Processing Statement: Meaning in a Merchant Cash Advance
A processing statement is the monthly summary a card processor sends that lists a business's card sales, refunds, chargebacks, fees and net deposits. Funders use it to confirm card volume and to price advances collected through the processor.
What does processing statement mean?
Your bank statement shows the deposits. The processing statement shows what's behind them: gross card sales, how many transactions, the average ticket size, card types, fees charged and any money held back. Together the two documents give a full picture of card revenue.
Why does processing statement matter to your business?
When a funder plans to collect through your processor, it needs to know how much settles each month and how steady it is. Even for ACH-collected advances, processing statements help explain gaps between sales and deposits, such as a reserve or a large chargeback, that would otherwise look like a drop in revenue.
What does an underwriter read on it?
- Monthly gross card volume and its trend.
- Number of transactions and average ticket.
- Chargebacks and refunds as a share of sales.
- Reserves or holds.
How do you get them ready?
Download the last few months as PDFs ahead of time. If you use more than one processor, get statements from each so the totals match your bank deposits.
Why should it match the bank statement?
Net deposits on the processing statement should line up with processor deposits on your bank statement for the same month, allowing for timing at month end. If they don't match, find out why before an underwriter asks, since a gap usually points to a reserve, a hold or a second account.
Where will you see it?
In your processor's online portal, usually as a downloadable PDF each month. In a funder's stips list. In a funder's review of split processing files.
Which terms are related to processing statement?
The full list is in the glossary. Owners ask about this in Do cash deposits count toward an MCA?.
A term on your offer you don't recognize?
Send us the line and we'll tell you what it means. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.