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UniPayGateway

August 8, 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.

How Virtual Payment Facilitator Model works

Difference between virtual and traditional payment facilitation

Virtual payment facilitator model is a handy option for software platform providers that want to increase their revenues by providing merchant services to their clients. If a SaaS or POS platform provider wants to become a payment facilitator but is not ready for significant upfront costs and for assuming the whole set of PayFac-specific responsibilities, then virtual payment facilitator model is a good “try it before buy it” in-between solution. In contrast to the a PayFac, a virtual PayFac is not responsible for merchant underwriting process. However, it handles almost all other aspects related to merchant life-cycle, such as onboarding, funding, payment processing, and chargeback handling. A virtual payment facilitator works under the umbrella of a larger payment service provider that offers virtual PayFac service and handles merchant underwriting. For some companies virtual payment facilitator model may be a long-term solution, while others may switch from virtual to traditional payment facilitation.

Learn more about the benefits of virtual payment facilitation model the respective article on Paylosophy.

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