Glossary
MCC
Merchant category code: the 4-digit code that tells card networks and issuers what a merchant sells. It drives risk rules, issuer declines and fees, so a wrong MCC is a red flag in itself.
Also called: merchant category code, category code.
The acquirer assigns the MCC when it boards the merchant. Some codes are watched closely: under Visa's Integrity Risk Program, 5967 (inbound teleservices and adult), 7273 (dating), 7995 (betting) and 5122/5912 (prescription drugs) sit in the highest-risk tier, and 5968 covers negative-option subscriptions.
High-risk MCCs cost more: from April 2024 Visa raised the registration fee for such merchants from $500 to $950, and 5967, 7273 and 7995 pay an extra $0.10 per transaction plus 0.10% of its value. Many issuers also decline gambling codes by default.
Disguising a trial as a cosmetics or convenience-store sale to get a cheaper code is miscoding. The FTC's Humboldt case describes nutra trials boarded under 5499 and 5977 instead of 5968.
Related terms: Acquirer, Merchant account, Trial, Rebill, Gambling.