If you’re a merchant, you’ve likely come across the term “Bankcard MTOT Disc” on your monthly bank statement. At first glance, this charge might seem confusing, but understanding it is crucial for managing your business’s finances effectively. This guide will break down what Bankcard MTOT Disc means, its implications for your business, and how you can manage or even eliminate these fees.
What Is an MTOT Disc?
The term MTOT Disc stands for Merchant Total Discount. It refers to a monthly fee that merchants pay for processing credit card transactions. Essentially, it is a summary of the total discount fees that the payment processor charges for the service provided.
MTOT stands for Merchant Total, which reflects the aggregate amount of processing fees. Disc is short for Discount, which refers to the fees deducted from your transactions by the payment processor.
On your bank statement, you might find different variations of this term, such as MTOT DISC or BANKCARD MTOT. Regardless of the wording, they all refer to the same processing fees charged by your payment provider.
The Role of Bankcard in MTOT Disc
The term “Bankcard” in Bankcard MTOT Disc can be confusing. It’s important to note that “Bankcard” in this context refers to the payment card acceptance service provided by your payment processor, not a specific company like Bankcard USA.
Bankcard MTOT Disc fees are often associated with the FISERV/First Data network, a major payment processing network. This means that if your payment processor uses FISERV or First Data, you are likely to see this charge on your statement. However, many processors use similar descriptors, so it’s crucial to verify the details with your specific provider.
Types of Bankcard MTOT Disc Fees
Several types of fees may be associated with Bankcard MTOT Disc. These fees can vary depending on the processor and the terms of your agreement.
Monthly Processing Fees:
These are the most common MTOT Disc fees and typically range between $40 and $150 per month. The fee is calculated based on the total volume of credit card transactions processed by your business.
Annual Fees:
In addition to monthly fees, some processors might charge an annual fee, which is usually a one-time payment added to your statement. This fee covers the cost of maintaining your account and providing ongoing services.
Factors that can influence the amount you are charged include the total transaction volume, the type of transactions processed (e.g., credit card vs. debit card), and any additional services you may have opted for.
Transparency and Disclosure of Fees
One of the biggest challenges merchants face is the lack of transparency in how these fees are disclosed. Some banks and processors do not clearly itemize these charges, making it difficult for merchants to understand what they are paying for.
Merchant Agreements:
It’s crucial to review your merchant agreement carefully. This document outlines all the fees you will be charged, including MTOT Disc fees. Understanding these terms can help you avoid unexpected charges.
Legal Requirements:
There are legal requirements for banks to disclose fees to merchants, but the level of detail can vary. Make sure your processor provides a clear breakdown of all fees, and don’t hesitate to ask for clarification if something isn’t clear.
Can Merchants Reduce MTOT Disc Fees?
Reducing MTOT Disc fees is possible, but it requires negotiation and a good understanding of your payment processing agreement.
Negotiating Lower Fees:
Start by contacting your payment processor to discuss your current fee structure. If you process a high volume of transactions, you may be able to negotiate lower rates. Additionally, consider shopping around for different payment processors to compare fees and services.
Understanding Fee Structures:
Different processors offer different fee structures. By comparing these, you can find one that offers the most competitive rates for your business’s needs.
Managing Monthly Expenses:
Regularly reviewing your monthly statements and understanding each charge is key to managing your expenses. Keep an eye on any changes in fees, and be proactive in addressing any discrepancies.
How to Eliminate MTOT Disc Fees
If you’re looking to eliminate MTOT Disc fees entirely, here are a few steps you can take:
Dispute the Charges:
If you believe the fees are incorrect or were not disclosed properly, contact your payment processor to dispute the charges. Keep records of all communications and ensure you receive confirmation of any changes.
Terminate Old Agreements:
When switching to a new payment processor, make sure to properly terminate any existing agreements. Failing to do so can result in continued charges, including MTOT Disc fees, even after you’ve stopped using the service.
Find a Transparent Processor:
Look for a payment processor that offers transparent pricing with no hidden fees. Some processors offer flat-rate pricing, which can simplify your monthly billing and eliminate unexpected charges.
Related Terms and Charges
Understanding other related terms can help you better manage your payment processing fees:
BTOT (Batch Total):
This refers to the total amount of transactions processed in a batch. The BTOT descriptor on your statement indicates the sum of transactions processed at one time.
Differences Between MTOT and BTOT:
While MTOT refers to the total processing fees, BTOT refers to the total value of the transactions themselves. These terms may appear together on your statement, indicating both the transaction amounts and the associated fees.
Other Common Fees:
Other fees you might encounter include authorization fees (a small charge per transaction), monthly fees for account maintenance, and PCI compliance fees for maintaining secure transaction processing.
Final Thoughts on MTOT Disc Charges
Understanding MTOT Disc charges is essential for any merchant. These fees can add up over time, impacting your business’s profitability. By staying informed and proactive, you can better manage these costs and potentially reduce or eliminate them.
Regularly reviewing your statements, negotiating with your payment processor, and being aware of all associated fees can help you take control of your payment processing expenses.
Frequently Asked Questions (FAQs)
What should I do if I don’t recognize an MTOT Disc charge?
If you don’t recognize a charge, contact your payment processor immediately to verify its legitimacy and request a detailed explanation.
How can I find out the exact amount of my MTOT Disc fees?
Check your monthly bank statement or contact your payment processor for a detailed breakdown of the fees.
Are MTOT Disc fees negotiable with my payment processor?
Yes, especially if you process a high volume of transactions. It’s worth discussing your fee structure with your processor.
What happens if I close my merchant account but continue to see MTOT Disc charges?
This could happen if the account wasn’t properly closed. Contact your payment processor to ensure all agreements are terminated and any ongoing fees are stopped.
