MCC Codes Reference
Prerequisites
Before diving into MCC codes, understand:
- Buying payments and processor selection
- Interchange rate basics
- Chargeback metrics and monitoring programs
- Payout strategy and reserves
Your MCC (Merchant Category Code) affects everything: interchange rates, reserve requirements, processor approval odds, and chargeback monitoring thresholds. Getting the wrong MCC assigned can cost you money or get your account terminated.
What Your MCC Actually Controls
| Impact Area | How MCC Affects It |
|---|---|
| Interchange rates | Some MCCs qualify for lower rates (supermarkets, utilities). Others pay premium (high-risk categories). |
| Reserve requirements | High-risk MCCs trigger 5-10% rolling reserves by default. |
| Processor approval | Some processors won't touch certain MCCs. Others specialize in them. |
| Chargeback thresholds | Standard is 0.9% (Visa) / 1.5% (Mastercard ECM). Some MCCs have tighter monitoring. |
| Fraud scoring | Risk models weight transactions differently by MCC. |
| Card benefits | Some cards offer bonus rewards for specific MCCs (dining, travel, groceries). |
High-Risk MCC Categories
These MCCs face higher reserves, stricter underwriting, or outright rejection from mainstream processors. If you're in one of these categories, expect:
- Longer application review (2-4 weeks vs instant)
- Rolling reserves (5-10% held for 90-180 days) - see payout strategy
- Higher per-transaction fees
- More frequent account reviews
Explicitly High-Risk
| MCC | Category | Why It's High-Risk |
|---|---|---|
| 5912 | Drug Stores, Pharmacies | Prescription fraud, controlled substances |
| 5962 | Direct Marketing - Travel | High chargeback rates, fulfillment issues |
| 5966 | Direct Marketing - Outbound Telemarketing | Aggressive sales, buyer's remorse |
| 5967 | Direct Marketing - Inbound Teleservices | Subscription traps, unclear billing |
| 5968 | Direct Marketing - Continuity/Subscription | Recurring billing disputes, cancellation friction |
| 5993 | Cigar Stores and Stands | Age verification, regulatory issues |
| 7012 | Timeshares | High-value, long fulfillment, buyer's remorse |
| 7273 | Dating and Escort Services | Fraud, disputes, reputational risk |
| 7995 | Betting, Lottery, Casino Gaming | Regulatory, addiction, chargebacks |
| 5816 | Digital Goods - Games | Friendly fraud, virtual goods disputes |
| 5817 | Digital Goods - Applications | Subscription disputes, unclear terms |
| 5818 | Digital Goods - Large Sellers | Volume + digital = higher fraud exposure |
Elevated Risk (Not Prohibited, But Scrutinized)
| MCC | Category | Risk Factor |
|---|---|---|
| 4722 | Travel Agencies | Advance purchase, fulfillment delays, airline failures |
| 4511 | Airlines | High ticket values, complex refund rules |
| 5094 | Precious Stones and Metals | High value, resale fraud |
| 5944 | Jewelry, Watches, Silverware | High value, return fraud |
| 5999 | Miscellaneous Retail | Catch-all, hard to underwrite |
| 7922 | Theatrical Producers, Ticket Agencies | Event cancellations, scalping disputes |
| 7941 | Commercial Sports, Athletic Fields | Event-based, cancellation risk |
| 5964 | Direct Marketing - Catalog | Fulfillment disputes, return logistics |
| 5814 | Fast Food Restaurants | Low margins, high volume, fraud testing ground |
Restricted or Prohibited by Most Processors
| MCC | Category | Status |
|---|---|---|
| 7801 | Government-Owned Lotteries (US) | Requires specialized processor |
| 7802 | Government-Licensed Horse/Dog Racing | State-by-state legality |
| 7995 | Gambling, Casino Gaming Chips | Legal only in licensed jurisdictions |
| 5933 | Pawn Shops | High fraud rates, stolen goods concerns |
| 9223 | Bail and Bond Payments | Specialized processors only |
Common MCC Categories
Retail
| MCC | Description | Interchange Notes |
|---|---|---|
| 5311 | Department Stores | Standard retail rates |
| 5411 | Grocery Stores, Supermarkets | Lower interchange (regulated) |
| 5541 | Service Stations (with fuel) | Special fuel rates apply |
| 5542 | Automated Fuel Dispensers | AFD rates, outdoor terminal rules |
| 5651 | Family Clothing Stores | Standard retail |
| 5691 | Men's and Women's Clothing | Standard retail |
| 5732 | Electronics Stores | Standard retail |
| 5912 | Drug Stores, Pharmacies | Lower interchange for Rx |
| 5999 | Miscellaneous Retail | Catch-all, may trigger review |
Food & Beverage
| MCC | Description | Notes |
|---|---|---|
| 5812 | Eating Places, Restaurants | Standard restaurant rates |
| 5813 | Bars, Taverns, Cocktail Lounges | Age verification required |
| 5814 | Fast Food Restaurants | High volume, card testing target |
| 5811 | Caterers | Service business rates |
Services
| MCC | Description | Notes |
|---|---|---|
| 7230 | Barber and Beauty Shops | Service rates |
| 7298 | Health and Beauty Spas | Service rates |
| 7311 | Advertising Services | B2B, Level 2/3 eligible |
| 7372 | Computer Programming, Systems Design | B2B, Level 2/3 eligible |
| 7392 | Management Consulting | B2B, Level 2/3 eligible |
| 8111 | Legal Services | Professional services rates |
| 8931 | Accounting, Bookkeeping | Professional services rates |
Healthcare
| MCC | Description | Notes |
|---|---|---|
| 8011 | Doctors, Physicians | Healthcare rates available |
| 8021 | Dentists, Orthodontists | Healthcare rates available |
