Guide
How to read your merchant statement
Statements are long on purpose. You only need four numbers and a list of add-ons to know if your deal is fair.
1. Find the four numbers
- Total card sales for the month. Sometimes called volume, turnover or amount processed.
- Number of payments. Sometimes called items, transactions or count.
- Total fees. Add every charge on the statement, including monthly and annual fees. Some providers take fees from each payout, so check the payout summary too.
- Average payment = sales ÷ number of payments. Fixed per-payment fees hurt most when the average payment is small, for example in a café.
2. Work out your effective rate
Effective rate = total fees ÷ total card sales × 100. On our example statement: €301.91 ÷ €18,420.00 = 1.64%. That number lets you compare any two offers, whatever they call their fees.
3. Identify the pricing model
If you see one percentage for most payments, it is a flat rate. If you see interchange listed separately with a margin on top, it is interchange plus. If you see "qualified" and "non-qualified" rates, it is tiered. The fees guide explains each one.
4. Mark the add-ons
These fees are common and often negotiable or avoidable:
| Fee | What it is | What to do |
|---|---|---|
| PCI non-compliance | A monthly penalty for not completing a yearly security questionnaire | Complete the questionnaire. It usually takes 20 minutes and the fee stops |
| Statement or account fee | A fixed monthly charge for sending the statement | Ask to remove it, many providers don't charge it |
| Monthly minimum | A top-up when your fees fall below a set amount | Avoid if your card sales vary by season |
| Terminal rental | Monthly rent for the card machine | Compare with buying one. Many terminals cost less than a year of rent |
| Non-qualified surcharge | Extra percentage on payments outside the best tier | A sign of tiered pricing. Ask for interchange plus |
| Early termination fee | A charge for leaving before the contract ends | Check your contract end date before you switch |
5. Ask your provider three questions
- What is my margin above interchange and scheme fees?
- Which monthly fees can you remove?
- When does my contract end, and what does it cost to leave early?
Prefer someone else to do it? Send us the statement and we will mark every line.