Understanding Visa’s Fixed Acquirer Network Fee (FANF) and How It Affects Your Business

If your business accepts Visa payments, you might have noticed the Fixed Acquirer Network Fee (FANF) charge on your monthly statement. This is a mandatory fee that Visa imposes on merchants, and it varies based on factors like your business type, transaction volume, and how you process payments. Knowing how FANF works can help you manage your costs more effectively.

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What Determines Your FANF?

Visa calculates FANF based on three key factors:

Business Type

Are you running a physical store where customers pay in person (card-present) or an online business where payments happen digitally (card-not-present)? The type of business you operate affects your FANF.

Processing Volume

How much money do you process in Visa transactions each month? The more you process, the higher your FANF could be.

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Merchant Category Code

Every business falls under a specific industry classification, known as an MCC. Your MCC determines your FANF rate.

Stay Informed & Save Money

Understanding FANF isn’t just about knowing what you’re paying—it’s about finding ways to manage and potentially reduce those costs. Staying informed about updates in the payment industry and best practices can help you keep fees as low as possible.

How to Reduce or Optimize Your FANF

Although FANF is a fixed fee, there are strategies to help minimize its impact on your business:

Review Your MCC

Make sure your business is classified correctly. An incorrect MCC could mean higher fees than necessary.

Optimize Your Processing Structure

Consolidating accounts under a single processing structure might help reduce FANF costs if you operate multiple locations.

Work With a Payment Consultant

Payment experts can analyze your merchant statements, identify cost-saving opportunities, and suggest ways to optimize your fee structure.

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Why Does Visa Charge FANF?

Visa introduced FANF to help cover the costs of maintaining its payment network and ensuring secure transactions. Unlike percentage-based fees that fluctuate with sales volume, FANF is a fixed cost, which applies regardless of how many transactions you process each month.

Frequently Asked Questions About FANF Fees

Get clear answers to common questions about Fixed Acquirer Network Fees (FANF), how they work, and their impact on your business.

faq's

What is FANF in simple terms?

FANF is a fixed fee that Visa charges businesses that accept Visa card payments.

Does every merchant have to pay FANF?

Most merchants that process Visa transactions are subject to FANF, though some exceptions apply.

Can I negotiate or avoid FANF?

FANF is a non-negotiable Visa-mandated fee, but structuring your business correctly can help minimize its impact.

How do I find out how much FANF I’m paying?

You can see FANF charges listed on your monthly merchant statements.
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Is FANF the same for all credit card processors?

Since Visa mandates FANF, all processors pass the fee along, but the amount you pay may vary based on your business classification.

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