If you are reviewing your merchant bank statements often, you have probably noticed a recurring charge labeled "MTOT Disc." MTOT Disc is short for "merchant total discount." It's the monthly debit your payment processor takes from your business account to cover your previous month's credit card processing fees. To break it down, MTOT stands for "merchant total" (sometimes read as "monthly total") and DISC stands for "discount."
For this instance, "discount" refers to your discount rate, which is a percentage-based fee you pay on each card sale. It doesn't mean you're getting a discount or a percentage off a price.
MTOT Disc can be difficult to understand because the bank statement shows it as a one lump sum with no clear breakdown. The itemized details are on your processor's monthly merchant statement, so if the bank statement is all you check, it can be hard to understand what you're paying for each month.
Why Is MTOT Disc on Your Bank Statement?
Normally payment processors automatically deduct Bankcard MTOT Disc charges from your business bank account, but confusion usually comes from how the charge shows up. Your bank statement lists it as a single lump sum, while the line-by-line breakdown lives on your processor's monthly merchant statement.
Whether you see MTOT Disc at all depends on how your processor collects fees. With a monthlydiscount, you receive your full sales each day, and the processor takes all the month's fees in one debit early the next month. That debit is your Bankcard MTOT Disc. With a dailydiscount, fees come out of each day's deposit before it reaches you, so you should expect to see smaller deposits and usually only a small monthly charge for fixed fees.
If quicker access to your sales matters, you can ask about options like same-day funding.
However your processor handles it, every rate and fee included in MTOT Disc should be listed in your merchant agreement and fee schedule. If you can't find them, ask your processor for a copy.
How Much Will MTOT Disc Cost?
MTOT Disc varies depending on your bank, your industry, your business’s size, the pricing model and the types of cards your customers use. Because it usually holds your total processing fees for the month, it grows as your sales grow. Most businesses pay roughly 2% to 4% of their monthly card volume, and often high-risk industries pay more.
The illustrative ranges below show why there's no single "normal" amount:
Monthly Card Volume
Approximate MTOT Disc at 2%–4%
$10,000
200-400
$50,000
1,000-2,000
$100,000
2,000-4,000
Your business's merchant category code (MCC) also affects your rates, since card networks price different industries higher than others.
If you have any questions about what your MTOT Disc covers, ask your processor for an itemized breakdown. Importantly, we recommend you ask for a fee estimate before you open your account, so you know what to expect from your first statement.
How to Respond When You Identify Unjustified Merchant Processing Fees
Most processors explain their fees when you open your account and list them on your monthly statement. However, it can be easy to miss a detail, misunderstand a charge or forget about a periodic fee. Here are some things you can do when a charge doesn't look right.
Contact Your Processor
It is best to start with your payment processor, not your bank. Your bank only posts the debit, so your processor is the one who can explain or correct any charges.
If you find that a charge looks unusual or much higher than in past months, act quickly because merchant agreements set their own deadlines for reporting statement errors. It can be a short period, so check your merchant for the exact window. Consumer credit card dispute rules don't apply to merchant accounts.
When you contact your merchant, make sure you have the MTOT Disc date and amount, your processor statement and the specific fee you're questioning ready. If your processor agrees there was a mistake or the fee was wrong, ask for written confirmation of the credit and when it will be posted.
If ambiguous charges keep appearing, it may be time to look for a more transparent provider. You're trusting your processor with a significant part of your business, your money. So check her to see how different providers stack up on our comparison page.
Are Processing Fees Transparent?
No one enjoys seeing fees come out of their account, but clear and transparent pricing helps you understand where your money is going and why.
A good processor understands the need to explain its processing fees up front and is willing to discuss them openly so you can trust in their services. If your processor doesn't bring up the subject, ask directly and politely for a full fee schedule before you agree to sign.
How to Estimate Monthly Fees
When you first open a merchant account, you should expect your provider to disclose all regular fees in your merchant agreement and fee schedule. Reviewing those documents at the start gives you a clear picture of what it will cost to keep your account open and prevents surprises later.
Once you're processing, you can estimate future months using your effective rate: divide your MTOT Disc amount by your total card volume for that month. Multiply that rate by your expected sales to get a rough estimate of next month's MTOT Disc.
Typical Monthly Processing Fees
MTOT Disc often causes confusion because the label isn't explained anywhere on your bank statement. It's a total, so it can include any of the charges below. Knowing these terms makes your processor statement much easier to read and budget for. Besides the MTOT Disc charge, there are other types of process fees your bank may list. Make sure you're familiar with the basic terms for regular account charges so you can factor the costs into your monthly budgets. Listed below are a few of the most common categories and phrases banks use to identify regular deductions:
Discount rate: The percentage you pay on each card sale. It's usually the largest part of MTOT Disc.
Transaction or authorization fees: A flat per-transaction charge, often a few cents, each time a card is approved or declined.
Interchange and assessments: Fees set by the card networks and issuing banks, passed through to you. On interchange-plus pricing, these show as separate lines.
Monthly fees: The phrase “monthly fee” usually relates to costs associated with accepting credit cards as payment via your merchant account.
Annual fees: These costs are deducted once per year as a lump sum. Many banks let you change your account settings to indicate yearly fees on each of your invoices. This process can help you adjust each month to prepare for these deductions.
Network fees: Charges like Visa's Fixed Acquirer Network Fee (FANF), billed monthly based on your locations and volume.
PCI fees: A compliance fee, or a higher non-compliance fee if your annual PCI questionnaire isn't filed.
