{"id":12994,"date":"2023-09-25T13:00:00","date_gmt":"2023-09-25T13:00:00","guid":{"rendered":"https:\/\/fortispay.com\/what-is-a-payfac-and-how-is-it-beneficial-to-a-software-provider\/"},"modified":"2025-10-17T19:02:50","modified_gmt":"2025-10-17T19:02:50","slug":"what-is-a-payfac-and-how-is-it-beneficial-to-a-software-provider","status":"publish","type":"post","link":"https:\/\/fortispay.com\/what-is-a-payfac-and-how-is-it-beneficial-to-a-software-provider\/","title":{"rendered":"What is a PayFac and How is it Beneficial to a Software Provider?"},"content":{"rendered":"\n<p>For software providers, streamlining the sales process, onboarding merchants quickly, and having an all-in-one solution is top of mind to stay competitive. Keeping up with the ever-evolving payments industry, however, makes this a little difficult. Considerations like\u00a0selling in regional or global markets and building a solution that\u2019s adaptable and accepts multiple currencies is critical. All the while, software providers want to ensure that their account is protected against fraud and other threats.\u00a0<\/p>\n\n\n\n<p>Software providers have one of two options \u2013 either building the payments infrastructure themselves or enlisting the help of a PayFac. A PayFac is a payment facilitation solution for software providers and small businesses that enables them to streamline payments without investing in the infrastructure themselves. Instead, they choose a payment facilitation provider that manages everything from underwriting to gateways.&nbsp;<\/p>\n\n\n\n<p>Let\u2019s explore some of the reasons why a software provider might\u00a0consider using a PayFac.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Exploring the Evolution of Payments: PayFac, Canadian Processing, &amp; Chargeback Prevention\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/N9d5VtCaqAo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><figcaption class=\"wp-element-caption\"><em>Timmy Nafso dives into the myths and realities of payment facilitation and talks about the importance of choosing the right model for your business.<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">PayFac and the advantage of payment facilitation providers&nbsp;<\/h2>\n\n\n\n<p>As an <a href=\"https:\/\/fortispay.com\/info\/embedded-payments-powerful-technology-thats-delivering-a-better-way-to-do-business\/\" target=\"_blank\" rel=\"noreferrer noopener\">embedded payments solution<\/a>, payment facilitation providers can customize services to meet software providers\u2019 specific needs. This approach isn\u2019t just convenient in terms of cost and time-savings, but it allows software providers to scale as they serve more merchants or customers. At the same time, they do not have to handle the liabilities related to maintaining a payments module, such as <a href=\"https:\/\/fortispay.com\/info\/pci-matters\/\" target=\"_blank\" rel=\"noreferrer noopener\">PCI-DSS compliance<\/a>, gateway reporting, or regular security tests.\u00a0\u00a0<\/p>\n\n\n\n<p>Depending on the PayFac solution chosen, merchants\u00a0can accept more than just credit cards. ACH payments, eChecks, and other forms of digital transfers provide a better customer experience while retaining more revenue.\u00a0\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Measuring the competitive edge of adopting a PayFac\u00a0<\/h2>\n\n\n\n<p>It\u2019s easy to see how PayFac offers software providers the technology to effortlessly process payments at a fraction of the cost of in-house solutions. However, it\u2019s the tangible benefits to their merchants that ultimately adds to the bottom line.&nbsp;<\/p>\n\n\n\n<p>For instance, merchants and eCommerce businesses struggle with high cart abandonment rates, thus reducing their revenue and the amount software providers would receive from <a href=\"https:\/\/fortispay.com\/info\/five-payment-processing-terms-you-need-to-know\/\" target=\"_blank\" rel=\"noreferrer noopener\">payment processing<\/a>. <a href=\"https:\/\/baymard.com\/lists\/cart-abandonment-rate\" target=\"_blank\" rel=\"noreferrer noopener\">18% of customers abandon their cart<\/a> due to complex or lengthy check-out processes alone, and another 19% didn\u2019t trust the website with their credit card information.\u00a0\u00a0<\/p>\n\n\n\n<p>Fortunately, these issues, along with others, can be resolved with a streamlined, user-friendly payment facilitation system. Improving the check-out experience can <a href=\"https:\/\/baymard.com\/lists\/cart-abandonment-rate\" target=\"_blank\" rel=\"noreferrer noopener\">boost conversion rates by 35.36%<\/a> \u2014 and when the merchant earns more, so does the software provider.\u00a0\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">A best-in-class payment solution\u00a0<\/h2>\n\n\n\n<p>With Fortis\u2019 PayFac solution, software developers and merchants can leverage award-winning APIs and leading payment technology to scale their business. Fortis manages everything for you \u2013 underwriting, fraud monitoring, funding, gateway reporting, and chargeback management. Fortis also leverages negotiations made with acquiring banks and processors, supply an in-house Level 1 PCI compliant payment gateway, and provides all necessary certifications and licenses. Even better, if you don\u2019t want Fortis to manage it all \u2013 you have that option, too! The Fortis Platform\u2019s sophisticated and diverse API libraries allow you to leverage and control the payment process flow and customize the merchant\u2019s onboarding and transactional experience. &nbsp;<\/p>\n\n\n\n<p>To learn more about the Fortis difference, discover how easy it is to <a href=\"https:\/\/fortispay.com\/solutions\/enable\/payment-facilitation\/\" target=\"_blank\" rel=\"noopener\" title=\"\">simplify your payments with our PayFac solution<\/a>.\u00a0\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>PayFac, also referred to as payment facilitation, is a solution for ISVs and software developers to streamline and optimize their payment processing features.<\/p>\n","protected":false},"author":1,"featured_media":12637,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[566,577,574],"tags":[495,496],"class_list":["post-12994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-featured","category-payments","tag-payfac","tag-payment-facilitation"],"acf":[],"_links":{"self":[{"href":"https:\/\/fortispay.com\/wp-json\/wp\/v2\/posts\/12994","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fortispay.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fortispay.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fortispay.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fortispay.com\/wp-json\/wp\/v2\/comments?post=12994"}],"version-history":[{"count":0,"href":"https:\/\/fortispay.com\/wp-json\/wp\/v2\/posts\/12994\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fortispay.com\/wp-json\/wp\/v2\/media\/12637"}],"wp:attachment":[{"href":"https:\/\/fortispay.com\/wp-json\/wp\/v2\/media?parent=12994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fortispay.com\/wp-json\/wp\/v2\/categories?post=12994"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fortispay.com\/wp-json\/wp\/v2\/tags?post=12994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}