A simple but effective benchmark revealing the real, actual percentage of fees that a Merchant is charged on all transactions. It is calculated by dividing the Total Fees Paid by the Total Volume of credit card transactions. (volume ÷ fees)%. The Effective Rateis especially meaningful because it helps reveal hidden fees and inflated fees. Example: often a Discount Rate is low because “Back End” fees (surcharges, etc.) offset a low Front Rate.

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