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UniPayGateway

September 2, 2015
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 Aggregator vs Payment Facilitator

Key Takeaways:

Depending on a size of a merchant’s business, the merchant might find it more profitable to operate through various types of intermediary entities. A small-size merchant might not even have a MID. In this case merchant funding will be performed by a payment aggregator – a business, which has a lot of small sub-merchants in its portfolio and uses a single merchant ID for all of them. If the intermediary entity, which funds the sub-merchants, uses different MID for each merchant, it is called a payment facilitator. One of the key differences between payment aggregators and payment facilitators is the size of sub-merchants they are servicing. As merchant’s processing amounts grow, it might face the legally imposed need to have its own MID, or even become an independent merchant.

Payment Service Provider

Another important type of an intermediary entity is a payment service provider or PSP. A PSP does not fund the merchants. Funding of sub-merchants of a PSP is, generally, done by the acquirer. Payment service providers help merchants get their merchant accounts, facilitate merchant underwriting and transaction processing.

Examples of PSPs include independent sales organizations; a POS software provider, servicing fitness centers or restaurants, can be an example of a payment facilitator; an accommodation and lodging service can serve as an example of a payment aggregator.

Read more about payment aggregators, payment facilitators, and payment service providers in the respective article on #Paylosophy.

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