Visa Fixed Acquirer Network Fee
Visa introduced the Fixed Acquirer Network Fee (FANF) in April 2012.
This fee can be quite confusing to figure out, so we will do our best to explain how it is calculated. The amount of the FANF depends on the merchant category code (MCC), the mix of card present and card not present volume, and the number of locations the business operates. The FANF can vary from month to month for each merchant depending on these factors. For many merchants who process all of their transactions in a card present environment, the amount of the FANF is based on the number of locations owned by the business, as shown in Table 1b below. (Please note that if merchants have any card not present volume for debit and credit card processing, they will incur additional FANF fees, which we will explain later.) Visa modified the FANF in April 2015 so that payment facilitators were no longer permitted to aggregate taxpayer IDs and volume, meaning each taxpayer must be reported and billed individually. In addition, Visa reduced FANF rates for merchants with very low sales volume.
The FANF fee is a monthly fee that is assessed on a merchant taxpayer basis and includes all merchant accounts owned by a business for credit card transaction processing.
Table 1a: Card Present (excluding High Volume MCCs)
However, certain types of merchants are considered “High Volume MCCs” by Visa and have a different set of rates shown in Table 1a below. High Volume MCCs include Airlines (3000-3299, 4511), Auto Rental (3300-3499, 7512), Lodging (3500-3999, 7011), Warehouse Stores and Wholesale Clubs (5200, 5300), Discount Stores (5310), Department Stores (5311), Supermarkets (5411), Car/Truck Dealers (5511), Auto Tire Stores (5532), Petroleum (5541, 5542), Family Clothing Stores (5651), Furniture Stores (5712), Electronic Stores (5732), Drugstores (5912), Theatres (7832) and others.
Table 1b: Card Present High Volume MCCs
This can make it even more confusing, so hopefully, the following examples will help you understand it. Example #1: Retail business with one merchant account with 100% card present volume
As a reminder, the FANF is calculated per merchant taxpayer and includes all merchant accounts owned by that taxpayer. A taxpayer is defined as a legal business entity with its own federal taxpayer identification number (TIN).
- Shoe store (MCC 5661) with one location
- One merchant account that processes all $5,000 of monthly Visa volume as card present
- Sells t-shirts online
- One merchant account that processes $10,000 of monthly Visa volume, all card not present
- Pizza parlor (MCC 5812) with one location
- One merchant account that processes $8,000 card present plus $2,000 card not present (for delivery orders)
- Shoe store (5661) with two locations and an e-commerce website
- Location A has its own account and processes $5,000/month, all card present
- Location B has its own account and processes $7,500/month, $5,000 of which is card present
- The e-commerce website has its own account and processes $5,000/month, all card not present
- Location A – $2.00
- Location B – $5.00 ($2.00 + $9.00 * $2,500/$7,500)
- E-commerce – $6.00 ($9.00 * $5,000/$7,500)