Acquirer Network Fee is a type of fee charged by the acquirer (the bank that processes credit and debit card transactions) to the merchant (the business that accepts card payments). The fee is a percentage of the transaction value and is typically around 1-3% for domestic transactions and 2-5% for international transactions.
There are two types of acquirer network fees: fixed and variable. Fixed acquirer network fees are a set percentage of the transaction value and are charged regardless of the card type used or the country of origin. Variable acquirer network fees, on the other hand, vary depending on the card type used and the country of origin. For example, a merchant may be charged 2.5% for Visa transactions and 3.5% for MasterCard transactions.
When shopping around for a payment processor, it's important to compare the total costs of accepting card payments, including both the acquirer network fee and the processor's own fees. To get the best deal, you may need to negotiate with your acquirer or processor, or switch to a different provider.
Here's a step-by-step guide to understanding and paying your acquirer network fee:
1. Check your last statement from your acquirer. The acquirer network fee will be itemized on your statement, along with other fees such as the processor's fee and the card-issuer's fee.
2. If you're not sure which acquirer you use, call your payment processor and ask. Your processor will be able to tell you which bank they use to process your card transactions.
3. Once you know who your acquirer is, call them and ask for a breakdown of the acquirer network fee. Ask them to explain how the fee is calculated and what factors (such as card type and country of origin) affect the amount you're charged.
4. Negotiate with your acquirer. If you're not happy with the fees you're being charged, try negotiating with your acquirer. You may be able to get a lower rate if you commit to processing a certain amount of transactions per month or year.
5. Switch acquirers. If you're unable to negotiate a lower rate with your current acquirer, you may want to switch to a different provider. Compare the fees charged by different acquirers and choose the one that offers the best deal.
6. Pay your acquirer network fee. Once you've negotiated a rate with your acquirer, make sure to pay the fee on time to avoid any late penalties.
Paying your acquirer network fee on time is important to keep your account in good standing and avoid any late penalties. If you have any questions about your fee or how it's calculated, be sure to contact your acquirer for more information.
