Where Strategic Payment Partnerships Are Formed
The ACH Facilitator Debate: Why You Should Consider a Partnership
An ACH Payment Facilitator, or “PayFac� allows a SaaS company to act as a master merchant for its client base. The SaaS provider onboards clients via a non-intrusive application process -making it simple for the user base to quickly begin accepting customer payments.
While these generally are credit card transactions, a new approach via ACH are growing in popularity.
There are two primary types of payment facilitator: ďƒ˜ The super facilitator, such as Stripe and Paypal. ďƒ˜ The SaaS provider with a web-based payments component. Each provides a suite of accounting features with embedded payment processing and reconciliation as critical components.
The common payment rail associated with payment facilitation has been credit cards. Now that ACH has entered the facilitation space, companies with a subscription-based model or ones that have recurring payments needs can benefit from ACH processing. These benefits include: Lower processing costs. Reduction in credit card declines. Having a payment rail option in addition to the default payment method, which is often a credit card.
Although there are ACH facilitation options available, it often makes better sense to partner with a thirdparty ACH processor that understands the ACH network. You can also leverage ACH merchant application APIs, which provide fast onboarding for new clients and can be white labeled for your organization.
While it’s certainly not as quick as becoming a true facilitator, working with a third-party facilitator can offer long term benefits around cost reduction, compliance management and revenue potential. These may make a payment partnership an ideal fit.
If you are looking to explore your payment options contact us at sales@AgilePayments.com ​or call 888.729.4968.