VISA Fixed Acquirer Network Fee (FANF)

Transcription

1 March 2012 VISA Fixed Acquirer Network Fee (FANF) First Data Learning Organization LB Rev. 03/19/12

2 Agenda VISA Fixed Acquirer Network Fee Overview Merchant Letters Considerations, Criteria and Variables Tables 1A, 1B and 2 Examples 2

3 Visa Fixed Acquirer Network Fee Overview 3

4 Visa Fixed Acquirer Network Fee (FANF) FANF is a fixed acquirer fee based on merchants with monthly Visa branded credit and non-pin/signature debit volume Interlink transactions are excluded Visa will waive FANF for MCC 8398, charitable and social service organizations FANF is an ACQUIRER fee that First Data is passing through to merchants As an acquirer fee, FANF is uniquely calculated when compared to Visa fees merchants commonly see As an acquirer fee, Visa is not required to publish FANF information for the public i.e. don t send merchants to the Visa website for more information FANF is effective April 1,

5 Merchant Letters Merchant letters dropped March 10 and March 12. New Fixed Acquirer Network Fee (FANF) for Visa Transactions - Effective April 1, 2012, Visa will begin billing Acquirers a new monthly Fixed Acquirer Network Fee (FANF) which may vary each month. The amount of the monthly fee charged is determined based on the variables outlined below. Please refer to the enclosed document titled Network Fee Billing Tables for Visa Transactions. For Card Present Transaction Processing (excluding fast food and merchant aggregators), please refer to Tables 1A and 1B: The applicable monthly fee will be calculated based on the number of active processing merchant locations (per individual card acceptor ID) and your Merchant Category Code (MCC), per taxpayer id, per month For Card Not Present Transaction Processing (including merchant aggregators and all fast food Visa sales), please refer to Table 2: The applicable monthly fee will be determined based on monthly gross Visa sales volume per taxpayer ID, per month. For merchants with a mix of both card present and card not present transactions, fees from Table 1 (A and/or B, as applicable) and Table 2 will apply. If we do not have a valid taxpayer id for your merchant account in our system, the location and/or volume (as appropriate) will be counted as a single location for the purposes of fee billing. The new Fixed Acquirer Network Fee for Visa transactions that we are charged will be passed through to you and will be reflected on your April month end statement received in May with the descriptor of Visa Network Fee CP XX-XX and/or Visa Network Fee CNP XX-XX (XX-XX represents the table and tier).. 5

6 VISA Fixed Acquirer Network Fee (FANF) After reviewing the FANF merchant letter text, list important FANF dates, variables, criteria, etc. 6

7 High-Level FANF Considerations All merchants under identical taxpayer identification numbers (TIN) Merchant business type by merchant category code (MCC) Number of locations with card present (CP) volume during the month Gross card not present (CNP) monthly volume Where CNP classification is based upon a transaction level MOTO/ECI indicator of 1-9 7

8 Knowledge Check The VISA Fixed Acquirer Network Fee (FANF) effective date is. A. March 1, 2012 B. April 1, 2012 C. May 1,

9 I M P O R T A N T Card not present vs. card present classification is NOT based upon whether a transaction is keyed or swiped! Card not present classification, for FANF, IS based upon a transaction level MOTO/ECI indicator of

10 Tables included with March merchant letters and posted to by April 1,

11 FANF Considerations Table 1A Card present (CP), high volume MCC merchants as specified Rates assessed monthly based on number of locations, with CP volume, for each merchant TIN Applies to TINs for which 50% of monthly CP volume is associated with high-volume MCCs Table 1B Card present (CP), all other MCC merchants Rates assessed monthly based on number of locations, with CP volume, for each merchant TIN Also applies to TINs for which < 50% of monthly card present volume is associated with high-volume MCCs or fast food Does not apply to merchant aggregators Table 2 Card not present (CNP), merchant aggregators and MCC 5814, fast food Rate assessed monthly and divided equally among locations, with CNP volume, for each merchant TIN Applies to all volume for merchant aggregators and TINs with 50% of card present volume associated with MCC 5814, fast food 11

