Short answer
The bill check compares the fee total on your merchant statement with the amount that actually left your bank account. A gap usually means a separate terminal or gateway invoice, a fee added after the statement date, tax shown on one figure but not the other, or a billing error.
Part of Reading statements. Start with the main guide: How to read a merchant statement, line by line
Key takeaways
- Always compare the statement total with what your bank shows for the same month.
- A gap is common and usually has a simple cause, such as a terminal billed by a different company.
- Five causes explain most gaps: separate invoices, late fees, tax, timing and genuine errors.
- Work out the gap in pounds and as a share of turnover, because it changes the effective rate.
- A bill check is also a strong tool in a savings proposal because it shows a cost the merchant did not know about.
If you are new to reading statements, start with our guide on how to read a merchant statement. A merchant statement is meant to be the full record of what you owe for taking cards. In practice it is the full record of one part of it. The only way to know the whole cost is to compare the statement with the money that actually left your bank account.
We call this the bill check. It takes two minutes, it needs no special tools, and it is one of the most revealing things you can do with a statement. This guide explains how to run one, what the usual causes of a gap are, and what to do about each.
What is the bill check?
The bill check has one question: does the amount billed match the amount the statement says it should be?
If the two figures match, the statement is a fair picture of what you pay. If they do not, the statement is leaving something out, and the effective rate you calculate from it is too low.
How do you run a bill check?
You need three things: the merchant statement, the bank statement for the same period and a list of all regular payments to payment or finance companies.
- Find the statement total. This is the total fees, usually near the bottom.
- Find the bank debit. Look for the payment to your provider on the bank statement, normally by direct debit or net settlement.
- Compare them. Subtract one from the other. If the statement shows £209.00 and the bank shows £245.00 leaving the account for card charges, the gap is £36.00.
- List every other payment. Check the bank statement for other regular payments to terminal companies, finance firms or gateway providers.
- Add anything related. Those payments belong in your true monthly cost.
- Find the statement totalThe fee total on the merchant statement.
- Find the bank debitWhat actually left the account for card charges.
- Calculate the gapDebit minus statement total.
- Look for other payeesTerminal, finance, gateway or insurance payments.
- Explain every poundMatch the gap to a cause and a document.
Two minutes with a statement and a bank statement.
What are the five usual causes of a gap?
1. A separate invoice
See also monthly fees on a card machine bill.
This is the most common reason. The processing is billed by one company and the terminal or gateway by another. The statement is accurate for its own part and silent about the other.
Example. The statement shows £209.00. The terminal company bills £24.00 a month. The business also pays £12.00 for an online gateway. The true cost is £245.00, and the gap of £36.00 is made up of the two other invoices.
2. Fees added after the statement date
Some charges are applied after the statement is produced. Examples include a PCI non-compliance charge added mid-month, a late payment fee or a chargeback fee raised later. They then arrive in the next period or as a separate line on the bank statement.
3. Tax shown inconsistently
If the statement shows fees before tax and the bank shows the amount with tax, the two will not match. At a tax rate of 20%, fees of £209.00 become £250.80 once tax is added, a gap of £41.80 that is entirely down to presentation. Check whether tax appears anywhere on the statement.
4. Timing and netting
A provider may take fees from settlement rather than by direct debit, so the bank shows net sales instead of a separate fee. Or the debit date falls in a different month from the statement period. Use a range of two or three statements to see whether the numbers settle.
5. A genuine error
Occasionally the amount is simply wrong: a duplicate fee, a rate applied to the wrong card type or a charge that should have been removed. A recalculation of each fee line from its rate and turnover shows whether the figures add up. Our guide to working out a missing rate, turnover or fee shows how.
An example of a gap between a £209.00 statement and £245.00 taken. Each bar is a documented cause.
What does the gap do to the effective rate?
A gap matters because it means the effective rate is understated. For a business with £20,000 of card turnover:
| Measure | Statement only | True cost |
|---|---|---|
| Monthly fees | £209.00 | £245.00 |
| Effective rate | 1.05% | 1.23% |
| Annual cost | £2,508.00 | £2,940.00 |
The gap of £36.00 a month is £432.00 a year. It raises the effective rate by about 0.18 percentage points. When a provider quotes against the statement figure, a saving based on £209.00 is smaller than the saving available against £245.00. That difference can decide whether switching is worthwhile. See our guide to whether switching is worth it.
What should you do when you find a gap?
- Write down the gap and its cause. Be specific: which invoice, which payee, what amount.
- Ask for a full list of charges. Request every charge on the account in writing, including any billed by another company.
- Check the contract for each charge. Confirm each one is in the agreement and at the price charged.
- Challenge what looks wrong. A duplicate, an unexplained fee or a charge you were not told about can be queried.
- Update your numbers. Use the true total whenever you calculate the effective rate or compare quotes.
How can consultants use the bill check?
For a payment consultant, the bill check is often the most persuasive part of a conversation. The merchant sees two numbers on one page: what they believe they pay and what they actually pay. A gap of £36.00 a month, or £432.00 a year, is a concrete reason to look at alternatives.
Run the bill check in front of the merchant if you can. Ask them to find the bank debit while you look at the statement. The moment of finding the difference is memorable and builds trust, because it is their number from their bank, not a claim from you.
In the checkmyrates calculator there is a field for the amount the merchant was actually charged. It compares that figure with the calculated cost and flags any difference in red, so the gap is visible immediately and also appears on the quote. A bill that is higher than the statement is flagged as a warning, which is the trigger for the conversation that follows.
What not to do
- Do not accuse the provider. A gap is usually a separate invoice, not wrongdoing. State the facts and ask for an explanation.
- Do not guess. If you cannot explain a gap, say so and ask for the documents that would.
- Do not leave the gap out of a quote. If it is real, it is part of the merchant's cost, and a comparison without it is not fair.
Frequently asked questions
Why does my merchant statement not match my bank statement?
The usual reasons are a separate invoice for the terminal or gateway, fees added after the statement date, tax shown on one figure and not the other, timing differences or a billing error. Compare both documents and list every payee.
Is it normal for a statement to leave out the terminal cost?
Yes, it is common when the terminal is rented from a different company than the one that processes your cards. Each sends its own bill. Add them together to see the full cost.
How do I find out what I really pay for cards?
Add the statement total to every other charge connected to your card account, such as terminal rental, gateway fees and finance payments. Use the bank statement to find payments you did not know about.
Can I ask my provider for a list of all charges?
Yes. Ask for every charge on the account, including any billed by another company, and ask for the answer in writing. A clear list makes comparison and negotiation much easier.
Should I include tax in the bill check?
Be consistent. Either compare fees before tax on both sides or after tax on both sides. Mixing the two creates a false gap.
How often should I run a bill check?
Run one whenever you review a statement, and always before a renewal or a switch. It takes two minutes and often finds the largest saving.
Sources and further reading
Figures in this guide are examples to show the method. Fees, rules and rates change, so check your own statement, contract and current rules before you decide. This is general information, not financial or legal advice.