TL;DR: Most merchants check the funded amount, confirm it looks close enough, and file the statement. On a real April 2026 statement from a Canadian B2B wholesale distributor processing $363,000 per month, that habit was leaving $841/month in identifiable overcharges on the table — plus $10,901 in automatic deductions the processor never put in the fee comparison at all.
Your processor sends you a statement every month.
Most merchants scan the funded amount, make sure it roughly matches expectations, and move on. The habit is almost universal. It's also why processors can charge 0.25% for a fee published at 0.09% — without a single complaint.
This post walks a real merchant processing statement, section by section, using actual figures from an April 2026 account for a B2B wholesale distributor in Canada. Monthly volume: $363,402.82 CAD. What we found: $841/month in identifiable overcharges before touching interchange, and a deduction larger than total processing fees buried in a section most guides don't mention.
The same structure appears on US and Canadian statements. All figures here are in Canadian dollars. For a full glossary of every fee type — who sets each one, what the published rate is, and which are negotiable — see merchant services fees explained.
What is the gap between what you processed and what hit your bank account?
Start on the cover page. Find two numbers:
- Total Amount Submitted — what your customers paid you
- Total Amount Funded — what arrived in your bank account
The difference is every dollar being deducted before settlement.
On the April 2026 statement:
| Amount (CAD) | |
|---|---|
| Total Submitted | $363,402.82 |
| Total Funded | $344,678.70 |
| Gap | $18,724.12 |
That $18,724 gap breaks into two very different categories:
| Component | Amount | % of Volume |
|---|---|---|
| Service charges (processing fees) | $7,800.99 | 2.15% |
| Fees (network assessments) | $21.26 | 0.006% |
| Adjustments (MCA repayments) | $10,901.87 | 3.00% |
| Total deducted | $18,724.12 | 5.15% |
On this statement, 58% of the gap between processed and funded was not a processing fee. It was merchant cash advance repayment — a separate automatic deduction sitting in the Adjustments section that doesn't appear in any rate comparison. More on that below.
When calculating your effective processing rate, use service charges plus fees only: $7,822.25 ÷ $363,402.82 = 2.15%. Including MCA repayments in the numerator inflates the number and makes a processor-to-processor comparison meaningless.
What does the disc rate table on your statement tell you — and what doesn't it tell you?
The disc rate table appears on the first or second page. It typically looks like this:
Card Type Disc Rate (%) Per Item Rate ($)
VISA 0.1000 0.0000
MC 0.1000 0.0000
AMEX 0.1000 0.0000
IDEBT 0.0000 0.0700
Two numbers matter: the discount rate (percentage of volume) and the per-item rate (flat fee per transaction).
The disc rate is the processor's markup above interchange. A 0.10% disc rate means 10 basis points added on top of whatever the card network charges. On this statement, that matches the contracted rate — the disc rate itself is correct.
But the disc rate tells you nothing about total cost. It's one layer. Interchange, card brand fees, and network assessments sit underneath it, and those are where the bulk of cost lives.
Red flags on this page:
- Disc rate above 0.20% on a Canadian interchange-plus account without explanation
- Per-item rate above $0.15 on credit transactions at meaningful volume
- Interac per-item above $0.07 (standard is $0.055–$0.07)
What is a Card Brand Fee — and is your processor charging more than the published rate?
Inside Service Charges, look for lines labeled VISA CARD BRAND FEE, MC CARD BRAND FEE, and AMEX CARD BRAND FEE.
These are presented as pass-through fees — the amount Visa, Mastercard, and Amex charge for using their network. Most merchants accept them at face value.
They shouldn't.
Visa and Mastercard publish their Canadian acquirer assessment rates. Visa Canada publishes its acquiring service fee at 0.09% in the Visa Canada Acquiring Network Assessment Fees document (visa.ca). Mastercard Canada's card-brand fee, as disclosed on Fiserv Canada's pass-through fee schedule (merchants.fiserv.com/en-ca), is 0.1017%.
On the April 2026 statement, all three networks were charged at exactly 0.25%:
| Network | Published Rate | Charged | Monthly Overcharge |
|---|---|---|---|
| Visa | 0.09% | 0.25% | $266.79 |
| Mastercard | 0.1017% | 0.25% | $207.62 |
| Amex | No published rate | 0.25% | Not calculable |
| Total (Visa + MC) | $474.41/month |
Two things identify this as a markup and not a legitimate pass-through:
First: Visa and Mastercard have different published rates, yet both appear on the statement at the identical 0.25%. Three networks with different cost structures don't independently charge the same percentage. A uniform rate across all three means a processor set it.
