This is a statement from one of the few credit card merchant services providers in the country that places the majority of their accounts on and interchange plus pricing structure. Their statements look confusing at first – but once you have seen one they pretty much all look the same.
1. This shows the total gross amount of credit card sales processed over the course of the month.
2. The breakdown of the monthly merchant processing services fees. You can see where these are calculated on page 2.
3. Total fees for the entire month – including V/MC fees AND the processor’s own fees.
4. The net amount of deposits paid to the merchant after the merchant card services fees have been paid.
1. This is the fee charged by Mastercard for all of their transactions over the course of the month. Many processors will wrap this into their merchant account rates if they are on a three tier rate system. With an interchange plus pricing structure it is always shown separately. The .095 is 9.5 basis points, or 9 and 1/2 cents for every $100 processed.
2. The breakdown of the actual Mastercard interchange categories processed over the course of the month. These are passed through at cost. Their is no negotiating these rates – they are set forth by MC. If you compare these numbers to where they may fall with a mid or non qualified rate you can see that the savings will be significant.
3. Visa’s assessment fee of .0925 or 9.25 points. (For those who do not know, 1 basis point = 1/100th of 1 percent)
4. The Visa interchange categories of credit cards accepted over the course of the month. Right below here you can see the total for all interchange fees for the month, $327.92.
5. This is the breakdown of the fees actually charged by Heartland for their merchant processing services. You can see in this case that the client is written at interchange plus .15% and $.15 per transaction. This means that the merchant will pay the processor .15% of their monthly sales. In this case they paid $24.42 based on their monthly credit card processing volume. The client will also pay the processor $.15 for every transaction that they process. This came out to $124.65 for this month. Total fees paid to the processor for this month were $149.07
6. Total credit card merchant services fees paid to the processor.
7. The transaction fee that the processor is charging for all American Express and Discover sales. In this case it is $.10.
8. The monthly service fee to have an account with the processor. It is $10, but if you look to the left of this you see $0. I don’t know why they have it set up this way unless they expect the client to believe that they actually are paying $0.
9. The total merchant services fees paid for the month including all Visa and Mastercard interchange fees, and the processor’s own fees.
Since this clients average sale was so low and their transaction fee was so high, we were able to save them 9% off of their monthly and annual fees. If there is anything on here that is still unclear – please feel free to ask.
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