Understanding Fixed Acquirer Network Fee and Its Impact

A Fixed Acquirer Network Fee is a charge imposed by the acquiring bank on the merchant for the use of their network. This fee is typically a flat rate and can range from $0.05 to $0.20 per transaction.

The fee is usually deducted from the merchant's account on a daily or monthly basis. This can add up quickly, especially for businesses that process a high volume of transactions.

The cost of this fee may seem insignificant, but it can eat into a merchant's profit margins, particularly for those with lower transaction volumes. For example, a merchant processing 1,000 transactions per day at $0.10 per transaction would incur a daily fee of $100.

FANF, or Fixed Acquirer Network Fee, is a charge imposed by Visa on businesses accepting Visa cards. This fee is assessed on all transactions, whether made in person or online.

The cost of the FANF is calculated based on several factors, including sales volume, business location, and processing methods.

The Fixed Acquirer Network Fee (FANF) is an assessment fee charged to businesses that offer Visa cards as a payment method. It's calculated by Visa based on the number of business locations and sales volume for card-present transactions.

Visa assesses FANF on card-present and card-not-present payment methods, and the fee depends on various factors, including business type and transaction volume. For card-present transactions, the fee is typically lower for retail businesses, which incur a fixed FANF of $2 for each location processing card-present transactions.

For e-commerce businesses, FANF fees are based on sales volume, with specific brackets determining the amount owed. This tiered pricing model helps businesses anticipate FANF costs and plan their budgets accordingly.

Businesses with multiple locations are charged a FANF of $2.00 per shop for one to three shops, and $2.90 per shop for four to 10 shops. However, high-volume businesses, such as grocery stores, pay different fees, with one to three shops paying $2.90 per shop and four to 10 shops paying $4.00 per shop.

Charities and businesses with less than $200 of monthly sales are exempt from the FANF fee. Despite FANF and other assessment fees, offering credit card processing at your business can be a smart decision, as it opens up your consumer base.

FANF fees are calculated based on the type of transaction, whether card-present or card-not-present, and businesses generally fall into categories based on transaction types. Customer Present businesses typically enjoy lower FANF rates compared to Customer Not Present businesses.

For card-present businesses, FANF charges increase with the number of business locations. This means that if you have multiple physical locations, you'll pay more in FANF fees.

Card-present transactions include in-store purchases where the magnetic stripe is swiped, the chip is dipped, or contactless payments are made. Visa charges FANF fees for these businesses based on the number of locations and the Merchant Category Code (MCC).

Businesses with monthly sales volume under $200 are exempt from FANF. However, if your monthly sales volume is between $200 and $1,250, you'll pay a FANF of 0.15% of the total volume instead of a fixed dollar amount.

Here's a breakdown of the FANF costs for card-present businesses:

Card-present transactions include in-store transactions where the credit or debit card's magnetic stripe is swiped in the credit card reader or the chip is dipped into a reader with EMV technology. Contactless credit or debit card transactions utilizing NFC technology are also considered card-present transactions.

A card-present business is one where transactions are made by a customer using a physical credit card, and merchants that use NFC technology for contactless transactions also count as card-present businesses. Department stores, grocery stores, family clothing stores, and discount stores are all great examples of businesses that primarily do card-present transactions.

If your business accepts only card-present transactions, Visa assesses the amount of FANF you're charged on two factors: the number of business locations you own and whether you're a high-volume business. High-volume businesses are determined by merchant category code (MCC), which is assigned to you when you open a merchant account.

Visa considers the following MCCs to be high-volume for the purposes of the FANF: Airlines, Auto Rentals, Car and Truck Dealers, Cruise Lines, Department Stores, Discount Stores, Drugstores, Electronics Stores, Family Clothing stores, Furniture Stores, Grocery Stores and Supermarkets, Lodging, Movie Theaters, Service Stations / Automated Fuel Dispensers, Stationary Stores, Timeshares, Tire Stores, Warehouse Stores, and Wire Transfers / Money Orders.

Here are the FANF costs for card-present businesses:

If you have monthly sales volume under $200, FANF will not apply. Businesses with monthly volume of $200 – $1,250 will pay a FANF of 0.15% of the total volume instead of a fixed dollar amount from the table.

Businesses that operate online or through phone sales are subject to card-not-present fees, which are calculated based on monthly gross processing volume. This includes e-commerce transactions where the card is not physically present.

Card-present businesses, on the other hand, are charged FANF based on the number of physical locations owned by the merchant, monthly gross sales volume, and other factors.

