“Industry News” Posts

Visa Increasing Fixed Acquirer Network Fee (FANF) Rates

Visa Increasing Fixed Acquirer Network Fee (FANF) Rates

Visa imposed a monthly fee in July 2012 called the fixed acquirer network fee (FANF) to incentivize businesses to route transactions to Visa. This implementation was a direct result of the Durbin Amendment, and was intended to level the competitive landscape for Visa. The incentive was simple: the more transactions routed to Visa, the lower the cost per transaction. Overall, Visa's acquirer fees would be reduced in aggregate. Let’s go over how a FANF fee is assessed. How Visa Determines the Fixed Acquirer Network Fee Not every business will pay the same amount for the FANF fee, and calculating…

New Visa Transaction Integrity Fee in 2018

New Visa Transaction Integrity Fee in 2018

A new Visa transaction integrity fee will be charged starting April 14, 2018, on any credit transaction that does not meet the custom payment service (CPS) qualification standards. Visa, MasterCard, Discover and Amex update their Interchange guidelines biannually in April and October. This fee will be $0.10 per transaction. So, what are the CPS qualification standards, and how can you expect this fee to impact your monthly merchant statements? Visa Transaction Integrity Fee on Non-CPS Transactions As part of Visa’s Interchange guide, the CPS program allows certain low-risk transactions to qualify for a lower processing rate. To qualify,…

MasterCard Assessment Fee Set to Increase to 0.13%

MasterCard Assessment Fee Set to Increase to 0.13%

MasterCard announced that its assessment fee will increase to 0.13% effective April 8, 2018. The card brands update their Interchange guides biannually in October and April. This change will represent a 0.0025% increase from MasterCard’s October 2017 rate of 0.1275%, equating to an extra $0.13 in MasterCard assessment fees for every $5,000 processed per month. The MasterCard assessment fee increase will apply to all MasterCard debit transactions going forward, as well as for all consumer and commercial credit card purchases and cash advances totaling less than $1,000. So, what is an assessment fee…

MasterCard Revisits Rules Around Card Validation

MasterCard Revisits Rules Around Card Validation

All four card brands (Visa, MasterCard, Discover and Amex) provide written rules and regulations for processing their cards to ensure sound business for all. MasterCard recently changed its standards around determining card validity at checkout. MasterCard Processing Rules In its most recent transaction processing rules, which were published on June 1, 2017, MasterCard required businesses to take steps to validate the authenticity of a card at checkout. The steps are as follows: Check the valid date and the expiration date on the front of the card. If the card is expired or not yet valid, obtain an authorization from the…

MasterCard 2-Series Cards: What to Expect

MasterCard 2-Series Cards: What to Expect

MasterCard announced its expansion to 2-series bank identification numbers (BINs). For decades, MasterCards started with the number five. However, MasterCard plans to begin issuing cards starting with the number two in summer 2017. BINs Defined BINs are the first four to six digits of your credit card number. This unique set of numbers are used to identify the institutions that issue credit cards. Each brand has one or more of its own unique BIN series to correctly identify the bank the money is being transferred from. MasterCard 2-series cards will range from 222100 to 272099. BINs are integral for the…