Merchant Category Codes: What You Need
To Know?
As a business owner, it's important to know which merchant category codes
(MCCs) apply to your business. These codes are used by the credit card
companies to classify businesses according to their primary products or
services.
There are four major credit card networks: Visa, Mastercard, Discover, and
American Express. Each network has its own list of MCCs, which are assigned to
businesses by the card issuer.
Some businesses may fall into more than one category, so they may have more
than one MCC. For example, a restaurant that also offers catering services would
likely have both the "restaurants" and "catering" MCCs.
The MCC is a four-digit code that is used to identify the business category of the
merchant.
Knowing which MCC applies to your business can be helpful in a number of
ways. First, some cards offer rewards or cash back based on the type of
purchase. If you know which MCC applies to your business, you can make sure
you're using the right card for the purchase to get the maximum benefit.
Second, some businesses are restricted by their MCC. For example, a business
with an "adult entertainment" MCC may not be able to process credit card
payments through certain processors or acquirers.
Third, some banks use MCCs to help assess risk when considering a merchant
account application. A business with a high-risk MCC may be required to provide
additional information or collateral before being approved for an account.
There are over 200 different MCCs, so it's not possible to list them all here.
However, we've provided a few examples of common MCCs below:
- 4111 – Transportation – Air, Rail, Sea
- 4214 – Transportation – Motor Freight Carrier
- 4812 – Telecommunications Equipment
- 5662 – Office Supplies