{"id":1907,"date":"2024-01-04T08:35:59","date_gmt":"2024-01-04T03:05:59","guid":{"rendered":"https:\/\/in.nttdatapay.com\/blog\/?p=1907"},"modified":"2025-07-16T15:16:35","modified_gmt":"2025-07-16T09:46:35","slug":"payment-facilitator-vs-payment-processor","status":"publish","type":"post","link":"https:\/\/in.nttdatapay.com\/blog\/payment-facilitator-vs-payment-processor\/","title":{"rendered":"Payment Facilitator vs Payment Processor: Which is Better?"},"content":{"rendered":"\r\n<p>When you enter the world of payments, you are plagued with new terminology that is self-explanatory. For example, a Payment Facilitator and a Payment Processor may appear the same at first glance, but payment solutions in detail are more complex.<\/p>\r\n\r\n\r\n\r\n<p>To explore smart payment solutions, it is vital to understand the two terms: payment processing and payment facilitator.<\/p>\r\n\r\n\r\n\r\n<blockquote class=\"wp-block-quote has-text-align-center is-layout-flow wp-block-quote-is-layout-flow\">\r\n<p><strong>Did you know?\u00a0<\/strong><\/p>\r\n\r\n\r\n\r\n<p><em>The global payment processing solutions market was valued at $39.57 billion in 2020 and is projected to reach $146.45 billion by 2030, growing at a CAGR of 13.71% from 2021 to 2030.<\/em><\/p>\r\n<\/blockquote>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">What is a Payment Facilitator?<\/h2>\r\n\r\n\r\n<div class=\"wp-block-image\">\r\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"740\" height=\"740\" class=\"wp-image-2708\" src=\"https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2023\/03\/image-29.png\" alt=\"payment-facilitator\" srcset=\"https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2023\/03\/image-29.png 740w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2023\/03\/image-29-140x140.png 140w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2023\/03\/image-29-414x414.png 414w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2023\/03\/image-29-199x199.png 199w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2023\/03\/image-29-80x80.png 80w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2023\/03\/image-29-96x96.png 96w, https:\/\/in.nttdatapay.com\/blog\/wp-content\/uploads\/2023\/03\/image-29-150x150.png 150w\" sizes=\"auto, (max-width: 740px) 100vw, 740px\" \/><\/figure>\r\n<\/div>\r\n\r\n\r\n<p>A payment facilitator is created to simplify business operations and make <a href=\"https:\/\/www.nttdatapay.com\/online-payment-gateway-india\" target=\"_blank\" rel=\"noopener\">online payment gateway<\/a> effortlessly. In short,\u00a0 a payment facilitator plays a pivotal role of a master merchant that enables easy operations of card transactions and offers the necessary infrastructure to accept credit card payments.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>Becoming a payment facilitator provides a better onboarding experience and robust control over the process, ensuring an enhanced customer experience in the long run.<\/p>\r\n\r\n\r\n\r\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2460-o1\" lang=\"en-GB\" dir=\"ltr\" data-wpcf7-id=\"2460\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/blog\/wp-json\/wp\/v2\/posts\/1907#wpcf7-f2460-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"2460\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.4\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_GB\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f2460-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/><input type=\"hidden\" name=\"_wpcf7_recaptcha_response\" value=\"\" \/>\n<\/fieldset>\n<div class=\"cus-form\">\n\t<p style=\"font-size: 24px;font-weight: 600;text-align: center;\">Enquire Now\n\t<\/p>\n\t<p><label>Products Required:<\/label><span class=\"wpcf7-form-control-wrap\" data-name=\"products\"><select class=\"wpcf7-form-control wpcf7-select wpcf7-validates-as-required form-control\" aria-required=\"true\" aria-invalid=\"false\" name=\"products\"><option value=\"Payment Gateway\">Payment Gateway<\/option><option value=\"POS Machine\">POS Machine<\/option><option value=\"Reseller\">Reseller<\/option><\/select><\/span><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"uname\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required form-control\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Name*\" value=\"\" type=\"text\" name=\"uname\" \/><\/span><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-tel form-control\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Phone*\" value=\"\" type=\"tel\" name=\"phone\" \/><\/span><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email form-control\" aria-required=\"true\" aria-invalid=\"false\" placeholder=\"Email*\" value=\"\" type=\"email\" name=\"email\" \/><\/span><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"message\"><textarea cols=\"10\" rows=\"3\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea form-control\" aria-invalid=\"false\" placeholder=\"Message\" name=\"message\"><\/textarea><\/span><br \/>\n\t\n\t<input class=\"wpcf7-form-control wpcf7-hidden\" id=\"utm\" value=\"\" type=\"hidden\" name=\"utm\" \/><input class=\"wpcf7-form-control wpcf7-submit has-spinner\" type=\"submit\" value=\"Submit\" \/>\n\t<\/p>\n<\/div>\n<style>\n.cus-form .form-control{width: 100%!important;margin: 7px 0px;padding: 8px;border-radius: 3px;height: auto;line-height: 20px;}\n.cus-form{display: block;margin: 0 auto;max-width: 400px;width: 100%;padding: 20px;box-shadow: 0px 0px 4px 0px #0000002b;border-radius: 6px;margin-bottom: 25px;padding-bottom: 0px;}\n.cus-form .wpcf7-submit{margin: 0 auto;display: block;}\n.cus-form h3{background: #ff6644;text-align: center;margin: -21px;margin-bottom: 20px;padding: 6px;}\n<\/style>\n<p><script>\ndocument.getElementById(\"utm\").value = window.location.href;\n\ndocument.addEventListener( 'wpcf7mailsent', function( event ) {\n location = 'https:\/\/in.nttdatapay.com\/blog\/thankyou\/';\n}, false );\n<\/script>\n<\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Parties Involved in the Payment Facilitator Ecosystem?