What are merchant category codes? Everything your business needs to know

Key takeaways

• A merchant category code (MCC) is a four-digit number that card networks assign to classify a business by the goods or services it provides.

• MCCs affect the interchange fees you pay, how transactions are categorised for expense reporting, and which purchases earn cardholder rewards.

• With Airwallex Corporate Cards, you can set MCC-based spend controls and automatically categorise expenses, giving you real-time visibility into where your money goes.

Every time a customer taps their card at your business, a four-digit code goes along with that transaction. It's called a merchant category code, and it shapes what you pay in fees, how your expenses are categorised, and even whether your cardholders earn rewards on the purchase.

In this guide, we'll look at what MCCs are, who assigns them, how they work behind the scenes, why they matter for your business, and how to find yours.

What are merchant category codes?

A merchant category code (MCC) is a four-digit number that card networks like Visa and Mastercard use to classify a business by the type of goods or services it provides. Think of an MCC as a postcode for your business type. It tells the payments system what kind of shop you are, so every transaction can be routed, priced, and reported correctly.

MCCs are defined by the ISO 18245 standard¹ and maintained by the major card networks. They're used to set interchange rates, determine rewards points for customers in loyalty programmes, and help payment processors categorise transactions. In short, your MCC affects what fees you pay, how transactions show up in expense reports, and whether your customers earn cashback or points when they buy from you.

Who assigns merchant category codes?

Card networks such as Visa and Mastercard keep the master lists of MCCs, but your payment processor, sometimes called an acquirer, is the one that assigns a code to your business. When you set up a merchant account, the processor looks at the main goods or services you provide and chooses the MCC that fits best.

For example, if you open a coffee shop and set up card payments, your payment processor assigns you MCC 5812: Eating Places and Restaurants. It's a bit like being placed into an industry category when you register your business, except this one follows you through every card transaction.

Each business gets one primary MCC, even if it sells multiple types of products. So if a café also sells books, it'd probably get a restaurant MCC, not a bookshop MCC, because food service is the main offering. That matters because your MCC affects your interchange fees and how transactions are categorised, so it's worth checking that it matches what you do.

Can you change your merchant category code?

Yes, but it isn't always simple. If you think your MCC is wrong, you can ask your payment processor to change it. They'll review your business and, if the case is strong, submit a request to the card network. The card network makes the final decision.

If your business has changed, say from a retail shop to a subscription service, your original MCC might no longer match what you do. If that happens, you could be paying higher interchange fees than you need to, so it's worth bringing it up with your processor if something seems off.

How do merchant category codes work?

Your MCC is assigned when you set up your merchant account, and after that, it travels with every card transaction your business processes. When a customer pays by card, the MCC is built into the transaction data that moves from your terminal to the card network and then to the issuing bank.

The card network and issuer use the MCC to work out the interchange fee for that transaction, apply any rewards rules, like cashback on travel purchases, and flag risk levels. Some MCCs come with higher risk profiles, for example eCommerce, gaming, and travel, and that affects both the fees you pay and the level of chargeback protection you get. Card-not-present transactions, like online purchases, are often flagged as riskier because the card can't be physically verified.

What happens during a card transaction

Say a customer buys a flight using their Visa card. The airline's MCC – for example, 3005 for British Airways or 3075 for Singapore Airlines – tells Visa that this is a travel purchase. Visa uses that code to apply the correct interchange rate, and the customer's issuing bank checks whether the card programme offers travel rewards. If it does, the customer earns points automatically, all because of that four-digit code.

The same thing happens with every card transaction, whether it's a coffee, a software subscription, or a hotel booking. The MCC is the link that ties the transaction to the right fees, rewards, and risk rules.

Why are merchant category codes important for businesses?

MCCs do their work in the background, but they have real effects on how your business runs, from the fees you pay to how you track spending across your team. Here's where they matter most.

Setting corporate spend controls

Issuers can use MCCs to restrict or allow card usage at certain types of businesses. The best spend management platforms let you set MCC controls on issued cards, for example, so your cards can only be used for purchases with certain travel-related companies, or so gambling-related MCCs are blocked entirely on employee cards.

