Visa Account Name Inquiry ANI Fee

If you've come across Visa's Account Name Inquiry (ANI) Fee on your merchant statement, you're likely wondering what it means and why you're being charged for it. Visa increased this fee in 2024, doubling the cost from $0.05 to $0.10 per authorization. This fee is an essential tool for fraud prevention, designed to protect both merchants and consumers during card-not-present (CNP) transactions.

In this guide, we’ll break down everything you need to know about the Visa ANI fee, how it works, and its importance in maintaining a secure payment environment.

What is the Visa Account Name Inquiry (ANI) Fee?

The Visa ANI Fee is a charge that applies when a merchant uses Visa’s Account Name Inquiry service. This service allows merchants to verify that the cardholder's name matches the name on file with the issuing bank. It provides an extra layer of protection, especially in card-not-present transactions, such as those occurring in e-commerce environments.

Originally introduced in April 2022, the service checks the account holder’s name during the card verification process before a transaction is authorized, helping to prevent fraud related to account takeovers and impersonation scams.

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Why Does the Visa ANI Fee Matter?

Fraudulent activities such as account takeovers and authorized push payment scams are among the fastest-growing threats in the payments industry. The financial and psychological toll on victims can be significant, leading to higher costs for businesses through chargebacks, loss of trust, and reputational damage.

The Visa Account Name Inquiry service is particularly useful in combating these threats by helping businesses confirm whether the person making the transaction is, in fact, the cardholder. By adding this security measure, merchants can protect themselves from fraudsters who attempt to exploit payment systems using stolen card credentials.

How Much is Visa's Account Name Inquiry Fee?

As of April 2024, the Visa ANI Fee is set at $0.10 per authorization, doubling from its previous rate of $0.05. This increase reflects Visa’s continued commitment to providing merchants with robust tools to combat fraud, especially in high-risk, card-not-present environments.

This fee is applied each time a name inquiry is performed, typically when a cardholder's name is verified against the name held by the issuing bank during pre-transaction checks or during the onboarding of new payment methods.

How Visa’s Account Name Inquiry (ANI) Service Works

Visa’s ANI service is an integral part of Visa’s Payment Account Verification suite, available through APIs such as Visa’s Payment Account Validation (PAV) API and Visa Payment Processing (VPP) API. Here’s how it works:

1. Merchant requests a name check: The merchant or originator submits the cardholder’s first, middle, and last name, along with other details like the PAN number (Primary Account Number), CVV2, and billing address.
2. Visa’s name match algorithm: Visa runs the provided cardholder’s name against the name held by the issuing bank. This verification is broken down into checks for the first name, middle name, last name, and overall match.
3. Merchant receives match results: Based on the match results, the merchant can proceed with the transaction, request further verification, or flag the transaction for review. This allows merchants to better assess the risk of fraudulent activity.

ANI’s Role in Reducing Fraud

The Visa ANI service is designed to reduce exposure to fraud in pull/push payments (e.g., Account Funding Transactions and Original Credit Transactions). These are particularly vulnerable to fraud in CNP transactions, where verifying the cardholder’s identity becomes more challenging. By using the ANI service, merchants gain greater confidence in the authenticity of the transaction.

In fact, name verification is especially effective in addressing growing fraud types such as:

• Authorized Push Payment Scams: Where fraudsters trick consumers into authorizing payments to accounts controlled by the scammers.
• Impersonation Scams: Where a fraudster poses as someone else to make unauthorized transactions.
• Account Takeovers: Where cybercriminals gain control of legitimate customer accounts.

Is the Visa ANI Fee an Assessment Fee?

No, the ANI fee is not considered an assessment fee. It falls under service fees and is transaction-based. While assessment fees are calculated based on the volume of transactions processed by a merchant, the ANI fee is specifically tied to individual name inquiry requests performed during the card verification process.

Can the Visa ANI Fee Be Reduced or Avoided?

Unfortunately, the Visa ANI fee cannot be reduced or negotiated. It is a mandatory fee set by Visa, and anytime an account name inquiry is performed, the fee is automatically charged.

However, merchants should review their statements to ensure they are not being charged more than $0.10 per inquiry. In some cases, processors might bundle fees or even pad these charges. If you notice discrepancies, it’s important to contact your payment processor to resolve the issue.

What Else Should Merchants Know About the Visa ANI Fee?

Whether or not you see this fee on your merchant statement depends on your contract structure with your payment processor. For example:

• Merchants on an interchange-plus plan will see the fee itemized on their statements.
• Merchants on flat-rate pricing models may not see the fee as a separate line item, but they are still being charged for it indirectly as part of their overall processing costs.

Best Practices for Using Visa’s ANI Service

Visa emphasizes that the ANI service should be used as part of a multi-layered fraud prevention strategy. Relying on ANI alone will not eliminate fraud, but it works effectively in conjunction with other tools such as:

• Address Verification Service (AVS): Verifying that the billing address matches the cardholder's records.
• Card Verification Value (CVV): Verifying the CVV number to ensure the cardholder is in possession of the physical card.

Next Steps for Merchants

If you’re interested in leveraging the benefits of the Visa Account Name Inquiry service to protect your business, contact your acquirer or payment processor to learn more about how to enable this service. For more technical information on how to integrate ANI with Visa’s APIs, visit the Visa Developer portal.

By using Visa’s ANI service, merchants can close the door on fraudsters, safeguard customer trust, and reduce financial losses due to fraud-related chargebacks.

Visa’s Account Name Inquiry service is a critical component of a secure payment ecosystem, helping businesses prevent fraud and reduce risks associated with online transactions. While there is a cost associated with the service, the security benefits far outweigh the fees. By utilizing this tool effectively, businesses can protect themselves and their customers, ensuring smooth and secure transactions in an increasingly digital world.