| 8062 | Hospitals | Large ticket, complex billing |
| 8099 | Medical Services, Health Practitioners | Broad category |
Travel & Transportation
| MCC | Description | Notes |
|---|---|---|
| 4511 | Airlines | Complex interchange, high disputes |
| 4722 | Travel Agencies | Advance purchase risk |
| 7011 | Lodging - Hotels, Motels, Resorts | No-show chargebacks common |
| 7512 | Car Rental | Damage disputes, fuel charges |
| 4121 | Taxicabs, Rideshare | Low ticket, high volume |
E-commerce & Digital
| MCC | Description | Risk Level |
|---|---|---|
| 5815 | Digital Goods - Audiovisual Media | Elevated |
| 5816 | Digital Goods - Games | High |
| 5817 | Digital Goods - Applications | Elevated |
| 5818 | Digital Goods - Large Digital Sellers | High volume scrutiny |
| 5964 | Direct Marketing - Catalog | Elevated |
| 5968 | Direct Marketing - Subscription | High |
MCC Assignment Issues
Common Misclassification Problems
| What You Sell | Wrong MCC | Right MCC | Why It Matters |
|---|---|---|---|
| SaaS subscription | 5968 (subscription) | 5817 (digital apps) | 5968 triggers high-risk flags |
| Coaching/consulting | 5999 (misc retail) | 7392 (consulting) | 5999 is a red flag catch-all |
| Online courses | 5818 (digital large) | 8299 (schools) | Education MCCs have better rates |
| Meal kits | 5812 (restaurants) | 5411 (grocery) | Grocery has regulated lower rates |
| Fitness app | 5816 (games) | 7997 (fitness clubs) | Games MCC has higher fraud scores |
How to Check Your MCC
- Look at your processor statement. MCC is usually listed per transaction or in account settings.
- Check your merchant agreement. MCC should be specified.
- Ask your processor directly. They can confirm what's on file.
How to Request MCC Change
- Document your business model. Explain what you actually sell.
- Provide supporting materials. Website, product descriptions, sample invoices.
- Submit formal request. Email your processor's underwriting or merchant services team.
- Expect review time. MCC changes require re-underwriting (1-2 weeks).
- Get confirmation in writing. New MCC should appear on next statement.
MCC Changes Can Backfire
Changing to a lower-risk MCC when your business doesn't qualify can get your account terminated for misrepresentation. Be accurate. See processor management for maintaining good standing.
MCC and Interchange
Some MCCs qualify for lower interchange rates. This is regulated or network-negotiated, not something you can choose.
Lower Interchange MCCs (US Regulated)
| MCC | Category | Why Lower |
|---|---|---|
| 5411 | Supermarkets | Durbin Amendment regulated |
| 5541/5542 | Gas Stations | Fuel-specific rates |
| 5912 | Pharmacies | Healthcare carve-outs |
| 9311 | Tax Payments | Government rates |
B2B and Level 2/3 Eligible
If you sell B2B and your MCC supports it, you can qualify for lower interchange by passing Level 2/3 data:
| MCC Range | Category | Level 2/3 Eligible |
|---|---|---|
| 7311-7399 | Business Services | Yes |
| 8111-8999 | Professional Services | Yes |
| 5045-5046 | Computers, Office Equipment | Yes |
See B2B Commercial Payments for Level 2/3 details.
MCC Quick Lookup by Business Type
"What MCC am I?"
| You Are | Likely MCC | Notes |
|---|---|---|
| Restaurant | 5812 | 5813 if primarily bar |
| Coffee shop | 5814 | Fast food category |
| Clothing store | 5651 or 5691 | Depends on focus |
| Electronics retailer | 5732 | |
| Grocery store | 5411 | Lower regulated rates |
| Gas station | 5541 or 5542 | 5542 for pay-at-pump |
| Hotel | 7011 | |
| Salon/spa | 7230 or 7298 | |
| Gym/fitness | 7941 or 7997 | |
| Doctor/dentist | 8011 or 8021 | |
| Lawyer | 8111 | |
| Accountant | 8931 | |
| Software/SaaS | 5817 | Not 5968 |
| E-commerce (physical goods) | 5999 | May want more specific |
| Online courses | 8299 | Educational services |
| Consulting | 7392 | |
| Marketing agency | 7311 | |
| Subscription box | 5964 | Direct marketing catalog |
IRS Reporting by MCC
Under IRC Section 6050W, payment processors report gross payment volume to the IRS via Form 1099-K. Some MCCs have different reporting thresholds or requirements.
As of 2024, the reporting threshold is $600 (previously $20,000 and 200 transactions). This applies regardless of MCC.
Certain MCCs related to third-party network transactions (marketplaces, gig platforms) have specific reporting rules. Your processor handles this, but you should expect 1099-K if you process over $600/year.
Related Resources
- Buying Payments - MCC implications during processor selection
- Interchange Reference - How MCC affects your rates
- B2B Commercial - Level 2/3 data for eligible MCCs
- High-Risk Considerations - Processor selection for restricted MCCs
- Processor Management - Maintaining good standing
- Payout Strategy - Reserve requirements by MCC
- Holds and Reserves - Understanding reserves
- Chargeback Metrics - Tracking dispute rates
- Network Programs - VAMP, ECM thresholds
- Risk Scoring - MCC impact on fraud scores
- Friendly Fraud - Digital goods disputes
- Subscriptions & Recurring - Recurring billing MCC
Full MCC List
For a complete, searchable list of all 900+ MCC codes, see the ISO 18245 MCC reference (open source, regularly updated).
The codes above cover the categories most relevant to merchant operations and risk decisions. If you need a specific code not listed, check with your processor or the full ISO reference.