In the Credit card business, you can find two kinds of payment facilitators. To avoid expenses to process payments, these people help small merchants to board and process the payments.
More plainly, the reason to choose a Payment Facilitator (PF) by small merchants is less processing charges, and simple joining formalities.
Best Example for Payment facilitator is Paypal.
So, PF is a mediator between acquirer and merchants. On behalf of them PF will onboard the merchants and helps to process the payments.
Payment Facilitators’ role is to get approval from the acquirer to provide payment facilitation, and they board small merchants on behalf of the acquirer.Definition of PF merchants
PFPAY-Payment facilitator onboards small merchants.
PFSUB-The other way PF just do only settlement for merchants.
In summary, the acquirer directly adds big merchants with huge daily sales, whereas small merchants join with Payment facilitators.