A four-digit code assigned to a business to classify its primary services or products. Examples include 5411 for 'Grocery Stores' or 5812 for 'Eating Places.'
When consumers make purchases, how do banks identify the type of merchant involved in transactions? One key tool is the merchant category code system. Understanding how MCCs categorize merchants provides clarity into the world of payments.
Merchant category codes (MCC) are 4-digit codes assigned to businesses by payment processors and card networks. MCCs classify the type of goods or services sold by merchants.
Some common MCCs include:
MCCs allow efficient identification during transaction processing and reporting.
MCCs optimize operations through:
By decoding business identities and sales patterns, MCCs bring order to complex payment data.
MCCs classify the commercial landscape into categorical codes. In payments, where fast decisions are critical, MCCs enable informed transaction handling based on merchant profiles. Their numeric shorthand summarizes business activities conveniently.