\u00a0<\/h3>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li><strong>Payment facilitators: <\/strong>The payment facilitator is the company that sets up the infrastructure for effortless payment transactions<\/li>\r\n\r\n\r\n\r\n<li><strong>Submerchant: <\/strong>The sub-merchant is a payment facilitator&#8217;s customer, consigned to begin accepting electronic payments.\u00a0<\/li>\r\n\r\n\r\n\r\n<li><strong>Acquiring bank: <\/strong>\u00a0They are responsible for monitoring the payment facilitator, ensuring compliance with the underwriting procedure, and onboarding sub-merchants.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li><strong>Payment processors:<\/strong> A relationship between a processor and the acquiring bank is required to operate as a payment facilitator. The payment processor is responsible for settling transactions initiated by payment facilitator sub-merchants.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Functions of payment Facilitator<\/h3>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Underwriting and onboarding of payments<\/li>\r\n\r\n\r\n\r\n<li>Transaction monitoring and compliance\u00a0<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">\u00a0How does a Payment Facilitator Work?<\/h3>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>The payment facilitator must first open a merchant account with the acquirer.\u00a0<\/li>\r\n\r\n\r\n\r\n<li>As a result, the acquiring bank is in charge of the transaction processing for PayFac customers.\u00a0<\/li>\r\n\r\n\r\n\r\n<li>A payment processor&#8217;s job is to ensure that money flows correctly; the payment facilitator must collaborate with the payment processor. The transactions will be checked and transferred to the card network.\u00a0<\/li>\r\n\r\n\r\n\r\n<li>The sponsor ensures that the functions of the processors and acquirers are combined. The payment has to undergo the following process and get approved.\u00a0<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">What is a Payment Processor?<\/h2>\r\n\r\n\r\n\r\n<p>A payment processor is located in the middle of the payment cycle. It acts as an important link between the merchant and the financial institutions.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>The payment authorization request is sent to a payment processor when a credit card is swiped to make a purchase. The card network receives the payment request. The payment processor performs the verification and transfers to the card network.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>In a nutshell, a <a href=\"https:\/\/in.nttdatapay.com\/blog\/payment-gateway-vs-payment-processor\/\">payment processor<\/a> is a company that handles credit card transactions between the bank and the merchant. Later the payment processor transmits data from your customer&#8217;s card to the customer&#8217;s bank.<\/p>\r\n\r\n\r\n\r\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\r\n<div class=\"wp-block-button aligncenter\"><a class=\"wp-block-button__link has-white-color has-vivid-cyan-blue-background-color has-text-color has-background wp-element-button\" href=\"https:\/\/www.nttdatapay.com\/online-payment-gateway-india?utm_source=Singleblog&amp;utm_medium=Blog&amp;utm_campaign=Payment+Gateway\" target=\"_blank\" rel=\"noopener\">Want to Know more about Payment Gateway Click Here<\/a><\/div>\r\n<\/div>\r\n\r\n\r\n\r\n<p>&nbsp;<\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Parties Involved in the Payment Processing Ecosystem<\/h3>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>Customers.<\/li>\r\n\r\n\r\n\r\n<li>Merchant\/ business.<\/li>\r\n\r\n\r\n\r\n<li>A payment processor.<\/li>\r\n\r\n\r\n\r\n<li>Payment gateway.<\/li>\r\n\r\n\r\n\r\n<li>Bank\/ credit or debit company.<\/li>\r\n\r\n\r\n\r\n<li>Merchant account\/ business bank.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\r\n<p>Also Read:- <a href=\"https:\/\/in.nttdatapay.com\/blog\/difference-between-a-payment-gateway-and-a-merchant-account\/\">What Is The Difference Between A Payment Gateway And A Merchant Account<\/a>?<\/p>\r\n<\/blockquote>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">How does a Payment Processor Work?<\/h3>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li>The customer checks and selects credit or debit card payment, providing cardholder information.<\/li>\r\n\r\n\r\n\r\n<li>The merchant then sends the required information, of the cardholder, to the respective payment gateway.