# Payments Players and the Stack

**Published by:** [jelca thinks](https://paragraph.com/@jess/)
**Published on:** 2022-03-28
**Categories:** payments
**URL:** https://paragraph.com/@jess/payments-stack-players

## Content

IssuingIssuing BanksIssues cards to consumers on behalf of card networks like Visa and MastercardBear the risk for transferring funds to acquiring banks, liable for consumer purchases, has all the checking and savings accounts informationRevenue earned based on consumer behavior and spendingIssuing ProcessorsTSYS, FIS, GalileoNOT payments processorsApproves and declines transactions in real timeAcquiringAcquiring BanksGets information from issuing banks about transactionsGets funds too, transfers them to merchant's bankPayment ProcessorsDoes all the heavy lifting to help underwrite, pay / transfer funds, manage risk and disputesPayment FacilitatorsComes in many names like PSPs too. Check Visa and Mastercard definitionsAka aggregator / master merchantBasically like a big merchant that can underwrite sub-merchants, process transactions, manage disputes, and manage fund transfers for their sub-merchantsRevenue potential dependent on monetizing the payments stack. Opportunity from onboarding to bps / transaction to risk management to speedWe see a lot of specialized payfacs now for different verticals like restaurants, spas, etc.Classifying as a processor or payfac is kind of wishy - washy. It depends on how much of the stack economics you own. E.g. Stripe, Square, Helcim, all have back end acquiring banks but they own the majority of the economics so they're considered processors. But they all use a Wells Fargo / Elavon / etc.

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