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UniPayGateway

January 2, 2018
Written by
James Davis
Written by James Davis
Senior Technical Writer at United Thinkers

Author of the Paylosophy blog, a veteran writer, and a stock analyst with extensive knowledge and experience in the financial services industry that allows me to cover the latest payment industry news, developments, and insights.

My works have been cited across media and payment blogs. I do my best to help businesses make the most efficient financial decisions that can positively and significantly improve their business growth.

Whether you are a seasoned investor or just starting out in the world of payments, my writing is designed to be accessible to everyone and help people navigate the complex world of payments. So if you want to stay up-to-date on the latest trends and insights in the payment industry, be sure to check out Paylosophy and my published works.

Reviewed by
Kathrine Pensatori
Product Specialist at United Thinkers

Product specialist with more than 10 years of experience in the Payment Processing Industry. I help payment facilitators and PSPs solve their various payment processing issues. On a regular basis, I work with a team of knowledgeable technical people in the space, and I am passionate about finding creative solutions to the challenges presented by the Payments Industry.

I would be happy to help with any questions you might have regarding credit card payment processing, merchant services, EMV certifications, the various ways of becoming a payment facilitator or a payment platform, as well as any other Payment Industry related issues you might be struggling with. Feel free to follow me on Quora, and don’t hesitate to send me links to the specific Quora questions you would like me to answer.

Payment Facilitator for Saas Platforms

Saas Platforms

Many providers of Saas platforms do not realize that they are already on the way to becoming full-fledged payment facilitators. If you are a Saas platform provider, you can actually be only “a few steps away” from enjoying the benefits of PayFac model. A payment facilitator is a concept that is gaining popularity at the market, sometimes replacing payment service provider and aggregator concepts.

If you are a Saas platform provider, in order to become a PayFac, just like any other entity, you have to take several steps, commonly associated with payment facilitator model implementation. First, you have to find an acquiring bank to partner with. Second, you need to implement the necessary logic for merchant on-boarding, funding, and chargeback handling. Third, you need a mechanism for risk mitigation. The key risks include merchant fraud of different kinds and the possibility that a merchant belongs (or switches) to the high-risk (or even illegal) industries.

In order to complete these tasks, you can follow one of several options. Particularly, you can integrate with some existing platform-as-service provider, license a ready-made solution (possibly, an open-source platform), or extend the platform you are currently using by adding new integrations for particular kinds of services.

More information on the pros and cons of each of these approaches can be found in the respective article on Paylosophy.

 

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