How To Become A Payment Facilitator

Once you’ve determined that becoming a payment facilitator is a viable route for your company, the journey begins. Becoming a payment facilitator is about a lot more than “adding on” payments.

To maximize your investment, you must align your business model with your payments strategy. This will allow you to:

  • Streamline your customer experience
  • Negotiate better rates with partners
  • Collect the most revenue

But the process to become a payment facilitator is not easy, especially if you’re new to payments. It’s both time and capital intensive. While there isn’t a single way to structure your payments strategy, there are smart and risky approaches you can take.

Avoid the risks associated with making this journey alone

Getting started hinges on your relationship with an acquiring processor. They sponsor you and underwrite your business as a payment facilitator. Reaching an agreement is not an easy road, though.

They will scrutinize over your business plan and if they feel as though you’re not up to the challenge, they’ll deny contracting with you. At that point, your dreams of becoming a payment facilitator will be on hold, and it’s very difficult to get back on their good graces.

We’ve developed a 360 degree approach to guide you through this process and avoid the risks associated with making this journey alone.

Fintech 513’s 360 Degree Approach

Align your Business:

Your payments strategy is unique to you. By embedding payments into your software, you’ve not just added in this additional feature. You’ve changed your product into a more seamless experience that delivers greater value to your sub-merchants and their customers.


Compliance ensures that cardholder information is protected. The rules are perpetually evolving and have unique requirements for every industry. Compliance needs to be a company-wide effort to ensure your product delivers the necessary security for cardholders.


This is where your benefits as a payment facilitator really get to shine. It’s important to design a functional portal for sub-merchants and cardholders to interact with one another seamlessly. The back-end is complex, so it’s important to first understand the experience you want to create.


Securing all your agreements with partner organizations, and for sub-merchants, ensures that your business is protected. The credit card networks require an understanding of a lengthy 1,000 page legal agreement. Without a thorough understanding of this complexity, your partners are likely going to have the upper hand in negotiating agreement details.

Payments Operations “The Big 3” :

As a payment facilitator, you have to be able to efficiently onboard new sub-merchants, settle cardholder payments, and provide quick reporting. This is a new function for your business that will require additional personnel support.

Go-to-market strategy:

Payment facilitation changes your approach to new customers because you’ve increased your value to them. You’re now an entire business solution, rather than just a static software with limited capabilities.

To Build, or to buy – that is the question

Depending on your appetite to handle the compliance regulations, and the operational overhead of processing payments, some companies may elect to partner with an existing payment facilitator. This limits your revenue growth opportunities but still allows you to control the customer experience without as much new responsibility.

More on that in our blog posts, here:

How Fintech 513 Helps You

Evaluate Your Payments Strategy

The Starter Project

Helps you determine the ROI of you becoming a payment facilitator.

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Build Your Payments Strategy

The Full Project

Helps you make the transition to become a payment facilitator, maximizing your ROI, speeding up your time to processing payments, and minimizing your risk exposure. It also includes vendor and partner selection and negotiation, as well as help hiring internal personnel.

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Manage Your Payments Business

Payments Person as a Service

Helps you as you adjust to your new business operations, and navigate the evolving payments landscape.

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Grow Your Payments Business

Go-To-Market Strategy

Helps you market and sell your new business as a payment facilitator.

Don’t expose your business to unnecessary risk

Leading this process without an experienced guide could create costly delays:

Failure to meet acquiring processor demands may delay your time to accepting payments, further adding to your costs to become a payment facilitator.

Failure to align your business to your payments strategy could reduce your revenue potential.

Failure to meet ever-changing compliance regulation could open your business up to unnecessary security issues, or shut your business down altogether.

Failure to meet regulations from a legal standpoint could expose your business to unnecessary risk with your partner agreements or sub-merchant and cardholder issues.

Failure to build a secure technology stack exposes your cardholders to unnecessary security risks; a flawed experience could also result in them abandoning their business with your sub-merchants.

Failure to efficiently meet the demands of onboarding, settlement and reporting places your contracts with sub-merchants in jeopardy.

We share this information with you to prepare you. We’ve been through this process with hundreds of different payment facilitators and can help increase your investment and speed to processing payments. Explore the process in more detail by clicking the link below.

Payments may not be your core business, but it may present a strategic opportunity for you to better serve your customers. Is it the right decision for you?

Click the button below to share a little information with us so that we can find out.

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