Second: The rate exceeds what major Canadian processors disclose as their own pass-through. Fiserv Canada — one of Canada's largest acquirers — discloses both its Visa and MC pass-through at 0.1017%. The statement in question charges 0.25%, nearly 2.5x Fiserv's disclosed Visa rate.
How to check your own statement: Divide the Card Brand Fee dollar amount for each network by that network's total monthly volume. If the result exceeds 0.12% for Visa or 0.12% for Mastercard on a Canadian interchange-plus account, ask your processor in writing to identify the published network rate and justify the difference.
What does "TRANSACTION FEES" mean on your statement — and how do you know if the number is right?
Most Service Charge line items carry a network name: VISA CARD BRAND FEE, MC CARD BRAND FEE, INTERAC SWITCH FEE. The transaction fee line often doesn't.
On the April 2026 statement:
TRANSACTION FEES -$345.20
No network name. No per-unit rate disclosed. No basis identified.
To verify it, divide by transaction count from the Gross Sales summary:
$345.20 ÷ 386 transactions = $0.894 per transaction
Market rate on a Canadian interchange-plus account at this volume: $0.05–$0.15 per transaction (based on published pricing from Canadian interchange-plus processors in 2025–2026).
On this statement, the overcharge is approximately $0.74–$0.84 per transaction. Across 386 transactions: ~$306.60/month in excess transaction fees. Approximately $3,679/year.
At a fair market rate, this line should read $19–$58/month. It reads $345.20 because the per-unit rate is not disclosed on the statement — and the merchant has no reason to divide it out unless they know to look.
The check to run every month: Take the transaction fee total. Divide by transaction count from the Gross Sales page. If the result exceeds $0.20 on a Canadian interchange-plus account at this volume, ask your processor for the per-transaction rate in writing.
One additional point: the merchant on this statement had a $940 average ticket ($363,402 ÷ 386 transactions). At that ticket size, the relative weight of per-transaction fees is different. A $0.20 per-transaction fee is 0.02% of each sale — nearly negligible. A $0.89 per-transaction fee is 0.09% of each sale, compounded across 386 monthly transactions.
High average ticket merchants (over $500/sale) should scrutinize percentage-based fees first — assessment markups, disc rate. Low average ticket merchants (under $50/sale) should make per-transaction fees the priority. Both matter. The math differs by business type.
What is the Adjustments section — and why is it the most important line merchants never read?
The Adjustments section does not appear in processing cost comparisons. It is not a fee — it is a deduction. That distinction is why most guides skip it.
On the April 2026 statement, the Adjustments section contained 46 separate line items. All read:
MERCHANT CASH ADVANCE COLLECTED
Total: $10,901.87 deducted in a single month. Pulled daily from every batch before net settlement, in amounts ranging from approximately $46 to over $1,000. Two distinct invoice number series running simultaneously on the same dates — indicating stacked advances, two separate MCA agreements repaying simultaneously.
This is a split-funding arrangement. The MCA provider draws a percentage of every deposit before the merchant ever sees the funds.
$10,901.87 ÷ $363,402.82 = 3.0% of every dollar processed
At an estimated factor rate of 1.30–1.40 — typical for Canadian MCAs in 2025–2026 per multiple MCA industry sources — the annualized cost of this capital is approximately 40–70%.
Three things about MCA repayments on a processing statement that most walkthroughs don't cover:
It sits in Adjustments, not Service Charges. It never appears in any fee comparison table. A competing processor can quote a lower processing rate and better effective cost — but if the MCA is sweeping 3% of volume before any of that math applies, the comparison is incomplete.
Two invoice series on the same date means stacked advances. Two separate MCA repayments pulling from each daily batch simultaneously. The combined cash flow impact in this case exceeded processing fees.
It was larger than the processing costs. MCA repayment ($10,901) was 1.4x total processing fees ($7,822) on this statement. The single largest deduction from this merchant's deposits had nothing to do with card acceptance.
If your Adjustments section shows any version of MERCHANT CASH ADVANCE COLLECTED, MCA COLLECTED, or ADVANCE REPAYMENT, divide the total by monthly volume. That percentage is leaving your account before you pay yourself or compare processor rates.
How do you use the Payment Network Rate Disclosure page on your statement?
The Payment Network Rate Disclosure — usually the second-to-last page — is the most honest page in the statement.
It shows effective rate by card type: interchange, assessments, and markup combined into a single percentage per network.
