Legal Entity and Sub-Merchant Creation Process

A legal entity is described as the parent of one or more sub-merchants. When you use the PayFac Portal to create a legal entity and/or a sub-merchant, our system performs a series of background checks. There are three levels of service available, depending on your needs and contract: Basic, Premium, and Premium Plus. See Background Check Options for more information.

Legal Entity and Sub-Merchant Creation Process

Depending upon your service level, the result of the background checks, and subsequent analysis if necessary, there are three possible outcomes: Accept, Decline, or Soft Decline/Retry.