MCC (Merchant Category Code)
A Merchant Category Code is a four-digit number that classifies what your business sells or what service it provides. It's assigned by your acquirer (or your processor, if they act as your acquirer) when you open your merchant account. You don't choose it yourself, and changing it later requires a request to your processor.
Your MCC affects more than you'd expect. It determines your interchange rates, influences which fraud rules apply to your transactions, triggers specific compliance requirements, and can even determine whether certain card networks allow you to process at all.
Why It Matters
| What MCC Affects | How |
|---|---|
| Interchange rates | Different MCCs qualify for different rate tables. Grocery (5411) and gas (5541) get lower rates than general retail (5999). |
| Fraud screening | Card networks and issuers apply different risk rules by MCC. High-risk MCCs (travel, gaming, digital goods) get more scrutiny. |
| Compliance requirements | Certain MCCs trigger additional network rules: recurring billing disclosures, age verification, content restrictions. |
| Processor acceptance | Some processors won't onboard certain MCCs. Stripe and Square restrict high-risk categories like supplements, adult content, and firearms. |
| Customer statement | The MCC determines how the charge is categorized on the customer's card statement (e.g., "Travel" vs. "Retail"). |
| Card benefits | Rewards cards give bonus points by MCC category. Your MCC determines whether a purchase earns 1x or 3x points. |
Common MCCs
| MCC | Category | Notes |
|---|---|---|
| 5411 | Grocery stores | Lower interchange rates |
| 5541 | Gas stations | Lower interchange, specific terminal rules |
| 5812 | Restaurants | Tip adjustment rules apply |
| 5999 | General retail | Default catch-all |
| 5734 | Computer software stores | Often used for SaaS |
| 7372 | Computer programming/data | Common for software and digital goods |
| 4722 | Travel agencies | Higher risk classification |
| 7995 | Gambling/betting | Restricted MCC, many processors won't touch it |
| 5967 | Direct marketing (inbound telemarketing) | High-risk, additional monitoring |
Common Mistakes
- Wrong MCC assigned. If your processor classifies your SaaS business as "computer hardware" instead of "software," you may pay higher interchange and trigger the wrong fraud rules. Check your merchant agreement or ask your processor what MCC you're assigned.
- Not knowing your MCC. Many merchants have never checked. It's in your merchant agreement, your processor dashboard, or you can ask your processor directly.
- Assuming you can change it easily. MCC changes require your processor to reclassify you, and some processors resist because it can affect their own risk exposure. If your MCC is genuinely wrong, push for it. If you're trying to game a lower rate, they'll say no.
- Multi-product businesses. If you sell both physical goods and digital subscriptions, your processor assigns one MCC for the whole account. For merchants with meaningfully different product lines, running separate merchant accounts with different MCCs can optimize interchange.
High-Risk MCCs
Certain MCCs face additional scrutiny from networks, processors, and issuers:
| Category | MCCs | Why It's "High Risk" |
|---|---|---|
| Travel | 4722, 3000-3350 | High ticket, advance purchase, cancellation disputes |
| Digital goods | 5815, 5816, 5818 | No physical delivery proof, instant fulfillment |
| Gambling/gaming | 7995, 7994 | Regulatory restrictions, compulsive spending disputes |
| Supplements/nutraceuticals | 5499, 5912 | High chargeback rates industry-wide |
| Adult content | 5967 | Content restrictions, processor policies |
| CBD/cannabis | 5993 | Legal gray areas, banking restrictions |
If your business falls into a high-risk MCC, expect:
- Fewer processor options (Stripe and Square may decline your application)
- Higher processing rates (0.5-2.0% above standard)
- Rolling reserves (processor holds 5-10% of your volume for 6 months)
- Stricter chargeback thresholds
How to Check Your MCC
- Merchant agreement. It's listed in your original application or contract.
- Processor dashboard. Stripe: Settings > Account details. Square: Account & Settings > Business information.
- Ask your processor. Email or chat support can confirm your assigned MCC.
- Check a transaction. Ask a customer to check how your charge appears on their statement. The category shown is determined by your MCC.
See Also
- MCC Codes Reference - Full lookup table of all merchant category codes
- Interchange Fee - How your MCC directly affects interchange rates
- Buying Payments - Processor selection including MCC-based requirements
- MATCH List and TMF - How wrong MCC assignment can lead to compliance violations
- Compliance Overview - Network rules tied to specific MCCs
- Processor Comparison - Which processors accept high-risk MCCs