Why You Should Be Reading Your Credit Card Processing Statement


It’s safe to say that many business owners have a hard time understanding their credit card processing statements. While the information may take time to comprehend, it’s essential for owners to have a solid grasp on what their merchant services statement says and what they are paying for.

Every Statement is Different, but Pricing is Common

Every merchant services company uses a specific layout to identify the specifics of your transactions. Despite this variation, most processing statements will use one of the three pricing models: interchange, tiered, and flat rates.

  • Interchange (or cost plus) statements usually contain text about basis points, which indicate the share the processor is taking in for their services. This model is widely popular among processors and is the most transparent for merchants.
  • Tiered rates will have different categories for the card transaction. They are usually labeled qualified, non-qualified, and so on. Each tier will determine the percentage that’s taken off for the card fees.
  • Flat rates will have a consistent percentage for each transaction. This is usually the easiest to understand essentially.

If you have a current statement make note if you see any of the indicators that will tell you if your statement is based on tiered, interchange or flat rate. Be inquisitive and ask your payment processor questions about information that concerns you. If you don’t currently take credit cards, you’ll want to have an estimate of your sales volume, as this is a big factor into finding the right pricing structure.

Understanding Your Statement Enables You to Hold Your Processor Accountable

Just by keeping an estimate of your processing expenses on hand gives you a solid place to negotiate and find cost saving options that best fit your business. At the end of the day, your numbers have to fall in line with your budget. Your processor should do their best to accommodate your business’ budget and sales volume. Transparency is non-negotiable when it comes to your finances. If your processor can’t show you how you would save money, chances are they’re not going to.

You’ll Establish a Strong Rapport With Your Processor

Your statement is the blueprint for the rapport you’ll build with your processor. At TransNational Payments we don’t sell you on the product, but rather show you how you can save money in terms and conditions you’ll understand and agree with. Work with a processor who is there to educate you and serve your best interest when it comes to your business. 


Learn More about our Credit Card Processing Services