Fixed Acquirer Network Fee Reporting Guide

(Operating Certificate Schedule C - Section III)

This guide is designed to assist clients with submitting data for the Fixed Acquirer
Network Fee screen.

Updated: October 2, 2019

Summary of Changes:
 Updated document for PSP rule changes, tier and assessment changes, Unattended Terminal changes, Visa
Government and Education Payment Program changes (April 10, 2014)
 Updated Document to reflect Payment Facilitator name (formerly known as PSP or Payment Service
Provider) (April 10, 2014)
 Created two (2) sections for Operating Certificate (QOC) submissions: 1) prior to rule and rate changes and
2) after rule and rate changes (April 10, 2014)
 Updated Q&A (April 10, 2014)
 Updated Unattended Terminal fields (May 1, 2014)
 Updated Screen shots (May 29, 2014)
 Clarified location step on page 6 (September 1, 2019)
 Removed instructions related to periods on or before April 15, 2015 (October 2, 2019)
 Updated Charitable and Social Service Organizations Rebate criteria (October 2, 2019)
 Updated Charitable and Social Service Organizations Rebate Criteria to include Religious Organizations
(October 2, 2019)

Reporting Requirements ......................................................................................................... 2

Instructions and Definitions .................................................................................................... 5
High-volume MCCs .................................................................................................................14
Table 1a: High-volume MCC Merchants (Customer Present)...............................................15
Table 1b: All-other MCC Merchants (Customer Present) .....................................................16
Table 2: Customer Not Present, Unattended Terminals and Fast Food Restaurants
Volume .....................................................................................................................................17
Reporting Examples ...............................................................................................................18
Charitable and Social Service Organizations Rebate ...........................................................22
Selective Acceptance Pricing Adjustment ............................................................................24
File Upload Record Layout .....................................................................................................26
Fixed Acquirer Network Fee Reporting Guide Summary .....................................................27
Frequently Asked Questions..................................................................................................29

NOTICE OF CONFIDENTIALITY
This document is furnished to you solely in your capacity as a customer of Visa Inc. and member of the Visa payments system. By accepting this
document, you acknowledge that the information contained herein (the “Information”) is confidential and subject to the confidentiality
restrictions contained in Visa’s operating regulations, which limit your use of the Information. You agree to keep the Information confidential
and not to use the Information for any purpose other than in your capacity as a customer of Visa Inc. or as a member of the Visa payments
system. The Information may only be disseminated within your organization on a need-to-know basis to enable your participation in the Visa
payments system. Please be advised that the Information may constitute material nonpublic information under U.S. federal securities laws and
that purchasing or selling securities of Visa Inc. while being aware of material nonpublic information would constitute a violation of applicable
U.S. federal securities laws.

Visa_Confidential 1
Reporting Requirements
Overview

The U.S. Fixed Acquirer Network Fee is a monthly fixed fee that is assessed per merchant Taxpayer ID, based on the
number of merchant locations, Merchant Category Code (MCC), and monthly Total Gross Merchant Sales Volume
(as defined in Schedule C as originating from Visa Credit, Visa Debit, and Visa Prepaid cards, hereafter referred to as
“Sales Volume”) associated with each Taxpayer ID. This guide provides detailed instructions on how this data will
need to be reported to ensure accurate fee assessment for each acquirer.

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Reporting Requirements

Each acquirer will report three tables for its portfolio with all data fields broken out by month, as shown below. For
the purposes of the Fixed Acquirer Network Fee, a merchant entity will be defined by its Taxpayer ID(s).

Tables 1a and 1b are for reporting merchants with Customer Present Sales Volume, defined as originating from
transactions that do not have an ECI/MOTO indicator of 1-9 or from transactions that do not have a Cardholder ID
Method value of 3. Every merchant Taxpayer ID with Customer Present Sales Volume must be accounted for in
either Table 1a or Table 1b, depending on the merchant’s MCC classification.

Table 2 is for reporting merchants with Customer Not Present Sales Volume, defined as originating from transactions
that have an ECI/MOTO indicator of 1-9, as well as volume from transactions with a Cardholder ID Method value of 3,
and merchants primarily operating as Fast Food Restaurants (≥ 50.00% of monthly Customer Present Sales Volume
associated with MCC 5814).

