Every time a customer swipes, taps, or types in their Mastercard to pay you, there’s a quiet little label attached to that transaction. It’s called a Merchant Category Code, or MCC. Most business owners don’t think much about it. But it actually plays a bigger role than you’d expect.
From processing fees to cardholder rewards, your Mastercard MCC can affect what you pay, how you’re classified, and even whether your customers earn cashback. Let’s break it all down in this guide.
How Does Mastercard Assign Merchant Category Codes?
Here’s the short version. Mastercard doesn’t personally assign your MCC. That job usually falls to your payment processor or acquiring bank, the folks who set up your merchant account and handle your card transactions.
They choose your MCC based on how you describe your business when you sign up. It’s a four-digit code pulled from Mastercard’s official list, and it’s meant to match what your business actually does. In restaurants, retail shops, software companies, and even ferry operators, there’s a code for just about everything.
But it’s not always perfect. Sometimes, a business fits more than one category. In that case, your processor picks the one that seems most accurate. Still, if the code doesn’t quite fit, it can cause headaches later, like higher fees or customer complaints about missing rewards. That’s why you need to understand the one you’ve been given.
Where Do Mastercard MCCs Show Up? (and What They Affect)
Even though MCCs sit behind the scenes, they touch more parts of your business than you might think. Here’s where they show up and what they influence.
- Processing Fees
Mastercard uses your MCC to help determine your interchange rate, which directly affects how much you pay per transaction. Some categories qualify for lower rates than others. - Credit Card Rewards
Your MCC tells the card issuer what kind of business you are. So, if a customer has a credit card that gives extra points for groceries or dining, their rewards depend on whether your MCC matches those categories. If it doesn’t, they might miss out, and you might hear about it. - Chargebacks and Disputes
Your MCC can influence how a chargeback is handled, especially when it comes to what Mastercard sees as standard for your industry. - Expense Tracking and Reporting
MCCs are used in everything from accounting tools to tax software. If your code is off, reports can get messy or miscategorized.
In short, your MCC is more than just a label. It’s part of how Mastercard and other systems recognize and treat your business.
Key Categories in Mastercard’s MCC System
Mastercard’s MCC list covers a wide range of business types. These codes are grouped into larger categories that reflect how you operate. Below are some of the major ones you’ll see, along with examples of the specific codes within each:
Retail and Shopping
- 5311 – Department Stores
- 5411 – Grocery Stores and Supermarkets
- 5732 – Electronics Stores
Dining and Food Services
- 5812 – Eating Places and Restaurants
- 5814 – Fast Food Restaurants
- 5921 – Package Liquor Stores
Travel and Transportation
- 3000–3299 – Airlines
- 3501–3999 – Lodging (Hotels, Motels, Resorts)
- 4111 – Local and Suburban Commuter Passenger Transport
- 4784 – Tolls and Bridge Fees
Professional and B2B Services
- 7299 – Miscellaneous Personal Services
- 7399 – Business Services Not Elsewhere Classified
- 8999 – Professional Services (e.g. legal, accounting)
Digital and Subscription Services
- 4816 – Computer Network/Information Services
- 4899 – Cable, Satellite, and Other Pay Television Services
- 5045 – Computers and Peripheral Equipment
Government, Utilities, and Nonprofits
- 8211 – Elementary and Secondary Schools
- 8398 – Charitable and Social Service Organizations
- 4900 – Utilities (Electric, Gas, Water)
These codes aren’t just about classification. They shape how Mastercard treats your transactions from start to finish. So, if your business changes or your current code feels like a mismatch, it might be time to talk to your payment processor.
Want to see the full list? You can check out Mastercard’s official MCC booklet here.
How to Find or Check Your Mastercard MCC
Not sure what your current MCC is? You can usually track it down in a few simple ways:
- Ask your payment processor. They can look it up or confirm it for you.
- Check your merchant account portal. Some dashboards list the assigned MCC under account settings or transaction details.
- Review your settlement or monthly reports. Your MCC might appear alongside your merchant ID or in transaction summaries.
If something feels off, like your customers not receiving expected credit card rewards or you’re paying noticeably higher processing fees than your peers, then it’s worth digging in.
Frequently Asked Questions
What is a Mastercard Merchant category code?
A Mastercard MCC is a four-digit number that describes what kind of business you run. It’s used to group merchants into categories like restaurants, clothing stores, or software services. You don’t pick it yourself, rather it gets assigned when you set up your account to accept Mastercard payments.
Think of it as a digital label that says, “Here’s what this business does.”
Who assigns my Mastercard MCC?
Not Mastercard directly. Your payment processor or acquiring bank is the one that assigns it. They choose your MCC based on how you describe your business during onboarding. It’s pulled from Mastercard’s official list, which includes hundreds of business types.
Can a business have more than one MCC?
No. You only get one MCC per merchant account. Even if you offer multiple services, only your primary business activity gets coded. That’s why it’s important to describe your business clearly when you sign up. Otherwise, you might end up with a code that doesn’t really fit, which can cause issues later.
Can my MCC affect processing fees?
Yes, it definitely can. Mastercard uses your MCC to help calculate interchange fees, which are part of what you pay to accept card payments. Some categories get lower rates than others. For example, non-profits or utilities often qualify for lower fees, while other categories might cost a bit more.
So, if your MCC isn’t accurate, you could be paying more than you should.
Do Mastercard MCCs differ from Visa, Amex, or Discover?
They can. Each card network has its own list of MCCs, and while many of the codes are similar across networks, they’re not always identical. That means your Mastercard MCC might not match the one Visa or Amex uses for the same business.
If you accept multiple card types, your processor might assign slightly different codes depending on the network.
