Understanding Merchant Effective Rate
To ensure that merchants receive the best rates and know what they're paying for their payments processing, they should understand their merchant effective rate, or MER. Merchants may want to consider your payment processing solution to access great rates on their payments. Conversely if your merchant's effective rate is too high it may be seen as an opportunity to competitors to lower the merchant's rate and gain a client from you.
What Is The Merchant Effective Rate?
The merchant effective rate, or MER, is the sum of all credit card processing fees paid relative to total credit card sales in a given month. This figure, expressed as a percentage, provides merchants a straightforward way to measure the cost-effectiveness of their rates.
Calculating MER
Calculating a merchant's MER involves the following steps:
Locate the merchant billing amount
Locate the monthly volume for the billing month
divide the billing amount by the volume to get MER
Using the merchant effective rate helps merchants make well-informed decisions about their payment processing charges and determine the most cost-effective solution and you can use it to do the same for your customer base.
Filter
Table
MID: The processor assigned ID number
Merchant: The merchant's doing business as name
Salesperson ID: ID of the assigned sales user
Salesperson: Name of the assigned sales user
Salesperson: Name of the assigned sales user
Division: Name of division the sales user is assigned
Batch: The year and month of the effective rate calculation
Volume: The indicated month's total bank card volume
Total Income: The amount the merchant pain in total for the month
Effective Rate: Total income divided by the volume represented as a percentage