How to check whether your payment processing fees match your contract
Your effective processing rate is the fees you actually paid divided by a clearly defined payment volume. It helps you understand the bill, but it does not prove that the bill follows your contract.
Start with a consistent denominator
Keep gross captured payments separate from refunds. If gross sales were $10,000 and net processing charges were $280, the gross effective rate is 2.8%. If you divide the same fees by sales after refunds, you get a different measure. Name the denominator before comparing months or offers.
Rebuild the expected charge
Suppose 100 payments total $10,000. Your contract charges 2.5% plus $0.10 per payment, and a $20 monthly fee. Percentage charges are $250, transaction charges $10 and the monthly fee $20: expected total $280. Check whether the agreement also contains a minimum, another service fee or different rates for particular transactions. An unknown term cannot safely be treated as zero.
Separate a difference from money recovered
If the statement charged $300, the initial calculation difference is $20. If a linked $5 credit has already arrived, the remaining difference is $15. Do not count the credit twice or describe the full $20 as a new recovery. Settlement reserves are another matter: money held temporarily is not automatically a fee.
Compare switching on the same activity
Use the same sales, transaction count and refunds for both offers. A provider charging $300 for the example activity is more expensive than the $280 model, even if one advertised percentage appears attractive. If switching saves $20 a month but costs $60 upfront, three unchanged months recover that cost. A later termination charge can change the answer.
Keep the evidence and the limits
Store the contract version, source rows, expected charges, credits and missing information. You need these details to discuss a difference with the provider. A calculation cannot guarantee that a claim will be accepted.
Merchant Fee Audit & Switch Lab organises that process with visible rules and a provider comparison. Open the fictional demo to inspect the audit before entering your own records.
Tools mentioned in this guide
Interactive tool
Merchant Fee Audit & Switch Lab
Understand what payment acceptance really costs, which differences need checking and whether switching would pay.
Interactive tool
Month-End Reconciliation & Evidence Desk
Match bank, payment and accounting records, explain the differences and build a clear month-end evidence pack.
