MCC stands for “Merchant Category Code.” It is a four-digit numerical code that is assigned to a business by the credit card industry to classify the type of goods or services that the business provides. The codes are used by the credit card companies to determine the merchant’s merchant services pricing and the types of card acceptance the merchant is able to accept.
MCC codes are assigned by the credit card companies, such as Visa and Mastercard, and are used to categorize merchants into different industries. For example, a retail clothing store would be assigned a different MCC code than a restaurant. The codes are used by the credit card companies to determine the merchant’s merchant services pricing and the types of card acceptance the merchant is able to accept.
There are over 8000 different MCC codes that are currently in use, each corresponding to a different type of business. For example, the MCC code for a retail clothing store is 5611, while the MCC code for a restaurant is 5812. The codes are used by the credit card companies to determine the merchant’s merchant services pricing and the types of card acceptance the merchant is able to accept.
MCC codes are also used by financial institutions, such as banks, to monitor and track the types of transactions that are being processed through a merchant’s account. This allows the financial institution to identify any suspicious or fraudulent activity and take appropriate action.
Overall, MCC codes are an important tool for the credit card industry, as they are used to classify and categorize merchants, and to determine the merchant services pricing and the types of card acceptance the merchant is able to accept. Additionally, they are used by financial institutions to monitor and track merchant’s transactions, which helps to identify and prevent fraudulent activity.