Consistent with current practice, each sponsoring institution is required to report figures representing the totals across
all of their sponsored acquirers for each data field.

Each acquirer will be responsible for reporting merchant data across the following three tables:

Table 1a: High-volume MCC Merchants

(Customer Present)

 Acquirers should report merchants in Table 1a for cases where ≥ 50.00% of monthly Customer Present
Sales Volume is associated with the enumerated High-volume MCCs (see page 31)

Table 1b: All-other MCC Merchants

(Customer Present)

 Acquirers should report merchants in Table 1b for cases where < 50.00% of monthly Customer Present
Sales Volume is associated with the enumerated High-volume MCCs (see page 31)

Table 2: Customer Not Present, Unattended Terminals, and Fast Food Restaurants Volume

 Acquirers should report merchants in Table 2 to cover all monthly Sales Volume for all transactions with an
ECI/MOTO indicator of 1-9, Cardholder ID Method value of 3, and merchants with ≥ 50.00% of Customer
Present Sales Volume associated with MCC 5814 (further detail on page 23)

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Field Descriptions - Required to Report
Field Description Type Length Required
Taxpayer ID Total number of Taxpayer IDs for a specified tier; Numeric 7 Required
Count include all merchants that had a Visa purchase
transaction (excludes returns, credit vouchers and
other credits) within the applicable month
Total Total number of locations for a specified tier within Numeric 7 Required
Locations the applicable month
Sales Total Gross Merchant Sales Volume across Visa Numeric 11 Required
Volume Credit, Visa Debit, and Visa Prepaid cards (“Sales
Volume”) for a specified tier

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Instructions and Definitions
Tables 1a and 1b - Customer Present

1. Determine all of the merchant Taxpayer IDs associated with Customer Present Sales Volume for Month 1,
the first month in question. Customer Present Sales Volume is defined as originating from a transaction that
does not have an ECI/MOTO indicator of 1-9 or does not have a Cardholder ID Method value of 3. The
Taxpayer IDs for all merchants with Customer Present Sales Volume must be accounted for across Tables
1a and 1b, except for merchants with ≥ 50.00% of Customer Present Sales Volume originating from MCC
5814, as detailed in the exceptions table below. Include all merchant Taxpayer IDs that had a Visa purchase
transaction processed in Month 1.

Due to the way Tables 1a and 1b have been defined, for a given month, any given Taxpayer ID can be
present in either Table 1a or Table 1b, but not both.

2. Determine the number of locations associated with each Taxpayer ID as of the last day of the month in
question. If a merchant Taxpayer ID left an acquirer’s portfolio mid-month, the number of locations for this
Taxpayer ID should be counted as of the last Visa purchase transaction date. A location is defined as a
physical point at which a sales transaction can occur and that has a unique address, city, state, and zip
code. Acquirers and Processors should not only consider Merchant IDs when calculating location counts.

The following types of merchants on the next page represent exceptions for which the number of locations
associated with each Taxpayer ID is to be determined as described here:

