A payment processor serves as the technical arm of a merchant acquirer. Payment method Payment method fee. First, a PayFac needs to establish a partnership with an acquiring bank, and get sponsorship to process payments for sub-merchants. 1. Contact. A Payment Facilitator, or PayFac, is a company that provides payment processing services to merchants looking to accept credit and debit cards. A three-party scheme consists of three main parties. PSPs act as. The terms aren’t quite directly comparable or opposable. Difficulties with reasoning, problem-solving and decision-making. A PayFac will smooth the path. Benefits and criticisms of BNPL have emerged on several fronts. Whether to become a Payment Aggregator or Payment Facilitator has far reaching implications for a SAAS application provider. Introduction. Segregated accounts are legally segregated from the firm's assets, meaning the company cannot use the funds stored to conduct business operations. What is a payment facilitator (PayFac)? Essentially, PayFacs use the acquiring license of another company to provide payment services to sub-merchants. 3. Sub-merchants operating under a PayFac do not have their own MIDs, and all transactions are processed through the facilitator’s master merchant account. That said, some organizations, like Stax, don’t differentiate between the two. 7-Eleven Malaysia. The second type is a more modern, technology-first payfac solution from a commerce provider like Stripe. A payment facilitator (or PayFac) is a payment service provider for merchants. In short, a PayFac or payment facilitator, is a master merchant that supports sub-merchants. This was around the same time that NMI, the global payment platform, acquired IRIS. Embedding payments into your software platform is a powerful value driver. Thus, an ISO’s customers can access a wider range of processors, even if the onboarding experience is tedious. Is a Payment service provider and payment gateway the same? Both ISOs and PayFacs make payment processing more accessible for small and high-risk businesses by acting as intermediaries. Sleep disturbances. The MoR is liable for the financial, legal, and compliance aspects of transactions. A Payment Facilitator (PayFac) is a type of merchant services company that provides business owners with a way to accept electronic payments, both online and in-store. BOULDER, Colo. 1. 10. Principal vs. Stripe. With a nod to Visa’s own efforts, he said that the company is forging what he called a “clear path” approach that offers a turnkey solution as PayFacs contract with acquirers to provide Visa. LTV/CAC ratio = $80 / $10 = 8. Besides that, a PayFac also takes an active part in the merchant lifecycle. For service providers published on the Registry, if Visa does not receive the appropriate revalidation documents: Within 1 - 60 days upon expiry of the validation documents, the service provider will be identified by the icon in the Registry. Technology used. Products. A sub-merchant platform involves a Payfac that has been pre-approved for one master merchant account with an acquirer, like TD. 4 million to $1. In the PayFac model, banks that monitor PayFacs are called Acquiring Banks. Both offer companies a means of accepting and processing payments, and while they may appear to be the. 20) Card network Cardholder Merchant Receives: $9. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. 1) A PayFac always acts on sub-merchant’s (retailer’s) behalf, while an MOR might be the actual retailer. Identify gaps in your AR practices to understand where you have room to grow. It provides a technology, allowing to authorize transactions and, potentially, receive transaction settlement information. Retail payment solutions. You see. The risk is, whether they can. Especially valuable for platforms and marketplaces looking to payout users faster in a preferred currency. Visa, Mastercard) around 2011 as a way for aggregators to provide more transparency into. A payment facilitator (or payfac) is the owner of a master merchant identification number who registers merchants as sub-merchants and enables their payment acceptance. By working with a PayFac or ISO, merchants don’t need to approach banks directly to process payments. Collect key details about your business. With an ISO, you’ll apply for your own merchant account, whereas with a PayFac, you’ll apply to be a submerchant. It is characterized by motor symptoms caused by α-synuclein-mediated dopaminergic cell loss and iron overload in the substantia nigra (SN) of the midbrain (). Many large banks, for example, issue credit. The road to becoming a payments facilitator, according to WePay founder Rich Aberman, is long, expensive and technologically complex. Payment Service Provider (PSP) is like a Pay-Fac, but where you get your own Merchant Account (meaning your business passes credit check / underwriting process). 