Merchant statement analysis: from a PDF to a pitch

What goes in

Upload a PDF or enter the figures by hand. From a PDF, the analysis reads the processor, the statement month, card volume and each fee line: interchange, markup, monthly, statement, PCI and batch fees, plus any early-termination terms. The reading step only extracts numbers. The math runs separately on our server, so the arithmetic never depends on a language model. We don't keep the PDF file; the extracted figures are stored on the lead in your account.

Pricing model detection

Line items show how a merchant is priced. Qualified, mid-qualified and non-qualified buckets point to tiered pricing. One identical rate across every card points to flat-rate. Separate interchange and markup lines point to interchange-plus. Cash discount, subscription, surcharge and bill-back (ERR) charges are recognized too, and when the line items aren't clear the result can come back as unknown. The model matters because it sets the pitch: a tiered statement calls for a different conversation than a flat-rate one.

Effective rate

The effective rate is total fees divided by card volume. If the statement doesn't print total fees, the analysis uses gross sales minus net deposit. It also shows the annual cost, which is the monthly fees times twelve. You can test the arithmetic yourself in the free effective rate calculator.

Downgrades and debit

The analysis flags a statement when any line item is billed at 3.15% or higher, which it treats as a sign of downgraded transactions. It also estimates what share of volume is debit, so the pitch can point at debit billed at rewards-card prices. Both are flags to check against the statement, not findings, because the figures come from reading a document.

The savings number

Savings compare what the merchant pays now with a proposal built from your own rate card: your markup in basis points, your per-transaction fee and your fixed fees. Interchange passes through on top. It comes from the statement's interchange line when there is one, and is otherwise estimated at 1.70% of volume. The calculator uses the same math, so the two agree. These are estimates, not quotes.

The pitch script

From the numbers, the analysis drafts an opening line that names the processor and the annual cost, the key problems with dollar amounts, a proposed solution and a closing question. It also writes answers to four common objections: happy with their processor, just signed a new contract, rates seem too good to be true, and we process a lot of debit. You get an email subject line and a text-message opener under 160 characters as well. LocalProspect Pro doesn't send anything for you, so review the script before you use it.

What it costs

Searching is free. A statement analysis uses one credit, and the 15 free credits need no card. If the analysis fails on our end, the credit is refunded.