In the world of banking, business, and credit cards, you wind up learning far more acronyms than you ever intended to! As a small business owner or operator, this is part of life. However, you quickly learn that some acronyms are far more critical than others.
Among the most crucial banking acronyms and abbreviations is BTOT. This acronym — and the money that comes with it — can significantly impact your business’s success, and you must keep a close eye on its overall performance. Thankfully, by working with the correct merchant, such as Bankcard, you can ensure that you continue to profit from your credit card operations, regardless of how much you pay in other fees.
Ok, but what does BTOT mean on my bank statement?
What is BTOT Deposit?
If you’ve Googled BTOT, you’ve come up with some interesting acronyms. Berklee Teachers on Teaching? Black Tower of Time? Bleeding Tears of Tomorrow?
Umm. No. That’s not what BTOT stands for. Well, it is, but not in the world of business & finance!
Like all acronyms, BTOT can be a highly confusing or technical piece of internet slang. However, when it comes to credit cards and banking, it’s not very complicated. The BTOT abbreviation stands for “batch total.” It precisely will align with your batch deposits for the day. BTOT comes once a day, but there’s no guarantee that you will get your bank deposits from a credit card processor in a BTOT form.
As such, the BTOT meaning is essential: It refers to how much of your money you get from your credit card processor. Therefore, you are likely to see it on any bank statement.
Is BTOT Related to MTOT?
Sort of. Both pertain to how a credit card processor will manage deposits, withdrawals, and fees.
MTOT is a monthly deposit, meaning you get your money at the end of the month. However, you are also likely to see a variety of other fees related to the MTOT abbreviation. This includes monthly fees, annual fees, processing fees, authorization fees…and more. Much more, depending on your account type and if your business is a high-risk one.
Do All Credit Card Processors Use a BTOT Deposit?
No. Credit card processors usually offer various options, and some may charge you a higher fee for BTOT deposits. For example, some credit card processors will get you your money monthly. When this happens, it appears in your bank statement as an MTOT deposit, as noted above. However, in most cases, you’ll want to get your money as quickly as possible. If you want to get your money on a daily basis, your business will likely prefer a BTOT deposit.
How Can I Better Manage My BTOT Deposits?
As a business owner, your job is to work with your credit card processor to ensure you get your money as fast as possible. If you work with a high-quality processor that cares about your business, you should be able to get an ideal setup for your BTOT deposits, even if you are starting a new account.
First, make sure you understand what the different kinds of deposits are. Some businesses may use multiple credit card processors. The processors your business uses may include third-party merchant account processors and internet-based processors like PayPal. If this is the case, the descriptions may be slightly confusing. However, this can be hugely problematic if you don’t fully grasp what BTOT deposit comes from what account, as it can make reconciliation of your records difficult.
So, what do you need to do? First, you need a clear understanding of which BTOT deposit came from which transactions, and you need to reconcile that information with your banking and credit card statements.
You’ll need to ensure that your BTOT deposits integrate easily with your existing financial software. Some merchant account processors make this integration easy. Some, like Bankcard, offer customized programming that can easily mesh with your existing financial software, making reconciliations a breeze. These integrations are vital: Sometimes, misunderstandings or errors will occur.
Ensure you understand the fees associated with any BTOT deposits. As countless merchants have discovered the hard way, BTOT can be used to hide fees. Any merchant account processor should be clear and transparent with what fees they charge you. You should also ensure you are working with your merchant account processor ahead of time. This will allow you to understand better what fees you will be charged and if there are better fee structures available to your business.
These can be real and complicated challenges if you run any business, but mainly a high-risk operation. If this is the case, you will need a vendor to help you develop customized solutions. Fortunately, at Bankcard, we know how tricky a high-risk business can be, and we can work with your business to ensure that you get the merchant account processing solutions you need.
How will a High-Risk Business Impact My BTOT Deposit?
First, it’s important to note that having a high-risk business shouldn’t impact the amount of money you get. You are entitled to the money that you process.
