There are a multitude of different statement formats and it is common for merchant services providers to intentionally produce a complex merchant
statement. ...often times including hidden or undisclosed fees!
So why not take advantage of the Free statement review and analysis offered by Merchant Consultants LLC?
Our friendly and knowledgeable staff are experts at
breaking down and deciphering most merchant statements. We will point out the areas where our partners are able to save you money.
And if you are already getting a great deal, we'll let you know that too!
Payment Processing Statements - Pricing Examples:
Flat Fee pricing - One flat rate for all card types, plus usually there is a second (higher rate) for key-entered transactions.
Sometimes the industry refers to flat fee pricing as "bundled rates".
InterChange Plus (Pass-through pricing) - Transactions are billed at actual passthrough cost, including percentage rates,
plus transaction fees, plus dues and assessments, plus numerous other fees that come straight from the Card Associations. Then the payment processor's
mark-up is added to the processing volume and transaction count. Although InterChange Plus pricing will make the statement appear quite complex, it is
the most transparent form of pricing.
Tiered pricing - Three and four tier pricing formats are the most common. Generally each tier consists of a rate (%) plus a per
Tier I - (Qualified) is usually reserved for swiped (or dipped) consumer cards.
Tier II - (Mid-qualified) usually applies to card-present Rewards Cards and/or key-entered consumer cards.
Tier III - (Non-qualified) usually applies to Corporate and Business Card transactions as well as key-entered cards without
entering AVS (address verification data).
Tier IV is most commonly designated for Check cards/Debit cards.
Bill Back/ERR (Enhanced Recover Reduced) -
Sometimes found on a First Data statement, bill back/ERR is a variation on InterChange Plus pricing. Merchants will be charged the qualified rate for all of their transactions.
Then, for the transactions that are mid-qualified or non-qualified, merchants will be charged again (billed back) for the difference of the qualified
rate (the rate they already paid) and the InterChange rate (cost) plus a surcharge.
Because you will typically see the surcharges on the following month's statement, it requires extra time to research and makes it nearly
impossible to determine the actual cost per transaction with the bill back system.