What is a Merchant Statement?
A merchant statement, also known as a credit card processing statement or merchant account statement, is a document provided by a payment processor or acquiring bank to a business owner or merchant. This statement provides a detailed summary of the financial transactions related to credit card processing for a specific period, usually on a monthly basis.
Key elements typically included in a merchant statement are:
Transaction Details: A breakdown of all credit card transactions processed during the statement period, including the date, type of transaction (sale, refund, chargeback), and the amount.
Fees and Charges: Information on various fees and charges associated with credit card processing. This may include interchange fees, processor fees, monthly service fees, statement fees, and any other applicable charges.
Deposits and Settlements: Details about the funds deposited into the merchant's bank account, including the net amount after deducting fees.
Batch Summary: Information on the batches of transactions processed, including total sales and refunds.
Chargebacks: Any chargebacks initiated by customers, which involve a reversal of funds due to a dispute or other issues.
Monthly and Annual Totals: Summaries of total sales, fees, and other financial data for the month and year to date.
Business owners use merchant statements to reconcile their financial records, understand their processing costs, and analyze trends in their sales. It's important for merchants to review their statements regularly to ensure accuracy and to address any issues or discrepancies promptly. Understanding the details of a merchant statement is crucial for managing the financial aspects of accepting credit card payments.
It is important to review your merchant statements on a regular basis, not only to reconcile your financials, but also to ensure that there are no hidden costs or discrepancies in your card acceptance costs. At Redeemed Payments, we offer a complimentary review of your merchant statement, along with a consultation to go over your statements. If you’d like for us to complete an analysis for your company, please contact us so that we can help.
