Payfacs and Market Places

The flexible account hierarchy also permits the user to create the structure required to process payments for Payment Facilitators and Marketplaces, even though there is no separate entity for this. This can be achieved by creating a collection of merchants and/or merchant acceptors. The card scheme defined payfac ID or marketplace ID can be set in acquirerOrPayFacBusinessId. The (sub-) merchants are identified by the mid and/or the subMerchantId.​

Below two examples will be given of how to construct the hierarchy for Payment Facilitators and Marketplaces using the given Merchant and Merchant Acceptor entities available on the Silverflow platform. The diagrams will depict the PayFac model but this can also be employed for Marketplace hierarchies.

In this model the Payment Facilitator will be onboarded on the platform on the Merchant level. In this case the legalName on the Merchant will be the name of the Merchant.

The sub-merchants will be onboarded on the Merchant Acceptor level and the acquirerOrPayFacId and the subMerchantId are to be set on the Acceptor.

Additionally, the sub-merchant name needs to be set in the doingBusinessAsName according to PayFac*submerchantName following format as defined by the card network. This is the value which will be displayed on the shopper statement.

In this model the Payment Facilitator will not be explicitly onboarded on the platform and the merchant and the sub-merchant will be on the same level. In this case we advise to put the legalName of the Payment Facilitator on the Merchant and also on the doingBusinessAsName on the Merchant Acceptor.

The sub-merchants are on the Merchant level and will be onboarded as both a Merchant and a Merchant Acceptor. For each Acceptor the acquirerOrPayFacId and the subMerchantId are to be set.

In this case the doingBusinessAsName will need to be overwritten using the dynamicDescriptor on each charge according to PayFac*submerchantName following format as defined by the card network. This will override the doingBusinessAsName and this is the value which will be displayed on the shopper statement.