Understanding MCC Codes: What They Are and Why They Matter
MCC codes determine how card networks and acquirers view your business. Getting the right one - or the wrong one - has real consequences.
What is an MCC Code?
A Merchant Category Code (MCC) is a four-digit number assigned by card networks to classify businesses based on what they sell. It's assigned when you open a merchant account and follows you throughout your relationship with acquirers.
Why MCCs Matter
1. Interchange Rates
Card networks set different interchange rates for different MCCs. Some categories qualify for lower rates, others are penalized with higher rates. The difference can be significant on volume.
2. Acquirer Appetite
Many acquirers restrict or refuse certain MCCs entirely. If your MCC is considered "high risk" (gambling, adult, nutra), your options narrow considerably.
3. Chargeback Programs
Visa and Mastercard monitor chargeback ratios by MCC. High-risk MCCs have stricter thresholds and can trigger monitoring programs faster.
4. Rewards and Benefits
Some credit cards offer bonus rewards for specific MCCs. If you're miscategorized, your customers might not get expected rewards.
Common High-Risk MCCs
- 7995 - Gambling/Betting
- 6211 - Securities Brokers/Dealers
- 5967 - Adult Digital Content
- 5912 - Drug Stores (including nutra)
- 4722 - Travel Agencies
Can You Choose Your MCC?
Sort of. The acquirer assigns your MCC based on your business description. If you disagree with the assignment, you can request a change - but they'll want evidence that your business fits the new category.
MCC Misclassification Risks
- Account termination if the acquirer discovers the mismatch
- Higher fees if you're in the wrong risk category
- Compliance issues with card network rules
- Chargeback monitoring based on wrong benchmarks
Key Takeaways
- Your MCC affects rates, acquirer access, and monitoring thresholds
- Be honest about your business - misclassification causes problems
- Some MCCs are harder to place than others
- Check your MCC assignment when you onboard
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