At Beacon Payments, we believe in transparency. The more you understand about your statement, the better decisions you can make for your business. So, let’s break it down: here’s how to read your merchant statement—and what to look for.

What Is a Merchant Statement?

A merchant statement is a monthly summary of all the credit and debit card transactions processed through your merchant account. It includes:

• Total sales and volume
• Fees charged (interchange, assessments, processor markups)
• Chargebacks or refunds
• Terminal or service fees (if applicable)

Think of it as your monthly payment processing report card.

Key Sections of a Merchant Statement

While the format can vary by provider, most merchant statements include the following:

🧾 1. Summary Page

This is your high-level snapshot. Look for:

• Gross Sales Volume: Total amount processed
• Number of Transactions
• Total Fees Charged
• Net Deposits: What was actually sent to your bank

🔍 Tip: If you're only looking at the net deposit and ignoring the fees, you're missing the full picture.

💳 2. Interchange Fees

These are the base fees set by Visa, Mastercard, Discover, and AmEx. They go directly to the card-issuing banks and are non-negotiable.

Interchange fees vary based on:

• Card type (debit vs. credit, rewards, business cards)
• Transaction method (swiped vs. keyed-in)
• Your industry (MCC code)

Look for lines like:

Visa CPS Retail Debit – 0.80% + $0.15

🧮 3. Processor Markups

This is what your payment provider (like Beacon Payments) earns for facilitating the transaction. Depending on your pricing model, this might be a flat fee, percentage, or tiered rate.

Pricing models include:

• Interchange-Plus: Transparent and itemized
• Tiered: Categorized into qualified/mid/non-qualified (often higher cost)
• Flat-Rate: One rate for all cards (simple, but not always cheapest)

⚠️ 4. Other Fees

These might include:

• Monthly service fees
• PCI compliance or non-compliance fees
• Batch fees or terminal leasing charges

🔍 Tip: Look closely for small, recurring charges—they add up over time and are often avoidable.

🔄 5. Chargebacks & Refunds

This section lists any disputed transactions or refunds issued. Frequent chargebacks could signal a problem with your customer service or fraud prevention protocols.

Red Flags to Watch For

• ❌ Non-qualified or mid-qualified surcharges – Often a sign you’re on a costly tiered pricing plan
• ❌ PCI non-compliance fees – Can be avoided with a quick annual survey
• ❌ Inconsistent markups – Your processor should be transparent

Final Thoughts

Reading your merchant statement doesn’t have to be intimidating. Understanding where your money goes empowers you to ask better questions, negotiate smarter deals, and even switch to a more cost-effective processor.

At Beacon Payments, we offer free statement reviews—no pressure, just transparency. If you’re not sure whether you’re overpaying, send us your latest statement and we’ll break it down for you line by line.

 Want to know what your true processing cost is?
Contact us today for a free, no-obligation statement analysis.