Most merchant processing statements are dense, confusing, and designed to obscure your true cost. Understanding how to read a processing statement is essential for evaluating whether your current processor is offering fair value — and for making an accurate comparison if you’re considering switching to ConvesioPay.
The Key Metrics to Find First
Effective Rate
Your effective rate is the total you paid in processing fees divided by your total processing volume, expressed as a percentage. It’s the single most useful number on your statement.
Formula: Total Fees ÷ Total Volume = Effective Rate
Example: $1,850 in fees on $45,000 in volume = 4.11% effective rate. Compare this to what your processor quoted you — the gap reveals how much you’re actually paying vs. the headline rate.
Per-Transaction Fees
Statements often separate percentage fees from per-transaction fees. A processor charging 2.5% + $0.30 on $45,000 in volume across 500 transactions generates: 2.5% × $45,000 = $1,125 + 500 × $0.30 = $150 = $1,275 just in transaction fees. Additional fees push the effective rate higher.
Common Line Items Explained
- Discount rate / processing fee: The main percentage fee charged on transaction volume
- Authorization fees: A per-authorization fee, sometimes charged even on declined transactions
- Assessment fees: Card network fees passed through — Visa charges 0.13% on credit transactions; Mastercard charges 0.1375% plus various network fees
- Network access and brand usage fees: Additional Mastercard and Visa fees
- Statement fee: A monthly fee simply for receiving a statement
- PCI compliance fee: An annual or monthly fee for PCI program participation
- Non-compliance fee: Charged when a merchant hasn’t completed PCI compliance — often $20–$50/month
- Batch fee: A fee charged each time you settle your batch
- IRS reporting fee: A fee for 1099-K reporting
Identifying “Junk Fees”
Junk fees are charges with no clear business purpose: monthly minimum fees, statement fees, annual fees, account maintenance fees, and excessive PCI fees. A processor charging $25/month in statement fees adds $300/year in pure overhead — fully avoidable by choosing a processor with no monthly fees.
Why ConvesioPay’s Pricing Is Different
ConvesioPay charges 2.9% + $0.30 per transaction with no monthly fees — full stop. No statement fees, no PCI fees, no batch fees, no annual fees. Your effective rate equals your transaction rate. The simplicity makes it easy to budget and easy to verify you’re being charged correctly.
Ready to get started? Learn more about ConvesioPay or view pricing.