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All Places > Developer News and Updates > Blog > Author: ali.sahibzada

It seems everywhere you turn technology is reshaping the way we do business. The FinTech ecosystem is encroaching on traditional banking norms and payment businesses are reeling to catch up. As merchant card services become more of a commodity, automated, client-focused onboarding has become a strategic differentiator for continued growth.


Know your customer to balance risk with reward

Traditional merchant onboarding is incredibly complex, but for good reasons. It helps to build business credibility and consumer confidence in an era of fraudulent activity and data theft. The acquirer or payment service provider must ensure the merchant is compliant with Know Your Customer (KYC) and other governmental/industry regulations.


KYC PayFac instant onboarding


With automated onboarding tools and APIs, Payment Facilitators can successfully balance demand for almost instant-onboarding while the Acquirer ensures compliance, reduced business risk and controlled costs.



More importantly to merchants is ensuring fast payment processing approval for electronic payments. Acquirers must collect, analyze and manage extensive amounts of data before allowing a merchant to start transacting payments. Even though this process is tedious, manual and extremely long, it eliminates the practice implemented by some companies to limit transaction volumes, hold funds or cancel accounts without notice.


Faster onboarding Can Double Your Sales Output

At the likes of payment disruptors (software companies), innovation around merchant onboarding is becoming feaverish. As a result, merchants now expect a similar experience just like consumers who can apply for a credit card and get instant approval. The ability to digitize procedures that are historically paper driven and to analyze and assess risk using advanced data analysis tools provides opportunities to dramatically improve the merchant onboarding process.

Consider the potential sales growth if your workforce had to deal with less administration, waiting, and back-office bureaucracy, and if merchant defection in the onboarding process was slashed in half.

With near real-time MID-generation and processing, Payment Facilitators can generate MIDs for sub-merchants seamlessly and instantly. Newly boarded merchants can start processing within a few minutes of the MID creation, just as soon as automated underwriting is successfully completed.


More control and flexibility

The greatest benefit is the ability to simplify and streamline the merchant account enrollment and onboarding process by offering a complete, white-label payment processing solution. This leads to more control over the processing experience, higher merchant conversion rates, and the opportunity to earn more revenue from credit card processing. Integrating to an onboarding API creates the potential for greater control and flexibility to efficiently update and manage important information (complex types) about sub-merchants.


Instant Merchant Onboarding Process


Automated merchant onboarding can be a valuable selling point for Payment Facilitators, delivering a unique opportunity to showcase their value to sub-merchants. Explore the power of modern technology that automates and digitizes processes to help reduce the complexities, enable rapid, highly accurate risk decisions for both e-commerce and physical store merchants.


PayFac APIs