The Payments Association

FEBRUARY 10, 2025

The primary focus on monitoring master accounts leaves an oversight gap that can be exploited for illicit financial activities. Since vIBANs are often treated as extensions of master accounts rather than independent relationships, firms fail to apply appropriate risk assessment frameworks.

IBAN 88

IBAN AML Master Account Due Diligence 88

Exact Payments

OCTOBER 30, 2023

Differentiator 1: Payment Aggregation The most crucial distinguishing factor of PayFacs is that they operate as merchants themselves and register for processing accounts directly with an acquiring bank. They are then able to onboard and aggregate sub-merchant accounts under their master account.

Facilitators 52

Facilitators Processors Payment APIs and Integration ISOs 52

EBizCharge

NOVEMBER 12, 2024

They provide merchants with credit card processing services, but the merchant agreements are held with acquiring banks, not the ISO itself. In contrast, PayFacs streamline the process by directly allowing merchants to sign up for payment processing services without needing an individual merchant account from an acquiring bank.

Underwriting 52

Underwriting ISOs Risk Assessment Assessments 52