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 Primary
Merchant Type Instructions
MCC(s)
Unattended Terminals Various,  If transaction is a valid Unattended Terminal
excluding transaction (Acceptance Terminal Indicator value of 3
5542 in BASE II TC05, TCR1, position 124 or Terminal
Type value of 3 in SMS F60.1, position 1), transaction
volume should be accounted in Table 2
 If transaction is not a valid Unattended Terminal
transaction, if applicable, treat according to exception
below or count each terminal as 1 location
 Do not count self-checkout as an Unattended
Terminal if there is an attended checkout stand at the
same location to purchase the items
Visa Government and Various  Registered Program participants should report the
Education Payment original payment at the taxpayer ID level under Table
Program 1A, 1B or 2, as appropriate. The service fee
transactions at the provider level should be reported
in aggregate under Table 2 based on the taxpayer ID
of the merchant of record for the service fee.
However, if the Visa Government and Education
Payment Program merchant and provider are the
same (taxpayer ID and merchant of record name),
both the original payment and service fee
transactions should be reported at the taxpayer ID
level under Table 1A, 1B or 2, as appropriate. For
further information about the Visa Government and
Education Payment Program, please refer to the
Government and Education Payment Program Guide,
Version 1.0
Airlines 3000-3299,  If not eligible for Unattended Terminal treatment,
4511 count each airport that has a ticket counter and/or
payment-accepting kiosk for the airline as 1 location
 Count each ticket outlet located outside of airports as
1 location
 For airlines that sell in-flight services, count the in-
flight services as 1 location for the airline, regardless
of the total count of airplanes offering in-flight services
Cruise Lines 4411  Count each vessel as 1 location
Bus, Railway, and Other Various,  If not eligible for Unattended Terminal treatment,
Public Transportation including count each station that has one or more ticket
Operators 4011, 4111, counters or machines as 1 location
4112, 4131  Count each ticket outlet located outside of a station
as 1 location
Fast Food Restaurants 5814  Treat merchants with ≥ 50.00% of Customer Present
Sales Volume in MCC 5814 solely as Table 2
merchants and report monthly Sales Volume
 For merchants with < 50.00% of Customer Present
Sales Volume in MCC 5814, count each outlet as 1
location and capture in either Table 1a or 1b (based
on primary MCC calculation)
Parking Garages / Lots / 7523  If not eligible for Unattended Terminal treatment,
Meters count each garage / lot as 1 location
 If not eligible for Unattended Terminal treatment, for
parking meters, count each city of operation as 1
location
Utility Companies / Bill 4899, 4900  For utility companies or bill-pay with physical
Pay locations where payment is accepted, count each
branded location as 1 location

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 3. For each Taxpayer ID, determine the sum of the Sales Volume from all of its Month 1 transactions coded
with any of the MCCs listed in the High-volume MCC list (page 12).

a) If this amount is greater than or equal to 50.00% of the sum of all Customer Present Sales Volume
associated with that Taxpayer ID for the given month, the Taxpayer ID should contribute to the
Taxpayer ID Count for the tier in Table 1a based on the number of locations associated with that
Taxpayer ID.

b) If this amount is less than 50.00% of the sum of all Customer Present Sales Volume associated
with that Taxpayer ID for the given month, the Taxpayer ID should contribute to the Taxpayer ID
Count for the tier in Table 1b based on the number of locations associated with that Taxpayer ID.

c) If a Taxpayer ID in Table 1a or Table 1b has less than $200 in Sales volume for a particular month,
you should report the Taxpayer ID, location count, and volume in Tier 19 for that month for that
Taxpayer ID in Table 1a or Table 1b, as appropriate.

d) If a Taxpayer ID in Table 1a or Table 1b has between $200 and $1,250 in Sales volume for a
particular month, you should report the Taxpayer ID, location count, and volume in Tier 20 for that
month for that Taxpayer ID in Table 1a or Table 1b, as appropriate.

4. Assign each Taxpayer ID to either Table 1a or 1b as instructed above. Due to the way Tables 1a and 1b
have been defined, any given Taxpayer ID can be present in either Table 1a or Table 1b, but not both.
Depending on the transaction data for a Taxpayer ID, a Taxpayer ID may be assigned to a different table
and/or different tier across different months.

5. Include each merchant for which Taxpayer ID is not currently available in the Taxpayer ID Count for the tier
representing the number of locations associated with the merchant entity billed.

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 6. In the field labeled “Taxpayer ID Count,” enter the total number of Taxpayer IDs for each tier in Tables 1a
and 1b based on the number of locations associated with each Taxpayer ID.

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 7. In the field labeled “Total Locations,” enter the total locations for all of the Taxpayer IDs reported for each
tier for the applicable month.

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 8. In the field labeled “Sales Volume,” enter the total Customer Present Sales Volume for all of the Taxpayer
IDs reported for each tier for the applicable month.

The Total Sales Volume reported across all three tables must reconcile to the Total Gross Merchant Sales
Volume reported on line 5 of Schedule C - Section I of the Operating Certificate.

