The short version
Your statement is answering four questions. Providers use different words, but the questions are always the same:
- What did I sell?
- What was taken off?
- What was it made of?
- What is my effective rate?
This guide uses the sample statements that TD Merchant Solutions publishes for its customers in Canada. TD publishes one guide for each of its pricing types: interchange plus, discount rate adjustment fee (DRAF), flat rate and simplified. Other providers lay things out differently, but the four questions still apply.
A merchant statement answers four questions. Part 1, the summary of sales: what did I sell? Part 2, the summary of fees: what was taken off? Part 3, the fee details by card type: what was it made of? Part 4, your effective rate: total fees divided by total sales, which you work out from parts 1 and 2.
Question 1: what did I sell?
The summary of sales answers this. On TD’s statements, it lists each card brand with:
- the number of sales,
- the dollar amount,
- returns, and
- net sales (sales minus returns).
There is also a day-by-day list. TD’s guide explains two dates on it. “CLS DATE” is the closed date, when you close the terminal for the day. “DEP DATE” is the deposit date, when the money lands in your account.
Question 2: what was taken off?
The summary of fees answers this. On TD’s sample statements, it comes in blocks:
| Block | What is in it | Example line from TD’s sample |
|---|---|---|
| Card fees | A block for each card brand | Visa credit rate, Visa credit assessment fee |
| Account fees | Monthly fees for the account | PCI security monthly fee, monthly service fee |
| Equipment rental | Terminals you rent | Rented solution fee, one line per device |
| Sales tax | Tax on taxable items | HST, which TD’s guide says is calculated on equipment rental |
At the bottom is the amount charged to your bank account. That is the total that left your account for the month.
PCI is the card industry’s data security standard. TD’s sample shows a monthly fee for it called “PCI security monthly fee”.
Question 3: what was it made of?
This is the long part. It shows the card fees broken down by card type.
On an interchange plus statement, TD lists each card type on its own line, such as “CDN consumer CNP” (a Canadian consumer card, card not present) or “CDN INF BUS standard” (a Canadian Infinite business card). Each line has a count, an amount and a rate. TD’s guide says that for interchange plus merchants, the “interchange differential” column on this page shows the interchange rate for each card type.
On a DRAF statement, the same page shows a “discount rate adjustment fee”. TD’s guide explains how it is worked out: the interchange differential plus the rate adjustment fee, multiplied by the sales amount. It only lists card types where the differential is more than zero.
On a flat-rate statement, there is much less here. TD’s flat sample shows one rate per brand, plus an extra “non-electronic standard rate” on some sales.
Not sure which model you are on? Flat rate vs interchange plus vs tiered explains how to tell. Tiered Pricing Explained covers the qualified and non-qualified lines. For what interchange is, see What Is Interchange?
Question 4: what is my effective rate?
Your effective rate is your total fees divided by your total sales. It turns the whole statement into one number you can compare from month to month.
TD’s statements show an effective rate for each card brand. TD’s guide says it includes “all fees for each card type”, such as the credit or debit rate, assessment fees and per-sale fees. The guide does not say it includes monthly account fees or equipment rental.
A total effective rate counts those too.
Lines that can change from month to month
Some lines move every month. Others only move when a fee changes.
These move with your sales: card fees, assessment fees, and the card-type detail. A month with more premium cards or more online sales will look different from one with more debit.
These stay the same unless a fee changes: monthly service fees, PCI fees and equipment rental. A change to one of these usually comes with a notice.
TD’s statements include a summary of fee changes. It lists:
- the effective date of the change,
- where it came from: TD or the card network,
- for network changes, how much of the change is being passed on to you,
- the previous fee and the new fee, and
- the date to cancel by without penalty.
TD’s sample notice says merchants may cancel within 70 days of the effective date of a new or increased core fee, and that merchants without a fixed-term agreement may cancel at any time without penalty. That is TD’s wording for its own customers. Other providers’ terms may differ; each agreement sets its own rules.
Canada also has a Code of Conduct for the Payment Card Industry. The FCAC says it requires 30 to 60 calendar days’ notice of certain fee changes, and lets a merchant give notice to exit without penalty within 70 calendar days after the change takes effect. It also lists what a monthly statement must show, including the effective merchant discount rate for each card type. See The Code of Conduct for the Payment Card Industry.
Where to go from here
Last month’s statement has the four answers: total sales, total charged, what the card fees were made of, and the effective rate. Comparing the effective rate from one month to the next shows when something has changed.
If a line makes no sense, the statement decoder explains common fee names. For debit lines in Canada, see Interac Debit: How It Is Priced. For a US statement, see Reading a US Merchant Statement. For every part of the cost in Canada, see How Much Does It Cost to Accept Credit Cards in Canada? Want a partner to review your statement? We will put you in touch. Start the free statement review.