The two numbers that matter
Every monthly statement, from any processor, contains two figures you need:
- Total card sales for the month. Often called gross sales, total volume or amount processed.
- Total fees for the month. Sometimes shown as total fees, total charges or fees deducted. If the statement splits fees across several sections, add them together.
Divide total fees by total card sales. The result is your effective rate: what card acceptance really cost you that month, as a percentage of what you sold.
The effective rate lets you compare any two offers fairly, whatever pricing model each one uses. A low headline rate means little if other fees bring the total back up.
What the rest of the statement shows
Deposits
A day-by-day list of what was paid into your bank account. Useful for reconciling with your bank, but it does not tell you the cost.
Card type summary
Sales broken down by card brand (Visa, Mastercard, Discover, American Express) and sometimes by card type. Rewards cards and business cards usually cost more to accept than basic debit cards.
Processing fees
This is where most of the cost sits. Depending on your pricing model you may see interchange fees, card network assessments, and your processor's own markup, or simply a set of bundled rates.
Monthly and account fees
Fixed charges that do not depend on sales, such as statement, account, PCI compliance, gateway or software fees. These matter most for smaller businesses, because they are a larger share of a smaller total.
Chargebacks and adjustments
Disputed transactions and their fees, plus any corrections from earlier months.
Questions to ask about your statement
- Has my effective rate changed over the last few months, and why?
- Which fees are fixed every month, and what is each one for?
- Am I paying for anything I do not use, such as a gateway or software I no longer need?
- Which pricing model am I on? See our guide to pricing models.
If you would rather not do the arithmetic, send us the statement. We will work out your effective rate, explain each fee, and tell you plainly whether there is room to pay less, including when your pricing is already fair.