Comprehensive guide to payment facilitation

Explore what a payment facilitator—often abbreviated as payfac or PF—is, identify whether your business needs to become one to achieve your goals and ideal customer experience, review the setup and ongoing costs of becoming a payfac, and learn about alternatives.

Thinking of becoming a payfac?

Becoming a payfac can be costly and time-consuming and remaining a payfac in good standing requires building out complex compliance, PCI, risk and security teams and systems to stay up to date with the changing rules and regulations set forth by the banks and card networks.

Alternatives to becoming a payfac

The good news is that becoming is payfac is not necessary. Platforms and marketplaces that use Stripe Connect stay outside of the flow of funds and can avoid the complexities that becoming a payfac otherwise requires. Stripe takes on payments processing responsibility, liability, and handles the funds flow, which simplifies not only the integration work required, but also the operational overhead of managing payments. With Connect, you own the experience from end to end.

  • Customize onboarding
  • Set payout timing
  • Set the price
  • Allow complex money movement
  • Get integrated financial reporting