However, it will make a difference in other areas. MTOT Disc fees appear on your bank statement. They can vary wildly in terms of how much they are, depending on your specific agreement with your merchant account processor and the number of merchant account processors you use. They are the companion to BTOT Deposit and where the merchant account processor will make their money.
How Can I Reduce MTOT Disc Fees?
Unfortunately, you can’t eliminate these fees, no matter what type of business you are in. Fortunately, there are ways you can reduce your fee, although this can be much more difficult if you are a high-risk business, which typically will have much higher fees. Some techniques you can use include:
- Work with your merchant account provider to find the best deal: Your merchant account provider should have your interests in mind, not just their own. To that end, you need to ask your merchant account provider about ways to lower fees. They may have alternative payment options,
- Look and shop around: One of the best ways to get a lower price is to engage in serious comparison shopping. From there, switch providers, or give your original merchant account provider a chance to match any offer of lower fees. At Bankcard, we pride ourselves on offering low-cost merchant account services to all high-risk businesses.
- Reduce chargebacks: Chargebacks are the bane of all businesses’ existence. A chargeback occurs when a business has to issue a refund on a credit card. This refund may be necessary because the customer no longer wants a product, didn’t realize what they bought or had their card used fraudulently. If this happens, the vendor and merchant account processor will each incur a fee, and the business owner will ultimately have to pay a fee. Too many chargebacks will earn a business classification as a high-risk business, which can be hugely problematic for their future.
How Can I Better Use Credit Processing Services?
You are in the business of making money. As such, you need to do whatever you can to ensure your fees are as low as possible.
First, check out the services that your merchant account provider offers. These services can maximize your income in a way that is both safe and secure from a financial perspective. At Bankcard, we offer an array of services that can benefit your business. These include:
- High-risk payment gateway: Many businesses have an internet-based portal in which they take card payments. This is necessary for modern commerce but can get very expensive very quickly. Furthermore, internet-based payments are more likely to be fraudulent, as they are card-not-present transactions. As such, you’ll need a payment gateway that can allow you to charge over the internet but still keep fees reasonable.
- Offshore merchant accounts: Depending on the type of business that you operate, you may find that you need to process credit cards that come from offshore. This can be a fantastic way to get international money, but it comes at a real price: These transactions are typically more expensive and have a higher risk of a chargeback. As such, you need a card that will be affordable, allow you to make these transactions, and still come with the same robust security protections you expect of any merchant account processor.
- Zero-fee accounts: In some instances, it may make more sense for a business to pass transactions along to customers. Specialized accounts — known as zero-fee accounts — can do just this. They can ask customers if they are willing to pay a credit card fee before completing a credit card transaction. This allows them to pay a business in another way while also ensuring that the company in question can keep its credit card fees to a minimum.
- eCheck processing: Checks are still relatively popular methods of making payments, and so are eChecks. Depending on your business, you may be interested in setting up an eCheck account, which will allow your high-risk business to process this payment method. eChecks are typically used for more significant or recurring payments.
- ACH processing: ACH stands for Automatic Clearing House, and these payments are known as “sweeps.” They are used when a credit card or bank processor “sweeps” a bank account for the money and are frequently used for recurring bank payments that come directly out of a bank account. This may work well for expensive accounts or recurring accounts, like subscription-based accounts.
- Retail processing: For all the emphasis on internet payments, there is no question that retail processing is still wildly popular – and comes with a variety of services and pieces of equipment. Comparison-shop the latest and most secure point-of-sale devices that enable you to process retail transactions. Finally, you’ll also need access to tech support in the event that you have some sort of problem with the POS device in question.
As you can see, when it comes to the world of credit card processors, getting your money, and the services you are provided with, all banks and credit card processors are not created equal. Your high-risk business needs the best credit card processor, regardless of your business line. That means that you need Bankcard. At Bankcard, we have decades of experience in working with credit card merchants in a whole array of high-risk businesses, helping every industry, from adult services to CBD sales, sell their products and access the same financial tools that any other business is able to use. We can work with you to develop a customized plan that fits your needs and ensures you get the money that you deserve.
Want more information? Contact us today, and learn more about how Bankcard can help your business.