.png)
The Merchant Category Code (MCC) is a four-digit number assigned to describe a merchant’s primary business. Creditcard schemes classify merchants per Merchant Category Code or “MCC”. Have you ever heard about High Risk MCC codes Visa? Some business types fall into the so-called “High-Integrity Risk Merchants” (previously called “High-Brand Risk”) category because they could damage the reputation of the card schemes. Visa classifies the following card-absent environment merchant MCCs as High-Integrity Risk merchants:
· 5122 (Drugs, Drug Proprietaries, DruggistSundries);
“Merchants classified withthis MCC are business-to-business or wholesale distributors of prescription drugs, proprietary drugs, vitamins, druggists’ sundries and toiletries, antiseptics, bandages, pharmaceuticals, and biological or related products.”
· 5912 (Drug Stores, Pharmacies);
“Merchants classified with this MCC sell prescription and proprietary drugs, non prescription (over the counter) medicines, vitamins,cannabis (where legal to do so) and may also sell related items such as cosmetics, toiletries, tobacco, heating pads, back supports, noveltymerchandise, greeting cards, and a limited supply of food items.”
· 5962 (Direct Marketing – Travel-Related Arrangement Services);
“Merchants classified withthis MCC sell travel-related services (including discount travel clubs ornewsletters) via outbound telemarketing calls, mailings, magazine or television ads, or other direct marketing methods that include either a toll-free telephone number or an address to which prospective customers may respond.”
· 5966 (Direct Marketing – Outbound Telemarketing Merchants);
“Merchants classified withthis MCC sell a variety of products using outbound telemarketing methods, wherethe merchant initiates contact with prospective buyers via telephone or mailing (other than a catalog) that instructs the cardholder to contact the merchant.This MCC excludes charitable organizations that conduct outbound telemarketing.”
· 5967 (Direct Marketing – Inbound TelemarketingMerchants);
“Merchants classified with this MCC sell information or content services (or goods sold through the service) that customers access viatelephone or fax or over the internet.”
· 5993 (Cigar Stores and Stands);
“Merchants classified with this MCC sell tobacco, cigarettes, electronic cigarettes, cigars, pipes, and smokers’ supplies.”
· 7273 (Dating and Escort Services);
“Merchants classified with this MCC provide dating and escort services, including online services.”
· 7995 (Betting, including Lottery Tickets, CasinoGaming Chips, Off-Track Betting, and Wagers at Race Tracks)
“Merchants classified withthis MCC operate games of chance to win prizes of monetary value or betting establishments. Merchants that are unable to distinguish a betting transaction from other transactions, must identify all transactions with MCC 7995.”
· 4816 (Computer Network/Information Services),for the sale of access to cyberlockers or remote digital file-sharing services
“Merchants classified withthis MCC provide internet access. This MCC includes all merchants that provide computer network and information services and internet service providers.”
· 5816 (Digital Goods – Games), for Transactions involving skilled game wagering (for example: daily fantasy sports)
“Merchants classified withthis MCC sell games (including games of skill but excluding games of chance)that are delivered in electronic format.”
· 6012 (Financial Institutions – Merchandise, Services and Dept Repayments)
· 6051 (Non-Financial Institutions – ForeignCurrency, Non-Fiat Currency [for example: Cryptocurrency], Money Orders [NotMoney Transfer], Travelers Cheques, and Debt Repayment), for the sale of cryptocurrencies
“This MCC must be used for the funding of an account (excluding prepaid card loads), the purchase of foreign currency, non-fiat currency (for example: cryptocurrency), money orders, or travelers’ cheques that occurs at non-Financial Institutions such as currency exchanges ormoney order (a negotiable paper-based remittance – not a Money Transfer) merchants. This MCC must also be used for the repayment of a loan or debt if the entity that holds the debt is not a financial institution. A merchant that sells non-fiat currency such as cryptocurrency must include all required datain the authorization request and clearing record. All other transactions at thesame merchant location must use the appropriate MCC for those transactions.”
· 6211 (Security Brokers / Dealers)
· 5968 (Direct Marketing / Continuity / Subscription Merchant)
Last but not least, High-Risk MCC codes Visa merchants must pay a merchant registration fee of 950 USD, billed annually.
.png)
