{"id":998,"date":"2020-02-23T23:03:58","date_gmt":"2020-02-23T23:03:58","guid":{"rendered":"https:\/\/trc-parus.ru\/?p=998"},"modified":"2023-05-11T10:07:59","modified_gmt":"2023-05-11T18:07:59","slug":"reading-your-credit-card-statements","status":"publish","type":"post","link":"https:\/\/trc-parus.ru\/blog\/reading-your-credit-card-statements\/","title":{"rendered":"Reading your credit card statements"},"content":{"rendered":"\n
Reading credit card statements is complicated. There is no standard and there are no regulations enforcing a pricing method. There is a credit card processing code of conduct, but it is not enforced because it is more of a recommendation.<\/p>\n\n\n\n
We’ll take you through a few things that will help you read and understand your credit card processing statement. Keep in mind, there are hundreds of fees and many processors use their own terminology making things more difficult. This will cover only the most common fees you will see. <\/p>\n\n\n\n
In addition, there are several different pricing methods that credit card processors use. The most common ones are: Interchange Differential, Interchange Plus, Tiered and Flat. If you’re new to payments, be sure to read some basics on credit card processing<\/a>.<\/p>\n\n\n\n The most common fee quoted by credit card processors is the \u201cmerchant discount rate\u201d or MDR used in Interchange Differential pricing, the most popular but not most merchant-friendly type of pricing. When you see really low rates like 1.49%, the credit card processor is quoting the MDR. You have to be aware that this is not the final rate you will pay. Paying only the MDR only happens with the basic credit cards (ie not premium, corporate, etc) and “card present” transactions (ie. not virtual terminal, online, etc.). “Card present” means the card is physically with you when you run the transaction. <\/p>\n\n\n\n When a card is not physically with you, you will get another percentage fee on top of the MDR. That is generally called the “non-qualification fee” or “non-qual fee”. Here are the most popular names used in credit card statements for the most common types of fees. <\/p>\n\n\n\n This is the base rate charged to every credit card transaction (MasterCard, Visa, Discover, Amex, Union Pay) and what they are called by different credit card processors.<\/p>\n\n\n\n \u201cDiscount Fees\u201d by Chase categorized in \u201cCard Type Charges\u201d<\/p>\n\n\n\n \u201cVisa Discount\u201d, \u201cMasterCard Discount\u201d etc by First Data categorized in \u201cService Charges\u201d<\/p>\n\n\n\n \u201cDisc Rate\u201d and \u201cFee Amount\u201d by Global Payments categorized in \u201cDiscount\u201d.<\/p>\n\n\n\n \u201cDiscount Charge\u201d by Elavon categorized in \u201cCredit Charge Processing Charges\u201d and a total for each network.<\/p>\n\n\n\n \u201cVisa Transaction, MasterCard Transactions, Discover Transaction, Union Pay Transaction\u201d categorized in \u201cTransaction Fees\u201d for Moneris<\/p>\n\n\n\n \u201cVisa Credit Rate, MasterCard Credit Rate, Discover Credit Rate, Union Pay Credit Rate\u201d categorized in \u201cSummary of Fees\u201d for TD Merchant Services.<\/p>\n\n\n\n The non qualified rate is applied to all card not present transactions and for credit cards that are not the basic credit cards. This means any credit cards that are with rewards, corporate, travel, cash-back, etc. Here are the most popular names of the non qualified fees. <\/p>\n\n\n\n \u201cNon-Qualifying Interchange\u201d categorized in \u201cInterchange Charges” for First Data. <\/p>\n\n\n\n \u201cNon-Qualified\u201d categorized in \u201cCard Type Charges\u201d for Chase<\/p>\n\n\n\n \u201cDiscount Charges\u201d for Elavon are listed by card and include the