How to Make Sense of Your Credit Card Processing Statement
Each month merchants receive their credit card processing statements, however many merchants do not take the time to look very closely at them. You should always know how much you are paying for your processing and any additional fees that are being assessed by your merchant service provider. First we will cover the terminology often used to classify different rates and fees on your statements:
Qualified Discount Rate - Discount charged on all Qualified Transactions. For Retail merchants this would be your swiped normal consumer cards. For Internet/MOTO merchants this would be all transactions that are normal consumer cards where AVS and CVS were processed and matched.
Mid-Qualified Rate - Discount charged on all Mid-Qualified Transactions. This is usually business cards that process Invoice or PO numbers and key entered transactions.
Non-Qualified Rate - Discount charged on all Non-Qualified Transactions. These transactions are usually corporate and/or rewards cards and batches that were not closed within 72 hours.
Interchange - Fees assessed by VISA®/MasterCard
Network Fees - Fees assessed by Debit Networks
Authorization Fee - This charge occurs when the charge is authorized on the cardholder’s account. The charge occurs whether the amount is authorized or declined.
AVS Authorization - This charge occurs when the address information provided by the cardholder is verified with the information listed on the account.
Transaction Fee - This charge only occurs on settled transactions; those which have been previously authorized and settled out.
Statement/Monthly Fee - Covers mailing of statement and customer/technical support
Chargeback Fees - Charged when a cardholder disputes a transaction
Retrieval Fees - Charged when a cardholder requests more information about transaction
Batch Fees - Charged each time a batch is transmitted to the host, usually once a day
ACH Fees - Charged for each ACH file created and transmitted for payment to the merchant account holder’s registered bank account via the Automated Clearing House system.
Monthly Minimums - The minimum amount of fees that will be billed each month
Account Change Fees - Charged for each change made to the merchant account
Annual Fees - Charged once a year for various reasons
Cancellation Fees - Charged if merchant contract is not fulfilled usually 3-5 year term
PCI Monitoring Fees - Charged to cover fees associated with monitoring and verifying
ACH Return Fees - Charged when any ACH withdrawal is returned insufficient funds.
Reporting Fees - Charged for access to online reporting access
All fees will vary according to your merchant service provider, but there are key things to pay attention to. How many of your transactions are Qualifying? Are you paying the same for debit as credit cards? Are you paying an Authorization Fee and a Transaction Fee? How many Chargebacks/Retrievals do you have?
At BankCard Central we guarantee upfront pricing with no additional hidden fees. We will also assist you with analyzing your existing merchant service provider’s statements.
For more information please contact the sales department at 800-331-8882.
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