How to read a credit card processing statement
Start with two numbers: total card sales volume and total fees for the month. Divide fees by volume to get your effective rate. Then sort the fees into three groups: interchange (set by the card networks), network assessments, and your processor’s markup and fees, which is the part you can change.
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Step 1: Find the summary
Most statements open with a summary showing total sales or “amount submitted,” the number of transactions, and total fees or “discount” charged. Some processors deduct fees daily and others monthly; either way, the summary shows what you paid for the period.
Step 2: Calculate your effective rate
Effective rate = total fees ÷ total card volume × 100. Example only: $1,400 in fees on $50,000 of card sales is a 2.8% effective rate. This single number lets you compare processors and pricing models fairly.
Step 3: Separate the three kinds of cost
- Interchange — paid to the card-issuing bank, set by the networks. It varies by card type (debit, rewards credit, business cards) and by how the card is taken (in person, keyed, online).
- Network assessments — small fees charged by Visa, Mastercard, Discover and American Express.
- Processor markup and fees — everything your processor adds: a percentage, per-transaction or authorization fees, batch fees, monthly statement or service fees, PCI fees, and chargeback fees.
Step 4: Identify your pricing model
- Flat rate — one blended percent plus a per-transaction fee for all cards.
- Interchange-plus — interchange passed through at cost plus a stated markup. See Interchange Plus.
- Tiered — transactions sorted into “qualified,” “mid-qualified” and “non-qualified” buckets at different rates. It can be harder to compare.
Step 5: Look for common extra fees
- Monthly minimums, statement fees or “account on file” fees
- PCI compliance or PCI non-compliance fees
- Annual fees and early termination terms
- Chargeback and retrieval fees
- Rate increases noted in small-print statement messages
If PCI non-compliance fees appear, completing your annual validation usually stops them. See our PCI compliance guide.
Step 6: Compare programs on your real numbers
Once you know your volume, fees and card mix, you can compare Flat Rate, Surcharge and Cash Discount fairly. Or let CMS Card Services do it with a free statement review.
Common questions
How do I calculate my effective rate?
Divide total fees for the month by total card sales volume for the same month, then multiply by 100. For example, $1,400 in fees on $50,000 in card sales is a 2.8% effective rate. (Example numbers only.)
What is interchange?
Interchange is the fee set by the card networks and paid to the card-issuing bank on each transaction. It varies by card type (for example debit, rewards credit or business cards) and by how the card is accepted.
What part of my statement can I actually negotiate?
Mainly the processor’s markup and its monthly or per-transaction fees. Interchange and network assessments are set by the card networks and generally pass through.
What is a PCI non-compliance fee?
A monthly fee some processors charge when the business has not completed its annual PCI DSS validation. Completing validation usually stops it.
Can someone review my statement for me?
Yes. CMS Statement Review is free and shows your volume, fees and effective rate, then compares Flat Rate, Surcharge and Cash Discount.
See your own numbers
Upload a recent processing statement and CMS Card Services compares Flat Rate, Surcharge and Cash Discount on your real volume. Free, no obligation; final pricing is confirmed before activation.