What Is the Effective Rate?
Candidly, it is the only RATE that matters. The effective rate is the actual percentage of the card volume being paid to the processor for the processing services being received.
The effective rate is calculated by dividing your total processing fees by your total card processing volume.
Effective Rate = Total Fees ÷ Total Card Processing Volume × 100
Example: $3,150 in fees divided by $100,000 in processing volume equals .0315 X 100 results in a 3.15% effective rate.
Most merchants don’t know their true effective rate.
Your quoted rate is not your real cost! Your effective rate includes the fees, assessments, markups, and monthly charges that may be buried inside your statement.
- Interchange fees
- Card brand assessments
- Processor markup
- PCI fees
- Gateway fees
- Monthly minimums
- Batch fees
- Hidden processing charges
What Are Your Real Credit Card Processing Costs?
Upload your merchant processing statement and discover what you’re actually paying to accept credit cards.
How It Works
1. Upload Your Statement
Securely upload your most recent merchant processing statement.
2. We Analyze the Fees
We review your statement and calculate your true effective processing rate.
3. Receive Your Results
You receive a preliminary analysis showing what you are actually paying and whether there may be savings opportunities.