MCC codes aren’t military-related or even technical numbers. They’re little numbers that can have a big impact on how your business operates and handles payments.
Where do you find your Merchant Category Code, and what do you do once you find it?
We’ve asked our payment experts to shed light on everything you need to know about MCC codes in 2024. Whether you’re trying to find your specific code or just curious about how they work, we’ve got the full list and lots more details.
What is an MCC?
Merchant Category Codes (MCC) are four-digit numbers used by credit card companies to classify businesses based on the types of goods or services they provide. Card networks (like Visa, Mastercard, etc.) use MCCs to categorize businesses into specific categories, such as airlines, restaurants, and hotels.
These codes help in:
- Processing transactions
- Determining fee structures
- Identifying eligibility for specific card rewards or benefits
- Helping card issuers determine rewards eligibility, which may differ depending on the card network or issuer
For example, a travel agency might be assigned the MCC code 4722, which signifies “Travel Agencies and Tour Operators.” MCCs are also used to determine if a purchase qualifies for bonus rewards, and they influence transaction fees, risk assessment, and reporting requirements. Airlines, as a specific merchant type, often have unique MCCs assigned to them.
MCCs can differ between card networks and issuers, which can impact how transactions are processed and how rewards are calculated. Lower-risk industries typically pay lower interchange fees compared to high-risk businesses such as gambling or travel.
Or, online gambling sites, which are only illegal in the US states of Delaware, New Jersey, and Nevada, might be assigned the MCC code 7995—a code that helps banks decline and prevent consumers outside of these states from participating in and using these websites.
Ultimately, understanding your MCC code is essential as it influences your payment processing rates and compliance with industry regulations, especially when working with a high-risk merchant account processor provider.
Other Reasons Why MCC Codes Are So Important
Understanding MCC codes goes far beyond just transaction categorization. These codes are required for many business processes and apply to a wide range of cases, from fee calculation and risk assessment to compliance and tax reporting. MCCs impact various aspects of financial management and security.
Don’t believe four little digits could be so important for both businesses and consumers? Take a look at just how much impact they can have.
Transaction Categorization
So, yes, MCC codes are necessary for transaction categorization. This categorization isn’t just beneficial for credit card companies, though; it also helps consumers and businesses understand spending patterns
By analyzing these patterns, high-risk businesses, in particular, can tailor their strategies to meet customer needs better.
Aside from that, knowing your MCC code as a merchant is helpful for…
Fraud Detection
Credit card companies and financial institutions rely on MCC codes to detect potential fraud.
Unusual or unexpected transactions in specific MCC categories can trigger fraud alerts or additional security measures, protecting cardholders from unauthorized transactions.
This layer of security is essential in maintaining trust and preventing financial loss, especially if you run a high-risk business
Business Expense Tracking
For businesses, MCC codes can be super helpful when tracking and managing expenses. They provide a detailed breakdown of where funds are spent, which is crucial for budgeting, accounting, and financial planning.
With this information, you can analyze your expenditure more accurately and make strategic decisions to optimize operations.
Compliance and Regulation
Certain industries and types of transactions are subject to specific regulations and restrictions, and MCC codes help monitor and enforce these rules. MCC codes are also used to determine if transactions need to be reported to the IRS for tax purposes, as they help identify whether a purchase or payment falls under tax reporting obligations.
Using MCC codes makes it easier for your business to ensure compliance with legal requirements, avoiding potential fines and legal issues. For example, certain payments—especially for services—may need to be reported on official tax forms, such as the 1099 form, depending on the MCC assigned. This ensures that transactions are properly reported to the IRS for tax purposes.
Payment Network Operations
Finally (and perhaps most importantly if you’re a high-risk merchant), MCC codes facilitate smooth operations within payment networks like Visa, Mastercard, and American Express. Banks such as Citibank use MCCs to categorize travel and transportation transactions for their credit and debit card services, and partnering with a provider that specializes in high-risk payment processing worldwide can help you navigate these complexities.
They help route transactions through the appropriate channels and assist in the settlement process between merchants and card issuers. The result? More efficient processing and minimized delays benefit your business and its customers.
Regardless of which card scheme or MCC code you have, keep an eye on the fees for your cards. One of the more important fees to consider as a high-risk merchant is the high-risk scheme fee, which is part of the Visa Integrity Risk Program (VIRP). This is similar to a registration fee, and you have to pay a yearly fee of $950, check for each card scheme.
Dennis E.R. Pedersen CEO & Founder of FastoPayments
Do You Need an MCC Code to Accept Payments and Acquire a Merchant Account?