9. Repeat Steps 1-8 above for Month 2 and Month 3.

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Instructions and Definitions
Table 2 - Customer Not Present, Unattended Terminals and Fast Food Restaurants
Volume
1. Determine all of the merchant Taxpayer IDs associated with Customer Not Present Sales Volume for Month
1, the first month in question. Customer Not Present Sales Volume is defined as originating from a
transaction that has an ECI/MOTO indicator of 1-9. Next, determine all of the merchant Taxpayer IDs with a
Cardholder ID Value of 3, and merchants with ≥ 50.00% of Customer Present Sales Volume in MCC 5814.
The Taxpayer IDs for all merchants with Customer Not Present Sales Volume, merchants with volume
having a Cardholder ID Value of 3, and merchants primarily operating in MCC 5814 must be accounted for
in Table 2. Include all merchant Taxpayer IDs that had a Visa purchase transaction processed in Month 1.

2. For each Taxpayer ID, determine the sum of Sales Volume from all of its Month 1 transactions qualifying for
Table 2 classification as described above.

3. Assign each Taxpayer ID to the appropriate tier in Table 2 based on the monthly Table 2 Sales Volume.
Depending on the transaction data for a Taxpayer ID, the Taxpayer ID may be assigned to a different tier
within Table 2 across different months.

4. Include each merchant for which Taxpayer ID is not currently available in the Taxpayer ID Count for the tier
representing the monthly Table 2 Sales Volume associated with the merchant entity billed.

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 5. In the field labeled “Taxpayer ID Count,” enter the total number of Taxpayer IDs for each tier in Table 2.

Due to the way Tables 1a, 1b, and 2 have been defined, for a given month, any given Taxpayer ID may be
present in either:
 Table 1a and Table 2; or
 Table 1b and Table 2; or
 Table 1a only; or
 Table 1b only; or
 Table 2 only.

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 6. In the field labeled “Sales Volume,” enter the Table 2 Sales Volume for all of the Taxpayer IDs reported for
each tier for the applicable month.

The Total Sales Volume reported across all three tables must reconcile to the Total Gross Merchant Sales
Volume reported on line 5 of Schedule C - Section I of the Operating Certificate.

7. Repeat Steps 1-6 above for Month 2 and Month 3.

Visa_Confidential 13
High-volume MCCs

For the purposes of the Fixed Acquirer Network Fee, merchants with ≥ 50.00% of monthly Customer Present Sales
Volume in the following MCCs are defined as High-volume merchants:

MCC(s) Description
3000-3299, 4511 Airlines
3300-3499, 7512 Auto Rental
3500-3999, 7011 Lodging
4411 Steamship / Cruise Lines
4829 Wire Transfer Money Order
5200 Home Supply Warehouse Stores
5300 Wholesale Clubs
5309 Duty Free Stores
5310 Discount Stores
5311 Department Stores
5411 Grocery Stores and Supermarkets
5511 Car and Truck Dealers / New / Used
5532 Automotive Tire Stores
5541 Service Stations (With or Without Ancillary Services)
5542 Automated Fuel Dispensers
5651 Family Clothing Stores
5655 Sports / Riding Apparel Stores
5712 Furniture / Equipment Stores
5732 Electronic Stores
5912 Drugstores and Pharmacies
5943 Stationery Stores
7012 Timeshares
7832 Motion Picture Theatres

Visa_Confidential 14
Table 1a: High-volume MCC Merchants (Customer Present)

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Table 1b: All-other MCC Merchants (Customer Present)

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Table 2: Customer Not Present, Unattended Terminals and Fast Food Restaurants
Volume

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Reporting Examples
Scenario 1 - Merchant with Customer Present Business Across Multiple MCCs

In this scenario, the merchant has 2 Taxpayer IDs, one of which has less than $1,250 of monthly Sales Volume. The
Customer Present Sales Volume includes both High-volume MCCs and non-High-volume MCCs in Month 1. The
merchant has three locations in total; one location (Chicago) represents Sales Volume from two different MCCs.

Scenario 1 - Acquirer System Data (line-item detail not submitted to Visa)

Acquirer Location Customer Customer Not
Taxpayer Merchant ID / Store Present Sales Present Sales
Month ID ID Number Address City State Zip MCC Volume Volume
01 111111111 09 3 123 Main St. Belmont CA 94002 5423 1,200 0
01 999999999 10 1 241 8th St. Chicago IL 60606 5310 10,000 0
01 999999999 11 1 241 8th St. Chicago IL 60606 5423 2,000 0
01 999999999 12 2 4492 Main St. Phoenix AZ 85044 5411 1,000 0
5310 and 5411 are High-volume MCCs; 5423 is not.

