The Risk
What You Need To know About:Fixed Acquirer Network Fee?
Submitted by markharries » Wed 28-Sep-2022, 16:01Subject Area: GeneralKeywords: Fixed Acquirer Network Fee | 0 member ratings |
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Acquirer Network Fee is a small, fixed fee charged by the card issuer to the merchant for each card transaction processed through the acquirer's network. The fee is generally passed on to the merchant by the acquirer in the form of a higher merchant discount rate.
The Interchange Reimbursement Fee (IRF) is a fee paid by the merchant's acquirer to the card issuer for each card transaction. The IRF covers the cost of processing the transaction, including but not limited to: authorization, clearing and settlement, risk management, and fraud prevention.
The Acquirer Network Fee is separate from the Interchange Reimbursement Fee, and is not always included in the merchant discount rate charged by the acquirer. When present, it is typically a flat fee per transaction, and is paid by the merchant to the acquirer.
The following table shows the major card networks and their respective Acquirer Network Fees:
Credit Card Network Acquirer Network Fee American Express 0.15% Discover 0.11% MasterCard 0.08% Visa 0.10%
As you can see, the fixed Acquirer Network Fee is a relatively small fee compared to the Interchange Reimbursement Fee. However, it can still add up, especially for merchants with a high volume of card transactions.
If you are a merchant who accepts credit cards, it's important to be aware of the fees you are paying. Be sure to ask your acquirer about the Acquirer Network Fee, and whether or not it is included in your merchant discount rate.
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