Merchant Category Code (MCC)

A Merchant Category Code, or MCC, is a four-digit code that credit card companies use to categorize businesses. MCCs are assigned to businesses by a credit card issuer to classify consumers' online payment transactions using a particular card. This code signifies the types of goods, services, and solutions being sold to customers.

If a business deals in both goods and services, the MCC will determine the business type based on the maximum number of sales each type is making. Companies that deal in different industries under the same brand name can request additional MCCs for other business areas.

Merchant category codes are used for

  • Tax reporting purposes
  • Tracking customer spending habits
  • Interchange promotion
  • Giving credit card points and cashback rewards
  • Defining rules and regulations for card transactions by card networks
  • Identifying specific business transactions that are prohibited in certain areas or locations

Merchants can quickly locate their MCC by visiting their credit card processor’s website or doing a simple online search for “[processor] merchant category codes”.

Subscribe the updates