Understanding Credit Card Processing Fees on Your Merchant Statement

The advertised rate rarely explains an entire merchant statement. To understand payment-processing costs, look at the complete billing period and the way your business accepts payments.

Group the charges

Statements may separate transaction charges, monthly service fees, gateway charges, and other account costs. Pricing structures differ, so ask your provider to identify which charges are passed through and which reflect its own pricing.

Check whether fees are deducted from deposits or billed separately. Otherwise, you may compare a deposit amount with sales totals and mistake the difference for missing revenue.

Calculate a useful comparison

Dividing total processing-related fees by processed card sales gives a broad effective-cost percentage. It is a comparison tool, not your contractual rate. Refunds, disputes, fixed fees, and transaction mix can affect it.

Use comparable months and document what you included in the calculation.

Ask about the full agreement

Before switching, review equipment obligations, cancellation terms, funding arrangements, and recurring fees. A lower headline percentage may not mean a lower total cost.

Share statements through a secure channel and redact information unnecessary for the review. The objective is an understandable explanation of your costs—not a savings promise based on one number.

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Further reading

• Official resource: www.authorize.net