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How to become a Payment Facilitator

The steps to becoming a PayFac or Payment Facilitator.<br>First you need to ask: Is my SaaS application and business a good fit?

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How to become a Payment Facilitator

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  1. HOW TO BECOME A PAYMENT FACILITATOR

  2. We will outline the Steps to becoming a Payment facilitator but first it's important to understand: The vast majority of platforms that aspire to become a true payment facilitator aren’t good fits for MANY reasons.

  3. YOU WILL NEED: • Money. Expect to spend $50k+ [easy to spend >100k] • Payments understanding and especially risk mitigation. Check out "What can go wrong with Payment facilitator"? for more info. • Resources to devote to ongoing compliance and risk [staff and $] • User base that has the potential to generate enough transactional revenue to offset costs. Without this forget everything else. You make money from processing fees [ margin between costs and sell rate]. You NEED lots of transactions! • Check out “5 Things You Must Have to Become a Payment facilitator”

  4. SO HOW DO YOU BECOME A PAYMENT FACILITATOR? • Register w/Sponsor Bank • Approval by Sponsor Bank • Connect with Technology platform. Integrate via API • Sponsor bank issues PayFac / facilitator credentials • Go to market • Refine • This process likely takes 6+ months or more.

  5. To get a more comprehensive overview of Payment facilitator and more importantly to decide if it might be right for you- Payment facilitator

  6. Hybrid Payment facilitator or even a Payment Partnership may be better fits especially if your app does not have the “gravity” needed for true facilitator. Again most platforms aren’t ready for true facilitator but you can get most of the benefits without the cumbersome drawbacks if you find the right partner. Good luck.

  7. If you are looking to explore your payment options contact us at sales@AgilePayments.com ​or call 888.729.4968.  

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