Merchant Category Code (MCC)

What an MCC does

Every merchant account is assigned a merchant category code, a four-digit number that tells the card networks what kind of business is taking the payment. A grocery store, a hotel and an online subscription service each have different codes.

Why your MCC matters

• Fees: some interchange rates depend on the MCC.
• Risk: certain MCCs are treated as higher risk and get closer underwriting.
• Card rules: some card issuers block or limit purchases from certain categories.
• Customer statements and rewards: the MCC can decide how a purchase is labeled and whether it earns rewards.

Getting the right code

Your processor assigns the MCC based on what you tell them you sell. Describing your business accurately on your application matters: a code that doesn't match your real business can lead to problems later, including account reviews. If your products change, let your processor know.