Interchange Differential fees<\/p>\n\n\n\n \u201cFee Amount\u201d by card type categorized in \u201cOther Charges\u201d for Global<\/p>\n\n\n\n \u201cVisa-Non-Qualified\u201d and \u201cMC-Non-Qualified\u201d categorized in \u201cTransaction Fees\u201d for Moneris<\/p>\n\n\n\n In addition to the “non-qualified rate,” the credit card processor may charge you the difference between a consumer card and a non-qualified card. An example scenario is a Visa consumer card has an interchange rate of 1.42%, and a Visa infinite credit card has an interchange rate of 1.61%. A differential fees is paying that difference, which is 0.19%. Even though you have already paid a penalty through the “non-qualified rate”, some credit card processors will charge a Differential Fee. Here is how the differential fee is labeled with different credit card processors.<\/p>\n\n\n\n Included with \u201cNon Qualified\u201d fees for Chase.<\/p>\n\n\n\n Included in \u201cNon-Qualifying Interchange\u201d categorized in \u201cInterchange Charges\u201d for First Data.<\/p>\n\n\n\n Included in \u201cOther Charges\u201d for Global Payments although Global uses a grid for non-qualified fees that include the differential fees.<\/p>\n\n\n\n Included with \u201cDiscount Charges\u201d and shown by card for Elavon.<\/p>\n\n\n\n Shown under \u201cInterchange Differential Analysis\u201d and \u201cInterchange Differential Fee\u201d for Moneris.<\/p>\n\n\n\n Shown under \u201cDetails of Discount Rate Adjustment Fee\u201d and \u201cInterchange Differential\u201d Trans Fee\u201d for TD Merchant Services.<\/p>\n\n\n\n Card brand fees and assessment fees are the fees paid to the credit card companies directly (Visa, MasterCard, Interac, Discover etc). They are sometimes referred to as \u201cAssessment Fees\u201d or \u201cNetwork Fees\u201d depending upon the credit card processor. <\/p>\n\n\n\n Fees are charged on foreign cards that you accept. So if your business is in Canada and you have a customer from USA, a foreign card brand fee will be charged. Many processors mark up this fee. <\/p>\n\n\n\n Here are some other possible fees that you may see in your statements:<\/p>\n\n\n\n Transaction fees are charged for each transaction. This is a dollar amount, not a percentage. This can range from $0.06 to $0.50 per transaction. There will generally always be a transaction fee of some sort.<\/p>\n\n\n\n Monthly fee or Admin Fee charged monthly. This is typically $15, but can range from $11 to $40.<\/p>\n\n\n\n Statement fee which is charged monthly. Typically $5.<\/p>\n\n\n\n \u201cAccount Maintenance\u201d fee usually replaces the \u201cAdmin Fee\u201d a monthly flat fee of $10.<\/p>\n\n\n\n \u201cBatch Fee\u201d or \u201cSettlement Fee\u201d charged for each settlement or batch done each month.<\/p>\n\n\n\n \u201cEquipment Maintenance Fee\u201d charged for each terminal monthly. This may differ depending on which terminal<\/a> you use.<\/p>\n\n\n\n \u201cSettlement & Access Fee\u201d charged for specific transactions can be % and\/or per transactions<\/p>\n\n\n\n \u201cPCI Admin\u201d fee charged for PCI compliance. This might be rolled into an admin fee or might be separated out.<\/p>\n\n\n\n \u201cRefund\u201d fee charged for each refund transaction. Sometimes just the transaction fee is used.<\/p>\n\n\n\n \u201cChargeback\u201c fees are fees when one of your customers does a chargeback. This can be anywhere from $10 to $30.<\/p>\n\n\n\nMerchant Discount Rate (MDR)<\/h2>\n\n\n\n
Non Qualified Rate <\/h2>\n\n\n\n
Differential Fee <\/h2>\n\n\n\n
Card Brand and Assessment Fees<\/h2>\n\n\n\n
Foreign Card Brand and Assessment Fees <\/h2>\n\n\n\n
Other Credit Card Processing Fees<\/h2>\n\n\n\n
Understanding Your Credit Card Processing Fees<\/h2>\n\n\n\n