Classifying and reconciling transactions

MCCs make it easier to track and report on different types of transactions. A petrol station has a different MCC from an airline, which helps financial institutions understand what a business offers and how to handle the payments and fees. For businesses, this classification also helps with expense reconciliation. Spend management software can automatically categorise transactions using MCCs, which can save your finance team hours of manual work.

Spending data and analytics

MCC data is visible for every transaction, and it gives you useful information such as the transaction amount, authorisation method, and business details for where the card was used. When you analyse this data in aggregate, you can spot spending patterns and customer preferences, for example, a spike in travel-related spend across the company, or which expense categories are growing fastest.

Managing cardholder rewards

MCCs make certain reward strategies possible, such as cashback and points offerings. If an issuer gives cardholders 3% cashback on business travel bookings, the MCC tells the issuer when to apply that reward. When you use a corporate card or business prepaid card at a travel merchant, the MCC triggers the cashback automatically. On the other hand, credit card reward programmes often exclude certain spend categories from earning points, such as healthcare or government services like paying tax bills.

Determining interchange fees

Card networks like Visa and Mastercard use MCCs to set interchange rates, which are a key part of the merchant discount rate you pay to accept credit card payments. High-risk businesses, such as eCommerce, travel, and gaming, often pay higher interchange fees because there's a greater risk of chargebacks and fraudulent activity. Business types with lower fraud and chargeback rates, such as restaurants, retail, and financial services, usually have lower interchange rates. MCCs can also affect how transactions are processed internationally, which can change cross-border fees, currency conversion costs, and global acceptance rules. Payment gateways then apply these rates when processing your transactions.

How to find a merchant category code

If you're trying to find your own MCC, or you want to identify the code for a specific type of business, there are a few ways to do it:

• Search official card network lists. Visa publishes a comprehensive list of MCCs in its Merchant Data Standards Manual², and Mastercard keeps a similar directory. These are the authoritative sources.

• Contact your payment processor. They can confirm the MCC assigned to your business and clear up any questions about how it was decided.

• Review your card or bank statements. MCCs often appear in transaction details, so look for the four-digit number next to the merchant name.

• Check your local tax authority's resources. Tax authorities often publish MCC lists that are relevant for tax reporting purposes, which can help if you're categorising business expenses.

If you're looking for a specific code, the reference table below covers the main MCC ranges by industry.

Merchant category codes by industry

Below are merchant category code ranges listed by industry, along with some commonly searched specific examples.

These are representative examples. Full lists are maintained by Visa, Mastercard, and other card networks.

Take back control of your business spend with Airwallex

Understanding your MCC is the first step. The next part is managing what happens after each transaction, and that's where the right tools help.

More than 200,000 businesses use Airwallex, including Corporate Cards and Expense Management, to take back control of their spend and gain visibility into where their money's going.

With Airwallex, you can create cards in minutes to easily manage team spend. You can set MCC-based spend controls to restrict cards to certain merchant types, track all purchases from a single dashboard in real time, and manage expenses and reimbursements in the same place. Accounting software integrations reconcile expenses using MCCs for spend categorisation. Explore our spend management solutions to see how it works.

Frequently asked questions (FAQ)

How do I find a merchant category code?

You can find an MCC by checking your card statement, contacting your payment processor, or searching the official Visa or Mastercard MCC lists online. The card networks publish comprehensive directories, and your payment processor can confirm the specific code assigned to your business.

How are merchant category codes assigned?

Your payment processor assigns an MCC when you set up your merchant account, based on the main goods or services your business provides. Card networks like Visa and Mastercard keep the master lists of codes, but the processor makes the initial assignment based on your primary business activity..

What are the different types of merchant category codes?

MCCs are grouped into broad industry ranges, for example, 3000–3308 for airlines, 5000–5599 for retail, and 8000–8999 for professional services. Each range covers a category of businesses, with specific four-digit codes for individual merchant types. See the table above for a full breakdown by industry.

Can a merchant category code affect my interchange fees?

Yes. Card networks use your MCC to help decide the interchange rate applied to each transaction. Higher-risk MCCs, such as travel, gaming, and eCommerce, usually come with higher fees because of increased chargeback risk, while lower-risk categories like restaurants and retail usually pay less.

Sources

1. https://www.iso.org/standard/79450.html

2. https://usa.visa.com/content/dam/VCOM/download/merchants/visa-merchant-data-standards-manual.pdf

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