FeeReady / Merchant statement glossary

Australian merchant fees 2026

How to read a merchant statement before the 2026 surcharge changes

A practical glossary for turning payment-provider statements into FeeReady assumptions before comparing 2026 surcharge-transition scenarios.

Quick answer

A merchant statement is the best starting point for modelling the 2026 surcharge transition because it shows what you actually pay, not just the advertised rate.

Use with caution

Statement labels vary between banks and payment providers. Treat this glossary as a planning aid and confirm definitions with your provider before making pricing, legal, tax or contract decisions.

Why this matters before 1 October 2026

If surcharge recovery changes, businesses need to know the payment cost that remains in their margin. A headline merchant rate may miss terminal rental, gateway charges, minimums, chargebacks, card-not-present rates, foreign-card treatment and per-transaction fees.

Statement terms to identify

Gross card sales

The total value of card payments accepted before merchant fees are deducted. Use this to estimate the share of revenue affected by card costs.

Merchant service fee

The provider charge for accepting card payments. It may be a blended rate or a mix of interchange, scheme and provider fees.

Effective merchant rate

Total payment-provider cost divided by card sales for the period. This is often more useful than the advertised headline rate.

Interchange

A card-system cost that may be capped by regulation, but it is not the same as your total provider fee.

Scheme fees

Fees associated with card networks. These may be separate from interchange and provider margin.

Provider margin/service fee

The acquirer or payment provider’s own charge for processing, support, risk, software or service delivery.

Card-present payments

Payments made through an in-person terminal. These may be priced differently from online or keyed transactions.

Card-not-present payments

Online checkout, invoice links, keyed payments and subscriptions. These can carry different risk and pricing.

Terminal and gateway fees

Fixed monthly hardware, software or ecommerce costs that remain even if percentage rates change.

Simple effective-rate formula

Effective merchant rate = total provider fees for the period ÷ total card sales for the period.

Example: if card sales were $40,000 and total provider fees were $520, the effective rate is 1.30%. Use your own statement values and include fixed fees if they are part of the payment setup.

Checklist before using FeeReady

  1. Circle total card sales for the month.
  2. Add all percentage, per-transaction, fixed, terminal, gateway and dispute fees.
  3. Separate in-person, online and invoice payments if shown.
  4. Calculate your effective merchant rate.
  5. Enter the current effective rate in FeeReady, then model written provider quotes as scenarios.

Provider-specific next steps

Use these neutral pages when comparing written quotes or provider statements:

Open the FeeReady calculatorCompare provider quotesUse adviser workflow