Many merchants read their processing bill to find out exactly what they are paying in credit card processing fees. The easiest way to achieve this goal is to find your actual price. Your effective plan gives you an overall idea of what you`re actually paying, based on the concrete numbers of your billing. Interchange Plus pricing shows the processor discount rate as a single small percentage for all card brands. The following instructions show examples of how the processor discount rate is displayed on various Interchange Plus statements. Often, a chargeback is due to identity theft or a stolen credit card, but not always. In fact, studies have shown that 71% of chargeback disputes are classified as fraud. In the event of perceived or known fraud, you, as a merchant, can dispute a chargeback. However, to dispute a chargeback, you must first know that it has occurred. On a monthly discount, a processor calculates all fees in a lump sum at the end of each month. Billing based on a monthly discount is much easier to reconcile than invoices based on a daily discount. It is important to understand your merchant account statement, its components and steps. We`ve listed the most important parts of your merchant account statement, but every trader needs to dissect their own and get used to analyzing the details of their bank statements.
While many traders are reluctant to read their trader statements, they quickly realize (usually at the end of the first month) that they should have bitten their teeth long before and dived into the analysis. The sample instruction analyses provided in this tutorial use instructions from different processors. You should be able to find a statement analysis with a format very similar to yours so that you can follow closely. Don`t worry about trying to decipher the base cost on your bill now. We will discuss that in a moment. At present, the important point to understand about basic costs is that they are non-negotiable and the same for all processors. The base cost your business pays now is the same base cost it will pay if you switch processors. Interchange Plus` processing instructions will almost always list the details of the exchange. Below are some examples of Interchange Plus statements that list interchange fees. The simplest way to recognize tiered awards is to use the terms “qualified,” “moderately qualified,” or “unqualified” somewhere in the bill. Note that terms can be abbreviated in several ways, for example. B”, “qual”, “mqual” and “nqual”.
Tiered pricing is easily recognizable by the presence of these terms in the following sample instructions. Interchange models require more due diligence on the part of the merchant to regularly review their statement and evaluate interchange rates, but when you`re ready to get the job done, Interchange offers full transparency. A more detailed tutorial, line by line, would be more useful for local dealer service representatives, and I`m sure it would be greatly appreciated. Your interchange fees will likely be shown on your merchant statement next to the card brand names: Discover, American Express, Visa, etc. Each transaction has different dollar and percentage costs, as interbank fees vary with each card processed. To calculate the total fee on a daily discount statement, the fees paid during the month must be added to the fees charged at the end of the month. Merchant service statements embody the lack of transparency, which is a major systemic issue in the credit card processing industry. Tiered pricing (also known as “bundled pricing”) allows processors to completely hide basic processing fees.
At Electronic Merchant Systems, we provide our merchants with a portal that allows them to view transactions, lots, bank statements, and even online deposit information at any time. Our portal is easy to navigate and allows merchants to review all the important aspects of the statement that we`ve explored so far in this article, including chargeback information. Our dealers can also contact our customer support team 24/7/365 by sending a short email from the portal. We also provide PCI compliance information and support to help any merchant grow their business to the highest card security standards. Another way to identify tiered prices is to pass on the rates to different brands of cards. Examples of such statements are given below. This is where your merchant billing comes in. Chargeback activity is noted on your monthly statement, and it`s important to investigate unexpected or suspicious chargebacks. Your payment processor can also send a separate letter or secure communication to inform you of chargeback activity, so be sure to open everything they send you! Let`s start by describing the basic steps to dissect a merchant processing record. Each step is important, and some rely on the last one, so follow the links that explain a support topic in more detail if you`re not clear on the details.
Your credit card processing fee is the amount collected by your payment processor for each card transaction made by your company. It is important to analyze these fees regularly, as many of them change, usually about twice a year. These changes are often minimal, but can add up quickly if you don`t monitor them. This means that you actually paid 2.21% credit card processing fee on each transaction. This number may not reflect the exact percentage you are charged, but it does give you a very good estimate. When was the last time you read your dealer`s statement in detail? We know that your time as a small business owner is precious. .