Yes, you need an MCC code to accept payments and acquire a merchant account. Don’t worry, though. There’s no separate application process to get an MCC code for your business.
When you set up a merchant account with a payment processor or bank, they assign you an MCC code based on your business type. As mentioned, this code not only categorizes your transactions but also influences your:
- Processing fees
- Eligibility for certain credit card rewards programs
- Compliance with industry regulations
Without an MCC code, it would be pretty tricky to properly route transactions, manage expenses, and utilize the full range of services offered by payment networks or a global payment gateway for local, alternative & online methods.
What If They Assign You the Wrong MCC Code?
It’s happened before, and getting assigned the wrong MCC code can be more than just a minor inconvenience. It can lead to higher processing fees and incorrect tax reporting (just to name a few of the biggest issues).
If you suspect your MCC code isn’t accurate, we recommend working to address it immediately. Contact your payment processor or bank to clarify your business activities and request a reassessment, and consider the approval criteria discussed for high-risk payment gateways and merchant accounts.
Be persistent. Having the correct MCC code will ensure you’re avoiding unnecessary costs and complications, two things high-risk business owners already have enough of.
Full List of MCC (Merchant Category Codes)
MCC Codes | Merchant Type |
|---|---|
4814 | Fax services |
4814 | Telecommunication service including local and long distance calls, credit card calls, calls through the use of magnetic strip reading telephones, and fax services |
4815 | VisaPhone |
4821 | Telegraph services |
4829 | Money Orders – Wire Transfer |
4899 | Cable and other pay television (previously Cable Services) |
4900 | Electric, Gas, Sanitary and Water Utilities |
5013 | Motor vehicle supplies and new parts |
5021 | Office and Commercial Furniture |
5039 | Construction Materials, Not Elsewhere Classified |
5044 | Office, Photographic, Photocopy, and Microfilm Equipment |
5045 | Computers, Computer Peripheral Equipment, Software |
5046 | Commercial Equipment, Not Elsewhere Classified |
5047 | Medical, Dental, Ophthalmic, and Hospital Equipment and Supplies |
5051 | Metal Service Centers and Offices |
5065 | Electrical Parts and Equipment |
5072 | Hardware Equipment and Supplies |
5074 | Plumbing and Heating Equipment and Supplies |
5085 | Industrial Supplies, Not Elsewhere Classified |
5094 | Precious Stones and Metals, Watches and Jewelry |
5099 | Durable Goods, Not Elsewhere Classified |
5111 | Stationery, Office Supplies, Printing, and Writing Paper |
5122 | Drugs, Drug Proprietors, and Druggist’s Sundries |
5131 | Piece Goods, Notions, and Other Dry Goods |
5137 | Men’s, Women’s, and Children’s Uniforms and Commercial Clothing |
5139 | Commercial Footwear |
5169 | Chemicals and Allied Products, Not Elsewhere Classified |
5172 | Petroleum and Petroleum Products |
5192 | Books, Periodicals, and Newspapers |
5193 | Florists’ Supplies, Nursery Stock and Flowers |
5198 | Paints, Varnishes, and Supplies |
5199 | Non-durable Goods, Not Elsewhere Classified |
5200 | Home Supply Warehouse Stores |
5211 | Lumber and Building Materials Stores |
5231 | Glass Stores |
5231 | Paint and Wallpaper Stores |
5231 | Wallpaper Stores |
5251 | Hardware Stores |
5261 | Nurseries- Lawn and Garden Supply Store |
5271 | Mobile Home Dealers |
5300 | Wholesale Clubs |
5309 | Duty-Free Store |
5310 | Discount Stores |
Continued… | |
5311 | Department Stores |
5331 | Variety Stores |
5399 | Misc. General Merchandise |
5411 | Grocery Stores |
5411 | Supermarkets |
5422 | Freezer and Locker Meat Provisioners |
5422 | Meat Provisioners- Freezer and Locker |
5441 | Candy Stores |
5441 | Confectionery Stores |
5441 | Nut Stores |
5451 | Dairy Products Stores |
5462 | Bakeries |
5499 | Misc. Food Stores- Convenience Stores and Specialty Markets. Including CBD products |
5511 | Car and Truck Dealers (New and Used) Sales, Service, Repairs, Parts, and Leasing |
5521 | Automobile and Truck Dealers (Used Only) |
5531 | Automobile Supply Stores |
5532 | Automotive Tire Stores |
5533 | Automotive Parts, Accessories Stores |
5541 | Service Stations ( with or without ancillary services) |
