What are MCC Codes?
Merchant Category Codes (MCC) are four-digit numbers assigned by credit card networks to classify businesses based on the services they provide or the goods they sell. These codes help financial institutions categorize transactions, assess risk, and apply relevant fees. MCCs play a vital role in various financial applications, such as determining reward points for credit card users and facilitating fraud detection.
The significance of MCC codes lies in their ability to provide a clear overview of spending patterns. For instance, a travel-related MCC can help credit card issuers create tailored rewards programs for customers who frequently travel. Additionally, they are used for compliance with regulations, such as the categorization of purchases for tax purposes.
Navigating the complexities of business classification can be time-consuming, especially for sales agents. This is where Under.io comes in. Under is a customer onboarding platform that automates business classification, ensuring accuracy and efficiency in categorizing MCCs and NAICS codes.
With Under, sales agents can focus on building relationships and driving sales, rather than getting bogged down in manual data entry. The platform simplifies the onboarding process, making it easier for businesses to understand their classifications without the hassle.
A List of MCC Codes
While a complete list of all MCC codes is extensive, here are some examples across various categories:
- **General Retail**:
- 5399 - Miscellaneous General Merchandise Stores
- 5912 - Drug Stores and Pharmacies
- **Travel Services**:
- 4111 - Local and Suburban Commuter Passenger Transportation
- 4511 - Airlines, Air Carriers
- **Entertainment**:
- 7832 - Motion Picture Theaters
- 5813 - Bars, Taverns, Nightclubs
- **Dining**:
- 5812 - Restaurants, Fast Food
- 5811 - Caterers
- **Healthcare**:
- 8011 - Doctors and Physicians
- 8021 - Dentists and Orthodontists
For a complete list of MCC codes, businesses can refer to resources provided by payment networks like Visa and MasterCard.
NAICS and Other Business Classifications
The North American Industry Classification System (NAICS) is a standardized system used to classify business establishments based on their economic activities. Developed by the U.S., Canada, and Mexico, NAICS assigns a six-digit code to businesses, reflecting their primary activities.
NAICS codes are crucial for statistical analysis and economic research, allowing for the aggregation of data across industries. They facilitate government agencies, researchers, and businesses in understanding market trends, assessing competition, and making informed decisions.
In addition to MCC and NAICS, other business classifications include:
- **SIC Codes**: The Standard Industrial Classification system, which predates NAICS and is less detailed.
- **ISIC Codes**: The International Standard Industrial Classification, used by the United Nations for global data comparison.
Conclusion
Understanding MCC codes and NAICS is essential for businesses, sales agents and consumers alike. While MCC codes help categorize transactions and streamline financial services, NAICS provides a framework for economic analysis and industry classification. Together, they enhance the ability to analyze and interpret business activities in today's economy.