Chargeback fees: A flat fee for each customer dispute. Our chargeback guide explains how to prevent them.
Statement fees: Some banks charge a statement fee, typically for a paper statement mailed to your house. You can usually eliminate this small fee by switching to online statements. This means the financial institution sees a cost savings because they don't have to pay for paper or stamps, and they pass that on to you. Switching to online statements is probably the easiest way to save money on your charged monthly services.
To find your overall cost, divide your MTOT Disc by your total processed volume for the month. That effective rate typically falls between 2% and 4%.
MTOT vs. BTOT
Along with MTOT Disc, you may see "BTOT" on your bank statement. The two are related, but they move money in different directions.
BTOT is generally read as "batch total" or "bankers total." A BTOT DEP entry is the net deposit from each day's batch of card sales, after refunds and chargebacks. It usually comes in one to three business days after you close the batch. MTOT Disc is the monthly debit that pays your processor for handling those sales.
To simply explain it, BTOT DEP is money coming in, and MTOT Disc is money going out.
Statement Label
What it usually means
Money in or out
BANKCARD BTOT DEP
Net deposit from a day's card sales
In
BANKCARD BTOT ADJ
Adjustment to a deposit, such as a correction or reversal
In or out
BANKCARD MTOT DISC
Last month's processing fees, collected in one debit
Out
CHGBK or CHARGEBACK
A customer dispute pulled back from your account
Out
FEE or MTOT FEE
Fixed or periodic fees, such as monthly, annual or PCI fees
Out
If you're unsure about any charge on your statement, contact your processor right away to make sure you're not being overcharged.
Are Rates and Fees Different?
Yes. Banks use the term “rate” and “fee” to describe charges taken from your account, and people use the terms interchangeably, but they mean different things on a merchant statement:
Rates are percentages you pay each time a customer pays by card.
Fees are fixed amounts, charged per transaction or on a schedule, such as monthly or annual fees.
MTOT Disc usually includes both.
Part of your rate is set by the card networks. Interchange and network assessments are the same no matter which processor you use. The rest is from your processor's markup, and that is the part that differs between providers. On interchange-plus pricing, you can see exactly how much markup you pay. Learn more in our processing fees guide or our article on low-cost credit card processing.
What Is MTOT Disc's Relation to Bankcard?
The MTOT Disc line on your statement may include the word "bankcard." If you don't know the term, you might worry the charge is a mistake, or assume the company Bankcard USA charged you.
"Bankcard" is a generic industry term for credit and debit cards. A Bankcard MTOT Disc line simply means the charge relates to the card payments your business accepts. It's specifically common with processors that run on the Fiserv (formerly First Data) network. Unless you have an account with Bankcard USA, the charge has no connection to that company.
Can You Remove MTOT Disc Fees?
You can't remove MTOT Disc itself, because that is how your processor collects the fees you owe for accepting cards. If needed, you can question individual charges that look unusually large or don't match your agreement, but the regular fees in your contract will stay.
Even if a processor doesn't use the MTOT Disc label, you will have to pay the same kinds of charges under a different name. Ask your processor how it structures and collects its fees, so you can plan your budget around them.
How you can lower what's inside your MTOT Disc:
Switch to online statements to drop paper statement fees.
Stay PCI compliant to avoid non-compliance fees.
Reduce chargebacks with clear billing descriptors, fast refunds, responsive support and chargeback protection.
Ask about interchange-plus pricing so you can see exactly what you pay above network cost.
Can You Avoid Hidden Fees on Your Merchant Account?
Sometimes there are surprise fees, like a paper statement fee that can be removed once you notice them. Fees such as authorization fees and annual fees, stay in place because they're part of your agreement. Ideally the best way to avoid surprise fees is choosing a processor that's transparent from the start.
Best case scenario, your processor walked you through every fee when you opened your account. If they didn’t it's common for some costs to catch you off guard, whether you missed them in your agreement or simply forgot about them. Our guide to credit card processing fees explains the most common ones.
If a provider won't discuss its fees or how it collects them, consider looking elsewhere for merchant services.
Make Zen Payments Your Merchant Services Provider
Zen Payments offers clear pricing, openness and flexibility in the merchant services industry. We offer reliable merchant accounts for industries deemed high-risk, along with e-commerce, retail and ACH solutions. We walk you through every rate and fee before you sign, so nothing on your statement comes as a surprise.
At Zen Payments, we're a merchant services provider that's invested in helping your company succeed for the long haul. We can help you put a long-term strategy in place to keep your merchant account open for as long as your business requires it. Count on us to give you the support you need for your business to succeed anywhere in the nation.
Complete our contact form today and get in touch with one of our experts to find your zen.
Josh Phelps is an experienced sales professional with eight years of expertise, including four years in payment processing. Throughout his career, Josh has successfully secured approvals for thousands of businesses, demonstrating his skill in navigating and optimizing the payment processing landscape.
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Frequently Asked Questions
Stands for “Merchant Total Discount.” It’s the automatic ACH debit your payment processor takes from your business bank account to collect your monthly credit and debit card processing fees.
An MTOT deposit (Merchant Total Deposit, sometimes shown as “Bankcard MTOT Dep”) is the money your payment processor deposits into your business bank account for your credit and debit card sales, minus any fees, refunds or chargebacks.
A merchant deposit is the money your payment processor or acquiring bank transfers into your business bank account. This is the total of your customer payments, whether it’s by credit card, debit card or online, minus any transaction fees, refunds, chargebacks or reserves the processor holds back.
