# Key Questions to Ask a Payfac Business

By [jelca thinks](https://paragraph.com/@jess) · 2022-02-12

payments

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### **Unit Economics and Traction**

*   Portfolio metrics by month
    
*   Active MIDS / sub merchants
    
*   Number of MIDS / sub merchants added
    
*   $ payments volume processed
    
*   Net revenue received broken out between processing and monthly/annual fees
    
*   Attrited accounts/closed or inactive
    
*   Breakdown of MIDS/sub merchants by merchant categories or groupings
    
*   Losses, fraud, chargebacks - how much? How are they handling it?
    
*   Sales channels
    
    *   Direct or indirect
        
    *   Third parties
        
    *   If they pay anyone else beyond processing partners
        
*   Acquisition costs
    
    *   Per Month
        
    *   What is included in these costs
        
*   How many merchants do you need to reach profitability?
    
    *   Scenario analysis for high growth vs profitability
        
*   CAC
    
    *   What exactly goes into this? Payroll should be included
        
*   COGS
    
    *   Who gets what? Assuming transaction COGS are interchange.
        
*   Who is your acquiring bank and what is the relationship structured like?
    
*   Take rate
    

Get as much information by MIDS as possible

### **Overview**

*   Value proposition
    
*   Description of core offering
    
    *   Pricing
        
    *   Devices
        
    *   Integrations to other POS systems

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*Originally published on [jelca thinks](https://paragraph.com/@jess/questions-payfac)*