Payment Facilitator, put simply, means a "Payment Institution."
A payment institution is a legal entity authorized under the Law to provide and carry out payment services. According to the Law, this legal entity must be structured as a joint-stock company, and the company and its shareholders must meet the conditions specified in the second paragraph of Article 14 of the Law. The payment services that a payment institution may offer are listed in the first paragraph of Article 12 of the Law. An institution that obtains a payment institution operating license under Article 14 of the Law may only offer the payment services listed in the first paragraph of Article 12 of the Law and may not engage in the issuance of electronic money.
The main purpose of Payment Facilitator companies is to increase customer satisfaction by offering merchants advantages in online credit card payment transactions.
So why are payment facilitators needed?
Advantages provided by Payment Facilitators:
- Being able to process installment transactions with 6-8 banks' cards through a single application
- Merchants not having to go through any application process with banks
- No surprise costs beyond the transaction commission
- Transactions made by merchants being collected in an account determined by the merchant
- Offering customers the most innovative and technologically advanced products
In short, working with payment institutions is very appealing, especially for small-scale companies, but it can also be advantageous for large-scale companies. What matters is identifying payment institutions that produce solutions suited to a merchant's needs and working with them.
