Payments - Merchant Category Code (MCC)
KA-09260
25
10/08/2025 13:03 PM
1.0
Introduction
A Merchant Category Code (MCC) is a four-digit number that identifies the type of goods or services a merchant provides. MCCs are used by payment networks, including Visa, to classify businesses by industry for transaction processing, reporting, and compliance purposes. Understanding MCCs is essential for merchants, acquirers, resellers, and partners to properly configure accounts, ensure accurate transaction routing, and meet regulatory requirements.
Overview
MCCs play a critical role in payment processing, determining how transactions are categorized and, in some cases, how fees are applied. They are also used to control eligibility for certain transaction types, benefits, or restrictions. For example, some card products may offer rewards or benefits based on MCC, while others may block transactions in specific categories for risk management.
Visa and its partner platforms, such as Cybersource, require accurate MCC assignment during merchant onboarding and configuration. Incorrect MCCs can lead to declined transactions, reporting inaccuracies, or compliance issues.
Merchant Category Code Usage
- Transaction Classification: MCCs determine the industry category for each transaction.
- Risk & Compliance: Certain MCCs are subject to additional regulatory or network rules.
- Reporting & Analytics: MCCs are often used for merchant performance analysis and industry segmentation.
- Rewards & Benefits: Cardholder rewards programs may apply benefits based on MCC.
Procedure for Determining and Configuring MCC
- Identify the merchant’s primary business activity.
- Refer to the MCC reference documentation for the appropriate code that matches the merchant’s industry.
- Assign the MCC during merchant account setup in your payment processing system.
- Verify MCC accuracy in test transactions to ensure correct categorization.
- Regularly review MCC assignments to ensure they remain accurate if the merchant’s business model changes.
Common MCC Examples
| MCC | Industry Category | Description |
|---|---|---|
| 5411 | Grocery Stores | Merchants selling a variety of food products and household items. |
| 5812 | Eating Places & Restaurants | Merchants primarily engaged in serving prepared food and beverages. |
| 4111 | Local/Suburban Commuter Passenger Transportation | Companies providing passenger transport services within local and suburban areas. |
| 6011 | Financial Institutions | ATM operators and financial service providers handling cash disbursements. |
Additional Considerations
When working with MCCs in Visa or CyberSource systems:
- Ensure MCC aligns with the merchant’s actual business activity to avoid compliance issues.
- Reference the CyberSource Merchant Category Code API field documentation for technical integration requirements.
- Review MCC usage in CyberSource Payouts for disbursement-specific rules.
- Consult the Visa Acceptance Support article Understanding Merchant Category Codes for industry-specific guidance.
- For acquirer-related MCC rules, see the Payer Authentication Acquirer Information documentation.
Support
For assistance with MCC assignment or troubleshooting MCC-related transaction issues, contact your acquiring bank or payment processor. Providing complete merchant and transaction details will help ensure timely and accurate resolution.
Was this article helpful?