Merchant resources
How to read a merchant processing statement
Read a processing statement in layers: sales, adjustments, transaction charges, recurring fees and deposits. A headline rate is only part of the story.
Start with the reporting period and sales
Identify the merchant account, date range, processed sales, transaction count and average ticket. Separate card sales from cash, refunds and adjustments. Multiple accounts or locations may have separate statements.
Identify the pricing structure
Look for interchange categories, network assessments, provider markup, blended rates or tier labels. A percentage labeled “discount rate” may not include every charge. Ask for a fee-code explanation when descriptions are unclear.
Find recurring and exception charges
Review monthly, gateway, batch, statement, equipment, minimum, PCI-related and dispute charges. Some costs may appear on a separate software invoice or bank debit, so the statement alone may not show total POS expense.
Use effective cost carefully
For a hypothetical month with $20,000 in card sales and $500 in processing charges, the simple processing effective cost is 2.5%. That is an example calculation, not an offered rate. Confirm whether hardware and software are included, and compare similar sales/channel mixes.
Reconcile deposits and ask better questions
Gross or net funding, batch dates, refunds and holds can explain differences between sales and deposits. Request a free Liftoff review to understand current pricing, fees, equipment and alternatives without a savings promise. Redact sensitive account and customer details before sharing.
Common merchant questions
Why is my effective cost different each month?
Card mix, volume, entry method, refunds, fixed charges and exception fees can change. Compare the underlying activity, not only a percentage.
Should I share a full statement in a contact message?
No. Request appropriate document-sharing instructions. Do not enter bank details or full card information in a public form.