MCC (Merchant Category Code)
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MCC (Merchant Category Code)
MCC stands for Merchant Category Code — it’s a four-digit number assigned to a business by credit card networks such as Visa, MasterCard, Discover, and American Express. This code describes the primary nature of the business’s activity.
Every business that accepts payment cards is assigned an MCC that indicates the type of products or services it offers. For example, airlines have one MCC, hotels have another, and retail stores have their own.
MCCs are used by banks and credit card companies to categorize transactions and can affect the rate a merchant pays for processing credit and debit card transactions. They are also used in managing reward programs and point accruals, as some credit cards offer additional bonuses for purchases in certain categories. Moreover, MCCs are applied in fraud prevention systems and for spend analysis in corporate reporting.