Home » What is a Merchant Statement — and How to Read It Properly

Have you ever looked at your merchant processing statements and felt like you needed a translator?

You’re not alone. For many business owners, merchant statements are dense and full of confusing terms and numbers. Still, it is important to understand them at a basic level so you can catch red flags early and spot hidden or unexpected fees.

Let’s dive straight in.

What is a merchant statement?

A merchant statement is a monthly report from your payment processor that summarizes your credit card processing activity. Think of it like a bank statement — but instead of tracking your spending, it tracks your sales, fees, deposits, and chargebacks.

Your merchant statement typically includes:

• Total sales volume and number of transactions
• Breakdown of fees (per transaction, percentage-based, monthly, etc.)
• Refunds and chargebacks
• Net deposits sent to your bank
• Card types used (Visa, Mastercard, Amex, etc.).

Even if you’re not a numbers person, it’s recommended to review your payment processing statement regularly. It helps you catch any unexpected or incorrect fees, track trends in your sales or refund activity, spot red flags like rising chargebacks or rate increases, and make informed decisions about switching providers or negotiating better rates.

At the very least, take a few minutes each month to scan your statement — and dig in deeper if you notice anything unusual.

An example of a payment processing statement

To make all this easier to follow, let’s take a quick look at a sample merchant statement for one of our clients.

How to read your credit card processing statement

Every payment processor structures its statements somewhat differently — both visually and in terms of which data is included. However, once you know what to look for, reading them becomes a lot easier.

Below, we’ll walk through each part of a typical merchant statement step-by-step.

Step 0: Confirm basic account details

First things first: make sure you’re looking at the right statement. It sounds obvious, but it’s possible to mix things up — especially if you manage multiple locations or work with different providers.

Here’s what to check at the top of the statement:

• Business Name & DBA (Doing Business As): Make sure the name matches your store or location.
• Merchant ID (MID): This is your unique identifier with the processor. It helps you track which account you’re reviewing.
• Statement period: Double-check the start and end dates — sometimes, statements can overlap or show partial months.
• Processor or provider name: This helps if you work with an independent sales organization (ISO) or if your processor was recently acquired or rebranded.

This takes 30 seconds and can prevent you from wasting time if there is a mistake.

Step 1: Start with the business or account summary

This section gives you a high-level snapshot of your monthly activity. It’s usually right near the top and helps you quickly answer: How much did I process, and how much did I actually receive?

Here, you will find figures like:

• Gross sales: Total credit and debit card sales before any deductions.
• Refunds: Any returns or reversals processed during the month.
• Chargebacks: Disputed transactions — these are deducted from your total.
• Net sales or deposits: What’s left after refunds and chargebacks, before fees.
• Number of transactions: Useful for spotting spikes or dips in activity.

This section is great for quickly spotting red flags — like a big jump in refunds or lower-than-expected deposits. If something looks off here, it’s a sign to dig deeper into the rest of the statement.

Step 2: Review processing volume and card types

Next, look at the breakdown of your processing volume — both in dollar amount and transaction count. This section tells you what kinds of cards your customers are using and how the transactions were entered.

You will often see details like:

• Total processing volume: The total dollar amount processed across all card types.
• Number of transactions: Total number of credit/debit card payments.
• Card types accepted: How much was processed via Visa, Mastercard, Amex, Discover, etc.
• Entry methods: This shows whether transactions were swiped, dipped (chip), tapped (contactless), or keyed in manually.

Keeping an eye on this breakdown can help you understand why your fees fluctuate — and whether there are opportunities to lower them by encouraging safer, lower-cost payment methods.

Step 3: Break down the fees

For most merchants, this is the most confusing part of the statement. Fees can be buried across several sections, and can be confusing even for experienced merchants.

We do not recommend that merchants spend too much time on this unless there is something off in the earlier summaries. 

If you do decide to go deep here, keep in mind the following questions while reviewing these fees:

• Are these charges consistent with what I agreed to?
• Have any new or unexpected fees appeared?
• Are there multiple fees for the same thing?

1. Per-transaction fees

These are flat fees charged for every transaction — for example: $0.10 per swipe or dip

You’ll often see them listed as “Auth Fee,” “Transaction Fee,” or similar.

2. Percentage-based fees

This is the percentage of each sale that goes to the processor. It might look like: 2.75% of monthly volume

These are often labeled as “Discount Rate,” “Processing Rate,” or “Qualified/Non-Qualified Rate.”

3. Monthly fees

Standard monthly charges may include:

• Statement or service fee
• Gateway fee (if you use an online processor, POS system, or similar)
• Terminal rental fee (if you lease a card reader)

4. Miscellaneous charges

These are the catch-all line items — and often where the weird or questionable fees show up. Common examples include:

• Batch fees (charged daily for closing out your terminal)
• Address Verification Service (AVS) fees
• PCI compliance fees
• Voice authorization fees
• Regulatory fees or Network access fees

Step 4: Look at chargebacks and disputes

Chargebacks are when a customer disputes a transaction — and the funds are pulled from your account while the issue is reviewed. They’re a pain, but happen from time to time to all merchants.

