> For the complete documentation index, see [llms.txt](https://plexo.gitbook.io/rest-api/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://plexo.gitbook.io/rest-api/core-concepts/gateway-vs-payfac.md).

# Gateway Mode vs PayFac Mode

*Brief explanation: Plexo supports two integration models - Gateway Mode (direct processor integration) and PayFac Mode (payment facilitator aggregation). Each has different setup requirements and use cases.*

## Overview

When configuring payment methods for your merchant account, you can choose between two operational modes:

### Gateway Mode (Direct Integration)

In Gateway Mode, merchants provide their own credentials directly from payment processors/acquirers. This is ideal for:

* Large merchants with existing processor relationships
* Merchants requiring direct control over settlement
* Businesses needing processor-specific features
* Organizations with negotiated processing rates

**Key Characteristics:**

* Merchant provides `MerchantIdentificationNumber` (MID)
* Merchant provides `TerminalNumber` from processor
* Direct settlement to merchant's bank account
* Full visibility into processor transactions
* Merchant assumes processor relationship management

### PayFac Mode (Aggregated Processing)

In PayFac Mode, merchants process through Plexo's payment facilitator partner (Handy). This is ideal for:

* Small to medium businesses
* Fast onboarding without processor negotiations
* Simplified compliance requirements
* Merchants without existing processor contracts

**Key Characteristics:**

* No direct processor credentials needed
* Plexo manages processor relationships
* Sub-merchant aggregated processing
* Simplified settlement through PayFac
* Faster merchant onboarding

## Configuration Comparison

### Gateway Mode Settings

```json
{
  "settings": {
    "merchantIdentificationNumber": "123456789",
    "terminalNumber": "12345678",
    "paymentProcessor": {
      "id": "processor-uuid",
      "acquirer": "visanet"
    },
    "rut": "210000001234",
    "merchantCategoryCode": "5411"
  }
}
```

**Required Fields:**

* `merchantIdentificationNumber` - Your MID from the processor
* `terminalNumber` - Terminal ID from the processor
* `paymentProcessor` - Selected processor configuration
* `rut` - Tax identification (Uruguay)
* `merchantCategoryCode` - ISO 18245 MCC code

### PayFac Mode Settings

```json
{
  "settings": {
    "paymentFacilitator": {
      "id": "payfac-merchant-id",
      "merchantId": {{MERCHANT_ID}}
    }
  }
}
```

**Required Fields:**

* `paymentFacilitator.id` - PayFac merchant identifier
* `paymentFacilitator.merchantId` - Sub-merchant ID within PayFac

## Choosing the Right Mode

| Criteria                   | Gateway Mode           | PayFac Mode           |
| -------------------------- | ---------------------- | --------------------- |
| **Onboarding Speed**       | Slower (weeks)         | Faster (days)         |
| **Processor Relationship** | Merchant-owned         | PayFac-managed        |
| **Settlement Control**     | Direct                 | Through PayFac        |
| **Processing Rates**       | Negotiated             | Standard PayFac rates |
| **Compliance Burden**      | Higher                 | Lower                 |
| **Transaction Visibility** | Full processor access  | Through Plexo/PayFac  |
| **Setup Complexity**       | Higher                 | Lower                 |
| **Best For**               | Established businesses | Growing businesses    |

## Related Resources

* [Payment Methods Setup Guide](/rest-api/merchant-configuration/payment-methods-setup.md)
* [Merchant Management Guide](/rest-api/merchant-configuration/merchant-management.md)
* [Payment Facilitators](/rest-api/core-concepts/payment-facilitators.md)
* [Supported Payment Methods and Processors](/rest-api/reference/supported-payment-methods.md)
* [3DS Configuration](/rest-api/core-concepts/3ds-authentication.md)


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