Understanding Processing Fees Statements

Payments processors charge fees for running transactions. When merchants are onboarded to Payabli, they agree to fee structures by signing a merchant processing agreement. At the end of each month, Payabli collects these processing fees from merchants’ designated bank accounts on behalf of partners, and provides itemized statements detailing all collected fees.

This guide walks through example processing fees statements to help you understand how fees are calculated and how merchants are billed.

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Total Fees section

The “Total Fees” section includes information about a paypoint’s fees and the total fees due for the period. Note that your statements may look different based on your agreement with Payabli and the services you use.

The Total Fees section includes these sections:

1. Card Processing Fees: This breaks down the total card processing charges, including authorization fees, discount fees, and chargeback fees. In this example, the total is $1,182.68, with only discount fees having charges this period.
2. ACH Processing Fees: Details ACH fees, which can include per-transaction fees, percent fees, return fees, and dispute (chargeback) fees. In this example, these total $85.00, consisting of per transaction fees ($60.00) and return fees ($25.00).
3. Gross Fees Due: This shows the total of all fees before adjustments and pass-through amounts are applied. In this example invoice, the gross fees are $1,267.68.
4. Pass-Through Fees Collected: This shows the pass-through fees that were collected directly from transactions, which offset part of the gross fees. In this example, -$1,182.68 was collected from card processing.
5. Net Fees Due: The final amount that will be debited from the merchant’s connected bank account after all adjustments and pass-through fees are accounted for. In this example invoice, the net fees due equals $85.00.

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Credit cards

The credit card sections of the invoice detail card processing fees and chargeback fees.

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Card processing fees

Card processing fees consist of two main elements:

• A percentage-based “discount fee” calculated on processed volume (for example, a 2.9% fee on $1,000 equals $29). The discount fee was traditionally deducted or “discounted” from each transaction amount before settlement. The term is still used even when fees are collected monthly or on other schedules. American Express transactions may have higher discount fees, but partners can choose between implementing tiered pricing or maintaining consistent percentage rates across card brands.
• An authorization fee charged per attempted transaction. The authorization fee applies to all transaction attempts, because the process of checking cardholder information with card networks occurs whether the transaction is ultimately approved, declined, or voided. Due to declined and voided transactions, authorization counts typically exceed actual transaction counts.

The merchant statement includes a detailed breakdown of card processing fees, including processed volume by date and card brand, and authorization counts and associated fees.

1. Rate Table: This section shows different discount fee rates by card type. In this example:

   • Visa, Mastercard, and Discover have a 2.90% rate
   • American Express has a higher rate at 3.50%
   • Per Authorization Fee is $0.30 per transaction

2. Daily Transaction Detail: This section shows a day-by-day breakdown of all card processing activity for December 2024. For example, looking at 12/11/2024, we can see:

   • A Total Volume of $4,050.00, split between Visa ($450.00), Mastercard ($3,300.00), and American Express ($300.00)
   • Discount fee total of $119.25, calculated as:
     • Visa: $450.00 × 2.90% = $13.05
     • Mastercard: $3,300.00 × 2.90% = $95.70
     • Amex: $300.00 × 3.50% = $10.50
   • A total of 4 authorizations that day, generating $1.20 in authorization fees ($0.30 × 4)

3. Monthly Totals at the bottom show:

• Total Volume: $14,332.64, broken down by card type:
  • Visa: $4,841.38
  • Mastercard: $5,776.26
  • Discover: $0.00
  • Amex: $3,715.00
• Total Discount Fees: $437.94
• Total number of Authorizations: 29
• Total Authorization Fees: $8.70 (29 authorizations × $0.30)

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Card chargeback fees

The next section of the invoice shows card chargeback counts and associated fees. Chargebacks occur when a cardholder disputes a transaction. Chargeback fees are fees that the merchant has to pay in the event of a credit card chargeback. See Payment Disputes for more information.

1. Rate Table: This shows the chargeback fee that applies to all card chargebacks. In this example, there is a flat rate Chargeback Fee of $25.00 that’s paid by the merchant.

2. Daily Detail: This section shows a day-by-day breakdown of any chargeback activity for December 2024. For example, looking at 12/5/2024, we can see there was one chargeback. With a chargeback fee of $25.00, the total chargeback fees for the day are $25.00.

3. Monthly totals at the bottom show a total of one chargeback for the month, amounting to a total of $25.00 in chargeback fees.

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ACH

The ACH sections of the invoice detail ACH processing fees and fees for exceptions (returns and disputes).

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ACH processing fees

ACH processing typically involves either a percentage-based fee or a per-transaction fee. Unlike card processing, it’s uncommon to have both fee types applied. Percentage-based fees may be capped at a specified amount per transaction (for example, a 1% fee capped at $15 means a $2,000 transaction fee would not exceed $15).

The merchant statement includes a detailed breakdown of ACH processing fees.

1. Rate Table: This shows the ACH processing fees that apply to transactions. In this example, the % Based Fee is 1.00%, and the Per Transaction Fee is $0.00.

2. Daily Transaction Detail: This section shows a day-by-day breakdown of ACH processing activity for December 2024. For example, looking at 12/24/2024, we can see that there was one ACH transaction of $9,715.98.

   • Volume: $9,715.98
   • % Based Fee: $15.00 (calculated at 1.00%, but capped at $15.00 per transaction. Because there was only one ACH transaction, the fee total for the day is $15.00)
   • Per Transaction Fee: $0.00 (as specified in rate table)

3. Monthly Totals at the bottom show:

   • Total Volume: $35,532.95
   • Total % Based Fees: $160.46
   • Total Transactions: 11
   • Total Per Transaction Fees: $0.00 (11 transactions × $0.00 fee)

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ACH exceptions

The ACH Returns & Chargebacks section displays separate tables for ACH returns and ACH chargebacks (disputes) and their associated fees. These fees are charged when a transaction is returned or disputed. See Payment Disputes for more information about returns and disputes.

1. Rate Table: This shows the fees that apply to ACH returns and chargebacks. In this example:

   • Return Fee is $15.00 per occurrence
   • Chargeback Fee is $35.00 per occurrence

2. Returns: This shows a day-by-day breakdown of ACH returns for December 2024. For example, looking at 12/2/2024, there is one ACH return.

   • Return Fee: $15.00 (1 × $15.00 fee)
   • Most days have no return activity (marked with ”-”)

3. Chargebacks: This shows a day-by-day breakdown of ACH chargebacks for December 2024. In this example, there was no chargeback activity and no chargeback fees.