On the merchant statement, this section may be labeled something like “Dispute Activity” or “Retrievals and Chargebacks.” 

Some merchant statements will include all of the details: date of the chargeback, amount reversed, reason codes, and associated fee. However, to keep the processing statement concise, most processors will only include the number of chargebacks, the dollar amounts associated with those chargebacks and related fees — and send you a more detailed chargeback report separately.  

Reviewing chargebacks and disputes ensures you are not losing money without knowing it. You should be notified of every chargeback as soon as it occurs. If you weren’t, you may have missed the window to fight it.

Step 5: Review the deposit or batch summary

This section shows how and when your money was deposited into your bank account. It helps confirm that what you earned — after all the fees and deductions — actually made it to your account.

Look for a section labeled something like “Batch Summary,” “Daily Deposits,” or “Funding Activity.”

What you’ll typically see:

• Batch or deposit date
• Total batch amount (gross sales from that day or period)
• Fees deducted (may be listed per batch or totaled monthly)
• Net deposit amount
• Bank deposit date

Even if you don’t do full reconciliation, this section is a quick way to spot missing or delayed deposits and confirm that amounts match your point-of-sale or sales reports.

Common red flags to watch out for

Understanding what’s not right on your merchant statement can save your business thousands of dollars a year. Below are the most common red flags.

Inconsistent fees month to month

Your sales stayed about the same — but your fees went up. Why? This often signals that something changed without your knowledge:

• Your rate may have increased.
• More transactions may be getting downgraded.
• Your processor may be slipping in new charges under generic labels.

Example: One month you pay $650 in fees. Next month it’s $730 — with no jump in sales volume. That’s a red flag.

Action: Compare statements side by side. Ask your provider what changed — and get it in writing.

“Miscellaneous” or undefined charges

A line labeled “Misc Fee”, “Other Charges,” or “Adjustment” with no explanation? That’s a problem. These are often tiny amounts — $3.95 here, $7.50 there — that most people overlook.

Example: You see “Other Fee – $12.50” but there’s no breakdown. That could be padding.

Action: Push for itemized detail. If they can’t explain it clearly, you may be getting overcharged.

Tiered pricing surprises

Tiered pricing sounds simple — until it isn’t. Most processors don’t tell you how many of your transactions fall into “non-qualified” tiers, which carry much higher fees.

Example: Your plan says “as low as 1.79%,” but most of your transactions are actually charged at 3.5% because they’re considered “non-qualified.”

Action: Ask for a breakdown by tier. If your non-qualified volume is high, consider switching to interchange-plus or flat-rate pricing for more transparency.

Hidden monthly or annual fees

Some providers sneak in administrative, statement, or “customer service” fees that aren’t clearly disclosed. Look out for things like:

• PCI compliance fees
• AVS (Address Verification Service) charges
• Regulatory cost recovery
• Account maintenance costs.

They may be small, but if they weren’t clearly disclosed, you’re paying for things you never agreed to.

Example: A $19.95 “Account Maintenance Fee” appears, but it wasn’t mentioned when you signed up.

Action: Review your original agreement. If the fee isn’t there — challenge it. Many providers will waive it to keep you happy.

Sudden rate increases without notice

Some processors raise your rates automatically — either quarterly or annually — without emailing you or getting your approval.

Example: Your discount rate jumps from 2.75% to 3.1%, and you only notice because your fees increased noticeably.

Action: Keep copies of old statements and compare your effective rate over time. If it’s creeping up, call it out and renegotiate.

Duplicate fees

It is rare, but mistakes happen. A fee might get charged twice, or appear under two different names.

Example: You see both a “PCI Non-Compliance Fee” and a “Security Fee” — but they’re really the same thing.

Action: Compare line items across months. If something appears twice, highlight it and ask for clarification — or a refund.

Chargebacks fees you weren’t aware of

Chargebacks aren’t just expensive — they’re also time-sensitive. If you weren’t notified of a chargeback, you lost both the sale and the opportunity to fight it.

Example: You see a $120 chargeback and a $25 fee on your statement — but you never got an email or alert when it happened.

Action: Contact your processor. Make sure your email and phone number are correct in their system, and ask to be enrolled in real-time chargeback notifications. This is integral for effective chargeback management.

Save money by knowing where to look

Merchant statements might look complicated at first, but once you know how to read them, they become a powerful tool for your business. It’s not about becoming an expert — just about being informed enough to spot problems early and ask the right questions.

Understanding your statement helps you keep more of your revenue. And if something doesn’t add up, don’t stay silent — push back, negotiate, or consider switching providers.

Still confused by your payment processing statement or want to switch providers?

Talk with experts at SecureGlobalPay. We offer complete payment processing solutions for retail and high-risk merchants and can also help you review your existing merchant statements.