A few years back, some entrepreneurs and forward-thinking payment professionals took notice of the opportunity for monetizing payments. They started the trend of software companies, online marketplaces, and startups becoming what is known as Payment Facilitators. These companies embed payments as an organic part of their offerings to their merchants. They also assume some of the risk associated with those payments, but in return, they get to earn a portion of the payment processing fees.
Becoming a Payment Facilitator is a complex process. It requires significant time, financial resources, and in-house knowledge and expertise. A Payment Facilitator must plan and construct the appropriate technical infrastructure, put in place business processes, and obtain permits and licenses before they are allowed to process payments on behalf of their merchants.
Effortless Merchant Underwriting
An increasingly critical aspect of the merchant acquiring business is the effectiveness of the merchant acquisition and on-boarding process.
Visa’s research has shown that it is becoming a key differentiator for driving new merchants to a portfolio and for delivering a more active merchant base.
Merchant underwriting is the process of analyzing a merchant’s account application to decide whether they are capable of meeting the risk standards to start taking payments. The underwriting process helps banks and payment processors trust that the company will meet standards and accept payments appropriately.
Merchant underwriting is critical for payment companies. Payment companies have a unique product: money itself. The work of a payment company is to transfer money from buyers to sellers. During that transfer, the payment facilitator is responsible for making sure everyone gets what they’re owed. If you give a seller funds before you receive them from a buyer and something goes wrong, you’ve lost those funds, possibly for good.
While one buyer can only cause a few minor losses before getting banned from your service, a deceptive merchant can cause problems several orders of magnitude larger.
Today, many software companies and online marketplaces have taken on the roles of Payment Facilitators. These companies often process the payments on their own merchant account, known as a master merchant, and then pay the actual merchant, known as the sub-merchant. This exposes these companies to all the risks of a payment facilitator, but when using an effective underwriting system you can avoid some of these risks.
Underwriting and Onboarding Platform
The Amaryllis All-In-One Payment Facilitation solution allows you to onboard and underwrite merchants safely and in compliance with the sponsoring bank and card network rules, and without dedicating IT resources.
We automate the merchants underwriting and onboarding process, and keep you in compliance with AML, KYC, and the Card Network rules, so the sponsoring bank approves you as a PayFac, even if you’re starting from scratch.
Our service also allows you to create your own rules and closely monitor the entire payment process 24/7, meaning you can rest easy knowing your business is safe, secure and running smoothly.
We take the stress out of this process so you can focus on what matters most:
- Create a new revenue stream by monetizing payments in your business.
- Transform your business into a payment facilitator … even if your resources are super busy.
- Increase your business valuation and start seeing results in as little as weeks, not months.
- Quickly underwrite and onboard merchants so you can process their payments right away.
- Eliminate the needless stress over compliant merchant underwriting – For Good!