Visa calculates FANF on a monthly basis, considering factors such as the number of physical locations, monthly gross sales volume, and whether card-not-present transactions occurred.

If a business processes only one card-not-present transaction, they are still subject to separate FANF fees for both card-present and card-not-present transactions.

Here are some examples of businesses that may be subject to FANF:

Note that charitable organizations classified as MCC 8398 and businesses with monthly sales of $200 or less are exceptions to FANF.

For e-commerce businesses with monthly sales between $1,250 and $3,999, the FANF fee is a flat $7.00. This fee reflects the added complexity of processing payments online.

If your business has both card-present and card-not-present transactions, the card-present fees will apply by location, while the card-not-present fees will apply by volume, using only the card-not-present transactions to determine that volume. For example, if you have a single location business with 90% card-present transactions and 10% card-not-present transactions, you'll be charged the card-not-present FANF rate for 10% of your total sales volume.

Let's take a look at Example 1: The Small Retail Store. You own a local shoe store that processes card-present transactions, which means customers swipe or insert their cards to make payments. For one location making $5,000 in monthly card sales, your FANF fee is a flat $2.00. This fee is straightforward and simple to calculate.

If your e-commerce business pulls in $1,250 to $3,999 in sales each month, you'll be charged a FANF fee of $7.00. This fee reflects the added complexity and cost of processing payments in the digital world.

E-commerce businesses have to deal with card-not-present transactions, which are more expensive than card-present transactions.

The $7.00 FANF fee is a straightforward charge that helps you budget more accurately.

The Fixed Acquirer Network Fee (FANF) can be a mystery on your merchant statement, but it's essential to understand where it's listed.

You may see the FANF fee under different names, such as Visa Fixed Acquirer Network Fee, Fixed Network CNP Fee, High Volume Card Present Fee, Visa Network Fee, or FNF Fee.

Businesses that use a flat-rate credit card processor might not see the FANF fee listed at all, but if you accept Visa cards, you're still being charged the fee.

To locate the FANF on your merchant statement, scrutinize your monthly statement carefully, as it may appear under various fee structures and names.

Businesses with a monthly card-present transaction volume below $200 are exempt from paying FANF, so if your volume is low, you might not see this fee.

The FANF is a recurring charge for businesses processing payments through Visa cards, assessed monthly based on factors such as transaction volume and type.

FANF fees are influenced by the type of transactions processed, whether card-present or card-not-present, and are charged directly to businesses by Visa, not by payment processors.

FANF calculations can fluctuate monthly based on factors such as merchant category codes and the number of business locations, making it essential to pay close attention to these variables.

Visa's transparent charge structures help businesses budget for these fees and plan their finances accurately.

Charitable organizations classified as MCC 8398 are exempt from Visa's FANF. They don't pay the fee upfront, but rather receive a rebate at a later date.

Businesses with a monthly volume of $200 or less are also not charged Visa's FANF. This makes it a great opportunity for small businesses to save money on their transactions.

A monthly sales volume under $200 doesn't qualify for a FANF, which is a relief for many small businesses.

Variables play a significant role in determining the Fixed Acquirer Network Fee (FANF) charged to businesses. The FANF amount varies based on the Merchant Category Code (MCC), which classifies a business and can impact the fee by $0.90 to $1.10 for most businesses with less than 50 locations.

The acceptance method used by a business is another crucial factor. Businesses that process most transactions in a card-present environment will have a different FANF amount compared to those that process most transactions in a card-not-present environment.

For card-present businesses, the FANF is based on the number of locations. Businesses with one location will be charged $2 to $2.90 a month, while those with 4,000 or more locations will be charged up to $85 a month.

In contrast, card-not-present businesses will have their FANF determined by their gross Visa processing volume. This means that card-not-present businesses will see a greater impact from the FANF, especially if they have a higher volume of transactions.

Here's a breakdown of the FANF amounts for card-present and card-not-present businesses:

Keep in mind that if a business accepts cards in both card-present and card-not-present methods, FANF fees will apply to each method.

Exceptions to the FANF can be a bit confusing, but don't worry, I've got you covered.

Charitable organizations classified as MCC 8398 are exempt from Visa's FANF, and it seems that Visa drops the fee upfront, then provides a rebate later. Businesses with a monthly volume of $200 or less are also not charged the FANF.

If you're a business owner, you might be wondering how this applies to you. For example, if you're a small business with a monthly sales volume of $150, you won't be charged the FANF.

