Visa will soon begin charging a Fixed Acquirer Network Fee, one of three key changes to the payment network’s merchant fee structure.
“Debit regulation has altered the competitive landscape,” Visa contended in an official statement issued this week. The new fee structure has its sights on “lowering the cost of Visa acceptance, while allowing continued investments” in the network’s development.
As for lowering acceptance costs, Visa says it will reduce its variable processing fees, and expand incentive programs for acquirers and merchants. Then, the new Fixed Acquirer Network Fee — assessed to acquirers based on both the merchant’s size and its number of locations — will help with the “continued investment” side of the equation.
“Ultimately these changes should provide merchants and acquirers with financial incentive to route transactions to Visa,” the network says. “The more transactions they route, the lower the cost per transaction.”
The changes will be applied across the Visa network in April, and are expected to reduce acquirer fees “in the aggregate,” the company says.