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What is a Visa FANF FEE (Visa Fixed Acquirer Network Fee)?

How much does the FANF cost?

In April 2012, Visa introduced a Fixed Acquirer Network Fee (FANF). As a reminder, the FANF will be imposed on all merchants that accept Visa-branded products processed through the Visa network, excluding Interlink.

Your Processor will assess this fixed fee (i.e. not a per transaction fee) monthly, based on combinations of the following variables:

1. Acceptance method (card present versus card-not-present)

2. Merchant Category Code (MCC)

3. Merchant Taxpayer ID (also referred to as a ‘TIN’)

4. Number of merchant locations with sales (for card-present merchants) or gross Visa sales volume (for card-not-present merchants) during the reporting month

The monthly fee will be assessed based on the Attached charts

FANF - FAQ's - Frequently Asked Questions

Q. How will the FANF be billed for card-present (CP) transactions?

A. Card-present transactions will be billed monthly, per location, to all locations (under a particular Merchant TIN)

that had at least one card-present sale transaction that month.

Referring to the FANF charts (attached), Table 1a will apply if the card-present volume from the TIN is greater than 50% from the High Volume MCCs category. Otherwise, Table 1b will be used.

Here are a few scenarios relative to “Company A” with 15 retail locations.

Example 1: While Company A has 15 retail locations, only three (3) locations were active in April. (‘Active’, in this example, refers to a location that ran at least one (1) sales transaction.) Company A’s sales are not considered high volume. Therefore Company A will be assessed

the FANF for the 3 active locations. Referring to Table 1b, Tier 3, the fee would be $6 (3 x $2.00 = $6).

Example 2: In May, 10 of Company A’s locations are active. Referring to Table 1b, Tier 6, the fee would be $29 (10 x $2.90 = $29).

Q. How will the FANF be billed for card not present (CNP) transactions?

A. For CNP transactions, as well as transactions from Fast Food merchants (MCC 5814), the total fee amount will be divided equally by the number of locations reported under the TIN that had Visa CNP volume for the month. It is also important to note that only Visa Credit and Signature Debit volume (for exempt and regulated transactions) will be used for CNP fee calculations. MasterCard® and Discover® will not be included.

Here are a few examples for “Company B” with CNP processing.

1. Example: In May, Company B has Visa CNP volume that adds up to $500,000 for all active sites. (‘Active’, in this example, refers to a site that ran at least one (1) CNP transaction). Because the $500,000 gross sales volume amount falls within Tier 8 on Table 2, Company B will be billed $120.

a. All active sites will be billed an equal portion of the total Tier 8 fee of $120.

i. If Company B had 4 sites that were active in May, the $120 fee will be divided by 4, and assessed to the 4 active sites ($120/ 4 = $30 per active site).

ii. If only 2 of Company B’s sites were active in May, the $120 would be divided by 2, and assessed to the 2 active sites ($120/ 2 = $60 per active site).

Q. What about merchants that have both CP and CNP volume?

A. If merchants have a location with both card present & card not present volume, they will be assessed the FANF under both transaction types. They will be assessed one fee (from either Table 1a or 1b) for the CP volume, and another fee from Table 2 for the CNP volume.

Here is an example of a Merchant with both card-present and card-not-present transaction activity.

1. Example: In May, Company C began taking orders over the telephone, as well as in its retail stores. Company C had two active retail locations for the month, and $1,000 in Visa sales volume through the telephone-order business.

For the retail volume, Company C will be billed $4 (Table 1b, Tier 2 [$2.00]) x 2 Locations). In addition, for the telephone business, the company will be assessed $7 (Table 2, Tier 4, $1,000 Visa Sales volume [$7.00] ÷ 1 active CNP location).

Q. What if a Retail merchant runs a hand-keyed transaction? Will that be flagged as CNP?

A. A hand-keyed transaction will not necessarily be flagged as CNP. If the ecommerce indicator (ECI) in the transaction data is flagged as 1 through 9, that transaction would be considered CNP. If a transaction is captured with no ECI, the transaction will be flagged as card present.

Q. Visa has waived the FANF for MCC 8398 (Charitable & Social Service Organizations).

A. Even though Visa waived the FANF for MCC 8398, your processor must still report this activity to Visa, and include it in merchant reporting. Therefore, merchants operating under MCC 8398 will see Network Fee line items reported on their statements; however, may perform routine checks to confirm the FANF is not being charged to these merchant types.

Q. When will billing for the FAN Fee take place on an ongoing basis?

A. The FANF fee began billing in May 2012 based on each merchant’s number of locations and/or sales volume during April 2012. Merchants will see their activity for April 2012 on their May month-end statement, sent in early June.

Going forward, merchants on Monthly Discount billing will see the FANF on their month-end statement (for the preceding month’s number of locations and/or sales volume). For merchants on Daily Discount billing, the FANF (for the preceding month’s number of locations and/or sales volume) will be loaded into our systems on or around the 8th of the month.

The above information serves as a general guideline for the Visa FANF fee. Your processor may provide a different process or charge different

High-volume MCCs: For the purposes of the Fixed Acquirer Network Fee, merchants with ≥ 50% of monthly Customer Present Sales Volume in the following MCCs are defined as high-volume merchants:

MCC(s) Description
3000-3299, 4511 Airlines
3300-3499, 7512 Auto Rental
3500-3999, 7011 Lodging
4411 Steamship / Cruise Lines
4829 Wire Transfer Money Order
5200 Home Supply Warehouse Stores
5300 Wholesale Clubs
5309 Duty Free Stores
5310 Discount Stores
5311 Department Stores
5411 Grocery Stores and Supermarkets
5511 Car and Truck Dealers / New / Used
5532 Automotive Tire Stores
5541 Service Stations (With or Without Ancillary Services)
5542 Automated Fuel Dispensers
5651 Family Clothing Stores
5655 Sports / Riding Apparel Stores
5712 Furniture / Equipment Stores
5732 Electronic Stores
5912 Drugstores and Pharmacies
5943 Stationery Stores
7012 Timeshares
7832 Motion Picture Theaters