What are the main sections of a merchant statement?
Statement layouts differ by processor, but nearly all include these sections:
- Summary: total sales, refunds, chargebacks, fees and net deposits for the month.
- Deposits / batches: each day's batch with amounts and fees deducted (daily or monthly discount).
- Card type summary: volume and transaction counts for Visa, Mastercard, Discover and American Express.
- Interchange detail: interchange categories (e.g. "Visa CPS Retail Debit") with rates and amounts. Appears on interchange-plus statements.
- Fees / service charges: processor markup, network fees, monthly fees, PCI fees, and so on.
- Notices: often where rate increases are announced. Always read this section.
How do I find my effective rate?
Your effective rate is the single most useful number on your statement:
Effective rate = Total fees ÷ Total card volume × 100
For example, $1,140 in total fees on $40,000 of card sales is a 2.85% effective rate. Make sure "total fees" includes every fee for the month: per-transaction, monthly, PCI, statement and equipment fees. Some processors deduct fees daily, so add the daily and monthly amounts together. Use our effective rate calculator to do the math, and see what counts as a good effective rate.
Which fees are fixed and which are negotiable?
| Fee | Who gets it | Negotiable? |
|---|---|---|
| Interchange (e.g. "Visa CPS Retail Credit") | Card-issuing bank | No (but you can qualify for lower categories) |
| Assessments / network fees (e.g. "Visa FANF", "MC Assessment", "NABU") | Card brands | No |
| Discount rate / markup (e.g. "Visa Disc 0.30%") | Processor | Yes |
| Per-transaction / authorization fee | Processor | Yes |
| Monthly service / statement fee | Processor | Yes |
| PCI compliance / non-compliance fee | Processor | Often |
| Batch fee | Processor | Yes |
| Annual fee | Processor | Yes |
| Equipment lease | Leasing company | Usually locked in by contract |
| Chargeback fee | Processor | Sometimes |
What do common statement terms mean?
- Discount rate: the percentage charged on volume. On tiered pricing it varies by tier; on interchange-plus it's the markup.
- Qualified / mid-qualified / non-qualified: tiered pricing buckets. Large amounts in mid- or non-qualified are a red flag.
- Downgrade: a transaction that didn't meet requirements for the lowest interchange rate, for example because it was keyed instead of dipped, or settled late.
- Authorization fee: charged for each approval request, including declines.
- Batch / settlement fee: charged each time you close out the day.
- FANF: Visa's Fixed Acquirer Network Fee, a monthly network fee based on locations or volume.
- Daily discount vs. monthly discount: whether fees are deducted from each deposit or billed once at month end.
Which hidden fees should I look for?
- PCI non-compliance fees ($20–$100+ a month) charged when you haven't completed your annual questionnaire. Completing it often removes the fee.
- "Regulatory," "compliance" or "service" fees with vague names. Ask what each one is for.
- Annual or semi-annual fees that appear once a year, often $79–$199.
- Minimum monthly fees charged if your fees don't reach a set amount.
- Markup on network fees, where processors bill network fees at a higher rate than the card brands actually charge.
- Rate increases announced in the notices section, often a few basis points at a time.
- Equipment leases billed monthly for years, sometimes on a separate statement.
How do I spot downgrades?
On interchange-plus statements, look for interchange categories labeled "EIRF", "Standard" or "Data Rate I", or for keyed rates on transactions you thought were swiped. On tiered statements, look at how much volume lands in non-qualified. Common causes include:
- Keying in card numbers instead of tapping or dipping.
- Batching late, more than 24–48 hours after authorization.
- Missing AVS (ZIP code) on keyed transactions.
- Missing Level 2/3 data on business cards.
- Tip adjustments beyond tolerances.
A sample statement, explained
| Line item | Amount | What it means |
|---|---|---|
| Total sales | $40,000.00 | Your card volume this month |
| Interchange charges | $680.00 | Passed through to issuing banks (fixed) |
| Card brand fees | $58.00 | Visa/MC/Discover assessments (fixed) |
| Discount 0.40% | $160.00 | Processor markup (negotiable) |
| Authorization fees (1,000 × $0.15) | $150.00 | Processor per-transaction fee (negotiable) |
| Monthly service fee | $19.95 | Processor fee (negotiable) |
| PCI non-compliance | $39.95 | Avoidable by completing PCI validation |
| Statement fee | $10.00 | Processor fee (negotiable) |
| Total fees | $1,117.90 | Effective rate ≈ 2.79% |
In this example, $738 is fixed cost (interchange plus brand fees) and about $380 is processor markup and fees. That $380 is the part a better provider could reduce.
What should I do after reviewing my statement?
- Calculate your effective rate and compare it with typical ranges for your industry.
- List every processor fee and ask your current provider to remove or reduce them.
- Complete your PCI questionnaire if you're paying non-compliance fees.
- Collect competing quotes so you have leverage. A recent statement makes those quotes more accurate.
After you request a free quote, you can upload a recent statement so partner providers can give you a more accurate comparison.