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FactorPay

Written by Brandon Moses

Note: FactorPay is currently only available for US-based firms. Accounting integration for FactorPay is only supported with QuickBooks Online.

FactorPay is Factor's built-in online payment processing feature. It enables firms to send clients a payment portal link where they can pay invoices electronically.

FactorPay is powered by Payrix, a third-party payment processor that handles transaction processing and fund disbursement. FactorPay is an optional feature available at no additional monthly cost that requires a separate setup process and merchant application before it can be used.

Overview

With FactorPay enabled, your firm can:

  • Send clients a link to pay invoices online

  • Accept payment via ACH, credit card, or both

  • Pass along convenience fees to cover your online transaction costs

  • Track all payment activity including individual payments linked to invoices

  • View deposit batches showing which payments were included in each disbursement

  • Monitor all transaction activity from within Factor under BILLING > FactorPay Transactions

How It Works

When enabled, invoice emails sent to clients will include a payment link that allows the client to view and pay their invoice. The client clicks View or Pay Your Invoice and is taken to a secure Payrix-powered portal showing:

  • Invoice details, including any expense attachments or hourly detail included on the invoice

  • Total amount due and any prior partial payments

  • Convenience fee information, if applicable

  • Total balance remaining

The client selects a payment method, enters their payment information, and submits. Funds are disbursed to the firm's designated bank account on a nightly basis. If QBO is integrated, payments and deposits are automatically recorded and applied in QBO as well.

Important: Clients may only pay one invoice at a time. This ensures a clean record of which contact paid which invoice and that payments are correctly applied in Factor and QBO.

Invoice Viewed Tracking

When a client opens an invoice from the View or Pay Your Invoice link in a FactorPay invoice email, Factor records the view. In BILLING > View Invoices, that email's history (the blue History icon next to Last Sent) shows a click event and an invoiceviewed event, and an eye icon appears next to the invoice's Amount Paid.

Click the eye icon to open "Invoice viewed history," which lists each View Date and Viewed By (the contact's name and email address). A view is recorded at most once per day for each email sent, and only for emails sent to client contacts. The email history and viewed history are available to users with the View Invoices permission.

Payment Methods

Clients can pay by ACH, credit card, or both, depending on the payment method settings configured for that project.

Funds Disbursement

  • Credit card payments typically process within 2-3 business days

  • ACH payments typically clear within 4-5 business days

  • Every night, any cleared funds are deposited to the merchant bank account specified during the Payrix merchant application setup

All payment and deposit activity is visible within Factor - you do not need to log into Payrix to monitor it.

Reviewing Transactions

BILLING > FactorPay Transactions has two tabs. The Payment tab lists individual payments - click a payment's date to view its receipt, or click Applied Invoice to see which invoice it was applied to. The Deposit tab groups payments by which deposit batch they were included in.

Processing Fees

  • ACH - 1% of the total transaction, up to a $20 maximum

  • Credit Card - approximately 3.4% of the total transaction, no maximum

Fees are deducted from payments received. Check your Payrix merchant agreement for exact rates.

Setup

What You'll Need

To apply for a merchant account, have the following ready:

  • Business legal name and address

  • Tax ID (EIN)

  • Business owner information (name, SSB, address)

  • Bank account information (routing and account number)

  • Business description and estimated monthly transaction volume

Application Process

  1. Request access to the FactorPay application via in app chat or email [email protected].

  2. Go to SETTINGS > Your Firm and find the FactorPay section.

  3. Click Sign Up for FactorPay.

  4. Complete the Payrix merchant application and submit.

  5. Review typically takes 1-2 days or less. Keep an eye out for emails from Factor regarding approval or notice that additional information is needed.

See the Payrix Application video in the Factor video library for a walkthrough of the application form.

After Approval

  1. Email [email protected] to notify Factor of your completion.

  2. A Factor Product Specialist will confirm approval or follow up if additional information is needed.

  3. Schedule a call with your Product Specialist to configure firm-level and project-level settings.

Configuration

Firm-Level Settings

Contact Factor Support to schedule a call for initial configuration of these settings, and for final step to enable FactorPay.

