Non-Transactional Scheme Fee

Non-transactional scheme fees, which are not linked to individual transactions, are billed periodically, typically one to two months after the associated activity, and appear on your monthly invoice with a built-in delay. Non-transactional fees are only applicable for merchants on IC++ pricing.

When does Chargebee Embedded Payments charge Non-transactional scheme fees?

Non-transactional scheme fees are calculated based on a full month of data. The data is available in the month following the processing of the transactions. Therefore, the Non-transactional Scheme Fees will appear with a billing delay on your invoice. In most cases, the billing delay is one month; however, for some fees, it is two months.

Fee Types Included in the Non-Transactional Scheme Fee Service

Non-transactional scheme fees are calculated based on transaction history, volume, or scheme reports, rather than per-transaction events.

Visa Fixed Acquirer Network Fee (FANF)

The Visa Fixed Acquirer Network Fee (FANF) is a monthly charge that applies to all merchants accepting Visa cards. The fee amount depends on:

• The number of merchant locations
• Merchant Category Code (MCC)
• Total monthly sales volume

Mastercard Merchant Location Fee (Mastercard MLF)

The Mastercard Merchant Location Fee (MLF) applies to companies operating in the United States. It is billed monthly based on the number of active merchant locations.

Visa System Integrity Fee

The Visa System Integrity Fee is a charge imposed by Visa to help prevent fraud and improve the quality of transaction processing. It applies when a business repeatedly attempts transactions that are likely to be declined. This fee encourages merchants and payment processors to follow best practices when handling declines, thereby reducing unnecessary strain on the payment network.

Mastercard TPE Excessive Authorizations Fee

The Mastercard Transaction Processing Excellence (TPE) Excessive Authorizations Fee is a monthly charge for excessive account testing of a single Payment Account Number (PAN) on the same Merchant ID (MID) within a 24-hour period and within a 30-day window.

Mastercard TPE Merchant Advice Code

The Merchant Advice Code Transaction Processing Excellence program is a monthly fee designed to reduce unnecessary authorization declines.

Mastercard 3D Secure Fee

Mastercard charges a fee for every 3D Secure Authentication request. Currently, this fee is only Non-Transactional for Europe and Great Britain; 3D Secure fees in other regions are still passed on at a transactional level. 

Visa 3D Secure Fee

Visa charges a fee for every 3D Secure Authentication request. Currently, this fee is only Non-Transactional for Europe and Great Britain; 3D Secure fees in other regions are still passed on at a transactional level. 

Visa Token Service Fee (VTS)

Visa charges a fee for each instance where Visa Token Service (VTS) is used to facilitate and/or verify an authentication. All tokenized transactions that result in merchant fraud liability protection ('ECI 05') will be subject to billing. If an authentication has been performed with 3DSecure, only the 3DSecure authentication fee will be applicable.

Visa Digital Credential Updater Fee (VDCU)

Visa charges a fee for the first authorization on a Network Token after that token receives an update. The merchant will be charged in the following scenario: If a Visa Network Token receives a credential update (PAN, expiration date), the first authorization using this new credential will incur the VDCU fee. If a credential update is received but not used in a transaction, no VDCU fee will be incurred.

Visa Stop Payment Service Fees

The Visa Stop Payment Service Fee is a monthly fee charged for the 4th authorization retry and every subsequent authorization retry on the same card after receiving a “Revocation of Auth” refusal reason code.

Mastercard Not Tokenized Credential-on-File (COF) Fee

The fee is charged on non-tokenized COF Authorization transactions. A non-tokenized credential occurs when the shopper must enter their payment details during checkout. If the card is stored and the shopper just selects it (based on the last 4 digits), this is a form of COF.

Other Non-Transactional fees

The Authorization fees are for transactions that do not proceed to the capture stage. Broken down further, you may see Scheme fees for different Authorization states:

• Authorized: Scheme fees associated with zero-auth transactions and auth-adjustments.
• Canceled: Scheme fees associated with authorized transactions that were canceled.
• Expired: Scheme fees associated with authorized transactions but not captured by the merchant before expiry.
• Refused: Scheme fees associated with transactions declined by the issuer risk system.
• Refused retries: Scheme fees associated with retried transactions that were declined.