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:
1. Are you processing enough volume?
If your current card volume is below $50 million then you’ll have a tough time recouping the costs it takes to become a payment facilitator.
2. Can you cover the expenses involved in the transition process?
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.
3. How quickly do you need to start accepting payments?
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.
4. Can you handle the new responsibilities required to become a payment facilitator?
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 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.
Get in touch with Finix Professional Services to learn more about becoming a payment facilitator.