<\/li>\r\n\r\n\r\n\r\n<li>Later the payment gateway forwards the details to the merchant&#8217;s <a href=\"https:\/\/in.nttdatapay.com\/blog\/what-are-third-party-payment-providers\/\">third-party payment processor<\/a>. The payment processor transfers transaction data to the card network.\u00a0<\/li>\r\n\r\n\r\n\r\n<li>The card network will send the transaction details to the customer&#8217;s bank,\u00a0 to perform authentication and complete the transaction accordingly.\u00a0<\/li>\r\n\r\n\r\n\r\n<li>A notification is received by the cardholder,\u00a0 indicating whether or not the transaction was approved.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p class=\"has-text-align-center\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/lh5.googleusercontent.com\/HNe_lfnRweae_tJGLzYRCAaRXLEMDWabV98LtDdv4V8qSmJDs5tTXH_1DodH0ix9gaZeEj_gP2JAzKIu1ObXFOCV5BOf-IQkQp1rpvHuztLnygjmuvfFp-MdSVex-sl-Tj5aAVVhws8tTmNEP8EbInpW3V8JVBq5ZziRFk6OXTcITsO7ekep9Y5wtrNu-Q\" width=\"547\" height=\"259\" \/><\/p>\r\n\r\n\r\n\r\n<h3 class=\"wp-block-heading\">Payment Facilitator Versus Payment Processor<\/h3>\r\n\r\n\r\n\r\n<p>In a nutshell, the distinction between payment facilitator and payment processor is primarily differentiated by the end-to-end customer onboarding and settlement processes. They are crucial during the execution of the payment process and require collaboration while issuing the transaction authentication response from respective parties.\u00a0<\/p>\r\n\r\n\r\n\r\n<p>The main advantage of becoming a Payment Facilitator is that you can quickly and easily enroll your application, enabling a smooth onboarding experience. And a payment processor determines the perfect payment alternatives to serve the customers.<\/p>\r\n\r\n\r\n\r\n<p><strong>India\u2019s leading payment gateway:<\/strong> Working with a full-service payment services provider, such as <a href=\"https:\/\/www.nttdatapay.com\/\" target=\"_blank\" rel=\"noopener\">NTT DATA Payment Services<\/a>, is the quickest way to get everything you need to start accepting payments online. You can grow your business by integrating with our easy-to-use payment gateway. It\u2019s time for your customers to elevate and enhance their payment experience with our leading payment gateway that offers 360-degree smart payment solutions.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\">Wrapping Up<\/h2>\r\n\r\n\r\n\r\n<p>You&#8217;ll need a platform, a payment processor, a payment gateway, and at least one merchant account to accept payments online. Put, track, monitor, and manage all customer payments in real-time and quickly generate payment reports. So what are you waiting for? Let us help you ace this seamless journey of <a href=\"https:\/\/in.nttdatapay.com\/blog\/advantages-and-disadvantages-of-online-payments\/\">online payment<\/a>s and deliver a satisfactory user experience.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"entry-title wp-block-heading\">Payment Facilitator vs Payment Processor FAQs<\/h2>\r\n\r\n\r\n\r\n<p><strong>1. Are payment processors and payment gateways the same thing?<\/strong><\/p>\r\n\r\n\r\n\r\n<p>A payment gateway is a third-party service provider liasioning a section of a merchant&#8217;s website where customers can enter credit card information securely. A payment gateway ensures that a customer&#8217;s credit card is valid. A payment processor sends card information from a merchant&#8217;s POS system to the card networks and banks involved in the transaction.<\/p>\r\n\r\n\r\n\r\n<p><strong>2. What&#8217;s the distinction between Payfac and PSP?<\/strong><\/p>\r\n\r\n\r\n\r\n<p>A payment Facilitator is a third-party payment service provider (PSP). It would open a sub-merchant account for the merchant and have a contract with the acquiring bank. As a result, it would link the merchant and the acquiring bank.<\/p>\r\n\r\n\r\n\r\n<p><strong>3. Is a Payment service provider and payment gateway the same?<\/strong><\/p>\r\n\r\n\r\n\r\n<p>A payment service provider (PSP) offers payment collection and management services. Whereas a payment gateway is a system that facilitates effective payment transactions between a merchant provider and their customers.<\/p>\r\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>When you enter the world of payments, you are plagued with new terminology that is self-explanatory. For example, a Payment Facilitator and a Payment Processor may appear the same at&#8230; <!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":1,"featured_media":4856,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-1907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general"],"_links":{"self":[{"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/posts\/1907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/comments?post=1907"}],"version-history":[{"count":13,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/posts\/1907\/revisions"}],"predecessor-version":[{"id":3802,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/posts\/1907\/revisions\/3802"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/media\/4856"}],"wp:attachment":[{"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/media?parent=1907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/categories?post=1907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/in.nttdatapay.com\/blog\/wp-json\/wp\/v2\/tags?post=1907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}