What is credit card aggregation?
A Credit Card Payment Aggregator or Facilitator [Payfac] can be thought of as being a Master Merchant, processing credit and debit card transactions for sub-merchants within your payment ecosystem.
Becoming a PSP [Payment Service Provider] lends itself well to some businesses that fall into the software provider classification.Well known aggregators include PayPal, Stripe and Square.
How do they differ from a merchant account provider? Paypal/ Stripe/Square underwrite and provision the merchant accounts themselves and fund their sub-merchant’s payments. More importantly, PayPalP, Stripe and Square take on the risks involved in payment processing: fraud loss, chargebacks and non payment. A traditional merchant account provider obtains information from the business owner that mitigates payment risks. A Credit Card Aggregation Gateway solution can offer a SAAS provider the ability to bring a payment solution in-house and control the on-boarding process.