1. Compare PayFast vs. Each of these sub IDs is registered under the PayFac’s master merchant account. Sooner or later, most vertical SaaS companies will have to become some form of a payment facilitator (a. Global expansion. “Sponsoring Payfacs is a relationship between the bank the Payfac and the hundreds or thousands of downstream merchants underneath the Payfac,” Spalinger said. A Managed PayFac is a payment monetization model in which a company gets most of the benefits of a full Payment Facilitator but without the same level of liability or risk. +2. A sub-merchant platform involves a Payfac that has been pre-approved for one master merchant account with an acquirer, like TD. Really, there are only four things to note. Generate your own physical or virtual payment cards to send funds instantly and manage spending. Online payments built to build your business. PSP commonly affects individuals over 60. PayFac vs ISO: 5 significant reasons why PayFac model prevails. LTV:CAC Ratio = $1. The tool approves or declines the application is real-time. If necessary, it should also enhance its KYC logic a bit. 0x. A payment gateway on the other hand is technology that verifies payments between merchants or vendors. A few wholesale ISOs undertake underwriting risk, but most ISOs step away from this task. The PayFac model allows a single entity to become the “merchant of record” and board sub-merchants with fewer data requirements and scrutiny. Exact handles the heavy. Send you one of 100+ unique reports with suggestions that fit like a glove. We understand the details of embedded payments and the options for building a solution that is secure, scalable and compliant. a. Here's a rundown of each device with links to detailed specs. A PSP is a company that offers merchants a range of payment processing solutions. What’s the distinction between Payfac and PSP? A payment Facilitator is a third-party payment service provider (PSP). 8% worldwide (CAGR - compound annual growth rate) over 2018-2025 1. Payment facilitation, or “payfac,” continues to grow in popularity among software providers and is designed to facilitate payment card acceptance without requiring individual merchants to go through the lengthy process of establishing traditional merchant accounts. Stripe and Square are two examples of well-known PayFacs that are incredibly popular with business owners in a wide variety of industries. In this the ninth episode of PayFAQ: The Embedded Payments Podcast brought to you by Payrix, Host Bob Butler interviews Jorge Lozano, VP of Underwriting and Lloyd Fernandez, VP of Product at Payrix, about all of the decisions a software company must make when embedding or integrating payments. Your Payfast account. May 1, 2023 In this article, we’ll attempt to cover almost everything you need to decide which payment solution is right for you: a Payment Facilitator or a Payment Processor. Source: Edgar, Dunn & Company (2020) What are the responsibilities of a PayFac enabler vs. If your rev share is 60% you can calculate potential income. The PayFac model eliminates these issues as well. $29. Payfac solutions can also add value by improving the overall customer experience by offering solutions that meet a merchant's needs with an all-in-one integration, creating a seamless and. responsible for moving the client’s money. PSP-3000. PayFac vs ISO: 5 significant reasons why PayFac model prevails. ISOs. The payment facilitator model was created by the card networks (i. And the cameo makes it all come together! Thanks, Timmy Nafso for having me. a merchant to a bank, a PayFac owns the full client experience. 3% vs 60. Reduced cost per application. The payfac part you described is clear, thanks! What confuses me is that as far as I understand, a PSP can also explore working with a BIN sponsor (an acquirer / a principle member of Visa/MC) so they dont have to get the acquiring license themselves, but in this model they can get into the fund flow since the BIN sponsor would settle to them - this is. 3. For instance, standard credit card transaction descriptor length is 22 characters at most. Avoiding The ‘Knee Jerk’. The PayFac executes all the tasks a payment processor needs to onboard a client and gives the ISV a seamless experience. It is advised to quote the PSP reference. Payfac-as-a-service is a turn-key payment facilitation model in which an external company provides businesses with the necessary tools and infrastructure to accept electronic payments, such as credit and debit cards, ACH, and echecks. PayFac or payment facilitator model allows you to add a new revenue stream to the profit you get from selling your core product. Many years ago, a PSP homebrew developer announced plans to produce a touchscreen that could be retrofitted to the PSP, but it never materialized. WorldPay. 4. The differences are subtle, but important. One of the reasons for this phenomenon is that many companies (including former independent sales organizations (ISO)) find it more profitable to combine the functions of an online gateway provider and a merchant service provider (MSP). Whatever works best for them. A powerful payment gateway that supports an extensive combination of devices, and operating systems for point of sale payments. The ISVs that look at the long. 1. We are excited to partner with Fat Zebra and launch into Australia and New Zealand further. It also needs a connection to a platform to process its submerchants’ transactions. Generally, no or minimum information is. Those sub-merchants then no longer. “Plus, you have a consumer base that is extremely savvy when it. It's more than just support. Your provider should be able to recommend realistic metrics and targets. Amazon Pay. ISO or PayFac: What’s the difference? There are two types of merchant account providers: independent sales organizations (ISO) and payment facilitators (PayFac), also known as payment service providers (PSP). It is generally considered the best of the PSP models overall, though if you're looking for homebrew capability, the PSP-1000 is still superior. A Payment Facilitator [Payfac] is essentially a Master Merchant that processes credit and debit card transactions for sub-merchants within their payment. Wide range of functions. The PSP-3000 was released in 2008, following closely after the PSP-2000. The control over the flow of funds is somewhat limited to what the partner allows you to do but time to market is. United States. Sophisticated merchants need dedicated human experts. 