A merchant category code is a 5-digit numerical value that is automatically assigned to most businesses/facilities with the exception of Professionals, Small Necks and Non-Profits. These codes are used for purposes such as sales tax determination, market research, resource allocation and compilation of statistical data. The US Internal Revenue Service (IRS) uses MCCs to classify business entities.
What are the benefits of using Merchant Category Codes?MCC data is used by merchants, vendors, financial institutions, payment processors and credit card companies for the following purposes: The ability to accept electronic transactions with minimal setup time Access to an appropriate interchange table which determines processing costs Varying requirements for business or industry Identifying types of businesses, so that marketing promotions can be directed only to the appropriate target audience.
What are the different MCC categories?There are 285 different MCC codes. MCCs have been created by the American National Standards Institute (ANSI) and are maintained by the National Uniform Code Council (NUCC). Each of these codes is 5 digits that represent a business function or industry type, which might include all businesses selling products/ services in one category or several. The code is used when a credit or debit card is being processed in order to determine the appropriate interchange category.
How are merchant category codes obtained?Merchant Category Codes for businesses can be obtained from multiple providers, with CardFellow being one of them. To obtain MCC data from CardFellow, you simply have to complete a form indicating the type of business you have and the product/service you offer. The MCC submission process can be completed in just a few minutes, and provides access to hundreds of available merchant category codes.
How do I know if my current MCC is right for my business?It will depend on what your store offers, but you are able to obtain MCCs that are both industry specific and product/service specific. If your business sells one type of product or service at a time, then it may be beneficial to obtain an MCC that represents that category exactly. However, if you sell multiple types of products or services, there may be several more appropriate options.
How do I know if these MCCs are correct for my business?In addition to the specific information you provide, CardFellow also provides a list of available codes that may be applicable to your business. You can then select and compare multiple options, and ultimately choose which one is most appropriate. This allows you to make the best decision about which category is the most suitable for your business.
What information is provided when I get merchant category codes?The system provides you with a list of MCCs and their corresponding descriptions, so that you know exactly what the code represents and how it can be used. Additionally, we provide a How to Apply section, which provides you with additional resources to help determine the best codes for your needs.
What information should I include in my MCC application?The most important thing is to provide accurate and complete information about what you sell, including average price points. Failure to accurately represent this will result in inaccurate results, or no results at all when completing the form.
