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3 Simple Steps To Help Understand A Credit Card Processing Statement

Reading statements can be a daunting task, let alone making sense of them. Due to the unregulated industry of processing, statements are often very confusing. Let us help you make sense of your statement! 


Step 1 


Calculating Effective Rates

You need to calculate your effective rate; to do this, you'll use this formula: total fees charged / total amount processed x 100. 

So first, you'll need to find your total fees charged, then your total amount processed. Once you've found these two numbers, you'll divide the two and then multiply that number by 100. Math sucks, but by doing this, you'll see how much of your fees are going to card issuers and how much you're paying your processors. 


Step 2 


 Determining Interchange Costs

Interchange is the cost associated with debit and credit cards that are ran at the time of sale. Interchange costs are fees that card issuers (VISA, Mastercard) charge. Every merchant is required to pay interchange. 

To find your total interchange costs, you must first locate the section on your statement that shows your interchange rates. Once you've done that, add up all of the rates, and there you go! 



Step 3 


Deduct Total Interchange Fees From The Total Fees Charged 

Now that you've already found the fees you're paying the card issuers. It's time to find out how much you're paying your processor. 

Take the total fees from step one and subtract your interchange fees from that number. It should look like this: Total fees charged - total interchange charges = processor's fees. 



We believe that the ball should be in your court as business owners. If you're tired of receiving a confusing statement every month, check out our Cash Discount 2.0 Program. This subscription-based program enables business owners to eliminate processing fees entirely. Our programs are all subscription-based, so you can know exactly what your payment will be every month. Learn more about reviewing your credit card processing statement with our guide. Thanks for reading, and as always, remember to look local first


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