As announced in the April 10, 2014 edition of the Visa Business News, effective April 1, 2015, Visa will modify the Fixed Acquirer Network Fee (FANF) structure. As part of this modification, two new FANFs will be created for Taxpayer IDs with less than $1,250 of monthly gross sales volume:

  • Taxpayer IDs with less than $200 of monthly gross sales volume will be assessed a FANF of $0.
  • Taxpayer IDs with monthly gross sales volume between $200 and $1,250 will be assessed FANF at a rate of 15 basis points (0.15 percent).
To qualify for the $0 fee and 0.15 percent rate, Taxpayer IDs must have 100 percent of their volume with one acquirer. Taxpayer IDs that use multiple acquirers will not be eligible and the following minimum fees will apply:
  • For high-volume merchant category code (MCC) merchants (customer present): $2.90 per location
  • For all other MCC merchants (customer present): $2.00 per location
  • For customer-not-present, unattended terminals and fast food restaurants: $7.00 per Taxpayer ID
MasterCard’s Acquirer License Fee (ALF) is .0362 percent calculated each month based on MasterCard processing for the prior month. Charges for this fee will be billed a month in arrears and reflect in the Acquirer Network Fee on your monthly merchant statement.

On April 1, 2012, Visa initiated a new Fixed Acquirer Network Fee (“FANF”). The FANF is a monthly fee that is assessed on a merchant taxpayer basis and includes all merchant accounts owned by a business for credit card transaction processing. As your partner in merchant processing, Peoples Bank is providing you the following information to help you understand these new fees and the impact to your business.

The new FANF charge will result in additional charges for all businesses that accept Visa credit and debit cards, regardless of who their merchant services provider is. This means that all acquirers will be assessed these fees.

The amount of the FANF depends on the merchant category code (MCC), the mix of card present and card not present volume, and the number of locations the business operates. The FANF can vary from month to month for each merchant depending on these factors. There are two FANF charges that a business may accrue - 1) card present and 2) card not present charges.

For many merchants who process all of their transactions in a card present environment, the amount of the FANF is based on the number of locations owned by the business. This fixed fee is already calculated and included in your monthly fee and you will not see an increase in processing cost as a result of FANF. However, if a Visa credit or debit card is entered in manually or processed over the internet (Card Not Present) an additional fee will apply.

The FANF fee for card not present volume is calculated separately in addition to the fixed monthly fee based on the number of locations. The FANF fee for card not present volume is based on monthly volume, as shown in the table below. This table is also used to determine the FANF for fast food restaurants (MCC 5814) and merchant aggregators.


Visa Card Not Present Monthly Volume FANF Monthly Charge
< $50 $2.00
$50 - $119 $2.90
$200 - $999 $5.00
$1,000 - $3,999 $7.00
$4,000 - $7,999 $9.00
$8,000 - $39,999 $15.00
$40,000 - $199,999 $45.00
$200,000 - $799,999 $120.00
$800,000 - $1,999,999 $350.00
$2,000,000 - $3,999,999 $700.00
$4,000,000 - $7,999,999 $1,500.00
$8,000,000 - $19,999,999 $3,500.00
$20,000,000 - $39,999,999 $7,000.00
$40,000,000 - $79,999,999 $15,000.00
$80,000,000 - $399,999,999 $30,000.00
≥ $400,000,000 $40,000.00

As a reminder, the FANF is calculated per merchant taxpayer and includes all merchant accounts owned by that taxpayer. A taxpayer is defined as a legal business entity with its own federal taxpayer identification number (TIN).

FANF will be waived for eligible 501C Charitable and Social Service Organizations with MCC of 8398. Base rates for the FANF billing items will be calculated each month based on Visa processing for the prior month. Charges for this fee will be billed a month in arrears.

Since this new Visa charge targets card not present volume please contact us to determine if there is an option to change your processing method and reduce the impact of FANF. We offer mobile processing options with card readers that work through your existing iPhone or Android based smartphone. There are also cellular terminals with integrated printers, virtual terminals that work with a laptop and a USB card reader and tablet (iPad) apps with a plug in card reader.

If you have any questions about Visa’s FANF charges please do not hesitate to contact us.

Peoples Bank Business Services Group

4183 Meridian Street
Bellingham, WA 98226

Department: (360) 647-4420
Customer Service: (800) 584-8859

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