Merchant Academy

Learn the game before you play it.

Plain-English guidance on merchant statement review, payment processing fees, and how interchange plus compares to flat rate. No fluff, no sales pitch.

Fundamentals

3 articles

Statements

3 articles

POS & Equipment

7 articles

Growth

5 articles
Start here

Stop guessing about your fees.

Two diagrams that explain most of what merchants get wrong about processing costs.

Diagram
Anatomy of a merchant statement

Every statement has the same six regions, even when the layout changes.

Header

Processor, month, merchant ID and the deposit totals for the period.

Volume summary

Card volume and transaction count, usually split by card type.

Interchange detail

The pass-through cost set by the card networks — the biggest line.

Assessments & network fees

Smaller network charges that also pass through untouched.

Processor markup

What your provider adds on top. This is the negotiable part.

Monthly & incidental fees

Statement, gateway, PCI, batch, chargeback and equipment charges.

Diagram
Where a processing fee actually goes

Illustrative proportions only — your split depends on your card mix and pricing model.

Interchange

Card-issuing bank

Assessments

Card network

Processor markup

Your provider

Only the markup portion is negotiable. Any pitch that promises to cut interchange is selling something else.

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