Merchant category code list for businesses

Every time you swipe a business card, a four-digit merchant category code is working behind the scenes. MCCs help banks, card networks, and accounting systems identify what type of business you are transacting with. They determine how payments are processed, fees are calculated, and your expenses are categorized.

What is a merchant category code (MCC)?

A merchant category code (MCC) is a four-digit number that identifies a merchant's primary business activity. Payment networks assign this code when a business sets up a card processing account. The MCC tells banks, payment processors, and expense systems what type of goods or professional services the merchant provides.

When you make a card payment, the MCC travels with the transaction. It does not show up on your receipt, but it plays a major role behind the scenes. Banks use it to apply the right interchange rate. Card issuers use it to determine whether a purchase qualifies for rewards. Expense platforms use it to group transactions under the correct category.

Each business has one MCC per merchant account. That code stays fixed unless your business model changes and your processor approves a reclassification.

Who defines and manages MCCs?

Merchant category codes (MCCs) are defined by the International Organization for Standardization (ISO) under the global standard ISO 18245. This standard outlines how MCCs are structured, what each code means, and how they should be applied across industries. It gives card networks and payment providers a common framework to classify merchants based on the services or products they primarily offer.

Card networks like Visa, Mastercard, American Express, and Discover use the ISO standard to create their own MCC lists. While most codes are consistent across networks, there are some variations. For example, a business classified under MCC 7399 (Business Services, Not Elsewhere Classified) with one provider might fall under a slightly different code from another. Still, the structure and intent stay aligned with ISO rules.

When you open a merchant account, your payment processor or acquiring bank assigns your MCC. They base the code on how your business earns most of its revenue. If you run a mixed business, like a retail shop with a service arm, they will assign the code that reflects your primary activity. You don’t pick your MCC; the processor chooses it during onboarding, and that code applies to every card transaction that runs through that merchant account.

If your business changes direction or the MCC seems inaccurate, you can request a correction. To do that, you will need to contact your payment processor directly. They will review your request, evaluate your business model, and submit a reclassification request to the relevant card network if it’s justified. Keep in mind that networks do not update MCCs often, but processors can override a code if your business clearly fits a different category.

MCC lists evolve slowly but deliberately. Card networks publish updated lists as new industries emerge. For example, Mastercard’s latest update added codes for crypto exchanges and cloud services, reflecting shifts in how businesses operate. These updates affect transaction fees, card rewards, and how your expenses are tracked.

How MCCs are used in the transaction process

Every time you make a card payment, the transaction includes a merchant category code (MCC). This code tells the card network what kind of business you’re paying. That classification shapes how the transaction is routed, processed, and recorded across financial institutions.

When you swipe, tap, or enter card details, your payment travels through the acquiring bank, the card network (like Visa or Mastercard), and the issuing bank. The MCC is attached to that transaction from the moment your payment processor submits it. That single code influences multiple outcomes in real-time.

Card issuers use the MCC to apply the correct interchange rate. For example, transactions with utility companies often receive lower interchange rates than those with online retailers.

MCCs also trigger card rewards. Some corporate cards offer higher cash back for specific categories, like software subscriptions or restaurants. If your vendor’s MCC does not match the intended category, you may not earn the reward you expect.

The MCC helps your accounting system classify spend. When your expense platform pulls in transaction data, it reads the MCC to auto-assign the right category, like office supplies, SaaS, or travel. This keeps your general ledger cleaner and reduces manual coding work for your finance team.

The MCC determines whether a transaction gets approved or blocked in regulated industries or card programs with restricted categories. For example, some government or nonprofit cards restrict spending based on MCC codes, allowing only specific categories to pass through.

Ramp automatically reads MCCs from every card transaction and uses them to categorize spending, apply accounting rules, and flag non-compliant purchases. Instead of relying on manual review, your finance team gets clean data synced to your ERP. This reduces reconciliation time and prevents miscoded expenses from slipping through.

MCC codes and how they map to your industry

Every merchant category code (MCC) connects to a specific type of business. Card networks assign these codes to help categorize merchants based on the primary service or product they provide. Knowing your industry’s MCC allows you to track vendor spending more accurately, flag misclassified expenses, and ensure that rewards or tax payments apply as expected.

