The major credit card networks — Visa, MasterCard, Discover and American Express — join together to set the fees for Interchange. As part of this process, every six months they review those fees and adjust them as needed. In 2012, a series of new fees have been added to payment processing. Some of them are even completely separate from Interchange.
The Fixed Acquirer Network Fee (FANF) is a fee instituted by Visa. It began on April 1, 2012 as a response from Visa to deal with the losses the credit card company was set to incur through the Durbin Amendment’s hard cap on debit swipe fees. The fee affects the credit card processing industry, both brick and mortar businesses and e-commerce merchants.
FANF applies to the acceptance of all Visa-branded products and is based on both the size and the number of merchant locations. The FANF fee was initially based on volume reported in July 2012. Visa required all U.S. acquirers to provide new merchant location reporting for the tracking of this fee. The new reporting requirements included a monthly breakdown of acquired merchants, number of merchant locations, and merchant sales volume by merchant Taxpayer ID.
For Card Present merchants, with the exception of Fast Food Restaurants, a merchant Taxpayer ID with physical locations is assessed FANF on a per-location rate basis. For example, Card Present Merchants with one to three locations will see a pass through per location per month fee of $2. Price per location per month increases according to the number of locations – upwards of $65 month for merchants exceeding 4000 locations. Card Present High Volume MCC Merchants with one to three locations see a pass through per location per month fee of $2.90. Price per location per month will increase according to location — upwards of $85 month for merchants exceeding 4000 locations.
Customer Not Present, merchant aggregators and merchants primarily operating as Fast Food Restaurants (MCC 5814) are assessed based on gross merchant sales volume originating from any Visa-branded card. Merchants that fall into this category with monthly gross sales volume ranging from less than $50 a month on the low end will see a $2 a month fee- to merchants with gross sales exceeding $400 million at a $40,000 a month fee. There are some 18 tiers, with a merchant falling into a volume tier of $8,000 to $39,999 a month seeing a new $15 per month FANF fee.
Visa waived the FANF for eligible Charitable and Social Service Organizations (MCC 8398). The FANF waiver for Charitable and Social Service Organizations is provided through a quarterly rebate process that Visa has indicated will be defined at a later date.
Host Merchant Services makes the FANF fee clearly visible on our statement and we do not mark up the FANF fee in any way.