From the April 2026 statement:
| Card Type | Effective Rate |
|---|---|
| Visa Credit | 2.25% |
| Mastercard Credit | 2.20% |
| Amex | 2.59% |
| Interac | 0.01% |
This is what you actually paid per network. Not what was quoted. Not what the disc rate implies. Not what each Card Brand Fee line says individually.
Use it three ways:
Benchmark against competitor quotes. When a competing processor quotes an Iplus rate, ask them to quote effective rate by card type using your actual card mix. The Iplus rate is one layer. Effective rate is everything. A processor with a lower Iplus rate but higher assessment markup can still produce a worse effective rate.
Check the Amex premium. On this statement, Amex ran 39 basis points above Visa (2.59% vs. 2.20%). Whether that premium is worth the Amex customer base is a business decision — but the cost is now quantifiable.
Spot rate creep. Pull three consecutive months. If the effective rate on Visa or MC is rising without a change in card mix, a fee has increased somewhere and you need to find it.
How do you calculate your effective rate — and why does it matter more than your Iplus rate?
Effective Rate = (Service Charges + Fees) ÷ Total Submitted × 100
From this statement:
($7,800.99 + $21.26) ÷ $363,402.82 × 100 = 2.15%
That is your actual cost. Not the disc rate. Not the card brand fee percentage in isolation. The all-in rate you paid per dollar processed.
Why it matters more than the Iplus rate: a 0.10% Iplus rate sounds competitive. But a processor charging 0.10% Iplus + 0.25% card brand fees + $0.89 per transaction will produce a 2.15% effective rate. A processor charging 0.20% Iplus + 0.1017% card brand fees + $0.10 per transaction on the same card mix might produce a 1.90% effective rate. The Iplus rate tells you one layer. Effective rate tells you the outcome.
Calculate it for three consecutive months and track the trend. An effective rate rising without a change in card mix is a signal — something has been repriced, and your statement will show you where.
What are the three questions to ask about every fee line on your statement?
After walking the April 2026 statement line by line, three questions surface every overcharge:
1. Does this fee have a published network rate?
Visa and Mastercard publish Canadian assessment rates. Interac publishes its switch and per-transaction fees. If a line item is labeled with a network name, a published rate exists to verify it against. If you can't find one, that's a question for your processor.
Lines with no published network basis — the April 2026 statement contained a CYBER SECURE line at $0.22/month — are processor revenue, not network pass-throughs. $0.22 is not material. The pattern of unnamed fees with no published basis is.
2. Does this fee appear on competitor quotes?
When you receive a competing processor quote, it itemizes what you would be charged. If a fee appears on your current statement but not on any competitor quote you've seen, ask your current processor what it covers and whether it's contractually required. Fees that disappear when a merchant shops tend not to be mandatory network charges.
3. Can your processor show you the rate and basis in writing?
For every fee above $50/month: ask for the rate in writing, and whether it's a network pass-through and at what rate the network actually charges. A legitimate pass-through at the correct rate gets an immediate written response. A markup dressed as a pass-through typically doesn't.
What does one real statement show — the full picture
On the April 2026 statement from a $363K/month Canadian B2B wholesale distributor, the identifiable overcharges before touching interchange:
| Finding | Monthly Impact |
|---|---|
| Visa Card Brand Fee markup (0.25% vs. 0.09% published) | $266.79 |
| MC Card Brand Fee markup (0.25% vs. 0.1017% published) | $207.62 |
| Transaction fee overcharge (~$0.89/txn vs. $0.05–$0.15 market) | ~$306.60 |
| Amex Card Brand Fee markup (no published rate to compare) | Not calculable |
| Opaque ancillary fees with no network basis | Immaterial individually |
| Total identifiable hidden markup | ~$841/month / ~$10,092/year |
| MCA sweep (not a processing fee — not in this total) | $10,901.87/month |
The assessment fee markup takes one calculation. The transaction fee overcharge takes one division. Neither requires specialized knowledge — just the willingness to check published rates against what the statement actually shows.
We review statements as part of ClickWerxs's merchant account onboarding. If you want a second set of eyes on yours, request a free statement audit. Bring the last three months — the pattern across months is more useful than any single statement.
Frequently Asked Questions
How often do Visa and Mastercard change their Canadian assessment rates — and will my processor notify me?
Visa and Mastercard adjust their Canadian network assessment fees periodically. Mastercard increased its Canadian Acquirer Volume Assessment Fee from 0.087% to 0.090% effective late 2025. Processors are required to pass through rate changes but are not always required to notify merchants proactively — the change typically appears as a new or adjusted line item on the next statement. Canadian acquirers publish network fee update pages that list these changes as they take effect, and your own acquirer's version is the one that governs your statement. Check the Fiserv Canada Pass Through Fees page periodically for disclosed changes.
