Rates for New Fixed Acquirer Network Fee and Reductions to Variable Fees on All Products
Dear Valued Merchant - On April 1, 2012 Visa implemented the FANF Fixed Acquirer Network Fee. Your fees will be calculated for the quarter starting April 1, 2012 and collected on your June statement. Going forward we will collect the fee at the end of each month and identify it as FANF fee on your statement. If you need any further information on this new fee from VISA, please call IPPay customer service at 847-346-0990 or email us at support@ippay.com.
Debit regulation in the U.S. has altered the competitive landscape. To compete in the new environment, Visa has revised its business strategy. As part of this revised strategy, Visa’s intention is to change its fee structure in a way that could lower acceptance costs to the vast majority of U.S. merchants, while allowing for continued investments in its secure, reliable network. These changes, announced below, are designed to benefit merchants, financial institutions and Visa and are fully incremental to the $8 billion merchants received from debit price controls.
The new structure was originally announced in the 28 July 2011 Visa Business News article “Visa Announces Acquirer Pricing Restructuring: Introduction of a Fixed Network Participation Fee With Reductions to Variable Fees and Changes to the U.S. Acquirer Quarterly Operating Certificate Reporting.” Under Visa’s new pricing model for acquirers, which includes lower variable, per transaction pricing, merchants should have a new incentive to entrust transactions to the Visa network: The more transactions a merchant routes over the network, the lower the merchant’s price per transaction. Visa is committed to ensuring that the new pricing is practical and fair and has taken particular care with the smallest retailers and charitable organizations.
A detailed bulletin on these fees can be found here.