40% in card volume globally. Instead of each individual business needing to set up its own merchant account, a process that can be time-consuming, the payfac effectively “rents out” merchant account functionality under its larger master merchant account. Payfacs typically don’t perform their underwriting for weeks to months after. Contracts. The first thing to do is register. Onward!IndexCode Connect: FIS Code Connect is an API Marketplace or API Gateway, which provides one-stop access to all APIs across FIS. Morgan can help. See Software Compare Both. But in the real world Gamecube was above the PS2 and close to Xbox in performance. As well as reducing the administrative burden for sub-merchants, PayFacs have the flexibility to completely customize their payments program. Similar to how we've advised would-be Payments Institutions (and E-money Institutions) in the UK and EU, we expect to engage/advise PSP's to support this "licensing surge". e. With the payment facilitator or PayFac model, every user gets a sub-merchant ID. Blog. (PayFac) Receives: $3. The quantitative content and the level of detail of the PIP vs PSP documents may be different in the two regions. A payfac vs. You own the payment experience and are responsible for building out your sub-merchant’s experience. Becoming a PSP [Payment Service Provider] lends itself well to some businesses that fall into the software provider. Abacre Restaurant Point of Sale. The company retains 75% of its customers per year. PayFac registration may seem like the preferred option because of the higher earning potential. Is a PayFac a PSP? Payments facilitator or payfac are in essence a third-party entity which operates as a payment services provider (or PSP). It acts as a mediator between the merchant and financial institutions involved in the transactions. This solution includes hosted payment pages; one-time, subscription, and one-click billing solutions; risk management; affiliate tools, and end-user customer support. 2. You own the payment experience and are responsible for building out your sub-merchant’s experience. the scheme and interchange fees). Types of merchant of record In the current downturn, said Mielke, the PayFac or ISV that is diversified will be better positioned to weather the storm. 6 Differences between ISOs and PayFacs. Companies that provide software and other infrastructure for. It is when a business is set up as a primary merchant account and provides payment processing to its sub-merchants. When PayFac became a buzzword among software platforms and the many businesses trying to sell to them, the meaning of the word started to blur. A rental payfac model can require up to $3 million in setup costs and an additional $1 million to $3 million in annual costs. 7 trillion by 2026, and an entire industry has appeared to provide online payment processing. There are several ways for businesses to go about accepting payments, and two of the most popular provider options are PayFacs and Independent Sales Organizations (ISOs). The Payfac Solution Provider (PSP) handles all of the underwritings, setting up of accounts, development of integrations with processors, connections with gateway partners (if applicable), the. Software users can begin. United States. An ISO, at its most basic level, is an intermediary reseller. It's rather merging into one giving the merchant far better control. Marketplace vs ecommerce platform: What's the difference? Read article. • ISO Merchant (ISO – M) —conducts merchantPSP & PayFac 102. paylosophy. Payment Facilitator (PayFac): 大商户模式，是商户而不是收单机构。. On the other hand, a PayFac is a company that simplifies the payment process for sub-merchants by providing a. The timeout indicates that connection with the back end is impossible, and the server, to which the data needs to be transferred, cannot be reached. The best Stripe competitors combine transparency, low processing fees, and excellent support for eCommerce. MyVikingCloud. Potential risk of financial loss; Customer support burdens; Integration demands; Approval process to become a PSP can be somewhat burdensome; Compliance with KYC /PCI and potential tax reporting MONEI is a PSP, which is a type of payfac. We would like to show you a description here but the site won’t allow us. Fueling growth for your software payments. Cons. PSP-3000 . Mastercard PayFac Models: The Ins and Outs of the “Big Two” Payment Facilitator Programs. While both are valuable, their links to your business differ. The underlying role that these fill for a business is to provide merchant services, and you can read our reviews of various merchant service providers here. Higher fees: a payment gateway only