Illustrative example only: The numbers below are fictional and simplified. They do not come from a merchant, do not represent a quote or benchmark, and do not predict savings.
Written and reviewed by Raied Muheisen · Last reviewed June 21, 2026
Sample monthly summary
| Card sales volume | $20,000 |
|---|---|
| Transactions | 500 |
| Average ticket | $40 |
| Total processing-related cost used in this example | $620 |
| Illustrative effective rate | 3.10% |
How the effective rate is calculated
Divide total processing-related cost by processed card volume: $620 ÷ $20,000 = 0.031, or 3.10%.
The calculation is only useful when the numerator is defined consistently. Equipment, software, one-time charges, chargebacks or unrelated services may need separate treatment depending on the decision.
Illustrative fee-category breakdown
| Category | Example amount | Review question |
|---|---|---|
| Interchange and card-network related costs | $380 | Which amounts vary by card type, transaction and network? |
| Processor markup | $110 | How is markup expressed and where does it appear? |
| Transaction or authorization fees | $45 | Which transaction types are counted? |
| Monthly, gateway or PCI-related charges | $55 | Which services or obligations support each fee? |
| Equipment or software | $30 | Is it owned, rented, leased or bundled? |
| Total | $620 | Does this include every relevant cost for the decision? |
Processing terminology
- Interchange
- A component of card acceptance cost that varies by transaction and card characteristics.
- Assessment or network fee
- A card-network-related charge or component; statement labels vary.
- Processor markup
- Pricing added by the processing provider under the merchant agreement.
- Effective rate
- Total defined cost divided by processed volume for the same period.
- Card present
- A transaction using an in-person acceptance method.
- Card not present
- A remote or online transaction with different risk and pricing considerations.
- Batch or settlement
- The process that closes transactions for funding according to provider procedures.
Questions this sample cannot answer
- Whether every charge is contractually correct.
- Whether another provider will approve the merchant.
- Future card mix, volume, rates or fees.
- Whether equipment can be moved or reprogrammed.
- Guaranteed savings.
Use the Statement Review Checklist, read the review methodology, or request a review.