Fixed Acquirer Network Fee (FANF) Definition

Merchant Account Fixed Acquirer Network Fee (FANF) Explained

What is a Fixed Acquirer Network Fee? A Fixed Acquirer Network Fee (also known as an Acquirer License Fee or ALF) is a monthly fee that Visa and MasterCard charge merchant services providers on a monthly basis in exchange for allowing them access the Visa and MasterCard networks. The FANF was more or less created out of thin air by Visa in 2012 in response to the Durbin amendment, and it has since persisted as a non-negotiable fee that is often passed on to merchants. Although it is technically assessed each month, the FANF is usually charged to merchants on a quarterly basis and can often seem like a new or undisclosed fee if it is unexpectedly large. The FANF varies according to each merchant’s payment environment, number of locations, processing volume, and Merchant Category Code (MCC).

As a general rule, most card-present payment environments will be charged a negligible FANF, but card-not-present businesses could pay a very large FANF. The credit card processor Clearent has provided several useful tables outlining the various FANF criteria. Standard-risk, card-present business types can see their FANF pricing below:

via Clearent

High-volume, card-present business types are subject to separate FANF pricing. Their pricing is displayed below:

via Clearent

Businesses that accept card-not-present transactions will be charged an additional FANF on top of their card-present FANF. The card-not-present FANF is calculated strictly according to processing volume. FANF calculations for card-not-present businesses also apply to fast food transactions and self-checkout transactions. In April 2018, Visa adjusted its FANF pricing. Merchant e-Solutions has provided a useful table displaying the change in pricing for each processing volume:

Card Not Present FANF Merchant E-Solutions Table

via Merchant e-Solutions

It may not be possible for you to negotiate your FANF with your credit card processor because it is a fee directly imposed by Visa and MasterCard. However, you can use the tables above to calculate what your FANF should be and ensure that your processor isn’t marking up your FANF inappropriately.

About The Author

Phillip Parker

Phillip Parker is an independent card payment expert specializing U.S. and Canadian point-of-sale, e-commerce, and mobile payment acceptance. He has nearly two decades of experience in credit card processing as a journalist and consultant. Phillip is the creator of this website and has written over 1,500 articles covering numerous payment acceptance topics. He has also published critical reviews about most merchant services providers currently in operation.

Expert Guidance

Phillip has consulted businesses of all sizes from mom-and-pop shops processing $10K per month to enterprise level organizations processing in excess of $300MM annually. His specialties include:

– Merchant Account Statement Auditing

– Rate & Fee Negotiation

– Processor & POS Selection

– Software Integrations

– Risk Assessment

– Fraud Prevention

– General Processing Advice

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Phillip has researched and reviewed over 1,000 merchant services providers over the last 15 years. He also owns multiple businesses that accept credit card payments. If you are looking for an ethical credit card processor that doesn’t hide fees or lock you into expensive contracts, see Phillip’s merchant account picks here.

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