If you’re checking your merchant statements, you may have encountered the Visa FANF fee and wondered what this charge is on your statement. No, this charge is not a mistake or a hidden fee from your merchant service provider. You cannot avoid this charge if you accept credit cards in your business.
In fact, many business owners have not fully understood how the fee is calculated despite paying it for over a decade.
The article below gives you a roundabout of Visa’s fixed acquirer network fee, and we’ll go over the basics, like what it is, how much it is, how FANF is calculated, and if other payment networks charge FANF. So, read on to learn this and more.
What Is the FANF Fee On My Statement?
The fixed acquirer network fee, or the FANF, is an assessment fee that Visa charges. Several factors include sales volume, transaction type (card-present or card-not-present), and your business locations. The fees were first introduced in April 2012 and were known as the Network Participation Fees (NPFs). This non-negotiable charge was introduced to offset the operational costs of Visa’s payment network infrastructure.
FANF calculations are different for businesses processing cards present and businesses processing card-not-present transactions. In the former, the processing happens in-store by presenting the card (swiping or dipping the card in the terminal); in the latter, the transactions happen over the phone by verbally telling the card details or online by typing in the information.
For businesses processing card-present transactions, the fee can depend on the number of locations the company currently operates and whether it’s under the high-volume merchant category code (MCC). For businesses processing card-not-present transactions, the fee is based on their monthly Visa transaction volume. The specific amount of FANF a business pays can also vary greatly depending on its sales volume.
Due to monthly accruals, they are calculated and appear on quarterly statements, which can make their assessment appear irregular and potentially confusing across different statement periods.
Note: In some cases, merchants are unable to see the FANF fee on their merchant statement, which may be because it is included in the bundled pricing structure.
Where Is the FANF Mentioned on Your Merchant Statement?
To locate the FANF on your merchant statement, be aware that it might appear under different names based on Visa’s classification of the fee for your transaction type. It could be listed as Visa Fixed Acquirer Network Fee, Fixed Network CNP Fee, High Volume Card Present Fee, Visa Network Fee, or FNF Fee. These fees might appear differently on your statement, depending on whether your transactions are card-present (such as in-store purchases) or card-not-present (such as online sales).
If your business operates on a flat-rate pricing model with your payment processor, the FANF might not be itemized separately on your statement. This situation doesn’t imply you are exempt from this fee; it is included in the overall flat rate you pay.
To ensure you track any FANF charges and comprehend their effect on your expenses, you should examine your monthly merchant statements regularly. Search for any of the names previously mentioned or ask your payment processor for a detailed breakdown of your fees.
If your business is new or your transaction volumes or locations change, these changes could affect your FANF charges. Keeping an eye on these variations can help you anticipate fee changes and better manage your budget.
How Visa’s Fixed Acquirer Network Fee Calculated?
As mentioned before, Visa’s FANF is a monthly charge that varies depending on specific aspects of your business. Although termed “fixed,” the fee adjusts based on factors like the type of transactions, the number of business locations, and your total monthly Visa transaction volume. Let’s break down how it is calculated:
- Number of Locations: The fee increases with the number of business locations. For instance, if your business has 1-3 locations, you might be charged $2 per location. More locations could lead to higher fees per location.
- Monthly Gross Sales Volume: There is no FANF charge if your monthly Visa sales are below $200. The fee for sales ranging from $200 to $1,249.99 is 0.15% of your gross sales volume. Sales exceeding these amounts have fixed rates that depend on the total volume, with larger volumes resulting in higher fees.
- Card-present vs. Card-not-present Transactions: Card-not-present transactions typically have higher fees than card-present transactions. These fees are calculated based only on the volume of card-not-present sales.
- Type of Business and MCC: Certain business types, identified by their MCC, such as airlines, large retail stores, and supermarkets, may incur higher fees due to their high-volume transactions.
- Special Cases: Specific business types, such as fast-food restaurants or businesses with unattended terminals, might have unique fees applied to their transactions.
It’s crucial to note that the FANF is applied per merchant taxpayer ID, including all merchant accounts under that ID for the fee calculation. This fee is typically charged quarterly but calculated monthly based on the described factors.
What Is a Card-Present FANF 2024?
