Payment Facilitation without Hassle
Easiest Way to Payment Facilitation
Technology makes it so much easier for companies to conduct business. It has changed the payments landscape, in which software providers acting as payment facilitators are more prevalent than ever. When a software provider acts as payment facilitator they serve as the intermediary between their merchant customers and service provider, thereby improving onboarding efficiency and maintaining control over the payments process. However, there are risks and lots of work that comes with being a payment facilitator, an easier way to reap the benefits of payment facilitation without the hassle is through a managed payment facilitation program.
The Risks of Payment Facilitation
Becoming a payment facilitator is a tempting proposition for software providers and is appealing to many. However, it takes more to operate and manage than most providers realize. Plus, it’s a major financial investment.
Software providers need to establish the infrastructure and staffing to handle the transaction volumes. Furthermore, there is substantial investment associated with obtaining required certifications and fees, as well as annual renewal costs. Additionally, the software provider is also liable for their entire merchant portfolio and incurs the risks associated with fraud and chargeback.
Managed Payment Facilitation and the Benefits.
Managed payment facilitation, what we refer to as PUREfac at Paragon Payment Solutions is a different approach. It allows software providers to leverage all the benefits of the program without any of the costs and risks.
With the managed payment facilitation model, the payment provider assumes the burdens and costs associated with becoming a facilitator, while the software provider can offer white-labeled payments including instant onboarding and auto-approvals. This type of program has numerous benefits for software providers, including:
- Significantly lower upfront and operational costs
- Reduced liability for their merchant portfolio
- Seamless onboarding that improves customer experiences
- A greatly reduced learning curve
Partnering with a payment provider that offers a managed payment facilitation program like Paragon’s PUREfac is the easiest way to payment facilitation.