# Effective rate

https://www.uniwebpay.com/glossary/effective-rate/

*Last updated: 2026-08-03*

Total fees for a period divided by total gross takings for the same period, with every non-percentage line item folded in — rentals, minimums, administration charges. It is the only figure that is comparable between two providers, because a headline percentage says nothing about what else is being charged or about the mix it is applied to.

## Why it matters to a merchant

The only cost figure worth acting on, and any merchant already taking payments can calculate it from one month of their own statements. Doing so once turns a comparison of quoted rates into a comparison of outcomes, and it regularly reorders the shortlist.

## Related terms

*What it costs, and what gets measured*

- [MDR (merchant discount rate)](https://www.uniwebpay.com/glossary/mdr/)
- [Interchange](https://www.uniwebpay.com/glossary/interchange/)
- [GMV (gross merchandise value)](https://www.uniwebpay.com/glossary/gmv/)
- [Merchant account](https://www.uniwebpay.com/glossary/merchant-account/)
- [Per-transaction fee](https://www.uniwebpay.com/glossary/per-transaction-fee/)
- [Blended rate](https://www.uniwebpay.com/glossary/blended-rate/)
- [Interchange-plus](https://www.uniwebpay.com/glossary/interchange-plus/)
- [Cross-border interchange](https://www.uniwebpay.com/glossary/cross-border-interchange/)
- [Net settlement](https://www.uniwebpay.com/glossary/net-settlement/)
- [Rolling reserve](https://www.uniwebpay.com/glossary/rolling-reserve/)
- [Surcharge](https://www.uniwebpay.com/glossary/surcharge/)

- [All 74 terms](https://www.uniwebpay.com/glossary/)

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