Payment Facilitator Registration

PayFac registration is the process that a company goes through to become a Payment Facilitator. This process involves compliance checks, underwriting, and setting up of systems and procedures to handle sub-merchant onboarding, payment processing, and risk management.

The registration process is typically overseen by an acquiring bank and can involve considerable time and resources. It involves several steps including the following:

  • Due Diligence — A thorough background check of the company and its principals, and may include financial audits, criminal background checks, and business history verification.
  • Application to an Acquiring Bank — The acquiring bank will assess the company’s financial stability, business model, and risk management capabilities before approving the application
  • Integration with Payment Processing Platforms — Setting up the technical infrastructure to facilitate payment transactions. This includes setting up secure payment gateways, integrating with card networks, and implementing fraud detection systems
  • Implementation of Risk Management Protocols — Setting up systems and procedures to monitor transactions, detect suspicious activities, and mitigate risks.

Once the registration process is complete, the company can start operating as a PayFac and onboard sub-merchants.