Skip to main content

Frequently Asked QuestionsWhat is a Merchant Category Code (MCC)?

Merchant Category Code (MCC) is a four-digit number used in the payments industry to classify business by the primary type of good or service for which payments are accepted. MCC is used for a range of purposes, including activity tracking, reporting, tax purposes, and risk management.

MCC helps distinguish payment activity expected based on business type.

The interchange rates paid by merchants in each category are also determined by MCC. The card brands and banks assign risk levels to business industries, and interchange, which is set by the card brands, tends to be more costly for higher risk industries. 

Each merchant processing account can only have one MCC assigned. If the merchant processes payments for more than one type of good or service within the same business, they can sometimes still use one Merchant ID (MID). In that case, they must be set up with the MCC that corresponds to the main business (the business with the highest sales volume). Otherwise, they need to set up more than one processing account with different MCCs assigned.

MCC is assigned when a processing account is underwritten and approved. The card brands have final say on MCC and retain the right to require corrections to MCC assignments and use at any time.


FAQ Topics

Other Topics in
Payment Card Industry Information

View All FAQ's

Sign up for news and updates