charges a fixed fee per transaction. A PSP, on the other hand, charges a variable fee in addition to the fixed fee. Join us on this captivating journey into the world of payments technology as we showcase our latest products and delve into the forefront of innovation. A PSP, on the other hand, charges a variable fee in addition to the fixed fee. “A payments facilitator (or PayFac) allows anyone who wants to offer merchant services on a sub-merchant platform. Become your customer’s single provider for software and payments processing. They’re also assured of better customer support should they run into any difficulties. S. Processor-specific Platforms for Payment Facilitators: Vantiv; On the way to Payment Facilitator Model;. We find some, (fewer every year) merchants look at the long-term TCO on buying vs. In a traditional onboarding process with an Independent Sales Organization (ISO), the merchant must first. 8–2% is typically reasonable. 00 Payment processor/ merchant acquirer Receives: $98. 6. Managed PayFac. There’s not much disclosure on the ‘cost of sales’ (i. Payfacs work by having a master merchant account (and a master MID) through its relationship with acquiring banks. On the other hand, a PayFac is a company that simplifies the payment process for sub-merchants by providing a. Resellers need capital to buy products and services from the business, but referral partners don't. There is a substantial cost and compliance requirements. PAYMENT FACILITATORWhat is a payment facilitator? A payment facilitator, also known as a “payfac” or payment aggregator, is a payment model that has grown tremendously over the past few years. This was an increase of 19% over 2020,. Generally speaking, a PayFac might be suitable for bigger businesses that need to process a large volume of transactions, and an ISO might be more suitable for smaller businesses. Nice to be able to offer “Either Or” to merchants, tho the subscription side DEF more lucrative in the long-term. Payfac is the abbreviated term often used in the payments industry to describe a company that provides payment processing services to businesses. However, it is not specific gateway solutions that matter. So, when the swipe is read, neither the merchant, nor the business-specific software. Proven application conversion improvement. Nonprofits and cultural institutions rely on their payment systems and gateways to support their donation, membership, and ticketing payments. However, if the business experiences rapid growth and needs to onboard a large number of merchants, the payfac may face scalability challenges. On the other hand, a PayFac is a company that simplifies the payment process for sub-merchants by providing a. PayFac Alternative: PayFac-as-a-Service Fortunately, there is a quicker and less complicated path to becoming a payment facilitator, which also mitigates many of the risks and costs mentioned above. In this case, the ratio is quite high and the company is. accounting for 35. We’re also growing through a sustainable business model and looking to remove days of finance work every week so business leaders can focus on building a future. net is owned by Visa. They will often provide merchant services and act as a payment. Here are several benefits: As a hybrid PayFac, your company can handle client onboarding in minutes or hours instead of the usual 48-72-hour time-frame required for merchant account setup. A PSP is a company that offers merchants a range of payment processing solutions. The first is the traditional PayFac solution. But regardless of verticals served, all players would do well to look at. Independent Sales Organization (ISO) Provides specific services directly or indirectly to issuing and/or acquiring clients. To minimize the effects of progressive supranuclear palsy, you can take certain steps at home: Use eye drops multiple times a day to help ease dry eyes that can occur as a result of problems with blinking or persistent tearing. They are then able. Since the start of COVID-19, Square has begun to hold back 20 to 30 percent of some of their client’s revenues for up to 4 months. As a result, it would link the merchant and the acquiring bank. When it comes to choosing between a PayFac and an ISO, the best option depends on your business's specific needs and preferences. A guide to marketplace payments. Adyen not only operates as a full-stack Payment Service Provider, but also gives its customers a true omnichannel solution to accept payments anywhere in the world. Finix launched as a software company building a turnkey infrastructure platform to help other software companies bundle. Link. 5% residual revenue on every transaction processed. Here are the six differences between ISOs and PayFacs that you must know. The Visa® merchant aggregation model covers all commerce types, including the face-to-face and e-commerce environments, and helps to increase electronic payment acceptance for merchantsFast, efficient boarding solutions that orchestrate third-party and internal systems to help you turn prospects to customers – face-to-face, on the phone, or online. Blog. If necessary, it should also enhance its KYC logic a bit. April 12, 2021 Independent sales organizations (ISOs) and payment facilitators (PayFacs) both act as intermediaries between merchants and payment processors, making them. However, there