Contents
- The Anatomy of a Merchant Statement: A Technical Audit Walkthrough
- Executive Summary: Beyond the “Total Due”
- Key Takeaways: Deciphering Your Data
- Section 1: The Summary Page (The Effective Rate Formula)
- Section 2: Decrypting the “Interchange Detail”
- Section 3: Technical “Downgrade” Forensic Identifiers
- Section 4: Spotting “Junk” in the Fees Section
- FAQ: Statement Forensics
The Anatomy of a Merchant Statement: A Technical Audit Walkthrough
By: IntelliPay Compliance Team
Last Updated: December 24, 2025
Executive Summary: Beyond the “Total Due”
Most merchants only look at the bottom line of their monthly statement. However, the true story of your processing efficiency is buried in the fine print of the “Interchange Detail” and “Service Fee” sections. This guide provides a unique, section-by-section breakdown to help you identify where money is leaking from your margins, specifically focusing on the codes and technical identifiers that legacy processors often leave unexplained.
Key Takeaways: Deciphering Your Data
Section-Specific Auditing: Learn which sections are “Pass-Through” (Non-Negotiable) and which are “Markup” (Negotiable).
Code Red Indicators: Identify specific technical descriptors like “STND” or “EIRF” that signal major data loss.
The Effective Rate Baseline: A single formula to bypass marketing fluff and find your true cost of acceptance.
Transparency Accountability: How to use the 2025 FTC Junk Fee Rule to challenge specific itemized surcharges.
New: 2025–2026 Risk Checks: Spot VAMP dispute flags, CEDP B2B optimizations, and Visa/MC settlement effects on fees.
Section 1: The Summary Page (The Effective Rate Formula)
The first page of your statement is your high-level scorecard. To find your Effective Rate, ignore any “Qualified” or “Teaser” rates listed.
Formula: Total Monthly Fees ÷ Total Monthly Processing Volume = Effective Rate.
IntelliPay Benchmark: If this number is higher than 2.25% for B2B or 2.50% for Card-Not-Present retail, your statement likely contains technical downgrades or excessive markups.
2025 Update: Typical all-in rates now range 2.0%–3.5% blended (in-person ~1.4–2.0% + $0.10; e-comm ~1.9–2.6% + $0.10), including assessments (Visa 0.13%, MC 0.1375%). Watch for creeping highs from rewards cards or non-optimized B2B. Post-Visa/MC settlement, statements may segment “standard consumer” caps at ~1.25%.
Section 2: Decrypting the “Interchange Detail”
This is usually the most confusing part of the statement. It lists the raw costs from Visa/Mastercard.
The Transparency Test: If your statement bundles transactions into “Qual,” “Mid-Qual,” or “Non-Qual,” you are on a Tiered Plan. This is a “Black Box” model that hides your real costs.
Interchange-Plus (The Goal): You should see a long list of specific card types (e.g., Regulated Debit, Visa Signature Business). This ensures you are paying the exact wholesale cost of the card plus a fixed, known markup.
New: CEDP for B2B Savings: Look for Level 3 data (invoice/PO/tax) on commercial lines—missing it spikes rates; verified CEDP can drop B2B interchange 0.5–1.0%.
Section 3: Technical “Downgrade” Forensic Identifiers
Look closely at the abbreviations next to your transactions. If you see these, your gateway is failing to pass the data required for the best rates:
STND (Standard): This transaction failed every optimization check. You are paying the highest possible rate.
EIRF (Electronic Interchange Reimbursement Fee): Signals missing address verification (AVS) or invoice data.
Data Rate III / Product 3: This is the “Gold Standard.” If you don’t see this on commercial transactions, you are missing out on Interchange Optimization.
New: VAMP Risk Flags: Scan for rising fraud/dispute ratios (aim <1% CNP volume)—2025 Visa rules tie acquirer fines to these, often passed to merchants via holds/fees.
Learn more about interchange optimization here
Section 4: Spotting “Junk” in the Fees Section
Under the 2025 FTC Junk Fee Rule, processors must be accountable for the “miscellaneous” section. Cross-reference your statement against these Red Flags:
| Technical Descriptor | Actual Function | Risk Level |
|---|---|---|
| PCI Non-Validation Fee | A penalty for a missing survey. | 🔴 High (Should be $0) Update: PCI DSS 4.0.1 now mandates custom scopes; verify scans/SAQ value. |
| Monthly Minimum | A penalty for not processing enough. | 🟡 Med (Unnecessary for growing businesses) |
| Regulatory Mandate Fee | A disguised processor markup. | 🔴 High (Non-government fee) |
| Integrity Fee | An arbitrary fee for “data security.” | 🔴 High (Usually 100% profit) |
| New: VAMP Monitoring | Acquirer fraud/dispute program pass-through. | 🟠 Med (Challenge if unexplained) |
| New: Network Access | Post-settlement premium card fees. | 🔴 High (Opt-out possible) |
FAQ: Statement Forensics
Q: Why does my statement have so many different Visa fees?
A: These are “Assessments.” They are tiny percentages (.13% to .15%) that go directly to Visa. They are non-negotiable, but a transparent processor will pass them through at cost without an added markup.
Q: My statement is 15 pages long. Is that normal?
A: In a transparent Interchange-Plus model, yes. Long statements are actually a good sign because they show every single card type was passed through at its specific wholesale cost rather than being “bucketed.”
New Q: How do I check VAMP/CEDP impacts?
A: Review CNP dispute ratios and B2B data fields monthly; thresholds tightened in 2025—contact your acquirer for your score.
New Q: What about Visa/MC settlement changes?
A: Expect clearer fee breakdowns by 2026; reject premium cards optionally to cap at lower interchange.
Highlight every line item that is a flat dollar amount (e.g., $25, $95).
Scan the transaction list for “STND” or “Standard” labels.
Run the Effective Rate formula for the last three months to check for “Creeping Fees.”
New: Verify B2B Level 3/CEDP lines and VAMP dispute trends.
New: Cross-check PCI fees against DSS 4.0.1 requirements.
Disclosure & Disclaimer
This technical guide is authored by the IntelliPay Compliance Team to assist merchants in identifying 2026 fee trends. IntelliPay is a PCI-DSS Level 1 Certified provider. Conflict of Interest: IntelliPay provides merchant services and competitive statement audits. We have a financial interest in the solutions discussed. This content is for educational purposes and is not a substitute for formal accounting or legal counsel. Always verify with primary sources like Visa/Mastercard rules.
