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Merchant Account Fixed Acquirer Network Fee (FANF) Explained:
The Fixed Acquirer Network Fee (FANF) is a monthly charge assessed by Visa to merchants for accepting its credit cards. Introduced to cover the costs associated with providing electronic payment services, FANF varies depending on several factors such as the type of business, the method of credit card acceptance, and the number of locations a merchant operates. Its primary purpose is to contribute to the maintenance and improvement of Visa's electronic payment network, ensuring merchants can offer secure and efficient transaction options to their customers.
How FANF is Calculated?
The calculation of the Fixed Acquirer Network Fee (FANF) depends on criteria set by Visa, which include the merchant's sales volume, the industry category, and the transaction environment, whether physical or online. Merchants with higher monthly sales or more physical locations tend to incur higher fees. There are separate fee schedules for transactions through in person credit card payment versus those who operate through online retailers. This tiered approach aims to align the fee more closely with the benefits received from Visa's network services.
How to Lower FANF Costs:
As a business owner you can reduce your Fixed Acquirer Network Fee (FANF) by consolidating merchant accounts or sales under fewer tax identification numbers to lower the volume of transactions attributed to multiple outlets, which could decrease the fee bracket. Another way to reduce your FANF is to optimize the balance between card-present and card-not-present transactions, especially for businesses that operate both physical and online stores.