are instances where discrepancies arise. Third-party integrations to accelerate delivery. It's collaboration—and there's not a chatbot in sight. A Payfac provides PSP merchant accounts. In each episode, we bring togeth…IXOPAY’s payment platform offers White Label solutions for PSPs, ISOs and sales agents, allowing them to manage payment flows, provide modern centralized merchant services and accurate reporting to their global online merchants. This means that there is no need for any charges between the issuer and the acquirer. On the other hand, a PayFac is a company that simplifies the payment process for sub-merchants by providing a. It also means that payment risk is moved from individual merchants to the PayFac, as they own the master merchant account. The ISO, on the other hand, is not allowed to touch the funds. May 1, 2023 In this article, we’ll attempt to cover almost everything you need to decide which payment solution is right for you: a Payment Facilitator or a Payment Processor. ISOs function only as resellers for processors and/or acquiring banks. PayFac vs ISO: Third-party Relationships. These systems will be for risk, onboarding, processing, and more. What are the differences between payment facilitators and payment technology solutions, and how do you know. Usually, EMV certification involves an administrative fee (charged by acquirers), ranging between $2,000 and $3,000 for every formal test script run. A PSP is a company that offers merchants a range of payment processing solutions. As part of international business expansion strategy, we identified the need for local experts to support in-market, definitely it will help AsiaPay accelerate our growth in Australia and New Zealand, while still allowing us full control and flexibility to create the digital payment. A Payment Facilitator, PayFac for short, is simply a sub-merchant account for a merchant service provider. Instead, in the PayFac model, a small business gets a submerchant account under the master merchant. To manage payments for its submerchants, a Payfac needs all of these functions. The PayFac aggregates transactions and sends them to its processor, keeping operations streamlined. Powerful payment solutions for businesses of all sizes. Renew payfac registration and licenses: Re-register as a payfac with card networks annually, and update or renew MTLs on the required cadence. It is a complete solution, beginning with taking. The MoR is responsible for processing customer payments on behalf of the business, taking on numerous legal and. Impulsive behavior, or laughing or crying for no reason. When you start accepting payments online, you need a merchant account from a payment facilitator with sufficient infrastructure and proper compliance to process payments . PSPs, including PayFacs, are entities, to which acquiring banks and payment network providers delegate merchant lifecycle management functions in. A PayFac assumes all the risk involved in payment processing – including fraud loss, chargebacks, and non-payment. We have defined three distinct categories: global, international, and regional PSPs. The Traditional Merchant Onboarding Process vs. FinTech innovators love the payment facilitator (PayFac), a shift that WePay co-founder Rich Aberman outlined in Episode 1 of the Payment Facilitators series with Karen Webster, CEO of PYMNTS. on demand when end-of the day settlement message is received. Settlement must be directly from the sponsor to the merchant. They. (GETTRX) is a registered ISO/MSP/PSP/Payment Facilitator for Merrick Bank, South Jordan, UT, FDIC insured. We can regard PayFac model expansion as “survival of the fittest”. Another way to think about this result is that for every $1 spent on sales and marketing, the company generated $3. Small/Medium. PayFac vs Payment Processor. Stripe’s payfac solution. PayFacs perform a wider range of tasks than ISOs. This model gives your users the ability to seamlessly accept payments directly from your platform and allows you to own and monetize the payments experience. PSP-2000. The capacities in which a business might be acting that could bring it within the definition of an MSB are:PayFacs operate as a master merchant that facilitates credit and debit card transactions for sub-merchants (the PayFac customers) within their payments ecosystem. this new series on Embedded Commerce and debunking the PayFac myth. Using this token in place of the actual data during a transaction greatly reduces the risk of that data being compromised. Because of their access to partnership, larger ISOs typically have more payment options, more flexibility, and. And this is, probably, the main difference between an ISV and a PayFac. By adding their clients’ applications to the Clover App Market, merchants increase their sales and revenue, which helps the providers earn more as well. Progressive supranuclear palsy, or PSP, is a rare neurodegenerative disease that is often misdiagnosed as Parkinson's disease because its symptoms are similar. Abacre Abacre Restaurant Point of Sale is a new generation of restaurant management software for Windows. Steps for becoming an independent sales organization. 