Should You Become A Payment Facilitator?
The benefits to becoming a payments facilitator make it seem like a very enticing opportunity:
- Control the customer experience to ensure there are no gaps in the transaction process, and chargeback issues can be resolved quickly and courteously
- Generate additional revenue streams for your business
- Differentiate yourself amongst your competitors and provide more value to your customers in the form of a consolidated experience
But becoming a payments facilitator means taking on a lot more responsibility, with subject matter you may not be very familiar with. One of the best ways to determine if this is a viable route for you is to look at some of the prerequisites.
If your company doesn’t yet meet the following criteria, now is probably not the right time to become a payment facilitator:
If your current card volume is below $100 million then you’ll have a tough time recouping the costs it takes to become a payment facilitator.
Becoming a payment facilitator isn’t an inexpensive process. Most companies will invest anywhere from $300,000 to $500,000 in this process to become a payment facilitator.
Becoming a payment facilitator does take some time. It’s likely you won’t be processing payments on your own for about six months if you were to begin the process today.
The work doesn’t end when you become a payment facilitator – it’s just beginning. You’ll have to ensure you have the staff and expertise to manage and maintain:
- The constantly evolving compliance details within your industry
- The technology that supports your payments portal
- The operational side of payments, to ensure you can onboard, settle, and report for your sub-merchants, in addition to quickly and effectively handling issues of fraud and chargebacks
The beginning of this process is perhaps the most important: aligning your business to your payments strategy so that you can find an a processor to partner with. If you are in a position to become a payment facilitator, we guide you through the whole process, starting with an evaluation to determine the ROI of this transition for your company.
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?
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There are a lot of options to weigh when you’re considering payment facilitation. Below are relevant topics that we’ve compiled to help provide additional perspective about the benefits and responsibilities to becoming a payment facilitator.