The Merchant Category Code (MCC) is a four-digit numerical code used to classify businesses according to their primary activities. MCCs are assigned by credit card companies such as Visa, MasterCard, American Express and Discover and are used to identify the types of goods or services purchased at the point of sale. Understanding your business’s MCC is important for reporting, tracking and categorizing transactions.
MCCs are used to categorize a business’s primary activity. For example, an MCC of 5912 is assigned to retail stores that specialize in the sale of office supplies. By correlating a merchant’s MCC with their line of business, credit card issuers can better monitor and track certain types of transactions. Furthermore, banks use MCCs to determine how much they should charge merchants for processing each transaction.
MCCs are also used to calculate rewards points or cashback offers for customers who use their credit cards at certain establishments. For example, a customer may receive extra rewards points for using their card at a restaurant with an MCC of 5812 since the code indicates it is primarily a food service provider.
Ultimately, understanding your business’s MCC can be beneficial in terms of tracking and categorizing transactions, as well as providing insights into how customers are using their cards when making purchases. It is important to note that MCCs are updated periodically, so it’s important to keep an eye on them to ensure your business is accurately classified.
If you need help understanding or updating your business’s MCC code, contact the credit card company or merchant service provider associated with the account for more information. They can provide you with detailed information on the specific activity associated with your MCC code and help ensure that your classification is accurate.
MCCs are an important tool for businesses in understanding their customers’ spending behavior, tracking and categorizing transactions, and effectively managing rewards programs. By understanding your business’s MCC code and keeping it up to date, you can ensure that your business is accurately classified and take advantage of the benefits offered by credit card companies.
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