How to find the two numbers on your statement
Both numbers are usually in the summary on the first page of a monthly processing statement. Processors name them differently:
| You need | Look for these labels |
|---|---|
| Total card sales | Amount submitted, gross sales, total payments, net sales |
| Total processing fees | Fees charged, total fees, service charges, discount |
| Number of transactions | Items, transactions, count, number of sales |
Two rules keep the result honest:
- Use the same period for both numbers. Some processors take fees from each day's deposit and others once a month, so fees for one month can show up on the next month's statement.
- Count every processing fee: percentage fees, per-transaction fees, monthly fees, PCI fees and chargeback fees. Leave out loan payments and equipment you bought, which are not the cost of taking cards.
How to read a merchant statement walks through a statement section by section. Each of these guides shows where one processor keeps the statement and what its totals are called:
- Clover Statement: Where to Find It and How to Read It
- Square Fees Report: How to Read Your Square Statement
- Stripe Fees Report and Balance Summary: How to Read Them
- Toast Processing Statement: How to Read Every Line
- Fiserv (First Data) Statement: How to Read It
- Worldpay Statement: How to Find and Read It in iQ
- Heartland Statement: Where to Find It and How to Read It
- Chase Merchant Statement: Where to Find It and How to Read It
- Shopify Payments Fees and Payouts: How to Read Them
What the effective rate tells you
The effective rate is what you actually paid for card processing, every fee included, as one percentage. That makes it useful in three ways:
- It puts different pricing models on the same footing, whether your plan is flat rate, tiered or interchange-plus.
- It shows the trend. Work it out for the same month each quarter and you see whether your cost is rising.
- It turns a fee total into something you can feel: the dollars you pay for every $100 of card sales.
What it does not tell you
- Who gets the money. Part of every fee goes to the bank that issued the card and to the card network, and part to your processor. The rate does not split them. Interchange, assessments and markup explains the three layers.
- Why it moved. Card mix changes the rate with no change to your pricing: rewards and business cards cost more than basic debit, and keyed or online payments cost more than tapped or dipped cards.
- Whether one month is typical. An annual fee, a chargeback or a slow month with the same fixed fees can push a single month up. Compare a few months before you draw a conclusion.
- Whether your rate is good. Businesses with large debit sales and businesses with small rewards-card sales can pay very different rates on the same plan, so a rate on its own says little. See the effective rate guide for what to compare instead.
FAQ
What is an effective rate?
It is the total you paid in card processing fees for a period, divided by your total card sales for the same period, times 100. It is what you actually paid, after every fee on the statement, as one percentage.
Is the effective rate the same as the rate in my contract?
No. The rate in your contract usually applies to one kind of transaction. Rewards cards, keyed and online payments, per-transaction fees and monthly fees all add to what you pay, and the effective rate counts all of them.
Should I use gross sales or net sales?
Use net card sales (after refunds) if your processor returns its fees on refunds, and gross sales if it does not. Use the same one every month so the rates compare.
Why is my fees per $100 the same number as my rate?
Because a percentage is a share of every $100. An effective rate of 2.76% means you paid $2.76 in fees for every $100 of card sales.
Does this calculator save my numbers?
No. The numbers are sent in the page address only to work out the result, and the calculator does not save them. It asks for no statement and no contact details.