The 11111111 Taxpayer ID will be reported in tier 20. The 999999999 Taxpayer ID and all of its Customer Present
Sales Volume should be accounted for in Table 1a for Month 1 since 84.6% (i.e., ≥ 50.00%) of its Customer Present
Sales Volume for that month is associated with High-volume MCCs. The 999999999 Taxpayer ID is counted in Table
1a only, as a Taxpayer ID cannot be reported simultaneously in both Tables 1a and 1b in the same month. The
999999999 Taxpayer ID has no Customer Not Present Sales Volume and is thus not reported in Table 2.

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Visa_Confidential 19
Reporting Examples
Scenario 2 - Merchant with Customer Present and Customer Not Present Business

In this scenario, the merchant Taxpayer ID has Customer Present Sales Volume coded by an MCC not identified as a
High-volume MCC and Customer Not Present Sales Volume in Month 1. The merchant has one location.

Scenario 2 - Acquirer System Data (line-item detail not submitted to Visa)

Customer
Customer Not
Acquirer Location Present Present
Taxpayer Merchant ID / Store Sales Sales
Month ID ID Number Address City State Zip MCC Volume Volume
01 999999999 10 1 241 8th St. Chicago IL 60606 5423 6,000 100
5423 is not a High-volume MCC.

This Taxpayer ID and all of its Customer Present Sales Volume should be reported in Table 1b for Month 1 since
none (i.e., < 50.00%) of its Customer Present Sales Volume for that month is associated with High-volume MCCs. All
Customer Not Present Sales Volume for this the Taxpayer ID should be reported in Table 2. Therefore, the Taxpayer
ID is counted twice, once in Table 1b and once in Table 2. A Taxpayer ID cannot be reported simultaneously in both
Tables 1a and 1b in the same month. Although the Taxpayer ID information is reported in Table 2, the assessment
will be at a $0 rate.

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Visa_Confidential 21
Charitable and Social Service Organizations Rebate
Overview

Visa will effectively waive the full Fixed Acquirer Network Fee for members to the extent that they acquire for eligible
Charitable and Social Service Organizations (MCC 8398).

Effective Central Processing Date (CPD) 13 October 2018, Visa has expanded the Fixed Acquirer Network Fee
(FANF) charitable and social service organizations rebate to tax exempt qualified Religious Organizations (MCC
8661).

The waiver for Charitable and Social Service Organizations and Religious Organizations will be provided to acquirers
through a quarterly rebate process separate from the Operating Certificate process and will therefore not require any
changes to the FANF reporting requirements detailed in this document. Members will continue to report FANF data
representing their entire merchant portfolio.

Visa_Confidential 22
Charitable and Social Service Organizations Rebate
Eligibility Criteria

Members that acquire for Charitable and Social Service Organizations and Religious Organizations may request a full
rebate of the Fixed Acquirer Network Fee by submitting the Charitable and Social Service Organizations Rebate
Schedule, accessible on Visa Online. Members requesting this rebate must complete all fields in this form for each
eligible merchant.

To be eligible for the Charitable and Social Service Organizations rebate, a merchant must meet all eligibility criteria
as follows:

Eligibility Criteria for Charitable and Social Service Organizations and Religious Organizations Rebate
(merchant must meet all eligibility criteria):
 Classification as a 501(c)(3) organization per the criteria established by the IRS
 ≥ 50.00% of Visa-branded volume in MCC 8398 and/or MCC 8661 for the month in question
 Compliance with the definition of Charitable and Social Service Organizations (MCC 8398) and Religious
Organizations (MCC 8661), per the Visa Merchant Data Standards Manual (accessible to all members via
Visa Online):
“Merchants classified under MCC 8398 are non-political fund-raising organizations (organizations
engaged in soliciting contributions) and social service organizations engaged in social welfare services.
This MCC includes advocacy groups, community organizations, and health agencies.”
“Merchants classified under MCC 8661 are religious organizations providing worship services, religious
training or study, or religious activities.”