5542 | Automated Fuel Dispensers |
5551 | Boat Dealers |
5561 | Recreational and Utility Trailers, Camp Dealers |
5571 | Motorcycle Dealers |
5592 | Motor Home Dealers |
5598 | Snowmobile Dealers |
5611 | Men’s and Boy’s Clothing and Accessories Stores |
5621 | Women’s Ready-to-Wear Stores |
5631 | Women’s Accessory and Specialty Shops |
5641 | Children’s and Infant’s Wear Stores |
5651 | Family Clothing Stores |
5655 | Sports Apparel, Riding Apparel Stores |
5661 | Shoe Stores |
5681 | Furriers and Fur Shops |
5691 | Men’s and Women’s Clothing Stores |
5697 | Tailors, Seamstress, Mending, and Alterations |
5698 | Wig and Toupee Stores |
5699 | Miscellaneous Apparel and Accessory Shops |
5712 | Furniture, Home Furnishings, and Equipment Stores, Except Appliances |
5713 | Floor Covering Stores |
5714 | Drapery, Window Covering and Upholstery Stores |
5718 | Fireplace, Fireplace Screens, and Accessories Stores |
5719 | Miscellaneous Home Furnishing Specialty Stores |
Continued… | |
5722 | Household Appliance Stores |
5732 | Electronic Sales |
5733 | Music Stores, Musical Instruments, Piano Sheet Music |
5734 | Computer Software Stores |
5735 | Record Shops |
5811 | Caterers |
5812 | Eating places and Restaurants |
5813 | Drinking Places (Alcoholic Beverages), Bars, Taverns, Cocktail lounges, Nightclubs and Discotheques |
5814 | Fast Food Restaurants |
5912 | Drug Stores and Pharmacies |
5921 | Package Stores – Beer, Wine, and Liquor |
5931 | Used Merchandise and Secondhand Stores |
5832 | Antique Shops – Sales, Repairs, and Restoration Services |
5933 | Pawn Shops and Salvage Yards |
5935 | Wrecking and Salvage Yards |
5937 | Antique Reproductions |
5940 | Bicycle Shops – Sales and Service |
5941 | Sporting Goods Stores |
5942 | Book Stores |
5943 | Stationery Stores, Office, and School Supply Stores |
5944 | Watch, Clock, Jewelry, and Silverware Stores |
5945 | Hobby, Toy, and Game Shops |
5946 | Camera and Photographic Supply Stores |
5947 | Card Shops, Gift, Novelty, and Souvenir Shops |
5948 | Leather Foods Stores |
5949 | Sewing, Needle, Fabric, and Price Goods Stores |
5950 | Glassware/Crystal Stores |
5960 | Direct Marketing – Insurance Service |
5961 | Mail Order Houses, Including Catalog Order Stores, Book/Record Clubs |
5962 | Direct Marketing—Travel-Related Arrangements Services |
5963 | Door-to-Door Sales |
5964 | Direct Marketing – Catalog Merchant |
5965 | Direct Marketing – Catalog and Catalog and Retail Merchant Direct Marketing – Outbound Telemarketing Merchant |
5967 | Direct Marketing -Inbound Teleservices Merchant |
5968 | Direct Marketing – Continuity/Subscription Merchant |
5969 | Direct Marketing – Not Elsewhere Classified |
5970 | Artist’s Supply and Craft Shops |
5971 | Art Dealers and Galleries |
5972 | Stamp and Coin Stores – Philatelic and Numismatic Supplies |
5973 | Religious Goods Stores |
5975 | Hearing Aids—Sales, Service, and Supply Stores |
5976 | Orthopedic Goods Prosthetic Devices |
5977 | Cosmetic Stores |
5978 | Typewriter Stores—Sales, Rental, Service |
5983 | Fuel—Fuel Oil, Wood, Coal, Liquefied Petroleum |
5992 | Florists |
5993 | Cigar Stores and Stands |
5994 | News Dealers and Newsstands |
5995 | Pet Shops, Pet Foods, and Supplies Stores |
5996 | Swimming Pools – Sales, Service, and Supplies |
5997 | Electric Razor Stores – Sales and Service |
5998 | Tent and Awning Shops |
5999 | Miscellaneous and Specialty Retail Stores |
6010 | Financial Institutions—Manual Cash Disbursements |
6011 | Financial Institutions—Manual Cash Disbursements |
6012 | Financial Institutions—Merchandise and Services |
6051 | Non-Financial Institutions—Foreign Currency, Money Orders (not wire transfer), and Travelers Cheques |
6211 | Security Brokers/Dealers |
6300 | Insurance Sales, Underwriting, and Premiums |
Continued… | |
6381 | Insurance Premiums (no longer valid for first presentment work) |
6399 | Insurance, Not Elsewhere Classified (no longer valid for first presentment work) |
7011 | Lodging—Hotels, Motels, Resorts, Central Reservation Services (not elsewhere classified) |
7012 | Timeshares |
7032 | Sporting and Recreational Camps |
7033 | Trailer Parks and Campgrounds |
7210 | Laundry, Cleaning, and Garment Services |
7211 | Laundy—Family and Commercial |
7216 | Dry Cleaners |
7217 | Carpet and Upholstery Cleaning |
7221 | Photographic Studios |
