By alphacardprocess February 7, 2022
Network Acquirer Processing Fee is a fee charged by the payment card brand to Visa and MasterCard when a customer uses a payment card issued outside Europe. For example, when you use an American Express-issued credit card in Europe to pay for something, then Network Acquirer Processing Fee will be applied. The fee varies from 1.9% to 5% of the purchase amount. This fee is then divided between Visa and MasterCard.
Network Acquirer Processing Fee is also known as Non-European Rate or Foreign Transaction Fee. Sometimes it’s called Currency Conversion Fee, though this name is misleading because Network Acquirer Processing Fee is charged even when there is no foreign currency conversion.
Network Acquirer Processing Fee is charged by Visa and MasterCard to their bank partners for processing transactions on the card scheme’s behalf. The fee does not go to merchants or shoppers, but it does affect them in that higher costs are passed on. This means Network Acquirer Processing Fee doesn’t have any direct impact on consumers.
Which payment cards are affected by Network Acquirer Processing Fee?
Network Acquirer Processing Fee applies to all payment card brands. It’s important to note that this fee doesn’t depend on what type of credit or debit card you use, where you use it (in Europe), the currency of the transaction, whether you make the payment online or offline, nor what kind of transaction you make (auth/capture). The fee is also charged even if the merchant doesn’t pass it on to their customers.
Network Acquirer Processing Fee is applied when a card issued outside Europe is used for making transactions in Europe because this way Visa and MasterCard’s bank partners are able to process these transactions on their behalf.
Network Acquirer Processing Fee is applied when the payment card brand (Visa, MasterCard, American Express or others) has an issuer bank in Europe and the transaction is made in this region. It does not matter which European country you are in.
For example: when you use an American Express-issued credit card in Europe to pay for something, then Network Acquirer Processing Fee will be applied. If you use an American Express-issued credit card in the USA to make a transaction, then no Network Acquirer Processing Fee is applied even though it’s also an international transaction.
Network Acquirer Processing Fee is also applied when the merchant’s bank calculates the transaction amount in a currency other than euro, but processes it in euro. This causes foreign currency conversion which triggers Network Acquirer Processing Fee.
How can I avoid paying Network Acquirer Processing Fee?
Network Acquirer Processing Fee is charged by Visa and MasterCard to their bank partners for processing transactions on the card scheme’s behalf. This fee doesn’t have any direct impact on consumers, so there are no specific ways of avoiding it. It is up to the merchant to cover Network Acquirer Processing Fee or pass it onto their customers making payments with cards that charge this fee.
It is important to note that you are not charged Network Acquirer Processing Fee when paying in the local currency.
It is important to note that if you pay in a foreign currency or use your credit card abroad, then you may be subject to additional fees and charges. If Network Acquirer Processing Fee applies, it will be stated on your receipt/invoice.
Where can I see Network Acquirer Processing Fee?
Network Acquirer Processing Fee is not printed on customer invoices or receipts by merchants, but it will be stated clearly in the terms and conditions of your credit card or other payment product. You can find this information by checking the issuer’s website, under fee & interest or others section. You can also read it in the product’s terms and conditions or ‘guide to fees & charges’.
For example, your online card statement will show Network Acquirer Processing Fee if you use your credit card outside Europe for transactions made in euro. This fee is deducted from the payment before it goes through. If you are shopping in Europe, this fee is not added to the total amount.
Can I get a refund if the Network Acquirer Processing Fee applies?
Network Acquirer Processing Fee does not affect you as a consumer directly. As it isn’t deducted from your payment or included in its value, it doesn’t have any impact on the end result. This means you cannot get a refund from your relevant card issuer.
In this instance the amount of Network Acquirer Processing Fee does not affect the final price as it is applied by Visa and MasterCard’s bank partners on their behalf, at the acquiring stage where goods or services are sold/purchased. The fee is then deducted from the total transaction before it goes through.