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 analyze their own and get used to analyzing the details of their bank statements. There are many merchant service providers, so there are many options to choose from, but individual providers may charge different fees, offer different features, as well as different contractual terms. In other words, there are good and bad suppliers. As mentioned earlier, your merchant statement contains more than one list of transactions for the month. It also includes sales activities, including chargebacks and details of credit card processing fees that are deducted from your income. Tracking these two pieces of information is critical to the growth and success of your business. Here`s why: Is there a recommended way to use my billing to reconcile payments to my business? There is so much information, where do I start? Merchant statements provide a wealth of payment processing data and their usage varies depending on the needs and size of your business. Single location instructions are divided into 7 sections. Merchant Billing Sections (in order): Credit card statements can be confusing.
The conglomerate of unknown numbers and terms could trick you into messing up your statement and throwing it in the trash every month. But what if we told you that learning to read your monthly merchant bill could help your business grow? Would you always throw it aside without opening it? When was the last time you read your dealer`s statement in detail? Interchange-Plus is the most common and simple pricing model. An interchange plus statement identifies the above costs – wholesale and mark-up. Although this statement takes a little longer to read, you don`t need to differentiate your costs as they are all clearly displayed. How does my billing cycle affect my fees and charges? Fees are complex and can differ from merchant to merchant due to many factors, including the type of business and the volume of transactions processed. Ultimately, your monthly billing should give you the information you need to calculate your effective credit card rate and the total cost of processing. This is what you should pay the most attention to when learning how to read a statement from a merchant account. So, to summarize: Please note: The layout of all dealer statements varies depending on the supplier. The information presented here is general and should be used as a reference. If your business accepts credit and debit cards, you`ll need a merchant account. A merchant account is not something you can just do yourself, you need to establish a relationship with a merchant service provider to create an account. This obvious discrepancy may be obvious whether your business receives daily, weekly, or monthly billing.
If you`re still unsure about your billing cycle, you can call the phone number on your bank statement or the phone number on your bank statement, or contact support at 800.934.7717. Depending on your processing partner, the percentages calculated for each of these components may be included on your merchant statement. In this case, a simple calculation is enough to see how much you pay in fees each month. If your billing does not include this information or you cannot calculate it, you can contact your processor and request the information. Basically, this is an account where you transfer money from your customers` credit and debit card purchases after they have been processed. You probably don`t have direct access to funds in your merchant account, but the money is automatically deposited into your business bank account, usually within a business day or two. If your processor provides it, an online merchant portal is a great tool to help you monitor the most important aspects of your business. An innovative portal not only allows you to view and analyze your monthly statements, but also to quickly access important information, such as: You say, “Great, the only thing I need from you is an up-to-date processing statement so I can do the free analysis for you.
Do you have one on hand or should I stop and pick it up later in the week? » Why can`t my bank statements be emailed to more than one email address? To protect the security of your sensitive data, account statements can be emailed to a single email address. If your business is a physical store, you may need different services than an online business, which may also be different for businesses that do most of their transactions over the phone. With that in mind, there are a number of variations of a merchant account that you should keep in mind. The tiered pricing model is one of the least preferred, but most retailers end up with this pricing model. Pricing plans classify your transactions into qualified, moderately qualified and unqualified. Once you understand the importance of understanding your merchant account statement, it`s time to get into the details. What you want to do is distinguish between two costs: the basic (wholesale) costs and the mark-up. Wholesale fees are fixed and go to issuing banks and credit card associations; nor are they negotiable.
Markups are payment processing costs and go to your payment processor; they differ from processor to processor and are negotiable. .