7230 | Barber and Beauty Shops |
7251 | Shop Repair Shops and Shoe Shine Parlors, and Hat Cleaning Shops |
7261 | Funeral Service and Crematories |
7273 | Dating and Escort Services |
7276 | Tax Preparation Service |
7277 | Counseling Service—Debt, Marriage, Personal |
7278 | Buying/Shopping Services, Clubs |
7296 | Clothing Rental—Costumes, Formal Wear, Uniforms |
7297 | Massage Parlors |
7298 | Health and Beauty Shops |
7299 | Miscellaneous Personal Services (not elsewhere classified) |
7311 | Advertising Services |
7321 | Consumer Credit Reporting Agencies |
7332 | Blueprinting and Photocopying Services |
7333 | Commercial Photography, Art and Graphics |
7338 | Quick Copy, Reproduction and Blueprinting Services |
7339 | Stenographic and Secretarial Support Services |
7342 | Disinfecting Services |
7342 | Exterminating and Disinfecting Services |
7349 | Cleaning and Maintenance, Janitorial Services |
7361 | Employment Agencies, Temporary Help Services |
7372 | Computer Programming, Integrated Systems Design, and Data Processing Services |
7375 | Information Retrieval Services |
7379 | Computer Maintenance and Repair Services, Not Elsewhere Classified |
7392 | Management, Consulting, and Public Relations Services |
7393 | Protective and Security Services—Including Armored Cars and Guard Dogs |
7394 | Equipment Rental and Leasing Services, Tool Rental, Furniture Rental, and Appliance Rental |
7395 | Photofinishing Laboratories, Photo Developing |
7399 | Business Services, Not Elsewhere Classified |
7512 | Car Rental Companies (Not Listed Below) |
7513 | Truck and Utility Trailer Rentals |
7519 | Motor Home and Recreational Vehicle Rentals |
7523 | Automobile Parking Lots and Garages |
7531 | Automotive Body Repair Shops |
7534 | Tire Retreading and Repair Shops |
7535 | Paint Shops—Automotive |
7538 | Automotive Service Shops |
7542 | Car Washes |
7549 | Towing Services |
7622 | Radio Repair Shops |
7623 | Air Conditioning and Refrigeration Repair Shops |
7629 | Electrical And Small Appliance Repair Shops |
7631 | Watch, Clock, and Jewelry Repair |
7641 | Furniture, Furniture Repair, and Furniture Refinishing |
7692 | Welding Repair |
7699 | Repair Shops and Related Services—Miscellaneous |
7829 | Motion Pictures and Video Tape Production and Distribution |
7832 | Motion Picture Theaters |
7841 | Video Tape Rental Stores |
7911 | Dance Halls, Studios and Schools |
7922 | Theatrical Producers (Except Motion Pictures), Ticket Agencies |
7929 | Bands. Orchestras, and Miscellaneous Entertainers (Not Elsewhere Classified) |
7932 | Billiard and Pool Establishments |
7933 | Bowling Alleys |
7941 | Commercial Sports, Athletic Fields, Professional Sport Clubs, and Sport Promoters |
7991 | Tourist Attractions and Exhibits |
7992 | Golf Courses—Public |
7993 | Video Amusement Game Supplies |
7994 | Video Game Arcades/Establishments |
7995 | Betting (including Lottery Tickets, Casino Gaming Chips, Off – track Betting and Wagers) |
7996 | Amusement Parks, Carnivals, Circuses, Fortune Tellers |
Continued… | |
7997 | Membership Clubs (Sports, Recreation, Athletic), Country Clubs, and Private Golf Courses |
7998 | Aquariums, Sea—Aquariums, Dolphinariums |
7999 | Recreation Services (Not Elsewhere Classified) |
8011 | Doctors and Physicians (Not Elsewhere Classified) |
8021 | Dentists and Orthodontists |
8031 | Osteopaths |
8041 | Chiropractors |
8042 | Optometrists and Ophthalmologists |
8043 | Opticians, Opticians Goods and Eyeglasses |
8044 | Opticians, Optical Goods, and Eyeglasses (no longer valid for first presentments) |
8049 | Podiatrists and Chiropodists |
8050 | Nursing and Personal Care Facilities |
8062 | Hospitals |
8071 | Medical and Dental Laboratories |
8099 | Medical Services and Health Practitioners (Not Elsewhere Classified) |
8111 | Legal Services and Attorneys |
8211 | Elementary and Secondary Schools |
8220 | Colleges, Junior Colleges, Universities, and Professional Schools |
8241 | Correspondence Schools |
8244 | Business and Secretarial Schools |
8249 | Vocational Schools and Trade Schools |
8299 | Schools and Educational Services ( Not Elsewhere Classified) |
8351 | Child Care Services |
8398 | Charitable and Social Service Organizations |
8641 | Civic, Fraternal, and Social Associations |
8651 | Political Organizations |
8661 | Religious Organizations |
8675 | Automobile Associations |
