Payfacs sit between the acquirer and a long tail of sub-merchants. One integration with Fraudio and you can monitor your own sub-merchant portfolio, extend fraud tooling to every sub-merchant as a value-add, or do both, turning monitoring from a cost centre into a line of differentiation and revenue.
The same platform serves both shapes of the payfac business. Each one changes the economics differently, and both paths run on the same detection core and the same integration.
AML, transaction laundering, MID stacking, chargeback thresholds, and real-time authorisation scoring across every sub-merchant you board. Replaces or complements in-house fraud tooling, scheme-threshold monitoring, and manual risk ops.
Each sub-merchant that opts in is spun up as its own tenant under your payfac account. Their team works in an isolated workspace with their own rules and investigation queue. You keep central oversight and take the fraud layer to market as part of your proposition.
Most of the economics leverage happens here. You run Fraudio on your own sub-merchant portfolio and offer it as a premium capability to sub-merchants who want their own fraud environment. One contract, one integration, two value streams.
Sub-merchant fraud, transaction laundering, MID stacking, and chargeback abuse all start at the merchant entity and show up in the behaviour of its transactions. Fraudio gives you a holistic view of every sub-merchant in your portfolio, entity-level patterns, peer-group signals, and the transaction stream itself, so the same platform covers the exposures that matter to your acquirer above and the ones that matter to you.
Every sub-merchant is covered from its first transaction. Entity-level scoring is built live, cross-referencing transactional behaviour against patterns and peer groups on every payfac and acquirer connected to the Fraudio network.
Shell-merchant rerouting, miscoded MCCs, and aggregator abuse are detected by Fraudio’s models from the volume, pattern, and counterparty signals, not the sub-merchant descriptor alone.
Early warning on sub-merchants heading toward VAMP / VDMP / EDMP thresholds, before scheme fines from the acquirer above and sponsor-bank exposure crystallise.
Every auth scored in milliseconds with rules configurable per sub-merchant, per MCC, per channel, without compromising approval rates.
Payfacs onboard hundreds of sub-merchants a week, most with thin histories. The acquirer above holds you accountable for the whole portfolio. Losses originate at the sub-merchant level. Scheme fines, transaction laundering, and chargeback abuse all surface long before they show up in a single transaction, and the payfac usually wears the consequence.
Every new sub-merchant gets an entity-level risk score before processing begins, not after the acquirer flags losses.
Sub-merchants deviating from their peer group on volume, ticket size, or counterparty mix surface automatically, before they reach scheme thresholds.
CNP cardholder fraud and sub-merchant-side fraud run through independent models and separate alert streams.
Most fraud vendors train on a single institution’s data. For payfacs with growing sub-merchant portfolios, that architecture has real consequences.
The centralised approach scales. The more payfacs and acquirers connect to Fraudio, the sharper the AI becomes for everyone. A siloed model’s ceiling is one portfolio’s data. Fraudio’s isn’t.
Fraudio already runs inside platforms that process and manage sub-merchants at scale. The channel-partner model, multi-tenancy architecture, and go-live process are well established for payfacs of every size.
Silverflow is a next-generation cloud-native acquiring platform used by modern payfacs and acquirers. Fraudio runs as a channel partner inside Silverflow. Every payfac on the platform gets fraud intelligence over its sub-merchant portfolio from day one, with no separate integration.
Cashflows is a UK & EU payment facilitator and acquirer serving ISVs, payfacs and sub-merchants across the region. Fraudio operates inside Cashflows’ platform as a channel partner, delivering real-time transaction and sub-merchant-level fraud detection across the full portfolio.
Fazz is Southeast Asia’s leading payment facilitation and acquiring platform, operating across Singapore and Indonesia. Fraudio runs as a channel partner inside Fazz, with real-time fraud detection and AML across every sub-merchant in the book, delivered locally within each market.
PMI is one of the largest payment facilitators in Mexico with coverage across Latin America, running a full stack from payment gateway and POS terminals to high-volume collections and payment orchestration. Fraudio plugs into PMI as a channel partner, delivering sub-merchant-level fraud detection, transaction laundering coverage, and AML across every sub-merchant in the portfolio.
PayTabs is a Saudi-built payment orchestration and infrastructure provider powering e-commerce, enterprises, fintechs, and governments across the Middle East and North Africa, with products spanning orchestration, SoftPOS, acquiring switch, card issuance, and a bank moderator platform. Fraudio integrates with PayTabs as a channel partner, extending AI-driven sub-merchant-level fraud detection, AML, and transaction laundering coverage across the portfolios they process.
