Merchant Statement Calculator: What Are You Really Paying to Accept Cards?
Your processor quoted you a rate. Your statement says something else. This calculator tells you which number is real.
You need two figures, both on the summary page of your merchant statement: total fees for the month and total card volume processed. Everything else is optional.
Every charge from your processor, not just the discount rate.
Total dollars processed on cards this month.
Lets us check your average ticket.
Benchmarks differ a lot by industry.
| Annualized processing cost | — |
|---|---|
| Average ticket | — |
| Cost per transaction | — |
| Typical range for your industry | — |
| If you were at the top of that range | — |
This is an estimate based on the two numbers you entered. Your actual costs depend on your card mix, how transactions are run, and your agreement — none of which a calculator can see. Benchmarks reflect typical ranges for established small businesses and are not a quote.
Send us your statement and we’ll do the full breakdown — every line item explained, in writing, at no cost.
What your effective rate actually tells you
The effective rate folds everything — your discount rate, per-transaction fees, monthly fees, annual fees, PCI charges, equipment leases — into one number. It’s the only figure that lets you compare one processor’s offer against another honestly, because a quoted rate describes a narrow slice of your transactions under ideal conditions, while the effective rate describes what actually left your account.
A few things worth knowing about the number you just got:
One month can mislead you. Annual fees, PCI assessments, and equipment charges bill on irregular cycles. Run this for three consecutive months and average them.
Your industry changes what “good” means. Restaurant interchange is structurally higher than retail. A convenience store with a $6 average ticket will always run a high effective rate, because the flat per-transaction fee is a large share of a small sale. Comparing your number to a friend’s in a different business tells you very little.
Some of it isn’t negotiable. Interchange — the portion that goes to the card-issuing bank — is set by Visa and Mastercard and is identical across every processor. What’s negotiable is your processor’s markup and the fees stacked on your account.
What to do with a high number
If your rate came back above the normal range, there are usually four culprits, in rough order of how often we find them:
- Tiered pricing. Your “qualified” rate applies to a fraction of your volume and your processor decides which transactions qualify.
- Junk fees. Statement fees, annual fees, vague “compliance” and “network” charges, and PCI non-compliance penalties that disappear the moment you complete the questionnaire.
- An equipment lease. A $300 terminal on a $79/month four-year lease costs $3,792, and the lease usually survives cancellation of the processing agreement.
- Interchange downgrades. Late batching, keyed transactions without address verification, and tips beyond tolerance all push transactions into more expensive catch-all categories.
Our line-by-line statement guide covers how to find each one on your own paperwork.
Frequently asked questions
What is an effective rate?
Your effective rate is total processing fees divided by total card volume, expressed as a percentage. It combines every rate, per-transaction charge, and monthly fee into a single figure that reflects what card acceptance actually costs you — unlike a quoted rate, which describes only one category of transaction under ideal conditions.
What is a good effective rate?
It depends on your industry and average ticket. For general small business, 2.5% to 3.0% is typical and under 2.5% is strong. Restaurants normally run 2.8% to 3.3%. Convenience stores with small average tickets can run 3.0% or higher as a matter of arithmetic rather than a bad agreement.
Where do I find these numbers on my statement?
Both figures are on the summary page of your merchant statement — total fees for the billing period and total card volume processed. If your statement separates fees across multiple sections, add them all together; the effective rate is only meaningful if it includes every charge.
Why is my effective rate higher than the rate I was quoted?
Because the quoted rate usually describes a single interchange category under ideal conditions. Your effective rate includes downgraded transactions, per-transaction fees, monthly and annual fees, PCI charges, and any equipment lease. A gap between the two is normal; a large gap usually means tiered pricing.
Does this calculator send my numbers anywhere?
No. The calculation runs entirely in your browser. Nothing you enter is transmitted, stored, or saved.
Want the full breakdown?
The calculator gives you the headline number. A statement review tells you why it’s that number — which fees are legitimate, which are padding, whether your transactions are downgrading, and whether your merchant category code is right.
We do this at no cost for businesses anywhere in the country, and sometimes the answer is that you already have a good deal. We’ll tell you that too.
