How to read your merchant statement like we do
Statements are laid out so you stop reading. This guide is the fix: one number to work out, seven fees to hunt, and a clear read on whether you have a problem.
Step one: calculate your effective rate
Find two numbers: total fees charged for the month, and total card volume processed. Divide fees by volume. That percent is your effective rate. It's the only number that can't lie to you. It includes every fee, no matter what it's called.
Example: $1,180 in total fees on $38,000 in card sales is a 3.1% effective rate. Whatever the salesperson once quoted, 3.1% is what you actually pay.
Step two: read your number against these tiers
Healthy. Someone got you a good deal.
Worth a closer look. There's usually money here.
Red flag. You're likely overpaying by thousands a year.
Step three: hunt the seven classic fees
PCI compliance fee
$19.95–$34.95/moYou pay it whether or not anyone helps you with PCI. And a second fee, the 'non-compliance' penalty, often sits on top.
Statement / service fee
$7.95–$15/moA fee for producing the bill that contains the fees.
Equipment lease
$30–$100/moFor hardware that costs a few hundred dollars outright. Over four years, the worst deal in payments.
Batch fees
$0.10–$0.30/dayA small daily charge for settling your batch. That is the product doing its job.
Monthly minimums
$25+/moA penalty for slow months, on top of everything else.
Annual / 'regulatory' fees
$79–$199/yrShows up once a year. It has an official-sounding name and does nothing official.
Rate creep
quiet % bumpsThe padding on your rate inches upward over time, announced in fine print on page four.
Fair questions
What is an effective rate?
Total fees divided by total card sales for the month, shown as a %. It's the one number on the statement that can't be dressed up. It counts everything, no matter what the fees are named.
What's a healthy effective rate?
Under 1.5% is healthy. Between 1.5% and 2.5% deserves investigation. Over 2.5% is a red flag worth hundreds or thousands a year.
Why does my rate differ from what I was quoted?
Quotes usually name the best-case tier. Your effective rate counts every surcharge, downgrade and monthly fee. That's why it always lands higher than the pitch.
Are any of these fees legitimate?
Interchange, the wholesale cost, is real and the same for everyone. Some service costs are fair. The game is the padding stacked on top, with names that sound official.
Can I just send you the statement instead?
Yes, and most people do. Plain-English breakdown within 24 hours, free, no obligation.
Send one statement. Plain-English answer in 24 hours.