5-STAR CARD Processing is a service that provides low-cost options for any high-risk merchant accounts for a myriad variety of businesses and industries, including but not limited to antiques and collectibles, credit repair, document preparation, fantasy sports, hotel lodging, magazine sales, precious metals, restaurant, retail, and other such low, medium or high-risk businesses.
While 5-STAR CARD processing is a service that adequately and consummately, fulfills all credit and high-risk merchant account needs, it goes without saying that being sufficiently familiar with reading a merchant processing statement is necessary to make full use of the services provided and ensuring a firm grasp on the financial map of your business. A processing statement is a priceless tool that helps one gauge the state of one’s business – it tracks daily processing activities as well the fees you pay for your services, giving a factual description of how your business is doing.
One has to be guided by the objective to fully understand the reports on a processing statement and not merely read them with a cursory glance. To aid this understanding, these five steps will further exemplify how to decode your processing statement and determine where your money is going, your competitive credit, and other relevant specifics.
Table of Contents
1. Know Your Merchant Number- 5-STAR CARD
The Merchant Number is a code that differentiates your business from others. You can find it at the top of all credit card processing statements. It is often also called a Merchant ID, and this code is of utmost importance to your account. Along with this code, the top of the statement also includes the contact information of your service provider. When contacting your service provider, it is imperative to keep your Merchant ID ready for identification purposes. Without the merchant number and your business name and address, the service provider cannot verify your identity. Your service provider will need your Merchant ID to verify your identity. They will need your business name as well.
2. What Are The Components of Cost – Base, And Markups
The Merchant Number is a code that differentiates your business from others. You can find it at the top of all credit card processing statements. It is often also called a Merchant ID, and this code is of utmost importance to your account. Along with this code, the top of the statement also includes the contact information of your service provider. When contacting your service provider, it is imperative to keep your Merchant ID ready for identification purposes. Without the merchant number and your business name and address, the service provider cannot verify your identity. Your service provider will need your Merchant ID to verify your identity. They will need your business name as well.
3. Various Summarized Subsections- 5-STAR CARD
Several subsections throughout the document describe different aspects of your credit processing statement. Some of these are Companies, Offset to Sales and net sales. All these subsections provide information that is elemental to the status of your business as represented on the statement. The Companies subpart labels the total number of deposits and withdrawals made to the account by location. It also clarifies the mode of warranties – credit, debit, etc. Offset to Sales includes data on the transactions subtracted from the total sales, such as chargebacks or refunds. The total amount given to you for all the deposits appears under Net Sales. The Deposit Detail Summary provides a brief outline of all the deposit information.
4.Identify the Pricing Structure
Another essential aspect of decoding your processing statement is identifying the pricing structure or model your service provider is using. The most commonly used model is the Tiered / Bundled Pricing model. The usage of this model indicates terms like qualified, mid-qualified, or non-qualified included in the statement. The other kind of model that may be employed is the Interchange Plus/ Pass-Through Pricing model that is far more detailed and will show specifics like consistently low percentage of discount rates, itemized interchanged changes, etc.
5. Differentiate the Discount Methods
Your service provider charges fees on your credit card processing through daily or monthly discount methods. The method employed for determining discounts affects the calculation of the total expenses on any statement. In the daily discount method, the service provider charges their processing fees every day, and other costs such as non-qualified rates, credit card transaction fees, etc., are charged at the end of each month. In the case of monthly discounts, the service provider charges all processing fees in a lump sum at the end of a month or the beginning of the following month. The monthly discount method is easier to calculate and process between the two. However, the daily discount is the only way available for some high-risk merchant accounts.
Conclusion
Credit card processing statements can be a priceless tool to understand and analyze the real-time status of your business. If one is literate in decoding credit card processing statements, then it makes it easier to understand the profits and losses and can use this knowledge as an apparatus to gauge the financial status of one’s business or industry. The five steps featured in this article provide a solid foundational base to learn the ins and outs of understanding one’s credit card processing statement. These five steps account for the main aspects and points to note while endeavoring to get a deeper look and grasp of one’s monthly or yearly transactions and spending.