Short answer
A five-minute merchant statement analysis confirms the volume, transactions and total fees, identifies the pricing model, adds up every fee line, calculates the effective rate and sets out the most defensible saving, not the biggest one. Repeat the same steps in the same order every time so nothing is missed and every number can be explained.
This is the main guide in Selling and savings quotes. Every guide in the series is listed at the end.
Key takeaways
- A repeatable order is what makes analysis fast: volumes, model, fees, effective rate, then the saving.
- Aim for the most defensible saving, not the largest, because an overclaim costs trust and deals.
- Always run the bill check, include terminals and exit costs and test a quiet month.
- Record assumptions so you can explain every figure when the merchant asks how you got there.
- Handle statements securely, using the intake method your ISO or acquirer approves.
Every merchant services sale starts with a statement, and every consultant has had the same experience: a statement lands on the desk and half the time is spent working out what it says. The best consultants do not read faster. They read the same way every time, so they never stall, never miss a line and can explain every number afterwards.
This guide sets out a five-minute method. It is built for payment consultants, ISO agents and merchant services teams who want an analysis that is quick, accurate and honest. It builds on the reading steps in our guide to how to read a merchant statement and goes on to the part that matters in sales: turning a reading into a saving you can stand behind.
What counts as a defensible saving?
Industry guidance on statement analysis makes the same point: the goal is not the biggest savings claim, it is the most defensible one. A saving that falls apart when the merchant checks it damages the deal and your reputation. One that holds up makes the next conversation easier.
What is the five-minute method?
- Minute 1: confirm the basicsPeriod, business, provider, turnover, refunds, transactions and total fees.
- Minute 2: identify the pricing modelInterchange plus, blended, tiered or flat rate. This decides how you read the rest.
- Minute 3: list and total every feeRates, per-transaction fees, monthly fees, extras. Check each line multiplies out.
- Minute 4: calculate the effective rate and run the bill checkTotal fees over turnover, and compare with the amount actually charged.
- Minute 5: build the comparisonThe same month on your offer, with every cost, and the saving after exit costs.
The times are a guide. The order is what matters.
Minute 1: confirm the basics
Find the billing period, the business name, the provider and the merchant ID. Then record four numbers: card turnover, refunds, transaction count and total fees. Do not take the largest "sales" figure at face value. Check whether it is gross or net, and whether it includes non-card sales.
From these you get the average transaction value, which tells you how much per-transaction fees will matter.
Minute 2: identify the pricing model
Count the lines. Many lines with card-type labels suggest interchange plus. Two or three lines suggest blended or flat rate. Tiers called qualified, mid-qualified and non-qualified suggest tiered pricing. Statement labels vary between processors, so treat them as clues. See interchange plus, blended and flat rate and tiered pricing.
Minute 3: list and total every fee
Write down each charge with its amount. Group them into percentage fees, per-transaction fees, fixed monthly fees and occasional fees. Check that each percentage fee equals its rate times its turnover. If the rate or the turnover is missing, rebuild it. See working out a missing rate, turnover or fee.
Minute 4: calculate the effective rate and run the bill check
Divide total fees by turnover. Then compare the statement total with the amount actually charged, because a separate terminal or gateway invoice is the most common gap. See the bill check and hidden fees.
Minute 5: build the comparison
Price the same month, with the same turnover and card mix, under your offer. Include the terminal, every monthly fee and any one-off cost. Then subtract the exit cost of the current contract, which you should have asked about.
What should you capture from every statement?
Use the same record every time. It takes seconds and prevents most mistakes.
| Item | Why it matters |
|---|---|
| Provider and contract end date | Timing and exit cost |
| Pricing model | How to read and compare |
| Turnover (gross or net), refunds | The base for every rate |
| Transactions and average sale | How much per-transaction fees weigh |
| Card mix | Which pricing model suits |
| Every fee, with its rate and amount | The cost structure |
| Total fees and effective rate | The comparison number |
| Amount actually charged | The bill check |
| Terminal and other invoices | The full cost |
| Exit cost and notice period | The cost of leaving |
From reading to saving: an example
A merchant pays £245.00 a month in total card costs (including a £36.00 terminal invoice that was not on the statement). Your offer prices the same month at £185.00.
