Merchant Category Code

A four-digit code designated by Card Network that lists the product, service, or line of business of a Merchant.

How does Merchant Category Code work?

A Card Network, such as Visa or Mastercard, firstly assigns a Merchant Category Code to a Merchant once it begins to accept the Cards supported and operated by these Networks. It clarifies in what line of business a Merchant is involved and defines the fees which are based on the level of risk which it presents. If a Merchant is involved in more than one type of business, then the Merchant Category Code will apply to that Merchant's primary line of business.

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