A new fee is coming very soon from Visa that has industry experts scratching their heads.
In April of this year, Visa will be adding a Fixed Acquirer Network Fee (FANF) for all merchants. Simply put, it is a monthly, fixed fee for the right to do business with them and will vary based on a number of criteria: how many locations a merchant has, gross sales volumes and whether the card/customer are present for swiping.
According to Visa, the fixed fee for merchant acquirers is expected to be $2 per month for about 60% of merchants and $5 or less per month for about 80% of merchants. Merchants with several locations and/or high volume will be harder hit, but Visa did say it will be waiving the fee for acquirers that work with "qualifying charitable organizations."
MasterCardÂ® is not far behind, planning to introduce a new annual fee sometime in July 2012.
Unfortunately, there is little anyone can do to buffer the effects of new fee compliances set by Visa or MasterCard. Having gone from a single interchange rate to more than 500, it's not surprising businesses struggle navigating information and the myriad of fee configurations that exist today. That's why it is as important as ever to work with a processing company you trust.
Call Midwest Transaction Group (MTG) at 1.888.599.2209 with any questions you might have in regards to this new fee or for clarification. MTG is a PPA Member Benefit Provider, and they will continue to keep you informed on industry changes and do their best to guide you through complex interchange pricing. They know how important it is to understand what the fee structures mean for you and your business.