The difference between gross card charges and a bank deposit is not automatically a processing fee. Refunds, disputes, restricted reserves, balance timing and separately billed charges need their own treatment. Reconcile one defined processor scope before comparing effective cost.
Open the private statement tool · Read the fictional reconciliation · Download the evidence files
Choose the report that answers the question
Record the merchant account alias, settlement currency, report period, timezone, payout identifiers and bank reference. Use aliases in the tool rather than account numbers or card information. An activity-period report and a payout report can contain different transaction populations. For example, Stripe’s balance report describes period activity and balances, while its payout reconciliation report can include earlier transactions associated with payouts in the selected period. These are provider examples, not an identification of this site’s processor.
Request the actual provider’s field definitions. Establish whether fees are deducted from settlement, invoiced separately, or credited later. Opening and closing unrestricted balances in this tool must exclude restricted reserves because reserve movements are shown separately. If a provider includes reserved funds within a reported balance, prepare a supported reclassification first; do not deduct the same hold twice.
Classify the movements before calculating a rate
| Movement | Treatment here | Evidence question |
|---|---|---|
| Refund or disputed charge principal | Separate from fee cost | Which transaction and period does it relate to? |
| Processing or dispute fee | Unique fee-ledger entry | Was it withheld, billed or credited? |
| Reserve hold or release | Separate cash-availability movement | What agreement governs ownership and release? |
| Unrestricted processor balance | Opening/closing timing bridge | Are currency, cutoff and reserved funds consistent? |
| Other adjustment | Signed, with an explanation | Can a source record explain it without a balancing plug? |
Visa explains that interchange and the merchant discount negotiated with an acquiring institution are different concepts. A published interchange table is not an all-in processor quote. Capture service fees, gateway charges, minimums, relevant equipment charges and credits under explicit categories, and state which costs your chosen fee population includes. Keep a hardware purchase or financing arrangement separate when it is not part of the processing-cost definition.
Follow the settlement equation
Expected payout equals opening unrestricted balance + gross processed charges − refund principal − dispute principal − withheld fees − reserve holds + reserve releases + signed other adjustments − closing unrestricted balance. Bank exception equals matched bank receipts minus expected payout. Separately billed fees affect the cost total, but they are not deducted again from the expected settlement.
Total entered fee cost equals withheld fees plus separately billed fees, including signed fee credits. The first effective-cost denominator is gross processed charges. The second is gross charges less refund principal. Both are explicitly labeled; neither is necessarily recognized accounting revenue. When a denominator is nonpositive, the ratio is not calculable. A negative expected payout may describe a debit, while a negative net fee cost needs credit evidence.
Fictional case: $92,600 expected, $92,400 received
| Ledger movement | Signed amount |
|---|---|
| Opening unrestricted balance | +$2,400 |
| Gross charges | +$100,000 |
| Refund principal / dispute principal | −$3,000 / −$1,000 |
| Withheld fees | −$2,200 |
| Reserve hold / release | −$1,500 / +$500 |
| Other supported adjustment | +$100 |
| Closing unrestricted balance | −$2,700 |
| Expected payout | $92,600 |
| Matched bank receipt | $92,400 |
| Remaining exception | −$200 |
Another $300 of separately billed fees makes the entered cost $2,500. That is 2.50% of $100,000 gross charges, or approximately 2.5773% of $97,000 after-refund charges. The $1,500 reserve hold is not a fee. Investigate the remaining $200 through bank dates, payout records and statement adjustments; do not label it additional fee expense merely to make the equation match.
Review the contract as well as the statement
Read pricing schedules, minimums, fee-change terms, hardware ownership or lease obligations, early termination provisions, reserve rights, chargeback responsibility and any third-party gateway or software agreement. Ask who must approve a change of ownership and whether a new merchant account, data migration or different reserve arrangement is required. Record the provider’s written instructions rather than assuming the seller’s terms transfer.
The membership billing continuity guide handles consent, cancellation and provider acceptance. The POS-to-bank case tests underlying revenue populations. This workbook adds detailed fee classification and one processor balance bridge; it does not replace either review.
An effective rate is not a surcharge instruction
New York’s credit-card surcharge guidance addresses actual processing cost and transparent total-price disclosure. Network rules, debit treatment and the merchant agreement require separate review. Do not copy this historical effective-cost percentage onto a menu or terminal as an automatically permitted surcharge.
Document the next evidence action
Download the fictional case v1
Keep fee IDs, collection method, statement references and unresolved differences with the scenario. Compare periods only after aligning currency, scope, card mix and fee definitions. Connect accepted costs to the operating-cost model and agreed closing balances to the closing-adjustment review. No private records are uploaded by this tool.
Sources and scope
Official and original sources checked October 17, 2026. These sources support the identified rules and methods; they do not verify a particular business or property.
- Visa — Visa · Interchange and merchant feesDistinguishes interchange from the merchant discount agreed with an acquiring institution. Not a processor quote, all-in cost benchmark or assurance that a rate applies to this merchant.
- Stripe — Stripe · Balance summary reportPeriod activity, opening/closing balances, gross, fees and net amounts; separate balance and payout report purposes. One provider example. Report fields, reserve accounting, currency and cutoff must be confirmed with the actual provider.
- Stripe — Stripe · Payout reconciliation reportLinks applicable automatic payouts to their constituent transactions, which can precede the payout period. Not every payout mode uses the same report. No Stripe integration or upload is proposed.
- NY Department of State — NY Department of State · Surcharge referenceDisclosed highest total price and actual credit-card processing cost limitations. Credit-card scope; network and contract rules require separate review. Effective fee rate is not an automatically lawful surcharge. No surcharge calculator.
Continue your review
Verify the revenue · Normalize earnings · Model the cash flow