Merchant category codes, or MCCs, are a 4-digit numeric value that is assigned to a business for the purpose of classifying its primary line of business. The North American Industry Classification System (NAICS) was established by the federal government to provide a common language for industry coding and standardization in order to improve the quality and consistency of economic data. MCC codes are used by businesses to organize their transactions and organize those transactions into meaningful categories for reporting purposes.
MCCs are most important to the IRS and they maintain a list of valid MCC codes on their website.
What is a Master Merchant Category Code?
A master merchant category code (MMC) is a new 4-digit numeric value assigned by a bank or other financial institution which relates to one or more merchants who share common ownership and/or common branding. MMCs were created as a result of an initiative by the payment industry to enhance the security of credit/debit card transactions. The new industry requirements for merchant category codes (MCCs) that went into effect in April, 2017 require merchants to use only 4-digit numeric MCCs issued by banks that have been specifically designated by the card brands. The full list of MMCs is available on our website, and we will update it whenever a new bank or other financial institution is approved for Master Merchant Category status.
What are Master Merchant Category Codes used for?
Financial institutions set master merchant category codes to identify customers who share common ownership and/or common branding. When a financial institution designates an MMC, they are registering that MMC with the card brands as having been designated for use by one or more of their customers. Thus, when the payment card brands require reporting on a particular set of transaction categories (e.g., as for certain processing priorities), those transactions can be reported using a designated MMC.
What is the purpose of Master Merchant Category Codes?
The MMC program is designed to enhance the security of credit/debit card transactions, by requiring banks and other financial institutions to register all merchants which use common branding with an approved processing bank. By registering such merchants under a single MMC, financial institutions are able to classify their transactions into meaningful categories for reporting purposes.
Who is Master Merchant Category?
Master Merchant Category is a registered trademark of Payment Alliance International, which created the MMC program as an initiative of the payment industry to enhance the security of credit/debit card transactions by providing a way for banks and other financial institutions to submit account holder data in a standardized format. Master Merchant Categories are managed by the MMC Department at Payment Alliance International, which was recently acquired by First Data Corporation.
What is a North American Industry Classification System (NAICS)?
The federal government has established the North American Industry Classification System (NAICS), which classifies every business in the United States by its primary line of business using a six-digit code. Valid NAICS codes can be found here.
What is a Merchant Category Code (MCC)?
A Merchant Category Code, or MCC, is a 4-digit numeric value that identifies the merchant’s primary line of business as defined by the federal government. MCCs are managed by MasterCard, Visa, Amex and Discover.
What is a Payment Card Industry (PCI) Data Security Standard?
Data security requirements set by the PCI Security Standards Council for anyone who handles credit/debit card data on behalf of banks or other financial institutions. The standards cover anyone who transmits, processes or stores credit card information.