# Key Questions to Ask a Payfac Business

**Published by:** [jelca thinks](https://paragraph.com/@jess/)
**Published on:** 2022-02-12
**Categories:** payments
**URL:** https://paragraph.com/@jess/questions-payfac

## Content

Unit Economics and TractionPortfolio metrics by monthActive MIDS / sub merchantsNumber of MIDS / sub merchants added$ payments volume processedNet revenue received broken out between processing and monthly/annual feesAttrited accounts/closed or inactiveBreakdown of MIDS/sub merchants by merchant categories or groupingsLosses, fraud, chargebacks - how much? How are they handling it?Sales channelsDirect or indirectThird partiesIf they pay anyone else beyond processing partnersAcquisition costsPer MonthWhat is included in these costsHow many merchants do you need to reach profitability?Scenario analysis for high growth vs profitabilityCACWhat exactly goes into this? Payroll should be includedCOGSWho gets what? Assuming transaction COGS are interchange.Who is your acquiring bank and what is the relationship structured like?Take rateGet as much information by MIDS as possibleOverviewValue propositionDescription of core offeringPricingDevicesIntegrations to other POS systems

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