Enza is a pan-African payments platform built by the team that first stood up card processing on the continent over 20 years ago, covering acquirer processing, in-person acceptance (enzaPay), the enza Conductor online gateway, ATM acquiring, and AI-driven fraud via enzaGuard. Fraudio supports Enza as a payfac platform, extending sub-merchant-level monitoring across every sub-merchant underneath.
How the channel partnership works for payfacs: the payfac integrates once with Fraudio. Every sub-merchant underneath the payfac is covered by the same integration, and the ones that take the fraud value-add get their own isolated tenant on top. No extra integration on the sub-merchant’s side, no engineering lift per account. One integration. Full sub-merchant portfolio covered.
Each capability is delivered through a single platform integration. The payfac integrates once and every sub-merchant can use any combination from day one, either managed by the payfac’s risk team or self-served by the sub-merchant as a value-add.
Real-time authorisation scoring in milliseconds. 0–1 risk score → approve, step-up, or decline. Supervised AI catches known fraud; unsupervised AI catches novel and emerging patterns across the network.
Entity-level monitoring for every sub-merchant in the book. Detects transaction laundering, MCC manipulation, MID stacking, and chargeback abuse before scheme thresholds are breached and the acquirer above takes action.
AI-driven AML combining custom rules, link analysis, and behavioural modelling. Case management, SAR-ready exports, sanctions / PEP screening. PSD2, GDPR and EBA-aligned.
No-code LLM-powered rules editor. Deploy rules in seconds, backtest on historical data, promote to live. Full case management with SLA workflows and audit trails, configurable per payfac and per sub-merchant.
Payfacs run multi-sub-merchant portfolios with every vertical, ticket size, and risk profile under one roof. Fraudio’s orchestration layer is built for exactly that shape. The payfac is the parent tenant, and every sub-merchant that takes the value-add sits as its own subtenant underneath.
Fraudio integrates at the payfac level. Any sub-merchant that takes the fraud value-add can be provisioned as a subtenant in hours, with isolated rules, isolated investigation queues, and isolated data. The sub-merchants that don’t opt in are still fully covered by the payfac’s own monitoring.
The payfac decides what to enforce centrally. Baseline AML rules, scheme-threshold protection, or mandatory controls can be set once and inherited by every sub-merchant tenant automatically, while each sub-merchant still configures their own on top.
A sub-merchant that opts into the fraud value-add is live on Fraudio in hours. They inherit whatever the payfac has set, layer on their own rules, and start monitoring. No IT project, no Fraudio involvement required.
Subtenant provisioning is fully API-first. The payfac onboards a sub-merchant to the fraud platform in a single API call: account, users, keys. No manual steps.
Every sub-merchant tenant’s data is fully isolated. The payfac has complete visibility across the portfolio from one console, with immutable audit trails for scheme, acquirer, or regulator review.
Payfacs can push baseline fraud, AML, or scheme-threshold rules across every sub-merchant tenant automatically. Sub-merchants inherit and enforce without manual work, and configure their own rules within those bounds.
On your own book: replace legacy monitoring, lower fraud losses, and stay ahead of scheme thresholds that the acquirer above watches closely. On every sub-merchant that takes the value-add: premium pricing and stickier relationships. Combined, fraud tooling stops being a cost centre and becomes an accretive P&L line that scales with the portfolio.
Some payfacs position Fraudio as part of the core proposition, offering fraud tooling as a tiered capability to sub-merchants to differentiate against commodity processors. Worth considering inside the product strategy.
How the hierarchy looks
✓ All sub-merchant tenants isolated · ✓ Payfac has full visibility · ✓ Immutable audit trail · ✓ Each sub-merchant self-manages its own tenant
A European payment institution deployed Fraudio across its sub-merchant portfolio and changed how its risk team operates at scale, without growing headcount.
“Fraudio enables us to detect fraudulent merchants and money laundering, ensuring the safety of our clients against fraud in payments. This has been extremely helpful to our growth by providing us the ability to focus our efforts in a much more accurate manner.”
Makis Antypas, CIO, Viva Wallet
Read the full case study →How Fraudio’s patented centralised AI works and why the architecture matters for a payfac managing sub-merchants at scale.
↓ DownloadReal-time authorisation scoring, dynamic 3DS, the rules engine, and how the network effect works in practice for payfacs.
↓ DownloadSub-merchant-side fraud, transaction laundering, MID stacking, and chargeback thresholds, caught early.
↓ DownloadAML in depth: link analysis, case management, PEP & sanctions, and SAR-ready exports for payfacs.
↓ DownloadTechnical integration docs: REST APIs, webhooks, and SDKs. One integration for the full platform.
docs.fraudio.com →30 minutes with someone from the team. We’ll map this to your own sub-merchant book, to a value-add proposition for your sub-merchants, or to both, and show you what go-live, multi-tenancy, and the economics actually look like for your setup. No slides-only pitch, no commitment.