A merchant determined to also meet any single exclusion criterion will not be considered eligible for the rebate. The
exclusion criteria are as follows:

Exclusion Criteria for Charitable and Social Service Organizations Rebate:

 The following MCCs are mutually exclusive with MCC 8398, and merchant types with activity in line with the
definitions of these MCCs per the Visa Merchant Data Standards Manual will be determined ineligible for the
rebate:
 Civic, Social, and Fraternal Organizations (MCC 8641)
 Political Organizations (MCC 8651)
 Automobile Organizations (MCC 8675)
 Membership Organizations (MCC 8699)

When a Taxpayer ID is eligible for the Charitable Organization Rebate, all sales volume and locations should be
submitted for rebate for the associated Taxpayer ID. Conversely, when a Taxpayer ID is not eligible for the rebate,
then no sales volume and locations should be submitted for rebate. The Charitable Organization Rebate should be
reported in the same period as the submitted FANF QOC.

Acquirers should verify their merchants’ tax-exempt status before requesting the Charitable and Social service
Organizations Rebate. Upon request, acquirers must provide to Visa each merchant’s qualified tax ID (or other
evidence of tax-exempt status under section 501(c)(3)) for Visa to perform compliance.

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Selective Acceptance Pricing Adjustment
Overview

Visa will offer a pricing adjustment of the Fixed Acquirer Network Fee for members to the extent that they acquire for
merchants with Selective Acceptance of Visa products.

The pricing adjustment for Selective Acceptance merchants will be provided to acquirers through a quarterly process
separate from the Operating Certificate process and will therefore not require any changes to the FANF reporting
requirements detailed in this document. Members will continue to report FANF data representing their entire
merchant portfolio.

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Selective Acceptance Pricing Adjustment
Eligibility Criteria

Members that acquire for merchants with Selective Acceptance may request a pricing adjustment of the Fixed
Acquirer Network Fee by submitting the Selective Acceptance Pricing Schedule, accessible on Visa Online. Members
requesting this rebate must complete all fields in this form for each eligible merchant.

To be eligible for the Selective Acceptance pricing adjustment, a merchant must be registered with Visa as a
Selective Acceptance merchant. The Selective Acceptance Merchant Registration Form is accessible to members on
Visa Online.

In accordance with the June 2003 merchant-litigation settlement agreement and the Visa Operating Regulations,
Selective Acceptance is defined as limiting Visa acceptance to one product category, either credit / business products
or consumer debit, defined as follows:

Debit Credit and Business

Consumer Visa Check Cards: Consumer Credit Products (including co-branded and
 Classic (including affinity/co-brand) smart Visa versions)
 Gold (including affinity/co-brand)  Classic
 Platinum (including affinity/co-brand)  Gold
 Visa Check Card II  Platinum
 Signature
 Infinite

Consumer Prepaid/EBT Cards: Commercial Products

 Visa Buxx  Small Business Products
 Visa Payroll o Business Credit
 Visa Gift cards (including incentives, o Business Debit
promotional, rebate) o Business Line of Credit
 Child support cards o smart Visa Business
 Unemployment cards  Purchasing card
 Insurance claim cards  Corporate card
 Customer service cards (e.g., airline  Fleet card
courtesy comp cards for cancelled flights)  Commercial prepaid
 State disbursement cards (other than
unemployment or child support, e.g., state
disability insurance cards)
 Flexible spending account cards (e.g.,
Medical Savings Account)
 Everyday/general purpose reloadable and
one time use prepaid (including stored
value) cards
 Student aid college cards

Visa_Confidential 25
File Upload Record Layout

Acquirers opting to use the Visa Online upload function must use the Visa Online Record Layout that is accessible on
Visa Online.

