--- title: What Is a Payment Facilitator? description: A Payment Facilitator manages one shared merchant account. Learn more about the Payment Facilitator definition and whether you should partner with one. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/payment-facilitator-definition.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. 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Get automated reports for simplified end-of-day close and save on processing fees.](https://www2.payjunction.com/automotive-merchant-services) Developers - [API Documentation See how to embed omnichannel payment features into your software, using your choice of our intuitive integration methods.](https://developer.payjunction.com/) - [Developer Experience Explore the developer journey and learn how our full-service partnership model helps you maximize merchant payment adoption rates.](https://www.payjunction.com/payments/payment-api.html) - [No-code Payments Integration® Rapidly integrate payment acceptance features into any SaaS application in minutes using our easy-to-use Chrome browser extension.](https://www.payjunction.com/payments/no-code-payments-integration.html) - [Integration Marketplace Check out our growing marketplace of integrated solution partners that streamline payment acceptance and help businesses automate and scale.](https://integrations.payjunction.com/) [Pricing](https://www.payjunction.com/payments/pricing.html) Resources - [About Us Learn how our people-first culture at PayJunction helps us earn widespread recognition and awards.](https://www.payjunction.com/payments/about.html) - [Careers Join us in our pursuit to deliver exceptional experiences to customers and partners.](https://www2.payjunction.com/careers) - [Support Get helpful information about how to use features, troubleshoot problems and contact us.](https://support.payjunction.com/) - [Blog Gain useful insights into payment industry trends and PayJunction solutions.](https://blog.payjunction.com/) - [Guides Up your payment processing knowledge with our in-depth eBooks and White Papers.](https://guides.payjunction.com/) - [Tutorials Read articles and watch videos about how to use valuable features on the PayJunction platform.](https://blog.payjunction.com/topic/pj-university) # What Is a Payment Facilitator? ![What Is a Payment Facilitator?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/payment-facilitator-definition.svg) [![Picture of Christina Lavingia](https://blog.payjunction.com/hs-fs/hubfs/Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg?width=48&height=48&name=Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg) Christina Lavingia](https://blog.payjunction.com/author/christina-lavingia) 2/4/2019 Have you ever heard of Square, Stripe or PayPal? You might be surprised to learn that these recognizable names in the payments space are Payment Facilitators. There are numerous [middlemen](https://blog.payjunction.com/credit-card-processing-middlemen/) involved in credit card processing, and depending on your [size and needs](https://blog.payjunction.com/merchant-service-provider/), different ones will prove most advantageous for you. If you're unsure what defines a Payment Facilitator, here's your answer. A Payment Facilitator provides businesses with one shared, mass [merchant account](https://blog.payjunction.com/merchant-account/). Anyone can use it, making them a preferred choice for small businesses with a low processing volume. Businesses that opt for a Payment Facilitator will share their merchant account with millions of other businesses, which means a few things: - **Flat rate pricing:** Because the merchant account is shared, the Payment Facilitator can’t offer businesses different rate plans and, therefore, offers Flat rate pricing to everyone. With Flat rate pricing, a mix of rates and fees are built into the pricing to produce one consistent rate, regardless of card or transaction type. This results in a far-from-transparent [rate plan](https://blog.payjunction.com/best-credit-card-processing-plan/) that’s more expensive than others. - **Volume constraints:** Payment Facilitators are regulated to only permit the sharing of a merchant account to businesses that process within specific volume limits (that vary by card type). In 2014, the limits were $100,000 annually for Visa transactions and $1,000,000 annually for MasterCard transactions, according to [Digital Transactions](http://www.digitaltransactions.net/news/story/4990), and are subject to change. Upon reaching this threshold, these businesses are required to have a dedicated merchant account set up. - **Less customer support:** Usually email is the only way to communicate with a Payment Facilitator’s support team because its customer base is so large. Every Payment Facilitator has this in common. They sometimes differ when it comes to depositing funds to the merchant’s bank account. Square and Stripe deposit funds directly into their businesses’ bank accounts, much like a Merchant Account Provider does. PayPal does not, and instead holds funds in the form of virtual credits. Merchants can use this for digital transactions in some ways, but they don’t translate into cash in the bank unless the funds are requested. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## Payment Facilitators May Hold Funds Payment Facilitators provide a quick fix for small, low-volume merchants that are eager to accept payments, but bypass the [underwriting process](https://blog.payjunction.com/merchant-underwriting-unethical-billing/) that assesses the business’s financial risk. Because of this, PayPal [holds funds](https://blog.payjunction.com/paypal-holding-funds/) in the event the business is hit with a large chargeback it can’t afford. This is also why volume constraints are put in place to ensure businesses that use the shared merchant account aren’t at risk of major fraudulent transactions. Small businesses that are just getting off the ground might find that Flat rate pricing and volume constraints aren’t a turnoff. Larger businesses, however, should opt for a proper account through a Merchant Account Provider. ## Payment Facilitators vs. Merchant Account Providers Merchant Account Providers approve and underwrite businesses for individual merchant accounts. With