New Fixed Acquirer Network Fee and Paya Network Fee
On April 1, 2012, Visa initiated a new Fixed Acquirer Network Fee (“FANF”) assessed to acquirers on a Merchant Taxpayer ID basis, which Paya started passing through to merchant’s in May 2012. In addition to FANF charges, Paya began charging a corresponding $2.50 Merchant Service Provider Network Fee (“MSP Network Fee”) in May 2012.
As your partner in electronic payments, Paya 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, including Paya and our competitors, will be assessed these fees. The MSP Network Fee will also apply to all Visa transactions.
At Paya, we understand that the fees passed through from Visa, Paya and the other card associations impact your business and we want to make sure you understand how these fees will affect your business. We also want you to know that we strive to make electronic payment processing as cost-effective as possible while providing exceptional service and support.
Separate FANF charges will be imposed on (i) merchants processing transactions where a cardholder is physically present (“CP Merchants”), with the exception of merchants primarily operating as Fast Food Restaurants and (ii) merchants processing transactions where a cardholder is not physically present (“CNP Merchants”), which shall include merchants acting as merchant aggregators for other merchants, or merchants primarily operating as Fast Food Restaurants (MCC 5814). If a merchant falls into both categories described above, the merchant will be charged the FANF charge and the MSP Network Fee as both a CP Merchant and a CNP Merchant. The MSP Network Fee will be charged to all CP Merchants and CNP Merchants regardless of the type of merchant.
For CP Merchants with less than 50% of their monthly Card Present sales volume from the High Volume Merchant Category Codes (“High Volume MCCs”) listed below, the FANF charges will be assessed on a per location basis, with fees ranging from $4.50 ($2.00 FANF + $2.50 MSP Network Fee) per location per month for CP Merchants with one to three locations to over $26.50 per location per month for CP Merchants with more than 250 locations.
For CP Merchants with at least 50% of their monthly Card Present sales volume from the High Volume MCCs listed below, the FANF charges will be assessed on a per location basis, with fees ranging from $5.40 ($2.90 FANF + $2.50 MSP Network Fee) per month for CP Merchants with one to three locations to over $7.50 ($5.00 FANF + $2.50 MSP Network Fee) per location per month for CP Merchants with more than 20 locations.
For CP Merchants, the FANF charges and MSP Network Fee will appear on your statement as FANF CP and MSP Network Fee.
High Volume MCCs:
Steamship / Cruise Lines
Wire Transfer Money Order
Home Supply Warehouse Stores
Duty Free Stores
Grocery Stores and Supermarkets
Car and Truck Dealers / New / Used
Automotive Tire Stores
Service Stations (With or Without Ancillary Services)
Automated Fuel Dispensers
Family Clothing Stores
Sports / Riding Apparel Stores
Furniture / Equipment Stores
Drugstores and Pharmacies
Motion Picture Theatres
For CNP Merchants, the FANF charges will be assessed based on gross merchant sales volume originating from any Visa-branded card, with fees ranging from $4.50 ($2.00 FANF + $2.50 MSP Network Fee) a month. For CNP Merchants with a volume of less than $50 per month to over $15,000 ($14,997.50 + $2.50 Paya Network Fee). For CNP Merchants with a volume exceeding $40 million per month.
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.
If you would like any additional information about these fees, or if you have questions, please submit a ticket and we will be in touch with you shortly.