The Fixed Acquirer Network Fee, more commonly known as FANF, is a fee implemented by Visa for businesses that accept Visa payments. Introduced in April 2012, this fee applies to any merchant with a Visa merchant account and varies depending on the type of business, sales volume, and the number of locations. Fixed Acquirer Network Fees are designed to help cover the costs of maintaining the network that processes Visa transactions, making them an important consideration for businesses of all sizes.
What Is the Fixed Acquirer Network Fee?
Visa charges merchants a recurring fee based on transaction processing volume and business category. It’s designed to support the infrastructure required to manage Visa card transactions, such as maintaining payment networks, fraud protection systems, and customer service. While it might seem like another business expense, understanding how Fixed Acquirer Network Fee works can help business owners manage their fees effectively.
Whether a business is a small, single-location shop or a large enterprise with multiple locations, the Fixed Acquirer Network Fee will apply if Visa card payments are processed. While many business owners may overlook this fee because it is often rolled into their monthly payment processing costs, it is important to understand its impact on operating expenses.
Who Has To Pay FANF Fees?
Any business that accepts Visa card payments, in-person or online, must pay Fixed Acquirer Network Fees. This applies to credit and debit transactions, making it a universal fee across the Visa network. However, there are a few exemptions, such as:
- Small businesses with low transaction volumes: If a business has less than $200 in Visa card-present sales per month, it is exempt from Fixed Acquirer Network Fees.
- Charitable organizations: U.S.-based charitable organizations classified under merchant category code (MCC) 8398 are eligible for a Fixed Acquirer Network Fee rebate. Visa waives the fees through a refund issued after they have been charged.
How Are FANF Fees Calculated?
The fees are not one-size-fits-all; they are calculated based on various factors. These include the merchant’s business category, the number of locations (for card-present transactions), and total sales volume (for card-not-present transactions).
Card-Present Businesses
For businesses that process card-present transactions (where the customer physically swipes or taps their card), Fixed Acquirer Network Fees are determined based on the number of locations. Higher fees apply to businesses with more locations, and there is an additional fee for high-volume merchant category codes (MCCs). For example:
| Number of Locations | FANF per Location | FANF for High-Volume MCCs |
| 1-3 | $2.00 | $2.90 |
| 4-10 | $2.90 | $4.00 |
| 11-50 | $4.00 | $5.00 |
| 101-150 | $6.00 | $8.00 |
| 1,001-1,500 | $40.00 | $55.00 |
High-volume MCCs include industries such as airlines, department stores, grocery stores, and movie theatres.
Card-Not-Present Businesses
Fixed Acquirer Network FeesFees are calculated based on total Visa sales volume for businesses that process card-not-present transactions (such as e-commerce or over-the-phone payments), e.g. The more Visa transactions a business processes, the higher the Fixed Acquirer Network Fee:
| Monthly Visa Sales Volume | Monthly FANF Fee |
| $1,250 – $3,999 | $7.00 |
| $4,000 – $7,999 | $9.00 |
| $8,000 – $39,999 | $15.00 |
| $40,000 – $199,999 | $45.00 |
| $40,000,000 – $79,999,999 | $16,000.00 |
| $400,000,000 or more | $70,000.00 |
If a business processes both card-present and card-not-present transactions, the fees are calculated for both transaction types and combined accordingly.
How Are FANF Fees Charged?
Fixed Acquirer Network Fees are calculated every month but are charged quarterly. For example, fees incurred during January will be included in your payment processing statement for February. Most payment processors will include a Fixed Acquirer Network Fee in the merchant’s monthly statement, so businesses may not even realize they are paying this fee unless they look closely.
Can You Reduce FANF Fees?
While fees are based primarily on the number of transactions or business locations, they are largely fixed, meaning they cannot be reduced directly. However, businesses can take steps to minimize the overall costs of processing payments:
- Review payment processors: Make sure your payment processor is not adding extra fees on top of the Fixed Acquirer Network Fee. Some processors bundle fees, making knowing what you’re paying for difficult.
- Optimize transactions: Encouraging card-present transactions when possible or ensuring that transactions are grouped effectively may help manage overall fees.
While avoiding the fee is difficult, ensuring you’re not overpaying due to excessive processor markups can save businesses significant costs over time.
Why Does FANF Exist?
Visa introduced the Fixed Acquirer Network Fee to stabilize and streamline the costs associated with using their payment network. The fees help support the infrastructure to process secure and efficient transactions globally. From fraud prevention to customer support, the Fixed Acquirer Network Fee contributes to the seamless operation of the Visa payment network, ensuring that businesses and consumers benefit from its reliability and security.
Final Words
The Fixed Acquirer Network Fee is a necessary part of accepting Visa payments and applies to businesses of all sizes. While the fee structure can be complex, understanding how FANF fees are calculated and charged can help business owners manage their payment processing costs better. Though reducing the Fixed Acquirer Network Fee directly is not an option, ensuring transparency with your payment processor and optimizing how transactions are handled can help keep costs in check.
FAQs:
What is the Fixed Acquirer Network Fee for small businesses?
Small businesses typically pay lower fees. A business with fewer than three locations will pay around $2.00 per location each month. However, businesses processing less than $200 in Visa card-present transactions are exempt from the Fixed Acquirer Network Fee.
Do online businesses have to pay a Fixed Acquirer Network Fee?
Online businesses are considered card-not-present merchants and will pay fees based on their total monthly Visa transaction volume. Depending on the sales volume, these fees range from $7.00 to $70,000.00.
Are there any businesses that are exempt from the Fixed Acquirer Network Fee?
Businesses with card-present transactions totalling less than $200 per month are exempt. Additionally, U.S.-based charitable organizations (MCC 8398) can receive a rebate on their Fixed Acquirer Network Fee, effectively exempting them.
How often are Fixed Acquirer Network Fees charged?
Fees are calculated monthly but are billed quarterly, meaning businesses pay these fees every three months. The fees are usually included in your payment processor’s monthly statement.
Can Fixed Acquirer Network Fees change over time?
Yes, the fees can fluctuate based on changes in the business’s sales volume, number of locations, or merchant category code (MCC). As a business grows, the Fixed Acquirer Network Fee fees will increase in line with its transaction volume or number of locations.