What is an MCC Code?

An MCC code (Merchant Category Code) is a four-digit code used by banks and financial institutions to categorize different types of merchants and service providers. Each MCC code corresponds to a specific business activity and helps classify financial transactions, such as bank card purchases.

The Role of MCC Codes

MCC codes assist card networks and banks in the following tasks:

• Transaction management
• Taxation
• Application of cardholder discounts
• Security and risk analysis

Examples of MCC Codes

• 5411: Grocery stores (supermarkets)
• 5812: Restaurants
• 6011: Banking services
• 4111: Transportation services (taxis, buses)

MCC codes may vary depending on the type of purchase and play an important role in the regulation of financial services.

Applications by Banks

Banks often use MCC codes for:

• Providing discounts: For example, offering cashback or discounts for purchases made with specific MCC codes.
• Imposing restrictions: In some cases, banks may restrict card usage at merchants with certain MCC codes, such as for gambling establishments.