Payment Facilitator vs. Bank Acquiring: what to choose

Imagine you are launching an online business, marketplace, or international service. The issue of technical processing of payments becomes critical. You need a solution that is not only convenient for customers but also profitable for the company.

Usually, in such matters, the choice comes down to two options: connect through a bank or go the Payment Facilitator route?

One model offers a quick start and flexibility, while the other offers reliability and control. But which option is best for your business?

Tranzzo, having many years of experience in the field of payment technologies, knows all the pitfalls and advantages of each approach.

In this article, we will break down everything:

🔷 how these models work

🔶 what are their differences

🔷 what to choose in order not to make a mistake

As a business owner, you probably want to save your time and start accepting online payments quickly. You need a minimum of bureaucracy and maximum convenience, without having to go through complex checks and integrate with the bank.

In such cases, Payment Facilitator or PayFac is the model that works like a VIP pass.

What is a Payment Facilitator?

A Payment Facilitator is a company that takes care of all the complex acquiring processes, allowing businesses to quickly connect payment acceptance. One of the main advantages of this model is that there is no need to open your own merchant account with a bank. 

In other words, PayFac becomes an intermediary between your business and the financial system, simplifying all formalities.

Instead of each company negotiating with the bank separately, PayFac already has a single integration with the acquirer and connects you using a simplified scheme. It is like renting a ready-made office instead of building a building from scratch.

How does it work?

• PayFac already has partnerships with banks and payment systems
• Your business is connected instantly or almost instantly - without long KYC/KYB procedures
• You get a single technical integration without the need to set up processes yourself
• Payments from customers are processed through PayFac, which then distributes funds between businesses
• Security, compliance, and fraud management are also PayFac's responsibility

So your business simply focuses on sales while the payment process remains in the hands of the intermediary.

• Small and medium-sized businesses are expected to spend more than $100 billion on payment services on average, which opens up significant opportunities for merchant acquirers. 

While Payment Facilitator is fast, Internet acquiring is the classic, time-tested foundation on which all e-commerce is built. 

It's like opening your own bank account: the process may take longer, but you get full control, lower fees, and direct connection with financial institutions.

What is online acquiring and why is it reliable?

Online acquiring is a mechanism that allows companies to accept payments via bank cards (Visa, Mastercard, and other payment systems). It is based on a direct contract between the business and the acquiring bank, which guarantees the stability of payments and access to the financial infrastructure without intermediaries.

If PayFac takes care of all the processes, then your business gets a direct ‘ticket’ to the banking system. You manage your merchant account on your own, and the acquiring bank only processes transactions and ensures their security.

How does it work?

• A business enters into an agreement with an acquiring bank
• Undergoes KYC/KYB verification - the bank needs to make sure that the company is legal
• Integrates with a payment gateway - connects API or ready-made payment modules
• Starts accepting payments - each card transaction goes through the bank, which processes it and credits funds to the merchant's account
• Security is ensured - transactions pass through 3D Secure, anti-fraud and compliance systems

This is a classic option used by the world's largest businesses.

We have considered two models that have their advantages and limitations. However, the decision always depends on the specific needs of the business.

🔷 You need a quick start, minimum bureaucracy, and flexibility – PayFac will be a great solution.

🔶 Want lower fees, maximum control, and stability – Bank acquiring will be more profitable in the long run.

But do you have to choose between these two options?

If you're looking for more than just a payment solution, Tranzzo offers direct integration with 10+ acquiring banks around the world.

What does this mean for your business?

✅ Flexibility

You are not limited to one acquirer or one connection model.

✅ Optimal tariffs 

We select the best conditions depending on your transactions and volumes.

✅ Reliability 

There is always a backup bank in case one of the acquirers has delays.

✅ Global coverage 

We work with international banks, which gives you access to local payment methods.

✅ The ability to choose a model - direct acquiring or PayFac? 

With Tranzzo, you get the best option for your business.

The choice depends on your strategy: speed and simplicity vs. control and favorable terms. 

However, the best option is to access both models at once and manage payments flexibly.

That's what Tranzzo offers – an expert payment solution that adapts to your business, not the other way round. 🚀

Ready to connect payments that work for you? 

Contact us and we'll find the solution for you!