Here, we will decode one of the most common fees that business owners see on their statements. “MTOT Disc” is a fee that you likely see on your statement. But what does it mean?

MTOT Disc Table of Contents

What Does MTOT Disc Stand For?

Merchant Total Discount Fee, or MTOT, is a fee that is charged to merchant account holders by the payment processor. MTOT stands for Merchant Total and Disc stands for Discount Fee. This fee is charged on a monthly or annual basis by your processor and will appear on your statement as such.

Every card issuer charges MTOT fees, but they can appear differently on statements. If you have different cards and processors, you may notice that the fees appear differently from one statement to the next. Knowing where to find them on your statement is a good first step to understanding and potentially reducing them.

Where is MTOT Disc on My Bank Statement?

The location of MTOT Disc fees on bank statements will vary from vendor to vendor. Some processors will charge the fee on a monthly basis, and it will appear on your statement under the fees section. Other processors will only show this fee on your annual statement. The latter is a more concerning scenario for a variety of reasons.

If the fee only appears on your annual statement, you have no idea what is being charged throughout the year

Seeing the fee only once per year could make merchants overlook it or not understand why it’s there

Depending on the amount of the fee, an annual charge could result in an unexpected expense that merchants did not plan for

Reviewing your statement monthly is a great way to stay ahead of your fees and understand how they are assessed. An even better strategy is to schedule a call with your payment processor and have them walk you through your contract. Once you understand how they work, you can take steps to either reduce your fees and/or budget for them.

What Does Bankcard MTOT Disc Mean?

The word “bankcard” is an industry term that is used throughout the banking and payment processing industries. It refers to a bank-issued card that can be used for buying and selling your business. However, there are a few companies whose names include this term, as well. It’s important not to get them confused. Here are a variety of terms you may see on your statement and what they stand for:

MTOT Disc – Merchant Total Discount Fee

Bankcard MTOT Disc – Merchant Account Total Batch Discount Fee

MTOT Dep – Merchant Account Total Deposit

BTOT – Bank Total

Authorization Fee – The cost of authorizing a card for payment. These are generally charged when a card is first processed. They can be returned to the customer after authorization but may still be charged to the merchant. Note: This is different than an electronic authorization.

Monthly Fee – A fee that is charged each month for the maintenance of your account. Some service providers have parameters that you can meet in order to avoid these fees. However, most payment processors charge them regardless.

Annual Fee – The amount that your processor charges on an annual basis to maintain your account and offer their services to you. This amount is disclosed in the contract when you register for your account.

Are MTOT Disc Fees Transparent?

MTOT Disc fees are transparent with some providers and not so with others. It really depends on your payment processor. Some processors pride themselves on transparency and making their statements easy to understand. Others don’t mind leaving the waters “muddy” so they can continue charging fees without their clients asking questions.

As a business owner, it’s important to understand the fee structure of your account. This can help you plan for fee payments and catch errors when they occur. Not being aware of what’s going on in your account could cost you tons of money over time.

Learn More About Bankcard Fees

The easiest way to learn more about your bank card fees is to call your payment processor directly. Ask them to walk you through your statement and explain each fee and what it’s for. They should be able to explain the fee types, amounts, and reasons for which they are charged.

During this conversation, you may also choose to ask about the different fee structures that are available to you. Most processors offer more than one structure, but many merchants don’t know to ask the question. Here are the three main types of processing fee structures:

Flat Rate

The flat rate fee structure charges a single flat fee, regardless of the number or amount of transactions in a month. These fees are typically one flat percentage rate that is charged to all transactions. It can be a benefit or a hindrance, depending on the volume of transactions in your business.

Tiered Rate

This type of fee structure takes different transactions and groups them into categories. Those categories are Qualified, Mid-Qualified, and non-qualified. Transactions are placed in each category based on their risk level, which is decided by the type of product being purchased, the card being used, and the type of purchase being made.

Interchange Plus

Interchange plus pricing includes an interchange fee plus a flat fee, both of which are charged for each transaction. These are generally the most confusing plans to understand but can often save the merchant a lot of money.

Talking to your processor is a great way to learn about all your options and choose what’s best for your business. They can help you decode your statement and offer alternative plans if necessary.