What Is Visa Fixed Acquirer Network Fee?
marklharries38 > 09-07-2022, 07:57 PM
Visa's Fixed Acquirer Network Fee (FANF) is a cost assessed by Visa to participating acquirers for card-based transactions. The fee is based on the number of transactions processed by an acquirer and is passed on to the merchant through their merchant discount rate (MDR). FANF was introduced in April 2004 and is assessed on a per-transaction basis.
The FANF allows Visa to recover the costs associated with running its card network, including the costs of fraud prevention, dispute resolution, and data processing. It also helps to fund new initiatives that improve the safety, security, and efficiency of the payments system.
Visa's FANF is typically passed on to merchants through their MDR. The actual amount of the fee will vary depending on the acquirer, but it is generally a small percentage of the transaction value (typically less than 0.10%).
Visa's FANF is just one of several fees that may be charged to merchants when they accept card payments. Other fees may include the interchange fee, which is set by the card issuers, and the acquirer service fee, which is charged by the acquirer for processing card transactions.
The FANF is a cost of doing business for merchants that accept Visa cards, but it should be noted that it is generally much lower than the interchange fee. For example, if a merchant's total MDR is 2.0%, the FANF would typically make up only a small portion of that (less than 0.10%).
The FANF is not a new fee; it has been in place since 2004. However, acquirers are now required to disclose the FANF to merchants on their monthly statements. This is in response to feedback from merchants who were not aware of the fee and its impact on their MDR.