Your MCC influences how your transactions are priced and how closely they are watched. An accurate code that matches what you actually sell keeps your account aligned with the right risk program.
Being assigned a high-risk MCC is not a penalty; it just means your account belongs with a provider equipped to support that category.
The code is assigned by your acquiring bank or processor when your account is opened, based on what you sell. It travels with every transaction, so the card networks, the issuing bank and your processor all see the same classification. Some card issuers also use it to decide which purchases earn rewards or which transactions a cardholder can block.
Choosing the code is not a free choice. Putting a business under a code that does not match what it actually sells, to look lower risk, is called miscoding. Card networks treat it as a serious violation, and it can lead to fines and account termination.
Common questions
- How do I find my merchant category code?
- Your MCC is usually listed on your merchant statement or in your processor's dashboard, and your processor can confirm it on request. It was set when your account was approved, based on the business description in your application.
- Can I change my merchant category code?
- Yes, if the code no longer matches what you sell — for example, after you add a new product line. Ask your processor to review it. The new code must describe your real business; a processor cannot move you to a lower-risk code just to change pricing or monitoring.
- What makes an MCC high-risk?
- Codes are treated as high-risk when the businesses in them historically see more chargebacks, fraud or regulatory scrutiny. Nutraceuticals, CBD, firearms, travel, adult content and subscription businesses are common examples.