A PayFac — short for payment facilitator — is one of the most important models in modern payments. PayFacs make it possible for platforms, marketplaces, and software companies to offer seamless payment acceptance to their users without those users needing their own merchant accounts. This hub covers everything you need to know about how PayFacs work, who the major players are, and how to evaluate PayFac options for your business.
What Is a PayFac?
A PayFac is a company registered with Visa and Mastercard as a master merchant. Businesses that want to accept payments through a PayFac become sub-merchants — they onboard quickly, accept payments under the PayFac’s umbrella, and receive settlements from the PayFac. The PayFac takes on underwriting, compliance, and risk management responsibility for the merchants it onboards.
The PayFac Ecosystem: Key Players
- Card networks (Visa, Mastercard, Amex). Set the rules for PayFac registration, monitoring requirements, and acceptable merchant categories.
- Acquirers. The banks that sponsor PayFac registrations and hold the master merchant accounts. Adyen acts as a direct acquirer for ConvesioPay.
- Payment facilitators. Companies like ConvesioPay, Stripe, and Square that aggregate merchants under their master accounts.
- Sub-merchants. The individual businesses that sign up with a PayFac to accept payments.
How PayFac Registration Works
To become a registered PayFac, a company must apply directly to Visa and Mastercard, meet capital requirements, establish a compliance program, and implement transaction monitoring systems. The process typically takes 12–18 months and requires significant technology investment. Most businesses don’t build their own PayFac — they partner with an existing one.
PayFac Pricing Models
PayFacs typically charge sub-merchants a flat rate per transaction — the same transparent model ConvesioPay uses at 2.9% + $0.30 per transaction with no monthly fees. Some PayFacs also offer interchange-based pricing for higher-volume merchants.
Why PayFacs Have Replaced Traditional Merchant Accounts for Most Businesses
The traditional merchant account process — bank applications, weeks of underwriting, complex agreements — was built for the era of physical retail. For the modern digital economy, PayFacs offer instant onboarding, integrated checkout, and simplified compliance that traditional acquiring simply can’t match. The result has been an industry shift: most new online merchants now onboard through PayFacs rather than directly with banks.
ConvesioPay as Your PayFac
ConvesioPay brings together the best of the PayFac model — fast onboarding, transparent pricing, fraud protection, and hands-on support — specifically for WooCommerce merchants and agencies. Backed by Adyen’s global infrastructure, ConvesioPay gives merchants enterprise-grade payment capabilities without enterprise complexity.
Ready to get started? Learn more about ConvesioPay or view pricing.