Visa_Confidential 26
Fixed Acquirer Network Fee Reporting Guide Summary
Step Volume Guidance
1 Merchant Each Payment Facilitator
Aggregator / must be registered with
Payment Visa.
Facilitator
(formerly
known as
PSP, or
Payment
Service
Provider)
2 Customer Gross Merchant Sales
Present Volume originating from a
Volume transaction that does not
(“CPV”) have an ECI / MOTO
indicator of 1-9.
Do not deduct Reversals,
Returns or Credit
Vouchers from Gross
Merchant Sales Volume.
CPV can only be reported
in a single table for the
given month.
CPV cannot be split
between multiple tables
for a given month.
3 Customer Gross Merchant Sales
Not Present Volume originating from a
Volume transaction that has an
(“CNPV”) ECI / MOTO indicator of 1-
9. Effective April 1, 2015,
also include Unattended
Terminals as defined
previously in the guide
Visa_Confidential
FANF QOC Reporting Rules
All individual Taxpayer IDs, regardless of the Gross Merchant
Sales Volume, should be reported based on the rules defined for
CPV and CNPV (below).
Steps for determining where to report ALL Customer Present
Volume:
Quick Service For each Taxpayer ID and each given month:
Restaurant or
QSR 1. Identify total CPV
2. Identify QSR volume
(MCC 5814) 3. Divide the QSR volume by total CPV (i.e.
QSR / CPV) to calculate the QSR %
4. Determine the applicable table:
a. If QSR volume is ≥ 50.00%, ALL CPV is
reported in Table 2
b. If QSR volume is < 50.00%, review the
High Volume MCC rules below.
High Volume For each Taxpayer ID and each given month:
MCC
1. Identify total CPV
(see Guidance 2. Identify CPV from High Volume MCCs
for list of High 3. Divide the High Volume MCC volume by
Volume MCC total CPV (i.e. High Volume / CPV) to
codes) calculate the High Volume %
4. Determine the applicable table:
a. If High Volume MCC volume is ≥
50.00%, ALL CPV is reported in Table
1A
b. If High Volume MCC volume is <
50.00%, ALL CPV is reported in Table
1B.
Other Volume If < 50.00% of the Taxpayer ID’s CPV for a given
month is QSR or High Volume MCC, report ALL
(non-QSR and CPV in Table 1B.
non-High
Volume MCC) If ≥ 50.00% of the Taxpayer ID’s CPV for a given
month is QSR or High Volume MCC, refer to the
rules above.
Report ALL CNPV for all Taxpayer IDs in Table 2.
CNPV should never be reported in Table 1A or 1B.
If a Taxpayer ID has CPV and CNPV in a given month, report the
CNPV in Table 2 and the CPV in accordance with the rules above.
27
4 Cardholder Gross Merchant Sales Report ALL CDS volume in Table 1B in Tier 1 with one (1)
Direct Sales Volume generated by Taxpayer ID and Merchant Location to represent the Member.
(“CDS”) CDS (including insurance
and debt cancellation)
through paper or
electronic statement
mailers.

Visa_Confidential 28
Frequently Asked Questions
Q: How is Visa defining a location?
A: A location is defined as a physical point at which a sales transaction can occur and that has a unique address, city,
state, and zip code. The Acquirer or Processor should not only consider Merchant IDs when calculating location
counts.

Q: How is Visa defining Customer Present versus Customer Not Present?

A: A Customer Not Present transaction is defined as having an ECI/MOTO indicator of 1-9. Merchants with ≥ 50.00%
of Customer Present Sales Volume associated with MCC 5814 are also included in Table 2. All other transactions are
defined as Customer Present. Unattended Terminals, as defined in the exception table, will be included in Table 2
and will not be included in the Customer Present tables (1a and 1b).

Q: Should Interlink volume be included?

A: No, at present, the Fixed Acquirer Network Fee will be applied to merchants accepting any Visa-branded product
and will not be applied on individually Interlink volume.

Q: Should account funding transactions (AFTs) volume be included?

A: For the purposes of the Fixed Acquirer Network Fee, AFTs should not be reported in the FANF QOC.

Q: Should sales volume for products sold directly to customers through their card statement be reported in
the FANF QOC?
A: Yes, Per the Visa’ Business Newsletter (“VBN”) dated August 12, 2010, Members are required to report to Visa
any sales volume generated by the direct sales of insurance and merchandise through statement mailers sent to
cardholders (known as “Cardholder Direct Sales”). This Sales Volume should be reported in Table 1B, Tier 1.

