“Bankcard Merchant Transaction Over Threshold Discount.” This is a discount that is applied to a merchant’s account when they exceed a certain threshold of transaction volume.
Some payment processors or merchant services providers offer this type of discount as an incentive for high-volume merchants. The discount amount may vary depending on the merchant’s agreement with the payment processor or merchant services provider, but it typically ranges from a few basis points (fractions of a percent) to a few percent of the transaction volume.
The “threshold” in “MTOT” refers to a minimum volume of credit and debit card transactions that the merchant must process in a given period, such as a month or a year. Once the merchant’s transaction volume exceeds this threshold, they become eligible for a discount on their transaction fees.
The discount amount and threshold can vary depending on the payment processor, acquiring bank, or merchant services provider. Some providers offer a flat rate discount, while others may offer a sliding scale discount that increases as the merchant’s transaction volume increases.
Merchants may be incentivized to process more transactions in order to meet or exceed the threshold and qualify for the discount. This can help reduce their overall transaction costs and increase their profitability.
It’s worth noting that not all payment processors or acquiring banks offer an MTOT discount, and the terms and conditions can vary widely. Merchants should carefully review their payment processing agreements and understand the fees they are being charged to ensure that they are getting the best possible rates and discounts for their transaction volume.
If you are a merchant who accepts credit card payments, and you see “Bankcard MTOT Disc” on your statement, it likely means that you have received a discount on your transaction fees as a result of exceeding a certain volume threshold. If you are a customer who has made a purchase, you may see this on your statement if the merchant you purchased from is passing along the discount they received for high transaction volume.