The short answer
Start with one reporting period. Identify card sales and transaction counts, separate processing charges from rental and service invoices, and reconcile payouts independently. Divide the relevant payment costs by the matching card turnover to calculate an effective cost. Do not count a fee again just because it also appears in a bank deduction.
In this guide
Step 1: match the reporting period and outlet
Locate the statement dates, merchant or outlet reference, card-sales total and transaction count. Check whether the document covers one terminal, one location or the whole business. Different invoices can cover different periods, so labelling everything 'August costs' does not automatically make it comparable.
Use card turnover rather than all business revenue. Cash, bank transfers and unpaid invoices do not belong in the card-sales denominator. If refunds are material, note whether a figure is gross sales or sales net of refunds and use the same basis when you compare months.
Step 2: separate the types of charge
Look for percentage charges against payment values and any pence charges against a count of billable events. There may be separate lines for card categories or an additional charge above a headline rate. A blended headline, an interchange component and a total charge are not automatically three separate amounts to add.
Gather terminal hire and other relevant service invoices too. Handepay's statement guide identifies rental, premium-card charges, minimum charges, authorisation fees and security-related fees as items a merchant may encounter. The presence of one of these labels alone does not establish that a charge is wrong. Check how minimum-charge top-ups are treated before adding them.
Your comparison checklist
| Statement item | How to treat it |
|---|---|
| Processing charges | Include the actual applicable fee total once |
| Terminal and service invoices | Include relevant costs for the same period, on a consistent VAT basis |
| Minimum charge | Establish whether the displayed line is the full floor or only a top-up |
| Refunded sale principal | Separate from processing charges; record any refund fee independently |
| Reserve or settlement adjustment | Reconcile separately and ask the provider what it represents |
| Total effective cost | Relevant costs ÷ matching card sales × 100 |
FICTIONAL STATEMENT · NO MERCHANT DATA
Match each fee to its calculation.
One invented month: £10,000 card sales, 400 billable requests. All figures use the same VAT basis.
The denominator for your effective cost; this is not a fee.
£10,000 × 0.008. This example uses a blended rate.
400 × £0.03. Check which events are billable.
£100 − (£80 + £12). Add only the shortfall, not another £100.
Add once, only if it is not already in the processing total.
£120 ÷ £10,000 × 100 = 1.20%. This is arithmetic, not a market benchmark.
This simplified statement assumes the minimum covers percentage and request charges. Actual agreements differ; check other fees and separate bills. These are invented rates, not an offer.
How minimum-charge top-ups work →Step 3: keep settlement separate from the cost calculation
A bank deposit may differ from card sales because of settlement timing, refunds, disputes, adjustments or fees deducted before payment. A reserve or withheld settlement is not automatically a processing charge. Investigate the line and its treatment before using it in an effective-rate calculation.
With gross settlement, payment fees are charged separately; with net settlement, they are deducted from the payout. If the statement already includes those deducted fees in its charge total, do not add the reduction in the bank deposit as a second fee. Reconciliation explains where money moved; fee analysis explains what the service cost.
Step 4: reconstruct one month
Invented example: card sales of £24,000, 1,600 chargeable requests, £192 in percentage processing charges, £48 in request fees, £24 rental and £6 in other recurring payment fees. The cost total is £270. £270 ÷ £24,000 × 100 = 1.125%, displayed as approximately 1.13%.
Those figures exclude refunds, chargebacks and other exceptional adjustments. If £270 appears on the statement and is also collected by direct debit, it is still one £270 cost. For a seasonal business, repeat the exercise for a quiet and a busy month. To combine months, divide combined costs by combined card turnover rather than averaging monthly percentages.
Step 5: investigate a line you cannot explain
Write down the exact label, charge period, rate, quantity and amount. Ask the provider which agreement or price notification authorises it, what triggers it, whether it recurs and what action could change it. Keep the answer with your statement.
If a minimum top-up appears repeatedly, inspect the quieter-month economics. If a request count is above your completed-sales count, ask whether declines or other events are billable. If rental appears twice, first check for a second device, location or supplier; do not assume it is a duplicate without that context.
Turn the statement into a decision
You now have a starting point for comparing written quotes or discussing the current arrangement. A high effective percentage on a quiet month may reflect fixed costs; it does not by itself prove that a different provider would be cheaper.
Use the effective-cost calculator or compare two complete quotes. To request a conversation with Awais, enter summary figures and your reason for checking. The guided Payment Check can read supported merchant statements locally when enabled. Do not select cardholder data, bank details or identity documents. Original files are not sent to the server.
Let the Payment Check find supported summary figures
Open the guided Payment Check for text-PDF/CSV statement reading when enabled, or enter the figures you know. Confirm the period, card sales and recurring costs before relying on the result. The original file stays on your device. Unsupported layouts and scans require manual entry.
Check separate Amex and rental bills, VAT basis, refunds and exceptional fees. Missing contract information must come from your agreement or provider; it cannot be inferred from the statement month.
Common questions
Can I use my bank deposit as monthly card turnover?
Not reliably without reconciliation. Settlement timing and deductions can make a bank deposit different from the card-sales total for that month.
Does every statement use the same labels?
No. Use the provider's statement guide and your agreement. The same general type of charge may have a different label or billing basis.
Why did my effective rate rise when my quoted rate stayed the same?
Possible explanations include lower card volume spreading the same fixed costs over fewer sales, a changed card mix, more chargeable requests or a new fee. Compare the actual line items before drawing a conclusion.
Sources and method
Public sources checked on 11 September 2026. Offers can change; your individual proposal and signed terms determine what applies.
Handepay: merchant statement guide Global Payments: gross and net settlement Global Payments: charge definitionsWorked examples are illustrative mathematics, not provider quotes or promised savings. Read our editorial approach.
Apply this to your business
Use summary figures for a free check, then choose whether to discuss your requirements with Awais.