If I find card brand fee overcharges on my statement, what should I do first?
Document the calculation before contacting your processor: divide the Card Brand Fee dollar amount by your total volume for that network, express it as a percentage, and compare it to the published rate (Visa Canada: 0.09%; Mastercard Canada: 0.1017% per Fiserv's disclosed pass-through). Then request in writing that your processor identify the published network rate and justify the difference. If the processor cannot produce the published basis in writing, you have grounds to request a rate correction or use the finding as leverage in a renegotiation.
Can I use a statement analysis like this to negotiate with my current processor?
Yes, and it's more effective than a general negotiation. An itemized list of specific overcharges with published rate comparisons creates a different conversation than "I want a lower rate." Processors have more flexibility on assessment markups and per-transaction fees than they typically disclose unprompted. The more specific the evidence — "you charged 0.25% for the Visa brand fee; Visa publishes 0.09%; I'd like the difference credited" — the harder it is to decline without losing the account. For a breakdown of which specific fees on your statement are negotiable and which are fixed by card networks, see 6 merchant account fees you can negotiate (and 4 you can't).
Does this same fee structure apply to US merchant processing statements?
The section structure is identical. US statements have the same categories: disc rate table, funded-by-batch, gross sales, service charges, fees, and rate disclosure. The specific rates differ: Visa US publishes its assessment at approximately 0.13–0.14%; Mastercard US assessment is similar. US statements do not include Interac debit. The verification math — divide each Card Brand Fee by that network's volume, compare to the published rate — works exactly the same way.
What does it mean when two different MCA invoice series appear on the same statement?
It indicates two separate merchant cash advance agreements repaying simultaneously from the same account — commonly called stacked advances. Each daily batch is being split two ways before the net funds. The combined repayment rate can be identified by totaling the Adjustments column and dividing by monthly volume. On the April 2026 statement in this post, two simultaneous series produced a 3.0% daily sweep rate — larger than total processing costs.
My processor charges a "Service Fee" or "Program Fee" with no network name. Is that normal?
It is common; it is not always legitimate. Unnamed service fees with no network basis are processor revenue. Ask your processor: (1) what network or regulation requires this fee, (2) what the published rate from that network is, and (3) why it does not appear on the competitor quotes you've received. If the fee is legitimate — a monthly PCI compliance fee or a reporting portal fee, for example — the processor should answer all three without difficulty. If they can't, the fee is margin, not a pass-through.
The statement analyzed in this post is a real April 2026 merchant processing statement from a B2B wholesale distributor in Canada. Merchant identity and processor name have been removed. All dollar figures are in Canadian dollars. Published assessment rates cited: Visa Canada acquiring service fee (0.09%) per the Visa Canada Acquiring Network Assessment Fees document (visa.ca); Mastercard Canada card-brand fee (0.1017%) per Fiserv Canada's Pass Through Fees disclosure (merchants.fiserv.com/en-ca). Per-transaction fee market rate based on published pricing from Canadian interchange-plus processors, 2025–2026. MCA factor rate is an industry estimate from multiple MCA provider sources. ClickWerxs provides payment processing, merchant account services, and statement audits. This is not financial or legal advice.
Kaleb Dickhaut is the founder of ClickWerxs. He works directly with merchants on processing audits, rate negotiations, and payment infrastructure. LinkedIn
Sources
- Federal Reserve Board, Regulation II debit card interchange fee standard — covered issuers may not receive more than $0.21 plus 0.05% of transaction value, plus a $0.01 fraud-prevention adjustment where eligible. federalreserve.gov
- Processing rates, fee ranges and effective-rate figures in this post are industry-typical ranges compiled from published network schedules and from accounts reviewed in the ClickWerxs ISO portfolio. They are not quoted rates. Interchange itself is set by Visa and Mastercard on published schedules that change twice yearly; your actual cost depends on card mix, MCC, ticket size and volume.
- ClickWerxs ISO portfolio, aggregate observation — patterns described from merchant accounts under ClickWerxs management. Anonymized and reported in aggregate; individual account terms vary. Operator data.
ClickWerxs facilitates merchant account applications and provides ongoing account management as an authorized representative of our banking and processing partners. Approval, rates, and terms are determined by the issuing processor and acquiring bank — ClickWerxs does not guarantee approval for any merchant account application. Processing rates and fee structures cited in this post reflect publicly available industry data and general ranges; your actual rate depends on your industry, volume, and card mix. This post is not legal or financial advice. For a custom quote, see clickwerxs.com/payments/get-a-quote.