Merchant category codes (MCCs) are four-digit numbers assigned by credit card issuers to businesses that fall into certain categories. The code is used to determine which benefits and rewards a cardholder can receive when using their card at that business, as well as to track spending patterns.
MCCs are assigned by the card issuer, not the business itself, and can vary depending on which issuer you have. For example, a gas station might have a different MCC with one issuer than it does with another.
There are over 200 different merchant category codes, so businesses can be grouped into quite specific categories. Some of the more common MCCs include:
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5411 – Grocery Stores
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6011 – Banks and Credit Unions
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4829 – Telecommunications Services
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7011 – Hotels and Lodging
Why are Merchant Category Codes Important?
Merchant category codes are important because they can affect the rewards and benefits you receive when using your credit card. For example, if you have a credit card that offers double points at grocery stores, you’ll want to make sure the store you’re shopping at has an MCC of 5411.
Some cards also offer bonus rewards in specific categories each quarter. To receive the bonus, you typically have to activate it and then use your card at businesses in that category. For example, a card might offer 5% cash back on restaurants in the second quarter of the year. If you want to take advantage of that offer, you would need to use your card at a restaurant with an MCC of 5812.
Not all businesses have a merchant category code, particularly small businesses or businesses that don’t accept credit cards. In these cases, the purchase may be coded as “miscellaneous” or “other,” which generally doesn’t offer any additional rewards.
If you’re not sure what merchant category code a business falls into, you can usually find out by calling the customer service number on the back of your credit card.
What are the different types of merchant category codes?
Merchant category codes can be divided into several broad categories, which include:
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Businesses that sell goods or services to consumers (retail stores, restaurants, etc.)
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Businesses that provide financial services (banks, credit unions, investment firms, etc.)
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Businesses that offer transportation services (airlines, taxi services, car rental agencies, etc.)
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Businesses that provide communication or utilities services (telephone companies, internet service providers, cable TV providers, etc.)
How are merchant category codes used?
Merchant category codes are used by credit card issuers to track spending patterns and to offer rewards and benefits to cardholders. For example, a credit card issuer might offer a higher rewards rate at businesses in a category that the issuer wants to encourage spending, such as restaurants or grocery stores.
MCCs can also be used by cardholders to make sure they are getting the most out of their rewards program. If you have a card that offers bonus points at grocery stores, for example, you’ll want to make sure the store you’re shopping at has an MCC of 5411.
You can usually find out what merchant category code a business falls into by calling the customer service number on the back of your credit card.
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