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. (Ultram Online) 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:

Retail FANF Clearent Table

via Clearent

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

High Volume FANF Clearent Table

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.

Tell Us How They Treated You

Sharing your experience influences our rating and helps other business owners make informed decisions. Please take a moment to tell us if they are serving you well. Your email address will never be published, shared or sold. We only use it to authenticate that you are a real person and, if you select the option for it, to let you know if someone replies to your comment. Required fields are marked *

Comments must contain details about your experience. Please do not use ALL CAPS. Self-promotion, marketing content, or contact information of any kind will not be published. By submitting a comment, you are agreeing to our Comment Policy

Copyright

Copyright © CardPaymentOptions.com, Inc. (Digital Fingerprint: 0d38c6720f0d78a701b74d58653af608). Getting paid to re-write this page? Click here to earn a reward.

Any unauthorized copying and reproduction of the content of this page, including all meta data and computer code, is strictly prohibited. While the information in the above article is believed to be accurate as of its publish date, the author and publisher make no representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents. The author and publisher shall in no event be held liable to any party for any direct, indirect, punitive, special, incidental or other consequential damages arising directly or indirectly from any use of this material, which is provided “as is,” and without warranties. Any and all use of trade names and/or marks are for identification purposes only and shall not be construed as a claim of affiliation, or otherwise, with CardPaymentOptions.com, Inc. ("CPO") in any form. The sole purpose of the material presented herein is to alert, educate, and inform readers. It is not intended as legal or financial advice. We may earn revenue if you obtain services from a provider that we recommend. See this page to learn how we support our operations.

Our Top Pick of 2022
helcim logo
star star star star star
Helcim Payments
done
No Monthly or Annual Fees
done
Super Low Processing Rates
done
POS, Mobile, and Online Payments
Sales & Support: (888) 506-7812
Thinking of working in merchant services? Download our free ebook first.
An Honest Buck ebook cover
Most Ethical Processor of 2024

The most ethical providers offer rock-bottom rates, no monthly fees, no contract, and superb customer support. Below we break them down by specialty and industry:

▶ Retail
▶ Restaurant
▶ Card-Not-Present
▶ Invoicing
▶ Online Checkout
▶ E-Commerce Store Creation
▶ Subscriptions & Recurring
▶ Web Developer Tools
▶ Mobile
▶ Non-Profit
▶ Canadian
▶ Seasonal
▶ Quickbooks Intergration
▶ Free (Zero-Fee) Processing