Every month, you obtain your month-to-month credit card processing statement from enterprise transacted for the duration of the preceding month. Of course, when it comes in the mail, you are anxious to open it up and see all the cash you produced, are not you? Yah ideal…if you open it at all, you just cringe at all the charges that have been taken away from your sales. But hey, it is a privilege you know to accept credit cards and spend all these charges….are not you thrilled?

Okay, let’s be truthful right here for a minute. If you weren’t accepting plastic as payment for the goods and solutions that you sell, you would most absolutely be missing out on prospective enterprise. So, with that mentioned, let’s just accept the necessity of it all and move on to far better understanding what you are paying for. How does that sound to you?

When I was active in the field, I discovered that regularly though promoting my solutions, merchants would hand me their unopened statements with which to do an evaluation for them. When presented with a sealed envelope I would constantly ask if this was an uncommon predicament or did they just in no way appear at them. Sadly, the latter answer seemed to be the one particular most typically received. Think me, I have an understanding of why this is so for the reason that all as well typically, these darn points are downright complex.

All ideal, let me scold you that fall into this category just a bit right here. You completely have to get started opening and, far more importantly, understanding, these points quickly. So let me see if I can break them down a bit for you right here to make the approach a bit less difficult. Most of them are broken down into numerous categories as follows:


Normally, this will be on the initially web page and will be exactly where your provider will alert you to any alterations to your statement such as pricing info alterations, business news. To me, this is one particular of the most vital sections to constantly Study Completely. This is specifically vital in the months just prior to April and October every single year. In every single of these two months, Visa and MasterCard adjust interchange prices which have a direct effect on your pricing. So, constantly be confident to be alert and get answers to something you see posted there.


In this section, you will generally see a total breakdown by card form of the quantity of transactions and total dollar volume for every single. This is a excellent location to do a swift evaluation to see what your typical ticket is on plastic. Basically take your total dollar volume divided by the total quantity of transactions and there you have it.


Not all processors will use the identical terminology but, in this section, specifically if you are on a tiered pricing structure, you will see a breakdown of total volume/transactions for every single tier form like Certified, Mid-Certified, Non-Certified or 1st, 2nd, 3rd, 4thTier pricing. You will see the price and per item charges listed. If you are in a Price Plus pricing model, this section will be a great deal longer, and far more revealing as it lists every single card and transaction form with acceptable charges.

  • Every day DEPOSIT Information

This section could take up quite a few pages and definitely does not warrant a thorough evaluation on your portion. It is just a show of your everyday batches per terminal and the numbers you see right here, ought to match up with deposits produced to your bank inside 48 hours of every single batch. If you see any discrepancies, make contact with your provider.

  • SUMMARY OF ALL Charges

This is the section that offers you a fantastic evaluation of what you are Genuinely PAYING for this privilege of accepting credit cards. Right here you will obtain totals for Batch Charges, Debit Access Charges, Statement Charges, Merchant Benefit Charges, Gear/Supplies Charges, PCI Charges, Month-to-month Service Charges…..Charges, Charges, Charges (some of which you might not even know what they are for so, ASK THE Concerns). Regardless, take the “Total Charges for all Terminals” quantity and divide that by the total dollar volume that you did for the month and that will give your “Net Productive Price“. So, for instance, if total charges have been $1,157.72 and total volume was $41,700.85, the Net Productive Price is two.78%. These, by the way, are actual numbers from a statement that a merchant lately handed me saying, “I doubt you can beat my price….I am at 1.51% plus $.25” which, of course, is what his provider focused on when initially promoting him on the partnership. As you could possibly consider, immediately after providing this merchant a thorough education on this business and customizing a appropriate pricing technique for him, you know who he is processing with now.

The bottom line right here is that I definitely want to drive property to you is this….Study AND Have an understanding of YOUR STATEMENT, Month-to-month. In fact, processors know that a majority of merchants just do not take the time to do so and really frankly use this to their benefit and get far more deeply into your pocket. Maintain far more for you and give much less to them. Till subsequent time, I want you a prosperous 2011.