Jan 14, 2022

Maybe you’ve seen a cryptic notation on your bank’s monthly statements.

“MTOT DISC? What the heck is that?” you might ask.

This article will tell you all you need to know about MTOT Disc.

MTOT Disc Meaning

MTOT Disc refers to the Merchant Total DISCount Fee (or Merchant Account Total Discount fee).  More fully, it means “Merchant Account Total Batch.”  

MTOT DEP means “merchant account total batch deposit,” and the related MTOT DISC refers to “merchant account total batch discount fee.”

This is a deduction that should always be presented with complete transparency. Anyone opening a merchant account should know about it from the start.  

Some merchant processors are, shall we say, less than scrupulous and they may have used this code to quietly earn more from their merchant statements by adding extra fees.  

Some of them will not put it on their list of fees, which means that the only merchants who spot it will be the ones who go over their monthly and annual statements with a fine-toothed comb.

Therefore, this code is most commonly seen on the bank statements for merchant accounts.  

This code should not be confused with other types of fees:

  • Annual Fees (which should be a comprehensive list of all fees you’re being charged)
  • Monthly Fees  (the cost of accepting payment cards via your merchant account)
  • Authorization Fees (the per-transaction cost of accepting credit cards)

MTOT Disc typically appears as a monthly item, but some banks charge it yearly. Since not all banks are up-front about their fees, this is often an effort to squeeze more money out of you, their customer.

These fees differ between banks, and also from customer to customer within a bank. Typically, however, these fees fall in the range of $40 to $150.

It’s worth noting that there isn’t an MTOT company or even a BTOT organization. We’ll discuss BTOT in more detail below. 

Why You’re Seeing MTOT DISC on Your Bank Statement

Sometimes, MTOT Disc refers to a legitimate charge that you agreed to when you signed your contract with a merchant services provider.

Other times, though, MTOT Disc might refer to an agreement you signed with a different merchant account provider, and your agreement with them was not properly concluded or terminated. 

Therefore, they continue to charge you.

Another situation in which you might see MTOT Disc improperly applied is if you close your merchant account, or simply stop using it without informing the bank of your decision.  

We’ve also heard about merchants signing up with new merchant account providers who offer to “take care of” the existing agreement.  

The merchant might assume this means the new provider will terminate the account for them, but that’s not actually possible. Only the primary guarantor of the account (that’s you) can close it.

That said, under normal circumstances, MTOT Disc is a legitimate cost. It can appear on a monthly statement. 

Some merchant account providers will make large, non-itemized annual deductions. This makes it harder to determine just when the fee was charged, and what it was applied to.  

And that’s going to raise some red flags for sharp-eyed merchants like yourself.

If you close your business or switch to a different merchant account provider, be sure to terminate your existing agreement properly!

What to do if You See MTOT DISC on Your Bank Statement

If you see MTOT Disc on your bank statement, and you didn’t authorize it, be sure to report it as soon as possible.  

After you see it on your statement, you may want to consider contesting this fee. Be sure to register your complaint as soon as possible, because you have just two months to do so (sixty days) before the bank will refuse to do anything about it.  

If you are being charged this fee, it will likely appear on your monthly bank statement.

If you don’t see it monthly, be sure to look for it on your yearly statement. Some unethical merchant processors will add this fee solely to squeeze more money out of their customers.

It’s easy to confuse the two, but don’t MTOT and BTOT are different, but similar.

BTOT Deposit Definition

Sometimes a bank will classify MTOT Disc charges as “BTOT Disc” or even “MTOT Dep.”

MTOT is a merchant’s monthly total, whereas BTOT refers to the bank’s monthly total.

MTOT Disc and Bankcard

When MTOT Disc appears on a banking statement, the notation “Bankcard” is often not far behind.

MTOT refers to Merchant Total. Disc refers to the discount fee. 

BankCard is a more generic term, though, that highlights the fact you’re accepting credit and debit cards from customers.

Sometimes people take “MTOT DISC Bankcard” to Google and find out there’s a company called BankCard USA.  

The notation doesn’t have to do with them. Bankcard is actually a generic term used by many different credit card processing companies.  

In this sense, the word has nothing to do with BankCard USA. Instead, it simply refers to your company’s acceptance of credit and debit cards.

Put another way, the term “BankCard” is a term commonly used to refer to a payment card that’s issued by a bank, and that can be used to buy goods and services. 

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