Network Acquirer Processing Fee (NAPF) is an electronic fee paid by merchants to acquirers when the customer’s credit card is issued by a bank that is different from the merchant’s transaction processor.

The total amount of NAPF will be deducted from customers’ credit-card repayment amount. This NAPF has absolutely nothing to do with credit cards or other financial instruments issued by MasterCard.

Please pay attention

When the card holder uses his card and authorizes a transaction, we will receive NAPF from merchant’s acquirer (payment service provider). It is compulsory for merchants to accept NAPF and no surcharge can be implemented on top of this fee. This fee is collected by merchant’s acquirer and NAPF will be paid to the credit card issuer company.

What is a ‘Network’?

A group of acquirers who have joined together to share their transactions through a single portal. The members of network providers may have different brands but they are under same parent company.

What is an ‘Acquirer’?

An entity (company) that has a direct and usually exclusive agreement with a merchant, to receive payment for the services and/or goods provided by the merchant. This can either be done directly or through an agent.

Who collects Network Acquirer Processing Fee?

A payment service provider will collect the fee from merchants.

This is not to be confused with Network Membership Fee, which this payment service provider may charge merchants for access.

The standard rate of NAPF charged by acquirers throughout Malaysia and Singapore varies between 1.52% and 2%. There is no minimum or maximum amount set by MasterCard, but it typically ranges between RM1.50 and RM2.00 per transaction

How do merchants receive Network Acquirer Processing Fee?

As mentioned before, Merchants will be required to pay NAPF to their acquirers; this is usually charged automatically by the merchant’s point-of-sale (POS) system or payment gateway. Usually this fee is charged to the merchant during the settlement process, or sometimes before a transaction has even occurred.

Is Network Acquirer Processing Fee compulsory?

Yes, all acquirers require merchants to collect NAPF from cardholders. The fees are generally collected for MasterCard transactions only, however some acquirers may allow Visa transactions to be charged.

What is the NAPF rate?

The standard rate of NAPF varies between 1.52% and 2%. There is no minimum or maximum amount set by MasterCard, but it typically ranges between RM1.50 and RM2.00 per transaction. The fee charged depends on both the acquirer and the merchant’s business type.

Are there any exemptions or reductions?

Some acquirers may offer discounts on NAPF to merchants with high transaction volumes, however this is at their discretion.

Furthermore, some large corporations are forgiven of Network Acquirer Processing Fee if they are given special agreements with acquiring banks.