8699 | Membership Organizations (Not Elsewhere Classified) |
8734 | Testing Laboratories (non-medical) |
8911 | Architectural—Engineering and Surveying Services |
8931 | Accounting, Auditing, and Bookkeeping Services |
8999 | Professional Services (Not Elsewhere Defined) |
9211 | Court Costs, including Alimony and Child Support |
9222 | Fines |
9223 | Bail and Bond Payments |
9311 | Tax Payments |
9399 | Government Services ( Not Elsewhere Classified) |
9402 | Postal Services—Government Only |
9405 | Intra – Government Transactions |
9700 | Automated Referral Service (For Visa Only) |
9701 | Visa Credential Service (For Visa Only) |
9702 | GCAS Emergency Services (For Visa Only) |
9950 | Intra-Company Purchases (For Visa Only) |
💡 Remember, you don’t register for an MCC yourself. Instead, when you set up a merchant account with a bank or payment processor, they assign an MCC based on the primary nature of your business.
Note that people often confuse MCC codes with merchant ID numbers. You also don’t have to apply for a merchant ID number, as they’ll assign one to you when opening a bank account with a merchant acquirer.
Other Common Questions About Merchant Category Codes
Still have questions? Our team of payment experts likely has the answers. Below, we address some common questions to help clarify how these codes impact your business operations.
MCCs are not only essential for classifying transactions and determining processing fees, but they also play a key role in identifying transactions for reward programs. This allows cardholders to receive benefits, such as cashback or points, for spending in certain merchant categories. MCCs help payment processors and card networks assign transactions to specific industries, which directly influences cardholder rewards and benefits.
How Do MCC Codes Affect High-Risk Merchants?
As a high-risk merchant, your MCC code can significantly impact your processing fees and the level of scrutiny your transactions receive.
High-risk categories often face higher fees due to increased risk factors such as chargebacks and fraud. Therefore, it’s important to check your MCC code to ensure it accurately reflects your business type.
Can I Change My MCC Code?
Yes, you can request a change to your MCC code if you believe it doesn’t accurately represent your business.
Contact your payment processor or bank with a detailed explanation of your services. They’ll review your request and make adjustments if necessary.
Why Are Some Businesses Classified as High-Risk?
As you likely know by now, certain industries are deemed high-risk due to factors like:
- High chargeback rates
- Regulatory requirements
- The nature of the products and services offered
Examples include travel agencies, subscription services, and adult entertainment, which often require a dedicated adult merchant account & payment gateway for card processing. Nightclubs, bars, and similar nightlife businesses with high in-person volumes may also benefit from specialized high-risk payment processing & POS systems for nightlife & adult venues, while sectors like gaming or marketplaces often need robust global mass payout solutions for high-risk merchants. Being classified as high-risk affects your MCC code, which in turn impacts your processing fees and compliance requirements.
How Can I Ensure My Business Is Assigned the Correct MCC Code?
When setting up your merchant account, provide accurate and detailed information about your business to ensure you have the correct MCC code.
Review your statements regularly to confirm that transactions are categorized correctly. If you notice discrepancies, act promptly to resolve them by contacting your payment processor or bank.
How FastoPayments Can Help
Now that you know what your MCC code is, the only thing stopping you from getting started is to reach out to FastoPayments so we can get you all set up with a high-risk merchant account, whether you’re operating globally or need one of the best high-risk merchant account providers in the UK!
Seamless payment experiences, tailored to your unique needs
Accept all major card types, empowering global cardholders to pay with ease and enhance your business’s potential for conversions and seamless cross-border transactions, supported by robust POS & MPOS payment solutions.
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