To read a merchant statement, find two numbers on the summary page: your total card sales for the month and your total fees. Divide fees by sales to get your effective rate. Then check the fee detail for the three cost types: interchange, network fees and the processor's markup. Also look for red flags like non-qualified charges, PCI non-compliance fees, monthly minimums and fees you don't recognize.
Key takeaways
- Start with total card sales and total fees; together they give your effective rate.
- The fee detail separates interchange, network fees and processor markup.
- 'Discount' on a statement means the percentage fee you paid, not money off.
- Non-qualified charges, PCI non-compliance fees and fee notices in the message box are the usual red flags.
Step 1: Find your sales and total fees
The first page usually has a summary. Look for:
- Card sales: labeled "total amount submitted," "gross sales," "total volume" or "sales."
- Total fees: labeled "total fees," "fees charged," "total discount" or "amount deducted."
Divide fees by sales. $3,100 in fees on $105,000 in sales is a 2.95% effective rate. You can plug both numbers into the credit card processing fee calculator.
Step 2: Understand the sections
| Section | What it shows |
|---|---|
| Summary | Sales, refunds, fees and net deposits for the month. |
| Deposits or batches | Each day's deposit to your bank. Useful for matching your books, not for finding fees. |
| Card type summary | Sales by Visa, Mastercard, Discover and Amex, sometimes with rates for each. |
| Interchange detail | On interchange-plus pricing: each interchange category, its rate and volume. |
| Fees or service charges | Processor markup, network fees and monthly fees, line by line. |
| Messages | Notices about rate and fee changes. Read this every month. |
Step 3: Identify your pricing model
- If you see "qualified," "mid-qualified" and "non-qualified," you're on tiered pricing.
- If you see long lists of interchange categories plus a fixed markup, you're on interchange-plus.
- If every transaction shows the same percentage, you're on flat-rate pricing.
See how they compare in what normal processing fees look like.
Step 4: Look for red flags
| Line item | Why it matters |
|---|---|
| Non-qualified or mid-qualified surcharge | Your highest tiered rates. Often a large share of the total. |
| PCI non-compliance fee | A monthly penalty you can usually stop by completing a short security questionnaire. |
| Monthly minimum fee | Charged when your fees fall below a set amount. |
| Annual, regulatory or "compliance" fees | Often pure markup with a technical-sounding name. |
| Statement, batch or gateway fees | Small individually; they add up over a year. |
| A rate change in the message box | Processors sometimes announce increases here instead of telling you directly. |
Comparing providers? Bring this statement and our list of questions to ask a merchant services provider. Spotted a lot of red flags? Here are seven ways to reduce your processing fees, starting with dual pricing.
Don't want to decode it yourself? Upload your statement for a free review and we'll mark up every fee for you.
Frequently asked questions
Where do I find my total fees on a merchant statement?
What does 'non-qualified' mean on my statement?
Why does my statement show 'discount' when I didn't get one?
How often should I review my statement?
Can someone review my statement for me?
This article is general information, not legal, tax or financial advice. Card network rules and state laws change; confirm the rules for your business before changing how you charge customers.