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Category: Risk/Compliance

Do Payment Facilitators Have to Be PCI Compliant?

Data security is a critical component of the work that payment facilitators do. Proper management of sensitive data is an essential responsibility for anyone enabling access to the payments system. So every payment facilitator needs to understand the role that PCI compliance plays in their overall risk management efforts.

What are Reserves, and How Do Payment Facilitators Use Them to Mitigate Risk?

Payment facilitators have a number of tools they can use to reduce their exposure to risk. To mitigate against credit risk, PFs will sometimes hold back funds from the submerchant – known as a reserve – to guard against possible future losses.

When are reserves typically used, and is now – as many businesses are experiencing financial hardship because of the coronavirus – a time to implement them?

What is a Submerchant?

The relationship payment facilitators have with their merchants is at the heart of what PFs do. Working with a payment facilitator makes acceptance simpler for merchants – especially for smaller businesses, for whom setting up individual merchant accounts can often be too cumbersome.

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