Understand Your Merchant Services Statement

Understand Your Merchant Services Statement

For more than 20 years that I have been in the merchant services business. I have frequently been shocked by the number of sellers hand me unopened seller statements, for review. They often tell me that they are just as well complicated to comprehend. Regrettably, numerous seller provider do this by design to ensure that merchants don’t know excessive. Obviously, if you remain in any type of organization you require to approve plastic as a type of settlement. Many merchants are simply resigned to the reality that it is mosting likely to cost them something and also it is just accepted. What I intend to attempt and also do right here is give you some things that will with any luck assist you in your understanding of your very own merchant declaration.

Prior to I start, let me simply state, there are numerous kinds of declarations that would certainly encompass the numerous kinds of pricing designs. There is Three Tier, Four Tier and Cost-Plus or Interchange-Plus pricing models, each with their very own form of lingo. First allowed’s discuss some basics of the distinctions.


In this form of prices model you would likely see these “packed” type listings:

CERTIFIED: This would be one rate noted such as 1.85% + $.15. This “qualified” price would certainly include swiped debit cards and common, no perk type bank card

MID-QUALIFIED: Again, one price detailed such as 2.25% + $.15. These sorts of transactions would generally be hand-keyed, card-not-present or some kind of Visa/MC “perk” card that pays the cardholder points or regular flyer miles.

NON-QUALIFIED: Rates listed would be the highest of the 3 and also would generally stand for calling card, as an example.

The trouble with this type of prices is it is at the processors discretion which group they put the different card/transaction types. So, subsequently, you might be paying much more that is required on some.


This type of pricing went along when debit cards became a lot more widespread in the industry. Better than Three Tier due to the fact that it offers a reduced price for debit cards.

TIER ONE: This level would certainly be for swiped debit cards (not pinned debit cards) and would certainly represent your cheapest rate. Debit cards, obviously, have less risk to you, the vendor, and therefore have a reduced price framework.

TIER TWO: This would certainly be mainly equivalent to what is revealed over for Certified purchases

TIER THREE: Below again, this would resemble Mid-Qualifed deals in the Three-Tier design

TIER FOUR: Deals that would mainly mirror the Non-Qualified deals above.

Again, similar to 3 Tier pricing, the cpu puts card/transaction kinds if the groups that they best regard suitable. This is not always the “finest” from an economic for the merchant.


This type of prices is, by far, one of the most clear as well as finest form of pricing. That is, as long as the processor utilizes a layout on their declarations that are simple to review and recognize. As an introduction, here’s exactly how this prices differs from the two previously reviewed. Keep in mind that not all statements will certainly look alike however these are the sorts of classifications you would typically see:

DOWN PAYMENTS: This would certainly be an everyday listing of your set totals for the day. It would provide a reference number, complete number of things, the dollar volume, variety of products and the Net Deposit.

DEPOSITS ITEM RECAP: This area would be totals regarding your complete variety of purchases and also the amount together with any debts.

CARD RECAP: On some declarations, you might see this group which simply breaks down how many different card kinds you received, i.e. Visa, MasterCard, Discover, Amex, Diners or Others. Truly absolutely nothing below to be concerned with as well as is mainly supplied for details.