What is it, what are they for and where to find it?

These codes help payment processors, banks and financial institutions accurately classify transactions and process information correctly.

Let’s look at how exactly the MCC code works, what it is and why it is needed.

Main functions of MCC codes:

• Business classification.

For example, a restaurant might have a code of 5812, while a gas station might have a code of 5541. This helps financial systems understand what service or product the merchant provided.

• Transaction processing.

When you pay for a purchase with a card, the payment system (such as Visa or MasterCard) uses the merchant’s MCC code to determine the type of transaction.

• Accounting for taxes and benefits.

Depending on what the MCC code means, different tax rates or benefits may apply to different categories of goods or services.

For example, some government programs may provide discounts for purchases in certain categories, such as education or health care.

• Cost analysis.

Banks and payment systems use MSS to analyze transactions. For example, a bank might classify your expenses as “food” or “travel” based on the merchant code.

That is why it is important to know what the MCC code of a point of sale is and how organizations work with it.

Let’s say you make a purchase at a cafe, and its MCC code is 5812. When you pay by card, the payment system sees this code and understands that you purchased food at the restaurant. This information can be used to calculate bonuses, taxes, or to analyze your expenses.

Without these codes, it would be difficult to effectively classify all purchases and process them correctly, which could lead to accounting or tax errors.

Banks and payment systems often offer higher cashback rates on certain spending categories.

For example:

• 5% on restaurants,

• 3% at gas stations,

• 1% on all other purchases.

If you pay for dinner at a restaurant that is actually classified as a restaurant (MSS code 5812)you will receive increased cashback.

However, if the restaurant uses an incorrect MCC code (for example, 5814 – night club)the bet may be lower or not work at all.

The main aspects of the influence of the MCC code:

• Accuracy of bonuses.

Banks use MCC codes to determine whether expenses correspond to the declared categories.

Some MCC codes may not be eligible for cashback programs, such as transfers or financial services (MCC 6012).

• Differences between banks.

Cashback conditions depend on the specific bank. One bank may include MCC 5814 in the restaurant category, while another may not.

Banks often hold promotions in which increased cashback is valid only for certain categories of goods identified through MCC codes. If your purchase falls under these conditions, you may receive additional bonuses.

As part of the “Cashback for Travelers” campaign, the bank awards increased cashback for the purchase of tickets with the MCC code corresponding to the air tickets.

Let’s say you use a card that gives you 3% cash back on food and entertainment purchases and 1% cash back on all other spending.

If you buy food from a restaurant using MCC code 5812, you will receive 3% cashback. And if you make a purchase in a store with MCC code 5651, you will receive only 1%.

How to determine MCC before purchasing?

There are several ways to find out the MCC code. How to find out before purchasing, consider below:

Some sellers and especially online stores may provide information about their MCC. To do this, contact their support team and ask a direct question.

Advantages:

• Direct way to obtain information.

• Relatively simple process.

Flaws:

• The seller may not know or be unwilling to disclose this information.

• Additional time may be required.

There are platforms and applications on the Internet that collect MCC of various stores. Examples of such services:

• Sites where users share MCC hotspots.

• Spending analysis apps that automatically determine MCC.

Advantages:

• Quick access to information.

• Opportunity to check out many stores.

Flaws:

• Information may be out of date or incomplete.

• Not all points are present in the database.

Some banks provide their customers with the opportunity to see MCC through a mobile application or online banking. For example, after a test purchase or by requesting via a hotline.

Advantages:

• Accurate information.

• Direct connection with the bank.

Flaws:

• Sometimes a minimum purchase is required to check out the code.

• Dependence on the functionality of the bank.

You can make a small purchase and check the MCC in the bank’s transaction history. Typically this information is displayed along with the transaction details.

Advantages:

• Absolute precision.

• Possibility to independently check MCC.

Flaws:

• Additional costs, albeit minimal.

• Wasted time.

Finding out the MCC code before purchasing is useful for several categories of people and in various situations:

Cashback card holders:

• If you have a card that accrues cashback by category (food, travel, shopping), knowing the MCC codes will help you choose stores and retail outlets that provide increased cashback.

• For example, if your card gives increased cashback on food, you need to find out the MCC code of the restaurant (for example, 5812 for restaurants and cafes) in order to receive a high cashback rate.

For frequent travelers:

• For people who travel frequently, it is useful to know the MCC code of airlines and hotels. This will allow you to earn more cashback on flight purchases or accommodation bookings.

• For example, for plane tickets, the MCC code could be 4511 (air travel), which would entitle you to cashback at a higher rate.

For bargain hunters:

• If you want to make a purchase with maximum bonuses or discounts, knowing the MCC code will help you choose the right category of product or service for which the bank offers the best cashback.

• For example, for purchases at a pharmacy, the MCC code may be 5122, and if the bank offers increased cashback for such purchases, this will be beneficial.

Those who participate in promotions from the bank:

• Banks often run promotions where increased cashback is available only for certain categories of expenses. Knowing the MCC codes, you can participate in such promotions and receive additional bonuses.

• With promotions for travelers, the bank may offer increased cashback for purchases falling under category 4111 (gas stations) or 4112 (taxi).

If the code does not match the purchase

For example, you can purchase a product in a store that has the MCC code for a restaurant or cafe. This could be caused by a merchant error or problems with the payment processing system.

If you encounter a similar situation, you should contact the bank that issued the card. Explain the situation to them and provide the necessary information so they can identify the error and issue a refund or make the necessary adjustments.

You can also contact the seller and ask him to check, whether an error was made when processing the payment. Perhaps he can correct the situation without the participation of the bank.

Overall, if the code doesn’t match your purchase, don’t panic. This is a fairly common situation that can be resolved by contacting the right organizations and providing the necessary information.

The main thing is to be attentive and promptly respond to such problems.

Above we found out what the MCC code of a point of sale is. To better navigate, let’s look at a few common MCCs and their typical use cases:

• 5411 (Grocery stores).

Assigned to supermarkets and stores with a wide range of food products. Banks often offer increased cashback or bonuses for purchases in this category.

• 5812 (Restaurants).

If you dine in a cafe or restaurant, the operation will have this MCC. Convenient for lovers of eating out, as banks often include this category in their loyalty programs.

• 4900 (Utility payments).

Used to pay utility bills. However, be careful as some banks offer reduced cashback for such transactions.

• 5732 (Electronics).

Shopping at electronics stores such as home appliances or gadgets falls under this category. Banks may offer installment plans or special offers for MCC 5732.

• 6011 (Cash withdrawal).

Used when withdrawing cash from ATMs. Banks usually charge a commission for such transactions.

It is important to know what the MCC code means, because it is more than just a technical detail of the payment system. It plays a key role in calculating cashback, personalizing offers and managing finances.

Understanding this system allows you not only to optimize costs, but also to get the maximum benefit from each purchase.

Knowing what a merchant’s MCC code means before purchasing can help a shopper determine whether their payment will qualify for additional rewards or cash back.

You can find out the MCC code by contacting your bank or payment system, or you can also use online services that provide information about MCC codes. This will allow you to make informed choices when making purchases and using payment cards.

Cover photo: Freepik