Here are some specific exceptions to keep in mind:

As for how the FANF is charged, it's not entirely clear, but it appears that Visa charges the fee upfront, then provides a rebate later. For charitable organizations, it's likely that the rebate will be provided, but for businesses with less than $200 monthly volume, the FANF is simply waived.

Swipesum is a partner that helps merchants manage FANF fees, making it easier to untangle the complexities of credit card fees.

Their expert audits of merchant statements can uncover hidden fees, including FANF-related charges you may not even know you're paying.

Swipesum's proactive approach ensures you're never overpaying on FANF or other fees, and they negotiate on your behalf to lower costs without switching processors.

They offer free consultation services to explain the complexities of FANF, provide strategies to avoid fee increases, and implement long-term savings plans.

You can't negotiate the FANF, but you can lower your costs by focusing on the processor's markup. This is where you can make a real difference.

A free audit and assessment service can help you evaluate your processing rates and identify opportunities for savings without needing to change processors. On average, retailers using Payment Depot save about $400 a month.

To make an apples-to-apples comparison, you can use tools like CardFellow's free pricing tool. This will give you a full cost breakdown from multiple processors in their marketplace.

Card-not-present sales can add an extra fee to your FANF, but if you have no online Visa transactions in a given month, you won't be subject to this additional fee.

If you operate a fast food restaurant or have unattended terminal transactions, you'll be subjected to this same fee.

The Fixed Acquirer Network Fee, or FANF, has undergone significant changes over the years.

In 2012, Visa changed the name from the Network Participation Fee to the Visa Fixed Acquirer Network Fee, along with some details on how the payment works.

The FANF fee used to be charged quarterly because the cost is minimal and billing is more convenient for Visa and business owners if it's only charged four times a year.

Payment facilitators lost the ability to combine businesses with different Tax IDs under a large company in 2015, but smaller businesses benefited from reduced fees.

Charitable organizations with a specific code also don't pay the Visa network fee, which is a nice perk for those who qualify.

The FANF fee has a fascinating history that's worth exploring. In 2012, Visa changed the name from the Network Participation Fee (NPF) to the Visa Fixed Acquirer Network Fee.

Visa's rules around payment grouping were altered in 2015. Payment facilitators can no longer combine businesses with different Tax IDs under a large company.

Charitable organizations with a specific code are exempt from paying the Visa network fee. This is a great perk for non-profits.

In 2012, Visa changed the billing frequency for the FANF fee from monthly to quarterly. This change made it more convenient for both Visa and business owners.

The FANF has undergone significant changes over the years. In April 2015, Visa made two key adjustments to the fixed acquirer network fee.

One of the changes was that FANF no longer applied to entities with less than $200 in volume during a given month. This change aimed to make the fee less "fixed" in its application.

The FANF now applies a 0.15 percent fee on gross sales in months when the volume is between $200 to $1,249.99. This new structure allows for a more dynamic fee calculation.

As a result of these changes, payment processors must charge the base amount set by Visa, without room for negotiation.

The Fixed Acquirer Network Fee, or FANF, has undergone significant changes over the years. In 2012, Visa changed the name from the Network Participation Fee or NPF to the Visa Fixed Acquirer Network Fee.

In April 2015, Visa made two major changes to the FANF. The first change was that the FANF no longer applied to entities with less than $200 in volume during a given month. This means that small businesses or organizations with low sales volume won't have to pay the fee.

The second change was that the FANF would be 0.15 percent of gross sales in months when the volume is between $200 to $1,249.99. This change makes the fee less "fixed" than before, as the amount charged will vary depending on the business's sales volume.

Charitable organizations with a specific code are also exempt from paying the FANF. This is a great benefit for non-profits and charities that rely on donations and sales to fund their operations.

Here's a summary of the FANF changes in 2015:

These changes aim to make the FANF less burdensome for small businesses and organizations, while still generating revenue for Visa. By understanding these changes, businesses can better plan their finances and make informed decisions about their payment processing fees.

Your Visa statement might not clearly label the Fixed Acquirer Network Fee (FANF). It may be called the Fixed Network CNP Fee, the High Volume Card Present Fee, the Visa Fixed Acquirer Network Fee, the Visa Network Fee, or the FNF fee.

If you're having trouble finding the FANF on your statement, look for any of those names, as they all refer to the same fee. You can also check for similar variations, as the name might be slightly different.

The FANF is a fee that's charged to merchants, not consumers, so you won't see it directly on your statement. However, it's essential to be aware of its presence, especially if you're a merchant or business owner who processes transactions through Visa.