If your business accepts card payments, your MCC reflects your core revenue activity. If you manage spending across vendors, each MCC allows you to consistently group expenses and spot outliers.

There are over 600 MCCs across industries, but only a few apply to the most common business categories.

How to find your merchant category code

Finding your merchant category code (MCC) takes just a few minutes if you know where to look. You can locate it through your processor, card transaction data, or expense management platform. Most businesses already have access to it.

• Step 1: Check your merchant processing statement. Start with your monthly statement from your payment processor or acquiring bank. These statements usually include your MCC near your merchant ID or business details. Look for a four-digit number labeled “MCC” or “Merchant Category Code.” This is the code tied directly to your account.
• Step 2: Log in to your payment processor’s online dashboard. Log into your account dashboard if you use an online payment platform like Stripe, Square, or Adyen. Go to your account settings or business profile. Some platforms list the MCC under “business category,” “industry classification,” or “merchant details.” Check downloadable settlement or reconciliation reports if they are not in your profile.
• Step 3: Review a cardholder transaction report. If your customers or employees use corporate cards, you can find the MCC in the transaction data from those card statements. Ask a cardholder on your team to look up a recent charge from your business. The MCC often appears alongside the merchant name in expense reports or card activity logs.
• Step 4: Contact your payment processor directly. If you don’t see the MCC in your documents or dashboard, reach out to your processor or acquiring bank. They are responsible for assigning your code when you first set up your merchant account. Ask them to confirm your current MCC and explain how it was selected. You will also need to contact this if you believe the code is incorrect.
• Step 5: Use your expense management or finance system. Many finance tools automatically pull MCCs from card data to help categorize spending, apply policies, and structure reports. You can usually search by vendor or transaction to see the code attached. On Ramp, you can see the MCC for every vendor and transaction directly in your dashboard.

Setting up merchant categories for your corporate card program

Controlling how employees use corporate cards starts with merchant category rules. By setting clear restrictions by MCC, you define where the card works and where it does not. This gives your team the flexibility to spend within policy while reducing risk and overspending.

Merchant category codes (MCCs) allow you to group vendors by business types, like software, travel, restaurants, or fuel. When you set restrictions by MCC, you can block entire categories, limit them to certain roles, or allow specific spend types based on job function.

For example, you might allow software purchases (MCC 5734) only for engineering leads or limit meals (MCC 5812) to client-facing teams. If someone tries to use a card outside those boundaries, the transaction is declined automatically.

Most corporate card platforms let you create these rules at the card, department, or role level. On Ramp, you can build MCC restrictions directly into card templates. You assign allowed categories when creating a card and update them at any time as policies change. This reduces the need for manual review and lowers out-of-policy transactions.

Setting up merchant categories also improves your data. Every transaction comes through with the correct classification, so your books stay cleaner and your close moves faster.

Why MCC accuracy is key to smarter spend management

Your MCC is a signal that drives how card transactions are categorized, processed, and controlled. When that code is accurate, you get cleaner books, fewer manual corrections, and better policy enforcement at scale.

Accurate MCCs help you group vendor spending, streamline approvals, and reduce exceptions. They also support automation across accounting, tax reporting, and card controls, giving your finance team more time to focus on analysis, not cleanup.

Ramp gives you end-to-end control over MCCs, from real-time categorization to card restrictions to cash management. You can automate how expenses are coded, block spending in high-risk categories, and ensure funds keep earning through Ramp Treasury until the moment they are used. By combining policy enforcement with smarter cash use, Ramp helps you make every transaction more efficient and accountable.

FAQ

Can a business have more than one MCC?

Each merchant account is assigned one MCC based on the business's primary revenue activity. You may need separate merchant accounts to receive different MCCs for each business unit if you offer multiple related services or operate across industries.

How do MCCs affect chargeback disputes?

MCCs can influence how chargebacks are evaluated, especially in regulated industries. Some MCCs are associated with higher dispute rates, and card issuers may scrutinize those transactions more closely during the resolution process.

Are MCCs used for fraud monitoring?

Issuers and payment networks monitor MCCs to detect unusual or high-risk behavior. For example, if an employee card is used at a code flagged for personal or restricted spending, that transaction may trigger a review or alert.