Question 1

How do you read a merchant processing statement?

Accepted Answer

Start with the summary: total card sales, number of transactions and total fees for the month. Divide fees by sales to get your effective rate. Then work through the fee section line by line, separating pass-through costs like interchange and assessments from the provider's markup and fixed charges such as statement, PCI, batch or minimum fees. Our step-by-step guide shows where each part usually sits on the page.

Question 2

Where do I get my merchant statement?

Accepted Answer

Most providers post a monthly statement in their online merchant portal, usually under reports or statements, and many also email it. If you cannot find it, call your provider's support line and ask for the last three monthly statements as PDFs. Some older accounts still mail paper copies. Any of these formats works for a CELER review; a clear photo of each page is fine.

Question 3

What is the difference between a merchant statement and a bank statement?

Accepted Answer

A bank statement shows the deposits that land in your business account. A merchant statement comes from your card provider and shows what happened before the deposit: card sales by type, refunds, chargebacks and every fee charged. If fees are taken monthly, your bank statement may show a single debit with no detail, so the merchant statement is the only place to see what you are actually paying.

Question 4

What does batching mean in credit card processing?

Accepted Answer

Batching is sending the day's approved card transactions to the processor for settlement. Terminals and POS systems often close the batch automatically at a set time, or staff close it manually. Funding usually starts from the batch time, so a batch left open delays your deposit. Some providers charge a batch fee each time you settle, which is worth checking on your statement.

Question 5

How do I calculate my effective processing rate?

Accepted Answer

Add up every fee on one month's statement, including monthly and per-item charges, and divide by your total card sales for that month. Multiply by 100 for a percentage. Use a full month and, if you can, check two or three months, since seasonal swings and one-off fees can skew a single month. This number is the fairest way to compare providers.

Question 6

What are hidden fees in credit card processing?

Accepted Answer

Hidden fees are charges you did not expect from the quote: monthly minimums, PCI non-compliance fees, statement or paper fees, annual fees, batch fees, non-qualified surcharges on tiered pricing, and small mid-contract increases. They are usually printed on the statement, just not explained. Our guide lists the common ones and how to spot them on your own statement.

Question 7

What is a void versus a refund?

Accepted Answer

A void cancels a transaction before it is settled, usually the same day before the batch closes, so the customer's charge simply drops off. A refund reverses a settled transaction by sending money back, which can take several days to show on the customer's account. Voids typically cost less, so catching mistakes before the batch closes saves money.

Question 8

Do I get the processing fee back when I issue a refund?

Accepted Answer

Not always. Policies differ: some providers return part or all of the original fee, others keep it, and some charge a separate refund fee. Interchange treatment of refunds also varies. Check your agreement and your statement to see how refunds are handled, and include it when comparing providers if you issue many refunds.

Question 9

Can you provide an example of a merchant statement?

Accepted Answer

Layouts differ by provider, but most monthly statements share the same sections: a summary of total sales, refunds, fees and net deposits; a daily list of deposits or batches; sales broken down by card type such as Visa, Mastercard, Amex and debit; a pricing or interchange detail section; and a list of other charges such as monthly, PCI, statement or batch fees. Notices about rate changes often sit on the last page. Our statement guide walks through each section line by line.

Reading your statement: 9 questions