PayFac is the model behind FinTech’s biggest successes, from Shopify to Uber, so it's a critical but often misunderstood topic. Before you jump right into it, there are several key factors to consider, and various potential risks to be wary of.
PayFacs must adhere to strict regulatory standards, such as the Payment Card Industry Data Security Standard (PCI DSS), local financial regulations, and anti-money laundering (AML) laws. You need to understand what the responsibility of your provider is, how they meet these legal requirements, and what tasks are shifted to your operation.