PF Confusion May Yet Endanger This Embryonic Market

Confusion regarding the term payment facilitator poses a great risk to the PF community. It is only a matter of time before a registered PF goes belly up due to a lack of understanding of the risk associated with taking liability for sub merchants and meeting the rules of the card brands. When a PF does go belly up, there is a real risk of stifling innovation due to increased regulations.

SAAS providers, community heads and point-of-sale providers all need payments and view a PF license as the panacea to their challenges in processing payments. Investments are at stake and an expectation of get to market reigns supreme. Yet many providers, in their quest to get to market fast, don't have sufficient information to make an informed decision as to what it means to be a registered PF. The notion of simply signing a merchant agreement and paying $5,000 to register seems all too easy. The liability, regulatory requirements, audits, PCI and flexibility take a back seat in the go-to-market strategy.