this higher threshold come many perks, such as a wider variety of rate plans, better customer support and fewer restrictions. Larger businesses benefit from an Interchange-plus rate plan, which charges the wholesale cost to run transactions with a flat markup. It’s the most transparent plan because you can clearly see what you’re paying the provider versus the card brands, who set Interchange. If a business were to run a $1,000 transaction on a debit card, the Interchange rate without markup would be 0.05% plus $0.21. The wholesale cost for that transaction would be $0.71. Alternatively, a Payment Facilitator, such as PayPal, would charge 2.9% for the same transaction for a total fee of $29. That’s over a 40 times increase in cost. Due to their smaller clientele and more boutique services, Merchant Account Providers usually offer better customer support. [PayJunction customers](https://blog.payjunction.com/payjunction-reviews-love-letters/), for instance, wait under one minute on average when they call our U.S.-based support team. They always receive help from a real person on the phone. Merchant Account Providers properly underwrite each business they work with, which includes an evaluation of the type of business (physical store versus e-commerce), its history and policies, card acceptance methods, requested processing limits and financial stability. This results in proper volume limits and no holding of funds. In conclusion, a Payment Facilitator is good for a small business that is willing to pay higher fees for lower transaction volumes and that doesn’t need extensive support and service. A Merchant Account Provider is better for high-volume a business seeking a better transaction cost structure and one-on-one customer support. ## Select the best merchant account for your business. [![ASK THESE 8 QUESTIONS](https://no-cache.hubspot.com/cta/default/635739/18e1c2c9-714d-4f22-bbae-9d4b4529734f.png)](https://cta-redirect.hubspot.com/cta/redirect/635739/18e1c2c9-714d-4f22-bbae-9d4b4529734f) Getting ready to set up your credit card processing? Debating whether to go with a Merchant Account Provider or a Payment Facilitator? Share your thoughts in the comments section below. We’d love to hear from you! *Editor's Note: This post was originally published in January 2017 and has been updated for comprehensiveness and accuracy.* [Rates](https://blog.payjunction.com/topic/rates) [Questions and Answers](https://blog.payjunction.com/topic/questions-and-answers) [Credit Card Processing](https://blog.payjunction.com/topic/credit-card-processing) --- ##### [![4 Reasons to Automate POS Data](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/automate-pos-data.svg) 4 Reasons to Automate POS Data](https://blog.payjunction.com/automate-pos-data) ##### [![PCI History: How It Came to Be](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/pci-history.svg) PCI History: How It Came to Be](https://blog.payjunction.com/pci-history) ###### About Author ![Picture of Christina Lavingia](https://blog.payjunction.com/hs-fs/hubfs/Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg?width=200&height=200&name=Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg) ### Christina Lavingia Christina Lavingia delights in crafting content that helps business owners fight fraud, reduce risk and process payments with ease. ###### Related Posts ## [![Are You Paying the Lowest Possible Debit Card Fees?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/debit-card-fees.svg) Are You Paying the Lowest Possible Debit Card Fees? You may sometimes wonder if the payments industry has your best interest in mind. At PayJunction, we believe in ethical billing, as we’ve outlined in our ongoing unethical billing series. Our goal is to educate the business community about unfair billing practices.](https://blog.payjunction.com/debit-card-fees) ## [![How to Eliminate Your Payment Gateway Bill](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/payment-gateway-bill-e-commerce.svg) How to Eliminate Your Payment Gateway Bill Setting up your credit card processing can certainly be confusing. There are numerous middlemen involved and, depending on whether you sell your goods through a brick-and-mortar store or online, you might have to familiarize yourself with different setups.](https://blog.payjunction.com/payment-gateway-bill-e-commerce) ## [![Omnichannel Payments Streamline In-store, Online, and Invoice Payments](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/omnichannel-payments.svg) Omnichannel Payments Streamline In-store, Online, and Invoice Payments What are Omnichannel Payments? Omnichannel payments is a big phrase for what essentially means the ability to use one solution platform to accept payments from customers any way they want to pay: in-person, online, in a shopping cart, via email or postal mail, over the phone, on a mobile device, or as part of recurring payment and subscription plans.](https://blog.payjunction.com/omnichannel-payments) ## Meet a Payment System You’ll Love - ###### FEATURES [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) - [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) [Remote Signatures](https://www.payjunction.com/payments/signature-capture.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) - ###### RESOURCES [Product Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integrations](https://integrations.payjunction.com/) [Blog](https://blog.payjunction.com/) [Guides](https://guides.payjunction.com/) [Support](https://support.payjunction.com/) [Service Status](https://status.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) - [Trust Center](https://trust.payjunction.com/) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [Pricing](https://www.payjunction.com/payments/pricing.html) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) - ###### RESOURCES [Integrations](https://integrations.payjunction.com/) [Guides](https://guides.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) [Trust Center](https://trust.payjunction.com/) [Service Status](https://status.payjunction.com/) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) ##### 800-601-0230 SIGN UP FOR OUR NEWSLETTER  Become a better advocate for your business. 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