7shifts is an all-in-one restaurant team management platform that helps operators manage work schedules, time clocking, team communication, labor compliance, payroll, tips and more, all from one single place. The payfac part you described is clear, thanks! What confuses me is that as far as I understand, a PSP can also explore working with a BIN sponsor (an acquirer / a principle member of Visa/MC) so they dont have to get the acquiring license themselves, but in this model they can get into the fund flow since the BIN sponsor would settle to them - this is similar to PayFac model so I’m trying. Payroc LLC, together with its wholly-owned affiliate Payroc Processing Systems, LLC, is a registered Visa third party processor (TPP), Mastercard third party servicer (TPSV), payment facilitator. payment facilitator (payfac) MoRs and payfacs both play significant roles in the ecommerce payment process, but their responsibilities and the scope of their services differ. payment processor; What is a payment aggregator? A payment aggregator, also often referred to as a payment facilitator (payfac) or payment service provider (PSP), is a financial technology company that simplifies the process of accepting electronic payments for businesses. 3. There are two main options when it comes to choosing a PayFac: a payment service provider (PSP) or an independent sales organization (ISO). Software Platform as the Payfac. To increase transparency and ensure a high level of consumer protection within the European Single market, the European Banking Authority (EBA) established a central register that contains information about payment and electronic money institutions authorised or registered within the European Union (EU) and the European Economic. Mike is co-founder of GroovePay® and was the co-founder of companies such as Kartra, WebinarJam, EverWebinar, and Marketers Cruise. Stripe provides a way for you to whitelabel and embed payments and financial services in your software. Read article. In this article, we explore various forms of payment facilitation, the commercial opportunity for payfacs, the maturation process of select payfac models, and the key features and functionalities to look for in PSPs. Marketplaces that leverage the PayFac strategy will have an integrated. the PayFac Model. PayFacs work under one or more payment processors, operating in a layer of the industry between processors and merchants. Financial services businesses have a range of specific needs. Hybrid PayFac or Hybrid Payment Facilitation. Overall responsibility. This model is ideal for software providers looking to. Risk management. A relationship with an acquirer will provide much of what a Payfac needs to operate. The most trusted payment integration. PayFac or the Payment Facilitator is the third-party payment services provider (PSP). Supports multiple sales channels. Square has been one of the most disruptive technology companies in the past decade, yet they recently caught the media’s attention for the wrong reason. Thus, an ISO’s customers can access a wider range of processors, even if the onboarding experience is tedious. Niko Silvester. Payfacs have continued to gain prominence and have been adopted by ISVs to create a more dynamic user experience. Join our network of a million global financial professionals who start their day with etf. e. Moreover, integrating a payfac solution into ISV’s software removes the need for a merchant to create a relationship outside of the software with acquiring banks or payment gateways. Also known as a “PayFac” or merchant aggregator, a payment facilitator is a third party agent that contracts with an acquirer to THE ACQUIRER A Visa Client licensed to provide card acceptance services. What is a payment facilitator? A payment facilitator, also known as a “payfac” or payment aggregator, is a payment model that has grown tremendously over the past few years. Connection timeout usually occurs within 5 seconds. A PayFac is a third party services provider that acts as an intermediary between merchants and payment processors. Payment facilitation helps. In this model, the issuer (having the relationship with the cardholder) and the acquirer (having the relationship with the Merchant) is the same entity. Issues with connection can be caused by DNS problems, server failure, Firewall rules blocking specific port, or some other. One of the most significant differences between Payfacs and ISOs is the flow of funds. a Payment Service Provider (PSP), aka a Payment Facilitator (PayFac). We support a variety of payment channels, so your customers can pay with the method of their. To your customers, the payments experience is seamless and fully integrated with your SaaS platform. Very few PayFac as Service providers publish pricing to sub PayFac’s and there is a reason. Payment Service Provider (PSP) is like a Pay-Fac, but where you get your own Merchant Account (meaning your business passes credit check / underwriting process). The gateway handles the tokenization process, which hides the card information while it’s in transit; a very important piece of the data security in payments. Payment aggregator vs. A payment aggregator is a 3rd-party payment service provider (PSP) that allows merchants to process payments without having a merchant account. • The UMRN, the Sponsor Bank Code and the Utility Code are meant for office use only and need not be filled by the investors. It would register the merchant on a sub-merchant account and it would have a contract with the acquiring bank.