Updated: Mar 12
A Guide for business with a merchant account.
At Make the Impact we understand that managing your payment processing can be overwhelming, especially when it comes to understanding your merchant statement. That's why we've created this guide to help you better understand your statement and the fees associated with your payment processing.
Payment processing is a complex industry with a lot of industry-specific terms and jargon. It's important to understand the basics of payment processing to make sense of your merchant statement.
How Payment Processing Works
When you accept credit card payments, the funds are processed through a payment gateway and then sent to your merchant account. The payment gateway acts as a middleman between your business and the credit card networks.
Once the funds are in your merchant account, they are typically held for a few days before they are deposited into your business bank account. This waiting period is known as the settlement period.
Understanding Your Merchant Statement
Your merchant statement is a document that shows all of the fees and charges associated with your payment processing. It can be overwhelming to read, but breaking it down into smaller pieces can make it easier to understand.
Here are some key terms and sections you should be familiar with:
Deposits: This section shows the funds deposited into your business bank account. It should match the total amount of credit card transactions processed during the settlement period.
Fees: This section shows all of the fees associated with your payment processing. These fees may include processing fees, interchange fees, chargeback fees, and other miscellaneous fees.
Chargebacks: This section shows any chargebacks that have been issued against your business. A chargeback occurs when a customer disputes a charge on their credit card statement, and the funds are taken out of your merchant account to cover the disputed amount.
Reserves: This section shows any funds that have been held in reserve by your payment processor. Reserves are typically held as a security measure in case of chargebacks or other disputes.
Fees are an unavoidable part of payment processing, but understanding them can help you make informed decisions about your payment processing.
Your payment processor charges processing fees for processing credit card transactions. Interchange fees are charged by the credit card networks, such as Visa or Mastercard, and are typically a percentage of the transaction amount.
Chargeback fees are charged when a chargeback is issued against your business. These fees can vary depending on your payment processor.
Miscellaneous fees can include things like statement fees or PCI compliance fees.
f you have any questions about the fees on your merchant statement, don't hesitate to reach out to our customer support team - at email@example.com We're here to help you understand your payment processing and make informed decisions about your business.
In conclusion, understanding your merchant statement is an important part of managing your payment processing. By familiarizing yourself with the basics of payment processing and the fees associated with it, you can make informed decisions about your business. If you have any questions or concerns about your merchant statement, don't hesitate to reach out to our customer support team. We're here to help.