What is the Difference Between ISO and PayFac?
What is ISO?
ISO stands for International Standardization Organization and it is an international body, which has been formed to establish standards in the field of industrial products necessary to ensure safety and efficiency.
It is basically a representation of the quality of a product subjected to controls and inspections so that when it passes through any stage of production or distribution, its performance is ensured.
What are ISO standards?
ISO standards establish the rules for implementing the operational system and method with the steps necessary to produce goods safely and efficiently throughout a production cycle.
What are the Advantages of ISO?
- By using ISO standards, a company can improve the production process, quality, and reliability. While these benefits translate into tangible effects on the bottom line, they also provide peace of mind for executives who know they have met their obligations to consumers in terms of quality.
- Production capacity is increased because all workers clearly understand their part in the production line.
What are the Disadvantages od ISO?
- ISO standards can be expensive and hard to reach.
- ISO standards should be met during the design process, not after it is already produced. For example, if a company designs an engine without using ISO engines principles, they need to redesign the whole thing. This means inexplicable losses in cost and time.
- If an ISO standard is not met during production, it must be done before the product can leave the factory. This requirement often results in increased costs.
What is PayFac?
PayFac stands for Payment Facilitator and offers online payment gateway services for merchants. It provides full freedom to its users to choose their preferred mode of payment.
It helps in the integration of various payment options available on the Internet. The payments can be made through credit cards, debit cards, and even e-wallets. You need to select your preferred payment mode and then you can begin serving customers across the globe.
PayFac has its own secure gateway, and it provides easy integration with major e-commerce shopping carts. It accepts all payment types, ranging from direct credit/debit to PayPal, Skrill, Paytm, etc. When it comes to payment gateway services, PayFac is the best choice!
Using PayFac, you can process payments with ease without worrying about any cost and technical aspects as your business remains under their care. This ensures the running of a fraud-free business.
PayFac Integration Options
PayFac has a wide range of options to be integrated with, which includes:
- Online payment gateways
- Internet banking
- Offline Payment Gateways
- Credit Card & Debit Card Payments
What are the Advantages of PayFac?
- PayFac is highly reliable and easy to use and integrate. It has a meager cost compared to others. PayFac supports all major credit cards, debit cards, e-Wallets, and other payment options.
- It is easily scalable and can be integrated with virtually every kind of eCommerce website or shopping cart such as VirtueMart, OpenCart, etc.
- PayFac is compatible with all devices like mobile, tablets, and computers.
- Using PayFac, you needn’t worry about the security of your business. They have the best security features to keep your accounts safe from any fraud.
- You can get support from PayFac’s experts 24/7. They are always willing to help and guide you in making things compatible by providing professional help, so you don’t need to hire a developer for that.
- PayFac provides the best support to make things work smoothly and provide full freedom in customizing your website, ensuring that you can use PayFac’s services without worrying about its efficiency or compatibility.
What are the Disadvantages of PayFac?
- Due to the high competition in the market, PayFac can’t be used for international transactions– it is only limited to domestic transactions.
- PayFac has no website, and it provides services via third-party websites like Yahoo & Google, etc. So, this may affect the trust factor between customers and merchants depending on their preferred mode of payment.
Differences Between ISO and PayFac?
- ISO stands for International Standardization System whereas PayFac is the incorporated name of an invoice factoring agency.
- PayFac does not request maintenance fees like ISO, hence businesses save more money on account of less administrative work.
- PayFac offers clients a choice if they wish to pay by cheque or bank transfer. In comparison, ISO only allows for cheque payments.
- PayFac is more flexible in terms of providing a choice to the clients, providing a choice between bank transfer and cheque. However, ISO is different in that it provides only one option i.e. by cheque. This promotes faster cash flow management.
- PayFac offers a few discounts and yearly subscription discounts which ISO does not.
- The fact that PayFac provides a variety of payment options is advantageous as businesses may choose to obtain money by the fastest possible method whereas, with ISO, only one payment option (cheque) exists.
- PayFac offers the advantage of quick and reliable payments but this would probably lead to higher admin costs for the company. Thus, we can see that ISO is preferred by large companies as it provides quality, speed, and reliability, but PayFac is preferable for small businesses.
- PayFac system offers easy processing, flexible methods of payment, and better cash flow management which makes it an ideal system for companies to adopt when compared with ISO standards.
- ISO maintains records in a centralized database which makes it easier to audit but PayFac maintains a system that is more flexible in terms of processing, and easily adaptable to the needs of the organization.
- The main purpose of establishing PayFac was to provide businesses with an improved method of collecting payments. PayFac does not ask for admin costs or monthly fees as ISO does which means that the process is more simplified and takes less time to complete.
- ISO has a certain threshold value of invoices that need to be collected in order for the factoring agency to take over which may force small businesses to go for another option.
The conclusion is that PayFac is an invoice factoring agency and does not request maintenance fees like ISO. The benefits of PayFac are its flexibility in payment methods offered (direct debit, cheque, or bank transfer), centralized database records that make it easier to audit, and less administrative work compared to ISO standards.