What is the MTOT Disc Fee?

February 11, 2022

After an in-depth examination of your merchant account statement, you’ve come to find that you’ve been charged a pretty heft MTOT Disc fee, and you’re not even sure what that is. A whopping $150 bucks down the drain, and for what? ‘Bankcard MTOT disc?’ What does that even mean?

Now, before you go serving up an angry phone call to your acquirer, it’s important that you understand that the MTOT disc fee is something you weren’t mistakenly charged. This fee is a recurring charge and has a completely valid purpose. And no, it wasn’t taken out of your account by BankCard USA.

What Does MTOT Disc Mean?

First off — what does MTOT disc even mean? Well, ‘MTOT’ is a sort of abbreviation for ‘merchant total’, and ‘disc’ just means discount. So MTOT disc essential means merchant total discount.  On your statement, the MTOT disc fee can have your merchant account ID next to it. In some cases, you might even find the word BANKCARD printed right next to the MTOT disc label. Whatever the case, as long as you see any combination of these words together, you can bet it pertains to this specific fee.

What is the MTOT Disc Fee For?

This is a generic term that merchant account providers use to label the fees that they take from your account for the processing of payments that they perform for your business. That said, the charge can vary widely depending on how much processing they perform. On average, however, the MTOT disc fee can range between $40 to $150.


Keep in mind that the MTOT disc fee is a direct cost taken by your bank. This isn’t paid to payment processors. Some experts would even assert that the MTOT disc fee is just another lousy way that banks stick their grubby fingers into your account to make more money off of the contract.

MTOT disc fee

Where Can You Find the MTOT Disc Fee?

You should see the MTOT disc fee listed as one of the expenses on your merchant account statement. Most merchant account providers will indicate the fee out in the open, providing maximum transparency so you know exactly what was taken out of your account. Then again, they’re not all as kind. Some acquirers will hide this expense from you, so unless you really crunch the numbers, you can never really tell that you’re missing a few hundred dollars. That’s another reason why some people assert that it’s not even a valid charge since some providers try to keep it under wraps.

Another unfortunate thing about the MTOT disc fee is that you probably weren’t told that you would be charged that amount when you first signed your contract. And that’s probably why you’re here. After all, if you were informed as to what the MTOT disc fee was for, then you likely wouldn’t take your time looking it up on the web. Do know however that in case you reach out to your provider for an explanation, they’re just going to tell you that it’s a direct fee they charge for the service they provide.

What Does BankCard Have to Do With It?

BankCard USA is a merchant service provider that’s been around since 1993. They almost always get dragged into the MTOT disc fee issue because some banks will indicate the word ‘BANKCARD’ right next to the MTOT disc code. So naturally, merchant account holders who aren’t familiar with the charge end up thinking that the BankCard company had something to do with it. To be perfectly clear, BankCard USA has nothing to do with the MTOT disc fee. The code BANKCARD simply indicates that the fee has something to do with the merchant account’s transactions that involve the use of credit and debit cards.

For the record, random companies like BankCard can’t show up on your statement, especially if you’re not dealing with them directly. It’s also worth mentioning that not all merchant service providers will use the word BANKCARD next to the MTOT disc fee code.


Can You Dispute the MTOT Disc Fee?

You can dispute any charge on your account, but that doesn’t mean that you’ll always get the results you want. For the most part, the MTOT disc fee is indicated in your contract, but might be in the fine print. This is why most merchants might not be aware of the charge until they notice they’re incurring deductions on their statements.

Generally speaking, your merchant account provider probably has every right to take that MTOT disc fee, which is why they do. In fact, there are likely provisions in your contract that state their right to deduct such a fee. It’s just that they write their contracts in such complicated terms that it’s hard to find the MTOT disc fee plainly stated.

Before Signing Up With a Merchant Account Provider

Obviously, not all of the charges will be stated in broad daylight, and you might find yourself wondering what you’re actually paying for when those merchant account statements start rolling in. So to prevent confusion and to make sure you fully understand what kind of financial burden you’re getting yourself into, it pays to ask the right questions before you even decide to sign a contract with a merchant account provider.

Merchant account provider

  1. Can I know all of the charges I can expect on a monthly and yearly basis? Here’s an important question that can make it hard for merchant account providers to beat around the bush when it comes to divulging information about the charges they plan to take out of your account. Before you sign up, you can ask for a complete list of all of the recurring charges they intend to have you pay for the duration of your contract. You can also plainly ask about MTOT disc fees, how much it will cost, and when they take the amount out of your account.
  2. What penalties and fees do you impose? Here’s another important question worth asking. Your merchant account provider will charge you penalties in case you violate a condition in the contract. Again, these aren’t always as obvious, so it helps to have them really explain their penalties in detail before you sign up.
  3. Can I get better terms? Not a lot of merchants know this, but you can actually negotiate all of the terms on the contract. Remember that merchant acquiring banks will calculate the fees they impose on a case-to-case basis. So nothing is set in stone. They measure your risk, your transaction volume, and all of the other details to come up with a magic number they think would best suit your business. Again, you can contest that number and say that you think you deserve better rates.

Don’t be afraid of asserting your right to get better rates. What many don’t realize is that they can actually wiggle their way out of exorbitant charges and fees just by negotiating. In fact, some merchant service providers might even waive certain fees altogether if they find out that you’re well versed with the intricacies.

Is the MTOT Disc Fee a Scam?

Some consumers would assert that the MTOT disc fee is a scam. Considering all of the other fees that you pay for the merchant services you get, you’d think that the provider would stop at some point. Unfortunately, it’s not entirely clear what the MTOT disc fee pays for. All the banks assert is that it’s a necessary charge that you pay directly to the bank for the service they provide. Repeatedly, you’ll find sources stating that the MTOT disc fee is not to be confused with authorization fees, monthly fees, or annual fees. Yes, the MTOT disc fee is a charge all of its own, and banks aren’t entirely clear what it’s for in the first place.

Unfortunately, there have been some reports of people getting charged an MTOT fee at an irregular schedule. That means they pay the amount without warning and at unpredictable intervals. Some say that the MTOT disc fee pops up once or twice a year, while others get charged every month. Again, it depends on your acquirer. The best way to map out the charge, when it will be taken out of your account, and what it’s supposedly for would be to contact your bank. They should be able to give you a better explanation of your unique situation since the MTOT disc fee can manifest differently for different people.


The Bottom Line

Setting up your merchant account was only just the beginning of your struggle. Unfortunately, there’s going to be a whole lot of feeling around in the dark when you finally get to experience what it’s like to manage and maintain a merchant account. On the upside, if you signed a contract with a trustworthy, reliable, and transparent provider, you can get all of the explanations you need to clarify any confusion. The MTOT disc fee might be one of them, and although the charge might seem irrelevant and unnecessary, you should expect to pay the added fee for the rest of the contract.



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