Look for the statement period, total volume, number of transactions, total fees, deposits, chargebacks, and any monthly or annual charges. These numbers create the baseline before you compare rates or consider switching providers.
Merchant statement review
How to read a merchant processing statement without getting buried in fee jargon.
To read a merchant processing statement, start with total card sales, total processing fees, transaction count, monthly fees, interchange charges, assessments, processor markup, and incidental fees. Then divide total fees by total card sales to estimate your effective rate. That number is useful, but it does not tell the whole story without context.
Review-first boundary
HMG reviews actual statements and payment workflows before making claims about savings, switching, or processor fit.
Useful input
A recent merchant statement and a short note about how customers pay today usually gives the review enough context to start.
Plain-English guide
What to review before making a payment processor decision.
Use this as a practical starting point. It is not a guarantee that a different provider is better.
Effective rate is a simple starting point: total processing fees divided by total card sales. It should not be used alone because business type, card mix, transaction size, keyed payments, rewards cards, chargebacks, and payment method mix can all affect the result.
Most statements include interchange, card-brand assessments, and processor fees. Interchange and assessments are largely pass-through costs. Processor markup is where pricing and provider fit usually need closer review.
- Monthly minimums
- PCI non-compliance fees
- Statement fees
- Batch fees
- Annual fees
- Chargeback fees
- AVS fees
- Gateway fees
- Early termination fees
- Equipment lease charges
Request a review when the statement is unclear, fees have increased, deposits are hard to reconcile, support is weak, or you are considering a new processor quote.
FAQ
Common questions before requesting a review.
What is the most important number on a merchant statement?
The effective rate is a useful starting point, but it needs context. Total fees, sales volume, card mix, and processor markup all matter.
Can I tell from one statement if I am overpaying?
Sometimes there are obvious red flags, but a fair review should look at the full statement and your payment workflow before making a claim.
Should I switch processors if my rate looks high?
Not automatically. First compare the statement, contract terms, support, integrations, and workflow impact.
What should I send HMG for a review?
Send a recent processing statement and a short description of how you accept payments today.