HOST MERCHANT
SERVICES
How the MCC Code Works For Retail Credit
Card Merchant Services
You can hire a retail credit card merchant services provider when
you want to accept credit card payments. Part of your work will entail
providing a suitable MCC code that surrounds what your business
provides.
The MCC is the Merchant Category Code. It is a four-digit number
for retail financial services based on ISO 18245 standards. The
MCC determines your business based on the goods or services you
provide. A credit card processing team will identify your MCC and
charge an appropriate interchange fee based on the industry you
serve.
There are many MCC code numbers to review:
● Clothing outlets typically have an MCC between
5600 and 5999. A shoe store will have an MCC of
5661, while a children’s clothing store will have a
5641 code.
● Traditional retailers have codes from 5000 to 5599. A
hardware store’s code can be 5072, for example.
● Travel and entertainment businesses have codes in
the 3000 range. These include separate codes for
airlines, lodging, and car rentals.
● Contracted services have MCCs from 1500 to 2999.
A carpenter’s code can be 1750, for instance.
Consider Cryptocurrencies
Retail merchant services can use your code to dictate the
rates you will spend on interchange fees and other points.
A business with a higher risk factor may pay more on
average.
The MCC is also for tax purposes, as it reviews if a
payment is for services or merchandise. Any payments for
services must be reported by the paying party to the IRS
for tax recording needs.
The best credit card processing company will respect your
current status and will provide sensible rates surrounding
your MCC code. Be sure to check with different parties to
see what the rates are for your specific code, as every
merchant services provider will treat your field differently
from one another.
THANK YOU
https://www.hostmerchantservices.com/