Merchant Statement Analysis, Line by Line
Merchant statement analysis is a careful read of the monthly statement your processor sends. Below is an annotated merchant statement example that shows how to read a merchant statement, section by section. When you are ready, send us yours. The review is free, and there is no obligation.
Merchant processing statement
p. 1
Period [date] . Merchant [your business]
- Interchange[amount]
- Assessments[amount]
- PCI fee[amount]
- Monthly fee[amount]
- Batch fee[amount]
- Statement fee[amount]
Reviewed line by line
What is a merchant statement?
It is the monthly report from your card processor. It lists your card sales, your deposits, and every fee you paid, usually across several pages and under names that change from one provider to the next.
Most fees fall into three groups: interchange paid to card-issuing banks, assessments paid to the card brands, and the markup and flat fees your provider keeps. The walkthrough below shows where each one sits.
How to read a merchant statement
Header and summary
- Merchant ID[MID]
- Statement period[dates]
- Total card sales[amount]
- Total fees[amount]
Deposits
- Daily deposits[amount]
- Fees withheld[amount]
Card type summary
- Visa credit[amount]
- Mastercard debit[amount]
- Discover[amount]
- American Express[amount]
Interchange
- Interchange charges[amount]
Assessments
- Card brand assessments[amount]
Processor markup
- Discount rate[rate]
- Per item fee[amount]
Account fees
- Monthly fee[amount]
- PCI fee[amount]
- Gateway fee[amount]
- Batch fee[amount]
- Statement fee[amount]
Equipment and software
- Terminal lease[amount]
- POS software plan[amount]
Effective rate[rate]
Header and summary
The first page names your business, your merchant ID and the statement period, then totals your card sales and your fees.
CheckMake sure it covers one full month and that you have every page. Fee details often sit on the last pages.
Deposits
A day-by-day list of what landed in your bank account.
CheckSee whether fees come out daily or in one charge at month end. It changes how every other total reads.
Card type summary
Your sales split by card brand, and by credit or debit.
CheckDebit from large banks usually costs less than credit. A heavy debit mix should show up as lower costs.
Interchange
Set by the card networks and paid to the bank that issued each card. It changes with the card type and how the card was taken.
CheckOn interchange-plus pricing it has its own lines. On tiered pricing it is folded into qualified, mid-qualified and non-qualified rates, which hides it.
Assessments
Fees the card brands, such as Visa and Mastercard, charge on your volume.
CheckThese should pass through at cost. Watch for fees with brand-sounding names that are really the provider's own.
Processor markup
What your processor or provider keeps. Often a percentage plus a fee on every transaction.
CheckThis is the part that differs most from one provider to the next. It is where we look first.
Account fees
Flat fees on the account, whether you run one sale or one thousand.
CheckA PCI non-compliance fee can often stop once your PCI questionnaire is done. Ask what every flat fee pays for.
Equipment and software
Terminal leases or rentals, and POS software plans billed through processing.
CheckNote the lease term and the monthly amount. Make sure you are not still paying for equipment you no longer use.
Your effective rate
Add up every fee, then divide by your total card sales. That one number lets you compare one month to the next, and one setup to another.
Send yours. We mark it up the same way.
Get my free statement reviewStep by step
Step 1: Send your statement
One recent monthly processing statement, all pages. Upload it through our contact page or email it. A PDF or clear phone photos both work.
Step 2: We mark up every fee in plain English
We go line by line and mark each fee: what it is, what it costs you, and where you may be overpaying.
Step 3: You decide. We handle the setup if you want it.
If a better setup fits, we show you. If yours is fine, we say so. If you want to make a change, we handle the setup with you.
What to send
Email one recent monthly processing statement to travis@ledgerlinepos.com, or request your free merchant statement review through the contact page.
- Send every page. Fees are often on the last pages.
- A PDF or clear phone photos both work.
- You can black out full account numbers.
- We never need card numbers or passwords.
What you get back
Your statement, marked up line by line.
- Each fee named and explained in plain English.
- What you are paying overall, and your effective rate.
- Fees that are easy to miss, like yearly or compliance charges.
- Options that may fit your business better, if any exist.
Four lines we hold to on every statement.
Our promise
- 01No cost for the review
- 02No obligation to switch
- 03Plain English, no jargon
- 04We tell you if your setup is already fine
Keep reading
Statement review questions
1Which pages of my statement should I send?
Send every page of one recent monthly statement. Fees are often listed on the last pages, so a partial statement can hide the details that matter most.
2What will I get back after the review?
A plain-English explanation of each fee on your statement, what you are paying overall, and any options that may fit your business better. If nothing needs to change, we will say so.
3How long does a statement review take?
It depends on the statement and how many locations you have. Once we receive it, we will tell you when to expect the review.
4Is it safe to send my processing statement?
We use your statement only to review your processing. You can black out full account numbers before you send it. We do not need card numbers or passwords.
5How does Ledger Line POS get paid?
We are a referral business. If you choose to move to a setup we introduce, that provider may pay us a referral fee. The statement review is free to you either way, and we will tell you how we are paid before you decide anything.
Send one statement. We will read every line.
Upload or email your statement through our contact page. Free review, plain English, no obligation.
Form LL-02Statement review
- What you send
- One recent statement
- What we read
- Every line
- What it costs
- Nothing
- What you owe
- No obligation