Retail ISO vs Wholesale ISO: What’s the Difference?

Before payment facilitators existed, acquirers commonly extended their reach to smaller businesses by working with independent sales organizations, known as ISOs. Sometimes a distinction is made between what are known as retail ISOs and wholesale ISOs. So, what’s the difference?

Read More

What is Embedded Finance?

Historically, financial services have been offered solely by traditional providers such as banks and insurance companies. But a new crop of providers is increasingly offering simpler and more intuitive ways for consumers and businesses alike to access a variety of services.

Read More

What are Embedded Payments?

For decades, payments have been the purview of large companies and payment processors. Software companies have traditionally had to rely on third-party integrations to allow their customers to accept payments using their platform, which has caused a disjointed customer experience between software and payments.

Read More

What is a Payment Aggregator?

The payments industry is filled with confusing terms, many of which are used interchangeably. This confusion is compounded by the fact that the industry has changed rapidly in recent years, giving rise to new terms while others fall away.

Read More

What is Interchange, and What Does it Mean to Payment Facilitators?

Increased revenue is often cited as one of the benefits of becoming a payment facilitator. And it’s true that the ability to charge merchants payment processing fees offers PFs a new revenue stream. But it’s important to note that the entire payment fee does not go directly into the PF’s pocket.

Read More

What are Reserves, and How Do Payment Facilitators Use Them to Mitigate Risk?

Payment facilitators have a number of tools they can use to reduce their exposure to risk. To mitigate against credit risk, PFs will sometimes hold back funds from the submerchant – known as a reserve – to guard against possible future losses.

When are reserves typically used, and is now – as many businesses are experiencing financial hardship because of the coronavirus – a time to implement them?

Read More

What is a Submerchant?

The relationship payment facilitators have with their merchants is at the heart of what PFs do. Working with a payment facilitator makes acceptance simpler for merchants – especially for smaller businesses, for whom setting up individual merchant accounts can often be too cumbersome.

Read More

What is a Payment Gateway?

The payments industry is a complex system of pieces, all working together to make it possible for a consumer to purchase an item or a service simply by inserting a card at a retail location or entering their payment credentials into a web site.

The term “payment gateway,” is often mentioned as a necessary piece of the puzzle. But what exactly does that mean?

Read More