Merchants who accept Visa cards in person pay FANF fees based on the number of locations they have. Merchants categorized under specific MCC codes as “high volume” incur slightly higher fees per location for the FANF fee.
The following table outlines how Visa applies FANF fees for card-present merchants:
| Number of Locations | FANF Per Location | FANF for High Volume MCCs Per Location |
| 1-2 | $2.00 | $2.90 |
| 4-10 | $2.90 | $4.00 |
| 11-50 | $4.00 | $5.00 |
| 101-150 | $6.00 | $8.00 |
| 151-200 | $10.00 | $18.00 |
| 201-250 | $14.00 | $25.00 |
| 251-500 | $24.00 | $35.00 |
| 1,001-1,500 | $40.00 | $55.00 |
| 1,501-2,000 | $50.00 | $65.00 |
| 1,501-2,000 | $50.00 | $65.00 |
| 2,001-4,000 | $50.00 | $65.00 |
What MCC Codes Are Subject to FANF Fees?
Certain MCCs are designated as “High-Volume” by Visa, resulting in higher per-location fees for card-present transactions. These High-Volume MCCs include:
| Merchant Category Code | Business/Industry | Description |
| 3000-3299, 4511 | Airlines | This category covers companies operating scheduled or non-scheduled air transportation. |
| 3300-3499, 7512 | Auto Rental | This category includes businesses that rent or lease passenger automobiles without drivers. |
| 3500-3999, 7011 | Lodging | Retailers offer a variety of goods at reduced prices. |
| 5310 | Discount Stores | Businesses sell bulk merchandise to members. |
| 5200, 5300) | Warehouse Stores and Wholesale Clubs | Pharmacies sell prescription drugs and other merchandise. |
| 5411) | Supermarkets | Full-service grocery stores. |
| 5311) | Department Stores | Major retailers with a wide range of products, including apparel and home goods. |
| 5511) | Car & Truck Dealers | Dealerships selling new and used automobiles. |
| 5532) | Tire Stores | Specialized in selling and possibly servicing tires. |
| 5541, 5542) | Petroleum | Includes service stations with or without additional services. |
| 5651 | Clothing Stores | Retailers specializing in apparel. |
| 5712 | Furniture Stores | Stores selling home furnishings. |
| 5912 | Drugstores | Pharmacies selling prescription drugs and other merchandise. |
| 5732 | Electronics Stores | Retailers of consumer electronic devices. |
| 7832 | Theaters | Venues showing live performances or movies. |
| 4829 | Wire Transfer Money Orders | Businesses providing wire transfer and money order services. |
| 5943 | Stationery Stores | Shops selling stationery, paper products, and related goods. |
| 7012 | Timeshares | Companies offering partial ownership of vacation properties. |
Regarding the assessment of fees, merchant aggregators and merchants primarily operating without the customer’s physical presence, such as fast food restaurants MCC (5814), are charged based on their monthly gross sales volume from Visa-branded cards. The fee structure includes:
- Merchants with monthly gross sales under $50 are charged a fee of $2 per month.
- At the high end, merchants with monthly gross sales over $400 million incur a fee of $40,000 per month.
There are 18 different tiers for these fees. For example, a merchant with a monthly sales volume between $8,000 and $39,999 would be subject to a FANF of $15 per month. This structure helps to scale the fees based on the merchant’s sales volume, ensuring that the charges are aligned with the level of transaction activity.
What Is a Card Not Present FANF 2024?
Merchants who sell online or manually process Visa transactions through phone or email are categorized under card-not-present transactions. This classification also includes fast food restaurants and unattended terminal transactions for FANF assessments, even though these transactions are not typically considered card-not-present.