These settings apply across your entire firm and serve as defaults for all projects:

  • Allow ACH Payment - Whether ACH is available as a payment method on projects by default

  • Allow Credit Card Payment - Whether credit card is available as a payment method on projects by default

  • Include Invoice PDF Attachment - Whether to include the invoice PDF as an attachment in payment emails (PDF already accessible via View or Pay Your Invoice link)

Convenience Fee Settings

Convenience fees can be configured separately for ACH and credit card to pass processing costs to clients:

  • Flat Fee - The convenience fee to charge

  • Percentage - Whether the fee is a percentage of the invoice amount or a flat dollar amount

  • Max Dollar Amount - An optional cap when using percentage-based fees (e.g., charge 1% but never more than $20)

Project-Level Settings

Payment settings can be customized per project from the project's Overview tab, overriding firm-wide defaults:

  • Can Pay with ACH - Enable or disable ACH for this project

  • Can Pay with Credit Card - Enable or disable credit card for this project

  • Charge ACH Convenience Fee - Whether to apply the ACH convenience fee on this project

  • Charge Credit Card Convenience Fee - Whether to apply the credit card convenience fee on this project

  • Include Invoice PDF Attachment - Whether to include the PDF attachment for this project's invoices

This is useful when you want to offer different payment options to different clients. For example, allowing credit card on smaller projects but restricting to ACH only on larger ones to reduce processing fees.

QuickBooks Online Accounting Links

When your firm has both FactorPay and QBO integrated, additional settings control how FactorPay transactions are recorded in QBO:

  • Credit Card Payment Method - The QBO payment method used when recording credit card payments

  • ACH Payment Method - The QBO payment method used when recording ACH payments

  • Deposit Bank Account - The QBO bank account where FactorPay deposits are recorded

  • Transaction Cost Account - The QBO expense account for FactorPay processing fees

  • Convenience Fee Account - The QBO income account for convenience fees charged to clients

These mappings ensure payments, deposits, fees, and convenience fee income are all routed to the correct accounts in QBO automatically.

Troubleshooting

Can't Find FactorPay Settings

FactorPay is only available for US-based firms and requires Firm Owner permissions to access. If you believe FactorPay should be available to your firm, contact Factor Support.

Application Rejected

Payrix may reject an application due to missing or incomplete information, business underwriting concerns, or the account being flagged for additional review. Contact Factor support or Payrix directly to understand the rejection reason and reapply if possible.

Application Pending Too Long

Applications typically take 1-3 business days. If yours has been pending longer, contact Factor Support to check on the status.

Bank Account Verification Failed

Check that your routing and account numbers are correct and that the account is registered to the business entity, not a personal account. Business checking accounts must match the business legal name on the Payrix application.

Can't Send Payment Links

If FactorPay is set up, but payment links aren't sending:

  • Verify FactorPay is enabled at the project level on the project's Overview tab

  • Confirm the invoice has been finalized. Payment links cannot be sent for draft invoices

  • A Factor Support team member must finalize FactorPay settings and enable links to be sent. Contact [email protected] if you haven't met to configure your settings after application approval.

ACH Transfers Not Depositing

  1. Verify your bank account information is correct in both Payrix and Factor.

  2. Check with your bank to ensure they are not blocking deposits from Payrix.

  3. Contact Factor Support or Payrix directly if the issue persists.

Fees Are Incorrect

Review your Payrix merchant agreement for the exact fee structure. Contact Payrix directly if fees do not match your agreement.

Payrix Account Access

During setup, a separate Payrix account was created for your firm. This account is separate from your Factor login and any QBO account. If you have lost your Payrix credentials, contact Factor support for assistance.

Other Issues

For issues not covered here, such as failed payments, declined transactions, missing deposits, refunds, or disputes, contact Factor support with the following:

  • Your firm name and FactorPay account details

  • A description of the issue and any error messages

  • Relevant invoice numbers or transaction details

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