As a merchant, card processing fees are really nothing new, but the Visa FANF (fixed acquirer network fee) just may be. While with most fees your first concern is how much of these fees include profit for the processor and how much is actually going to the credit card companies, FANF works a bit differently. Fortunately, you won't have to worry about where these fees are going, as your processor has no control over FANF. On the other hand, FANF could end up being a real pain depending on the type of business you run.
At US Merchant Systems, we like transparency. With this, we want our clients to be aware of each and every fee they owe. While Visa FANF was implemented in 2012, this fairly new fee may still be confusing to some. Let us fill you in on the details of FANF and what it means for your business. First, we'll take an in-depth look at how these fees are applied.
Visa FANF: A Closer Look
Simply put, Visa's FANF affects every merchant to some extent. Acceptance methods, such as card not present (CNP), volume, number of locations, and merchant category codes (MCC) are all taken into account when determining a merchant's FANF. Details of these MCC and acceptance methods are provided below:
Merchant Category Code (MCC): MCCs are used to classify a business by specific market segments. In other words, it reflects the primary category in which a merchant does business. The MCC's has only a slight impact on a merchant's FANF.
Acceptance Method: The acceptance method is a key factor in determining how much the FANF will be for a merchant. This depends on whether the merchant is a card-present or card-not-present business. Card-present business are charged depending on the number of locations, whereas no-card-present (online transactions and fast food restaurants) businesses are charged based on their volume of Visa processing. The latter will see the largest impact.
How Will Visa FANF Affect Your Business?
Though the FANF is a fixed fee, it surely doesn't seem this way with so many variables coming into play. And with all these variables, it may be difficult to understand how much you'll be charged as a merchant. To help you understand these fees, take a moment to study the tables provided below:
Card Present (High Volume)
Card Not Present
Visa FANF and US Merchant Systems
In the years since Visa began charging the FANF in 2012, a couple updates have been made. The first, updated April of 2015, states the fee will not be applied when monthly sales are under $200. Secondly, when monthly gross sales are between $200 and $1,249.99, the charge will be calculated at .15%. Unfortunately, these fees are unavoidable, but you can always rest assured when you work with USMS.
At US Merchant Systems, we won't mark-up these fees, as our policy is to provide our clients with the best in payment solutions. If you have any questions, you can contact USMS here.