12 Knowledge Check A primary FANF criteria is card not present volume as classified by. A. a transaction level MOTO/ECI indicator of 1-9 B. the transaction entry method (keyed vs. swiped) C. both A and B 12

13 FANF Considerations In order to be billed for FANF, the merchant must have volume, i.e. process transactions A merchant cannot be on both tables 1A and 1B A merchant can be on either table 1A or table 1B and table 2 For the purposes of FANF billing, merchant locations without a TIN would be counted as a single merchant location 13

14 Knowledge Check is arguably one of the most important FANF calculation considerations. A. Keyed percentage B. Swiped percentage C. Taxpayer ID number (TIN) D. Merchant ID number (MID) 14

15 Visa Fixed Acquirer Network Fee Examples 15

16 Which table(s) apply? MCC 5661 shoe store 1 location, 1 TIN $5,000 card present volume $1,000 card not present volume Example A 16

17 1 location with card present volume Table 1B Tier 1 Calculation: $2.00 per location Merchant statement for single location Visa Network Fee CP 1B-01 $2.00 MCC 5661 shoe store 1 location, 1 TIN $5, card present volume $ card not present volume $1, gross card not present volume Table 2 Tier 4 Calculation: $ location = $7.00 Merchant statement for single location Visa Network Fee CNP $7.00 Example A 17

18 Which table(s) apply? MCC 4121 limousine 2 locations, 1 TIN location 1, $4,000 card not present volume location 2, $3,000 card not present volume Example B 18

19 MCC 4121 limousine 2 locations, same TIN location 1, $4,000 card not present volume location 2, $3,000 card not present volume 2 locations with card not present volume $7, gross card not present Visa sales volume Table 2 Tier 5 Calculation: $ locations with card not present volume = $4.50 per location Location 1 and location 2 merchant statement Visa Network Fee CNP $4.50 Example B 19

20 Which table(s) apply? MCC 5542 Auto Fuel Disp 251 locations, 1 TIN Locations 1 through 250 process $805,000 total card present volume. Example C 20

21 250 locations with card present volume Table 1A Tier 12 Calculation: $25.00 per location Each merchant statement, locations 1 through 250 Visa Network Fee CP 1A-12 $25.00 MCC 5542 Automated Fuel Dispenser 251 locations, 1 TIN Locations 1 through 250 process $805,000 combined card present volume. Location 251 did not process, therefore had no volume and did not incur FANF Example C 21

22 Which table(s) apply? MCC 5812 restaurant 10 locations, 1 TIN locations 1-10, $90,000 total card present volume locations 9 and 10, $4,000 total card not present volume Example D 22

23 MCC 5812 restaurant 10 locations, 1 TIN locations 1 through 10 process $90,000 card present volume locations 9 and 10 process $4,000 card not present volume 10 locations with card present volume Table 1B Tier 6 Calculation: $2.90 per location Merchant statement, locations 1 through 10 Visa Network Fee CP 1B-06 $ locations with card not present volume $4, gross card not present volume Table 2 Tier 5 Calculation: $ locations with card not present volume = $4.50 per location Merchant statement, locations 9 and 10 Visa Network Fee CNP $4.50 Example D 23

24 Which table(s) apply? MCC 5814 fast food 23 locations, 1 TIN locations 1-23, $150,000 total swiped volume locations 1-5, $99.00 total keyed volume Example E 24

25 MCC 5814 fast food, $150, gross Visa sales volume Table 2 Tier 7 MCC 5814 fast food 23 locations, 1 TIN locations 1-23, $150,000 total swiped volume locations 1-5, $99.00 total keyed volume Calculation: $ processing locations = $1.96 per location Each merchant statement, location 1 through location 23 Visa Network Fee CNP $1.96 Example E 25

26 VISA Fixed Acquirer Network Fee (FANF)