acts as the payment processor.
- Wholesale PayFac (WP) - The Payment Facilitator provides outside underwriting. This is normally done in conjunction with a sponsor bank.