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Merchant Category Code (MCC): Everything you need to know
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If you accept credit and debit card payments, understanding your Merchant Category Code (MCC) is essential. MCC codes affect your transaction fees, risk profile, reporting obligations, and even your eligibility with payment processors and acquiring banks.
What is an MCC?
A Merchant Category Code (MCC) is a four-digit number assigned to merchants by acquiring banks when a merchant account is created. This code categorizes your business based on the goods or services you offer and is recognized by payment networks like Visa and Mastercard.
Who assigns MCCs?
MCCs are assigned by your acquiring bank, following guidelines set by card networks such as Visa and Mastercard. While these guidelines are clear, assigning the right MCC often involves judgment by the acquirer. Misclassification - whether accidental or intentional - can lead to serious consequences, including penalties or disrupted payment processing.