How to read your monthly card processing statement

Short answer: Read your statement in three moves: find the total processed, add up every fee (including fixed monthly fees), then divide total fees by total processed to get your real rate. After that, look for any fee that is new or unfamiliar.

Step 1: Find the summary

The first page usually shows total volume, number of transactions, refunds and total fees. Write these four numbers down. They are enough to calculate your effective rate.

Step 2: Match deposits to your bank

The deposits section lists how much the processor sent to your bank each day. Each line should match one end-of-day batch. A missing day or an amount that doesn't match is worth a phone call.

Step 3: Scan the fee breakdown by card type

On interchange-plus, this section is long and lists many card categories. You don't need to understand every line. Watch for:

• The share of keyed-in transactions. Keyed payments cost more and carry more risk than tap or chip.
• Lines marked non-qualified or downgrade, meaning a transaction was billed at a higher rate.
• Whether the processor markup matches your contract.

Step 4: Hunt down fixed fees

This is where "hidden" fees live. Common ones:

• Monthly account or service fee
• PCI fee or PCI non-compliance fee
• Terminal rental
• Batch, reporting or gateway fees
• Monthly minimum fee when volume is low

A PCI non-compliance fee can often be removed just by completing your yearly PCI self-assessment questionnaire.

Step 5: Calculate your real rate

Divide total fees by total processed. If you processed $40,000 this month and paid $1,000 in fees, your effective rate is 2.5%. Track this number month to month. If it rises while your volume stays flat, something changed.

What to do when you find a strange fee

1. Screenshot the line and note the month it first appeared.
2. Call your processor and ask what it is, why it appeared and where it is in your contract.
3. If it isn't in the contract, ask for it to be removed and refunded.

Kashela saves the amount, tip and transaction ID for every ticket, plus a daily batch report, so matching your statement at month end is quick. See how payments work in Kashela.