Q: Should PIN Authenticated Visa Debit (“PAVD”) sales volume be reported in the FANF QOC?
A: PIN Authenticated Visa Debit transactions originating from Acquirer Network 3 (Interlink) should not be included in
the FANF QOC, while transactions originating from Acquirer Network 2 (VisaNet) should be included in the FANF
QOC. Reportable PAVD for the FANF QOC can be identified where the Reimbursement Attribute (RA) Field 63.11 =
8 (eight)

Q: How is Visa treating cases where a merchant has multiple Taxpayer IDs?
A: The Fixed Acquirer Network Fee is assessed and will be audited on a Taxpayer ID basis. The Fixed Acquirer
Network Fee will be assessed to acquirers based on the number of Taxpayer IDs and locations and/or Sales Volume,
associated with the merchants in the acquirer’s portfolio.

Q: How is Visa treating merchants with multiple acquirers?

A: Each acquirer is responsible only for the merchant locations and volume that it covers in its portfolio, regardless of
the total number of locations and volume that a given merchant may have across multiple acquirers.

Q: How is Visa treating merchant aggregators?

A: Payment Facilitators will need to individually report Taxpayer IDs in Table 1a, Table 1b, and/or Table 2, as
appropriate.

Q: How is Visa treating the Fast Food Restaurants segment?

A: For purposes of the Fixed Acquirer Network Fee, Visa is treating merchant Taxpayer IDs with ≥ 50.00% of
Customer Present Sales Volume associated with MCC 5814 as Table 2 merchants. Therefore, merchants with
volume primarily associated with MCC 5814 are to be assessed the Fixed Acquirer Network Fee based on the Table
2 fee schedule only. A merchant Taxpayer ID with < 50.00% of Customer Present Sales Volume associated with
MCC 5814 is to be reported in Table 1a or 1b (and 2, if that Taxpayer ID has any Customer Not Present Sales
Volume), as appropriate.

Q: How is Visa treating franchising merchant enterprises?

A: The Fixed Acquirer Network Fee will be assessed to each Taxpayer ID across both company-owned and
franchisee-operated locations. All Taxpayer IDs should be known for Franchise owners to correctly calculate
associated Taxpayer ID counts and locations.

Q: How is Visa treating seasonal merchants?

A: Acquirers are required to report Taxpayer IDs for all merchants that had a Visa purchase transaction within the
applicable month.

Q: What if a merchant was added to or left an acquirer’s portfolio mid-month?

A: Acquirers are required to report Taxpayer IDs for all merchants that had a Visa purchase transaction within the
applicable month. The Fixed Acquirer Network Fee is a fixed fee that will be assessed to the acquirer for all of the

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Taxpayer IDs reported for each month, regardless of whether some Taxpayer IDs were not present in the acquirer’s
portfolio for the entire month. For a merchant Taxpayer ID that left an acquirer’s portfolio mid-month, the number of
locations for this Taxpayer ID should be counted as of the last Visa purchase transaction date.

Q: What if a merchant has “trailing activity” (e.g., a chargeback or exception item) in a month after it left an
acquirer’s portfolio?
A: The Fixed Acquirer Network Fee is only assessed for merchants with Visa purchase transactions in a given month.
Therefore, the acquirer does not need to report a merchant that only had non-purchase transactions “trailing activity.”

Q: How should acquirers treat merchants for which Taxpayer ID data is not currently available?
A: The data submitted by an acquirer for the Fixed Acquirer Network Fee must represent the entirety of its merchant
portfolio. As such, acquirers are required to include each merchant without a Taxpayer ID in the Taxpayer ID Count
for the appropriate tier based on number of locations (Table 1a or 1b) and/or the appropriate tier based on Sales
Volume (Table 2).

Q: Is the tier structure in each table subject to change in the future?

A: Yes. When implementing system changes to account for the Fixed Acquirer Network Fee, acquirers should build in
flexibility around tier structure (e.g., number of tiers, tier thresholds).

Q: Will Visa audit the Fixed Acquirer Network Fee data submitted by acquirers through the Operating
Certificates?
A: Yes, per Visa USA By-laws Section 3.06 Records, Visa has the right to audit and examine the books and records
of any member to verify information submitted through the Operating Certificates.

Contact QOCUSA@visa.com for any further questions.

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