What is Merchant Category Code (MCC) | chargebackhit.com

Merchant Category Code (MCC)


Merchant Category Code (MCC) are four-digit numbers employed by credit card issuers to classify transactions made by consumers using specific cards. These codes enable payment brands to categorize merchants and businesses based on the nature of their goods or services, facilitating transaction tracking and restriction.

MCC serves multiple purposes, including tax reporting, interchange promotion, and data collection on cardholder purchasing behavior. They provide valuable insights into spending patterns and enable credit card issuers to allocate reward points for eligible purchases.

While most credit card issuers recognize MCC, it is important to note that not all codes are universally accepted. Issuers frequently update and modify the codes through scheduled enhancements, adding or eliminating certain codes as needed.

Key Points:

  • MCCs consist of four-digit numbers that describe a merchant’s primary business activities.
  • Credit card issuers utilize MCCs to identify the type of business engaged in by a merchant.
  • MCCs are instrumental in monitoring spending habits and awarding credit card points for qualifying purchases.

Merchant Category Code (MCC) play a crucial role in the credit card industry by providing a standardized system for categorizing merchant transactions. They enable tracking, restriction, and analysis of consumer spending patterns. MCCs are essential for accurate tax reporting, interchange promotion, and gathering valuable information about cardholder purchasing behavior.