- Headline saving: £60.00 a month, £720.00 a year.
Before you quote £720.00, test it.
- Quiet months. Three months a year, the merchant's sales fall and a fixed fee in your offer means the saving is only £25.00. Those three months save £75.00 instead of £180.00.
- Exit cost. The merchant has to pay £150.00 to leave the current contract early.
| Step | Calculation | Annual saving |
|---|---|---|
| Headline | £60.00 × 12 | £720.00 |
| Adjust for three quiet months | 9 × £60.00 + 3 × £25.00 | £615.00 |
| Subtract exit cost in year one | £615.00 − £150.00 | £465.00 |
First-year saving for an example merchant. The defensible figure is the one to quote.
The merchant who hears £465.00 in year one, rising to £615.00 a year afterwards, can check every step. The merchant who hears £720.00 and later discovers the exit cost feels misled, whatever the maths. See is switching worth it for the payback calculation.
How do you handle a statement securely?
Statements contain business financial details. Treat them accordingly.
- Use the secure intake method your ISO, acquirer or organisation approves. Do not ask a prospect to post a statement publicly or send it through an unapproved channel just because it is convenient.
- Share only what you need. A statement does not need card numbers, and you should not ask for them.
- Store it properly and delete it when it is no longer needed, in line with the data protection rules that apply to you.
- Tell the merchant what you will do with it. A sentence is enough.
Which mistakes slow you down or lose trust?
- Leaving out fixed fees or the terminal on either side.
- Comparing headline rates instead of effective rates.
- Using one month for a seasonal business.
- Ignoring the exit cost and the notice period.
- Mixing gross and net turnover between the statement and the quote.
- Not recording assumptions, so you cannot explain the number later.
- Overclaiming, which turns a good saving into a bad conversation.
How do you make it repeatable?
The five minutes only hold if the method is the same every time. Three habits help.
- Use one template for the record, whether in a spreadsheet or a tool.
- Use one set of definitions, such as gross or net turnover and how to treat tax.
- Review one finished analysis a week against what the merchant signed, and note anything you missed.
The checkmyrates calculator is built around this method. You enter the figures from the statement, it flags the bill check, shows the effective rate and compares the merchant's cost with your offer line by line, and it can produce a three-page quote for the merchant.
Frequently asked questions
What is a merchant statement analysis?
A review of a merchant's card processing statement to find what they pay, how it is made up and whether a different provider or pricing would cost less, written up as a comparison.
How long should an analysis take?
A trained consultant can do the first pass in about five minutes using a fixed order. A full proposal, with the exit cost and a quiet-month test, takes a little longer.
What is a defensible saving?
A saving that uses the merchant's own figures, includes every cost on both sides, allows for exit costs and seasonality and can be explained step by step.
What should I do if the merchant will not share a statement?
Ask for a bank statement showing the card fees and an estimate of monthly card turnover. The result is rougher, so say so, and offer to refine it when you see a statement.
How do I avoid overclaiming?
Test the saving on a quiet month, subtract the exit cost, include terminals and monthly fees on both sides and write the assumptions on the quote.
How should I store merchant statements?
Use your organisation's approved secure method, keep them only as long as needed and follow the data protection rules where you work.
All guides in Selling and savings quotes
- How to ask a merchant for their statement and get a yes
- Building a savings quote merchants trust: what goes in, what stays out
- How to win a card machine switch: from first call to signed paperwork
- Handling "I'm happy with my provider": responses that respect the merchant
- Honest comparisons in merchant services: claims that hold up
- ISOs, agents and residuals: how merchant services sales pays
- Your first 90 days as a payment consultant: a practical plan
- A merchant services sales pipeline built on contract end dates
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.