What your card payment statement isn't telling you
Headline rates only tell part of the story. Here's what to look for on your card processing statement and why a review matters.
A card processing statement is one of the most important documents a business receives each month, yet it is rarely read in full. The headline rate — the percentage a provider quotes for taking card payments — is only one line on the page. The true cost of accepting cards is spread across several charges, and understanding them is the first step to knowing whether your current arrangement is working for your business.
Rate versus effective cost
The headline rate is the per-transaction percentage a provider advertises. The effective cost is what you actually pay once every charge is taken into account — transaction fees, terminal rental, PCI compliance fees, minimum monthly charges and any surcharges for specific card types.
A headline rate that looks competitive can produce a materially higher effective cost once these additional charges are included. The only way to know your true cost is to divide total fees by total card turnover for the period shown on your statement.
Charges to look for
Beyond the headline rate, a typical statement may include:
- Terminal rental — a monthly charge for card machine hardware, whether or not you use it.
- PCI compliance fees — a regular charge for meeting card security requirements, sometimes accompanied by a non-compliance penalty if requirements are not met.
- Minimum monthly charges — a floor below which you are charged regardless of how much you process. If your turnover dips, you may pay more than the headline rate suggests.
- Non-qualified surcharges — higher rates applied when a transaction does not meet the criteria for the headline rate. Business and corporate cards, international cards and some keyed-in transactions can attract a higher percentage than the quoted rate.
- Contract and notice terms — the length of your agreement and the notice you must give to end it. These are often on the statement or in a separate terms document.
Why headline rates mislead
A provider may quote a low rate for standard debit cards while applying higher rates to other card types. If your customers frequently pay with business, corporate or international cards, the surcharges can add up. A statement review looks at the full picture — the actual card mix your business processes — rather than a single rate quoted in isolation.
What a statement review involves
A card payment statement review is a straightforward process:
- You share a recent merchant statement.
- The figures are read and extracted — turnover, fees, transaction counts and card mix.
- Every figure is confirmed by a person before any calculation is carried out.
- Your current effective cost is compared against alternative arrangements on a like-for-like basis.
- You receive a clear summary of what you are paying and what options are available.
No changes are made to your account without your agreement. The review is educational — it tells you what your statement shows and what it means.
What to do next
If you are not sure what your card processing arrangement costs you each month, start by finding your most recent merchant statement. Look beyond the headline rate and check the total fees deducted. If the total is higher than you expected, a statement review can help you understand why.
Request a Free Business Health Check and a member of our team will walk you through what your statement shows and what your options are.
This article is general information only and does not constitute financial advice or a contract offer. No specific savings figures, provider names or average costs are stated, as actual outcomes depend on your individual circumstances.
