Understanding Your Statement

Fattmerchant customers receive a statement in the mail every month breaking down the previous month’s transactions and the cost of processing. You can also access your Fee Statements in Omni under Reports. Below is a breakdown of the various fees you might see on your merchant statement.

Interchange Fees & Assessments

Interchange is a fee set by card brands like Visa and Mastercard. Interchange is the cost for accepting credit cards at your business, and interchange rates vary. Card brands publish their interchange rates every year on their websites.

Assessments are a percentage fee charged by card brands on every transaction. Assessments apply to both debit and credit transactions and different assessments can apply in different circumstances, such as whether the card was a debit or credit card or if it was an international purchase. Assessments are subject to change, but card brands do announce these changes. These assessments cannot be negotiated with your credit card processor.

Transaction Fees

Transaction fees are fees charged by the card companies for every transaction you run. These are always a set amount per transaction, such as $.10 per sale . These are sometimes referred to as an “auth fee” or “authorization fee.”

Effective Rate

Your effective rate is expressed as a percentage on your statement. Your effective rate is calculated as your total processing fees divided by your total sales volume. This helps you see at a glance how much your payment processing costs compared to your sales. Calculating an effective rate allows a fair comparison between processors that have different pricing structures, such as comparing Fattmerchant's subscription model to another processor's cost plus pricing model.