When looking for payment processing for your business, you may have come across the following terms and wondered what the differences are. Let’s break them down to see how they apply to your business.
Payment Facilitator (PayFac)
A facilitator provides merchants with a dedicated merchant account (MID) under a master account. This allows for a quick and efficient onboarding process.
An aggregator signs up merchants directly under its own MID. Sub merchants typically pay high flat rates and use the the aggregator’s MID. Merchants do not get their own account, this is known as a “closed merchant account”.
See more information on Open vs. Closed merchant Accounts
A payment gateway transmits payments and handles interaction between the merchant account bank and the customer’s banking account.
At Punchey, we offer a unique service as a payment facilitator by bundling a host of valuable business services with a dedicated open merchant account.
So what does this mean for you?
No two businesses are the same. That’s why Punchey takes the time to understand your company’s needs before presenting you with a the right rate plan. Merchants are usually sold “one low qualified rate” only to realize that most of their sales don’t qualify! Punchey offers either the Punchey Flat or Punchey Flex Plan, depending on your business model.
When combined our business software, Punchey processing is so powerful, you can use it to do even more for your business. We give you access to customer data that can supercharge key business areas such as:
- Customer Retention
- Reputation Management
What exactly is the difference between an aggregator and Punchey?
One subtle but substantial difference between Punchey and other providers is found in the merchant account.
Aggregators, like Square or Stripe, pool merchants together into groups. Merchants don’t have their own account, and payments are instead processed jointly with other merchants. This means that you will not be able to use your processing with any other POS or software other than what the aggregator provides.
Merchants who sign up with Punchey the other hand, are given their own account, similar to a checking account given by your local bank. The only difference here is that an acquirer, a type of bank, takes on the risk associated with processing credit card transactions.
As a provider of dedicated merchant accounts, Punchey is able to provide faster payment processing. We deposit funds into your checking account within 1-2 business days from the transaction. Some aggregator’s require 7 days from the date of your first transaction!
A Personal Touch
With Punchey, you are the merchant of record. That means that when you have an account with Punchey, you can rest assured that our underwriters have taken the time to review and understand your business from the get go. Those served by aggregators carry the burden of a higher risk for unexpected account freezes and holds as there is no attention paid to your individual business when it is originally turned on. We like to think we’re able to know you better.
We’re Upfront and Honest
There are some advantages to an aggregator system. Because there is no underwriting process, aggregators tend to have streamlined application processes, getting you up and running with their systems faster. This simple process means the barrier of entry for aggregators is lower.
Still, the benefits of a dedicated merchant account, especially one supercharged with our business software, outweigh the slightly longer underwriting process. If you’re looking to benefit from the processing power of a dedicated merchant account, take a closer look at processing with Punchey today.
Have a local merchant service agent you know and work with? No problem, we work with them too!