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.

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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.

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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.

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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?

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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.

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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?

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What is a Money Transmitter?

Improving the merchant experience is a rallying cry for payment facilitators. Streamlining the underwriting and onboarding process is often a first step, but many PFs go further in search of solutions for the unique needs of their industries.

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What is Tokenization?

Tokenization is one solution that helps reduce the exposure of sensitive data in situations where it could be accessed by criminals.

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