The consultancy claims that the card scheme’s actions could cost small businesses in Europe more than EUR 2 billion a year. CMSPI is a team of expert analysts and consultants who advise merchants on how to optimize and reduce their payments arrangements.
In April 2018, Visa restructured the fees it levies for processing credit and debit card transactions, adding a new per-item charge. According to CMSPI, Visa’s Fixed Acquirer Network Fee program (FANF) will be increasing by as much as 87% for some “High Volume” merchants such as Quick Service Restaurants and Gas Stations. Visa’s FANF can represent as much as 0.15% of gross sales for some merchants.
This, says CMSPI, will hit merchants, such as fast food outlets and convenience stores, which have low average transaction values. Moreover, the company claims that some will see fees increase by over 100%.
In 2017, the card network inflated the percentage element of its fees, increasing costs for merchants with a high average transaction value. This move, together with the current fee increase, sets a worrying precedent in the wake of Visas 2017 acquisition of Visa Europe in 2017, signalling a move towards a US-style charging structure.
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