How to read a merchant processing statement

The summary page

Look for total sales processed, refunds, chargebacks and total fees. Some statements net fees out of daily deposits; others take them in one debit at month end. Either way, the total should be on the statement somewhere — if you can't find it, ask your provider in writing.

The fee detail

Fee lines usually fall into a few groups. Knowing which group a line belongs to tells you what is negotiable.

• Interchange: set by the card networks and paid to the card-issuing bank. The same for every provider on a given card type.
• Assessments / network fees: small percentage and per-item charges from the card brands.
• Provider markup: the discount rate, per-transaction fee or 'qualified/non-qualified' surcharges — this is the provider's margin.
• Fixed charges: monthly, statement, PCI, gateway, terminal rental, annual and minimum-volume fees.

Red flags worth a question

Fees that appeared without notice, 'non-compliance' charges, rates that changed mid-contract, terminal leases you can't cancel, or a large share of transactions downgraded to higher-cost tiers. None of these prove you're overpaying, but each is worth a written explanation.

Common questions