What is an MTOT Disc and How Does it Work?

If checking your monthly account statement has led you to wonder what on earth “MTOT Disc” stands for, you are in the right place. MTOT Disc basically refers to the merchant account total discount fee charged by your payment processor or bank. MTOT means “merchant total” while Disc stands for the “discount fee”. The acronym is a generic one commonly used by merchant processors to describe your account processing fees.

This will most likely appear as a monthly deduction on your account statement. However, for a number of merchants, this fee may only appear cumulatively on annual account statements.

Why does MTOT Disc appear on bank statements?

It is clear that some banks and merchant processors are better than others when it comes to transparency regarding merchant processing fees.

When it comes to MTOT Disc charges, some merchants believe that unscrupulous merchant processors use MTOT Disc as an excuse to add unjustified additional fees to their merchant account statements.

Effectively, MTOT is a justifiable direct cost that can be billed for as part of customers’ monthly statements if you're accepting credit card payments. However, some providers compound this cost and make large, single, non-itemized deductions, which may raise alarm bells.

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What to do if you suspect unjustified merchant processing fees?

MTOT deductions should be clearly communicated to merchants at the point of account registration. While some banks and payment processors, such as TailoredPay, are transparent about proposed fees, a few unscrupulous processors keep these charges hidden to prey on the ignorance of their clients.

For merchants, the key to dealing with these charges when ambiguity is detected is to file an

objection within 60 days of appearing on the statement. Furthermore, you can request to opt-out of your merchant account contract and register with a transparent merchant account provider that offers complete fee transparency.

MTOT Disc charges

Some business owners might find ambiguous charges on their accounts headed as MTOT, Disc, BANKCARD, BTOT (Bank total), or a combination of these. This is because of the common history that MTOT Disc and BankCard USA share.

Here are a few common related terms to help you identify these charges so that you can take appropriate action when required.

Bankcard: This refers to a bank-issued payment card that can be used for buying and selling. It has no affiliation with the company incorporated as Bankcard USA (and that uses “Bankcard USA” as a descriptor for their charges).
MTOT: Merchant Total
BTOT: Bank Total
Authorization fee: This is the cost of authorizing a credit card transaction – not to be confused with an electronic authorization.
Annual fee: This is a service fee that is charged for maintaining your account and keeping your account PCI-compliant. You can monitor this by updating your account to show annual fees on each invoice.

The main types of bankcard MTOt disc fees

In the context of merchant processing transaction statements, the MTOT Disc (Merchant Total Discount) line represents the total fees deducted from card transactions for a given period. This line usually combines several fee types related to processing card payments. The main types of bankcard fees that make up the MTOT Disc typically include:

1. Discount rate fees

These are the percentage-based fees charged on each card transaction. They differ depending on the card type (Visa, Mastercard, Amex, debit, credit) and whether the transaction was swiped, dipped, or keyed in.

2. Interchange fees

Set by the card networks and paid to the issuing banks, these are the base transaction costs. They vary based on transaction type, card category, and risk level.

3. Assessment fees

Charged by card networks (like Visa and Mastercard), these are small percentages of total sales volume and are separate from interchange fees.

4. Processor markup

The processor’s own profit margin, often expressed as a small percentage or per-transaction fee added to the interchange and assessment costs.

5. Authorization and transaction fees

Flat fees for each approved or declined authorization request. Some providers charge additional per-transaction network access fees.

6. Monthly or statement fees

Sometimes included within the MTOT Disc total, these cover account maintenance, statement delivery, or PCI compliance costs.

After reviewing your credit card processing fees, you may feel that you've been wronged. Here's what to do when MTOT fees don't add up.

What to do when a bank is charging you unjustified merchant processing fees

If you notice unexpected or unclear fees on your merchant statement, it’s important to act quickly. Unjustified processing charges can quietly reduce your profit margins over time, so identifying and resolving them early makes a big difference. Here’s what to do:

1. Review your merchant statement carefully

Start by checking your monthly statement line by line. Compare the MTOT Disc total and individual fee types (discount rate, authorization, assessment, etc.) against your merchant agreement. Note any new or increased charges that weren’t previously listed.

2. Verify your contract terms

Locate your original merchant processing agreement or request a copy from your bank. Pay close attention to sections about pricing models (interchange-plus, tiered, or flat rate) and any clauses that allow the processor to change rates. Some contracts include variable fees or minimum monthly charges that can appear unexpected if not clearly disclosed.

3. Contact your bank or processor immediately

Reach out to your provider’s merchant services department with specific examples of the disputed fees. Provide copies of your statements highlighting the questionable charges. In many cases, representatives can clarify or correct errors on the next billing cycle.

4. Request a detailed fee breakdown

Ask for a clear breakdown of what each fee represents. Processors are required to explain how interchange, assessment, and markup costs are calculated. This transparency can help you confirm whether the charges are legitimate or inflated.

5. Compare alternative providers

If your current processor continues to charge unclear or excessive fees, consider getting quotes from other merchant service providers. Comparing rates and pricing structures can reveal whether your existing bank is overcharging relative to market standards.

6. File a formal complaint if needed

If the issue remains unresolved, you can submit a written complaint to the bank’s compliance department or to your country’s financial regulatory authority. In Serbia, this would be the National Bank of Serbia (NBS), which oversees payment service providers.

Get a merchant services provider that is transparent about your monthly fees

If you’re looking for a merchant account provider that protects you from surprises with a clear fee structure and keeps processing fees transparent across credit and debit cards, then contact TailoredPay today!

TailoredPay offers straightforward merchant accounts with no hidden charges or confusing rate tiers. Every statement clearly outlines your processing costs, so you always know where your money is going. Whether you run an eCommerce store or a high-risk business, TailoredPay provides reliable payment solutions backed by dedicated support and fair pricing.

You get direct access to specialists who help you understand your monthly fees, identify savings opportunities, and prevent unexpected deductions.

Instead of generic rate plans, TailoredPay customizes its pricing to your payment processing volume and industry type, ensuring that you save money and pay only for what you actually use. No hidden fees, only cost savings.

If transparency, predictability, and long-term trust matter to you, get started with TailoredPay today.