How to read your card machine statement
A card processing statement can run to several pages of codes and small numbers. Here is what each common line means, what is normal and what to question.
The short answer
Every statement answers the same two questions: how much did you take by card, and what did it cost? Find your total card sales and your total fees, then divide the fees by the sales. That figure is your effective rate, and it is the fairest way to compare your statement with a quote. The lines in between show where the cost comes from.
Statements are laid out differently from one provider to the next, and the names of charges vary. The descriptions below are general, so use them as a guide rather than a dictionary for your particular bill.
Step 1: find your sales and your payments
Start at the summary. Look for these three figures:
- Total card sales (turnover): the value of all card payments for the period, before any fees.
- Number of transactions: how many payments that was. Divide the sales by this number to get your average sale.
- Total fees charged: everything you were charged for the period, including rental and any extras.
As an illustration only, using made-up numbers: if you took £30,000 on cards and the statement shows £450 of total fees, your effective rate is 1.5%. Your average sale matters too. If the £30,000 came from 1,500 payments, the average is £20.
Step 2: read the fee lines
The charges below cover most UK statements. Not every provider charges every one.
Fees tied to the cards your customers use
- Interchange: paid to the bank that issued the customer's card. UK law caps it on UK consumer cards used in the UK at 0.2% for debit and 0.3% for credit. Business, corporate and non-UK cards cost more.
- Scheme fees: paid to Visa, Mastercard and the other card schemes for using their networks.
- Acquirer or processor margin: the part the provider keeps. This is the part that differs between quotes.
Some statements show these three separately, which is called interchange plus. Others combine them into one rate, a blended rate. A third approach groups cards into bands with different rates, sometimes called tiered pricing, where a line may be labelled qualified, mid-qualified or non-qualified. The cards that fall into the higher bands can cost noticeably more, so check what was charged in each band.
Fees charged per payment
- Fixed fee or transaction fee: a small amount on every payment. It matters most when your average sale is small.
- Authorisation fee: a per-payment charge for the bank approval step. It may be listed on its own line.
- Gateway fee: a per-payment or monthly charge if you take payments online, by link or over the phone.
Fees charged every month
- Terminal rental: the monthly charge for each card machine. Check you are not charged for a terminal you no longer use. VAT is normally added to the rental, so check which lines carry it.
- PCI fee: a charge for PCI compliance, the card industry's security standard. Some statements also show a separate non-compliance charge. See our PCI compliance guide. PayZu charges zero PCI fees.
- Minimum monthly service charge: a top-up if your fees fall below a set amount in a quiet month.
- Statement or admin fee: a charge for producing the statement or running the account.
Occasional fees
- Chargebacks and retrieval requests: charges when a customer disputes a payment or the bank asks for evidence.
- Refunds: some providers charge for processing a refund, and some do not return the original fee on a refunded sale.
- Payout or settlement fees: charges for moving money to your bank, or for faster payouts.
Want a second pair of eyes on yours?
Send us a recent statement and we'll go through it line by line, show what you pay now and what you could pay with us, and tell you straight if you're already on a good deal. Or try our card fees calculator for a quick estimate.
Send my statementSome businesses could save up to 50% on some fees. Subject to eligibility and status. Savings vary by business.
Step 3: check for things that should not be there
- A fee you cannot explain. Ask the provider what it is for and in which part of your agreement it is described.
- Rental for equipment you returned or no longer use.
- Higher-band charges on ordinary cards if you are on tiered pricing.
- A non-compliance or PCI charge you have already dealt with.
- A minimum service charge in a quiet month that is bigger than your usual fees.
- Rates or fees that changed since your last statement, with no notice you remember.
Keep the last few statements together so you can see changes over time. If you are in a contract, check your options before you move: see our guides to card machine contracts and exit fees and to card machine fees.
Common questions
What is a good effective rate on a card machine statement?
There is no single answer, because it depends on your average sale and your mix of debit, credit and business cards. The useful comparison is your own effective rate against what another quote would have cost on the same month's sales.
What is the difference between interchange and scheme fees?
Interchange goes to the bank that issued the customer's card. Scheme fees go to the card scheme, such as Visa or Mastercard. Neither is set by your provider, and the provider adds its own margin on top.
Why does my statement show different rates for different cards?
Debit, credit, business and non-UK cards cost different amounts to process, and some pricing models pass that on in separate lines or bands.
What is a minimum monthly service charge?
It is a top-up that applies if the fees you generate in a month fall below a set amount. It mostly affects seasonal and low-volume businesses, so check your quiet months.
Can you look at my statement for free?
Yes. Send us a recent statement and we'll show you what you pay now and what you could pay with us. If you are already on a great deal, we'll tell you straight.
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