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?
The outbreak of a global pandemic is unlike anything the payments industry has previously encountered. But that doesn’t mean the resulting threats themselves are new – simply that the risk of encountering them is dramatically heightened.
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.
As the world reacts to health experts’ advice meant to avoid spreading the novel coronavirus, the need to pay for goods and services without making contact with others is driving a global shift to digital payments.
For banks, deciding to sponsor payment facilitators is a balance of risks and rewards. It allows them to expand and broaden their merchant base. It also provides additional revenue from their transaction fees.
But enabling access to the payments system is not a function to be taken lightly.
While becoming a payment facilitator can create new revenue streams for many businesses, it carries a risk of losses as well. One type of risk a PF must address is the potential for losses from chargebacks.
The CSBS has launched new fintech tools to enable a more manageable navigation process when it comes to promoting compliance and protecting customer data, including a portal, interactive map and updated resource center
Which technology tools are critical to payment facilitator success today? In a panel discussion at PF WORLD 2019 hosted by Deana Rich, CEO and founder of Rich Consulting and co-founder of Infinicept, experts talked about how tools are enabling PFs to build better businesses.
Relationships, by nature, are complicated. And the payments world is no different. We have codependency issues, monogamy issues and even a fluctuating divorce rate. So when it comes to the payment facilitator model, is it better to commit yourself to one processor? Or is it better to play the field with a more agnostic gateway?
In this article we discuss what it means to be the merchant, the differences between MOR status and providing MOR services to merchants, and the potential consequences of improper use of the MOR concept to describe payment facilitation services.
During a panel discussion at PF WORLD 2019, expert speakers shared their perspectives on the Indian payments landscape, from what is driving the digital payment boom in India – including both macro trends and government policies – to what the future holds.
The relationship with a payments processor is one of the most important partnerships a payment facilitator can have. As the entryway into the payments system, these companies provide technology and expertise that can help put the PF on the road to success.