Why is my effective rate higher than my advertised rate?

Advertised rates usually exclude monthly fees, non-qualified transactions, and downgrades. When these additional charges are included, your actual effective rate is typically much higher.

How can I find out my true effective rate?

A savings audit calculates your effective rate from your processing statements and shows you exactly how much you're paying compared to industry benchmarks.

What Is an Effective Rate (And Why Yours Is Higher Than You Think)

Your effective rate is the true percentage you pay to process credit card transactions. It includes all fees, not just the advertised rate. To understand where costs come from, learn how credit card processing fees work.

What does “effective rate” mean?

The effective rate is calculated by dividing total processing fees by total card volume for a given period.

How to calculate your effective rate

Take your total processing fees for the month and divide them by your total processed volume. Multiply by 100 to get a percentage.

Why advertised rates are misleading

Advertised rates usually exclude monthly fees, non-qualified transactions, and downgrades.

Common reasons effective rates are high

Flat-rate pricing at higher volumes
Hidden monthly charges
Transaction downgrades

See your real effective rate

A savings audit calculates your effective rate and compares it to transparent pricingG