Having a safe way to accept payments is essential to any business. More businesses are utilizing payment facilitator models to ensure efficiency when serving their clients their merchants. However, reluctant you may be, many companies can adapt to the payment facilitator model and enjoy the benefits. Today, we are going to address the advantages of becoming a payment facilitator to your business. 

 

  • You gain a new source of revenue. 

 

By becoming a payment facilitator, there is potential for you to make a significant revenue every time your customers use your payment service. The reason is that you will charge a fee for each transaction. Also, you have greater control over cash flow because you are participating in the funding process.  It also makes it easier to deduct fees and gain your share of the funds. Since you are not having to establish a relationship with a bank, or make sure a payment gateway is set up, this means you can focus on other aspects of your business and less time focusing on online payments. 

 

  • You are in charge of the underwriting and onboarding process.

 

If you are not a payment facilitator, this means you need to refer your customers to a third-party payment facilitator. However, if you are, you can process credit applications and underwrite your customers. You won’t need to refer your customers since they are already sub-merchants underneath your Payment Facilitator organization. By accepting payments this way from your customers, you can enjoy the benefits of having your own merchant account with less paperwork and risk because you are controlling the process from start to finish.

 

  • You offer better service to your customers.

 

By being the payment facilitator, you can provide quality service to your clients, i.e., the merchants. If everything is implemented correctly, you can and improve processes and upgrade services as well. You are also able to approve and deny any merchant applications. If you weren’t the primary provider of payments, your customer would need to go through a third-party for any problems that arise. By being the payment facilitator, you can ensure the customer’s experience with payments run smoothly. 

Although there are certain levels of risks associated with becoming a payment facilitator, based on your business model, you may find this will give your business an advantage. Businesses with low transaction volumes may not benefit, but if you want to start accepting payments with reduced stress, the Payment Facilitator model may be the right choice for you.