The monthly gross processing volume of Visa transactions determines Visa FANF fees. This means that fluctuations in your monthly volume will result in changes to the FANF fees you see on your statements. Refer to the table below to estimate your fees:
| Monthly Visa Card Processing Volume | Monthly FANF fee |
| $0-$199 | $0.00 |
| $200-$1249 | 0.15% |
| $1,250-$3,999 | $7.00 |
| $4,000-$7,999 | $9.00 |
| $8,000-$39,999 | $15.00 |
| $40,000-$199,999 | $45.00 |
| $200,000-$799,999 | $8,000.00 |
| $40,000,000-$79,999,999 | $16,000.00 |
| $80,000,000-$399,999,999 | $45,000.00 |
| $400,000,000 or more | $70,000.00 |
A Look at the Changes to the FANF by Visa Overtime
In April 2015, Visa made two significant changes to the FANF to make its application more flexible. First, businesses with a monthly sales volume under $200 were exempt from the FANF. This change aimed to lessen the financial burden on smaller companies or those with lower transaction volumes. Second, for monthly sales volumes between $200 and $1,249.99, the FANF was adjusted to 0.15% of the gross sales, replacing a fixed dollar fee. These adjustments were a part of Visa’s continuous effort to revise its fee structures based on feedback from merchants and shifts in the market.
These changes were intended to alleviate some fixed costs for smaller merchants associated with card transactions, particularly during months of lower sales. This approach is consistent with a broader trend in payment processing, where fees are increasingly set according to the level of business activity, helping businesses better manage costs across different sales periods.
Can I avoid FANF fees?
No. As previously mentioned, the FANF is a mandatory fee charged by Visa. It’s designed to offset the costs of managing Visa card transactions, including maintaining payment networks and fraud protection systems. However, there are exemptions in just two cases:
- If you have a low monthly sales volume: As highlighted previously, if you have a low sales volume (below $200), you are exempt from paying the FANF fee.
- If you are a charitable organization: Charitable organizations based in the United States come under MCC 8398, which is eligible for a rebate on the FANF.
Does My Processor Mark Up FANF Fees?
Some payment processors mark the FANF in the final billing but not Host Merchant Services.
It is important to note that while Visa sets the FANF according to different parameters, your payment processor can decide to mark up this fee when billing you, the merchant. To give you perspective, TSYS has been reported to mark up the regular service charges, including the FANF, and include it as part of the standard Visa fee.
However, at Host Merchant Services, we do not believe in adding charges on top of the charges. All the Visa FANF charges are passed on to the merchants without surprises, so the charges shown in the tables above are only what you’ll pay on the billing cycle.
Does Mastercard Charge FANF Fees??
Mastercard does not charge a fixed acquirer network fee; Visa introduced this fee for the Visa payments network. Instead, just like Visa, Mastercard has its network fees to impose on Merchants.
Mastercard charges an Acquirer Brand Volume Fee on the total transaction volume processed. The fee is 0.13% for transactions up to $1000, 0.13% for credit transactions greater than $1,000, and 0.14% for debit transactions greater than $1,000. Additionally, Mastercard levies a Network Access and Brand Usage Fee (NABU) of $0.195 per transaction.
These fees contribute to merchants’ costs when processing Mastercard transactions, similar to how Visa’s FANF operates.
Conclusion
Understanding the Visa FANF is essential for businesses that process Visa transactions. This fee, determined by transaction volume, business type, and the number of locations, is a standard cost of accepting Visa payments. While it is non-negotiable and can vary significantly, knowing how it is calculated allows business owners to anticipate and plan for these charges.
Businesses can track FANF charges and assess their impact by reviewing merchant statements regularly. Additionally, strategies to manage overall payment processing fees—such as choosing suitable pricing models, minimizing chargebacks, and negotiating with processors—can help reduce associated costs. Staying informed and proactive in managing these fees ensures businesses can maintain efficiency and control over their payment processing expenses.
Frequently Asked Questions
What factors affect the amount of Visa Fixed Acquirer Network Fee (FANF) a business must pay?
Visa FANF depends on factors like business type (determined by Merchant Category Code), number of locations, monthly Visa transaction volume, and transaction type (card-present or card-not-present). Each factor influences the fee based on the risk and cost of processing payments.
How can businesses forecast their monthly Visa FANF expenses accurately?
To forecast FANF expenses, businesses should identify their MCC, track transaction volumes, count active locations, and use Visa’s FANF calculator for estimates. Regularly reviewing payment processing statements helps account for seasonal trends or sales changes.
Are there any strategies for minimizing Visa FANF charges for a business?
Businesses can minimize FANF charges by consolidating locations, encouraging in-person transactions, reclassifying their MCC (if eligible), or managing transaction timing to stay within lower fee tiers. Consulting payment processors can provide tailored guidance for fee reduction.
