Well, boys and girls, it looks like the Durbin Amendment has caused Visa to strike back after losing considerable amounts of money. As of April 1, 2012, Visa began charging a Fixed Acquirer Network Fee (FANF). The FANF is a monthly fee that will affect all merchants to a varying degree.
The good news (or I should say "the less-bad" news) is that if you own a retail, or any other card-present business, you won't be too negatively affected by the FANF. This is because Visa will only charge a flat fee of around $2.50/month depending on how many locations your business has.
The really bad news is for card-not-present businesses (such as e-commerce businesses) because Visa will charge a monthly fee that increases as the monthly credit card volume increases. The fee structure looks like this: If your business processes:
$4000 - $8000/month, you will be charged $9/month fee
$8001 - $40,000/month, $15/month fee
$40,001 - $200,000/month, $45/month fee
$200,001 - $800,000/month, $120/month fee
$800,001 +, who cares, your business is doing fine so this won't sink you. (I actually don't have the exact figure)
So, what can innocent business owners do now that Visa is getting greedy and trying to take your hard-earned cash??? Not too much as of right now. Fortunately, however, there is strong talk that FANF is being fiercely contested by different government bodies and will possibly be eliminated after only a few months. Personally, I believe this will be the case, and Visa will have disengage with their tail between their legs.
We'll keep you posted as we learn more about FANF and other top stories in our industry. If you have questions on FANF, or anything else, you can always call us at 800-986-9306.
- Cameron Koether, CEO