Understanding Merchant Category Codes (MCCs)

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Merchant Category Codes, or MCCs, are four-digit numbers assigned to businesses based on the type of goods or services they provide. These codes are used by card networks, issuers, and processors to categorize transactions, enabling more accurate reporting, rewards programs, and fraud monitoring. For example, a grocery store, a gas station, and a travel agency will each have a distinct MCC, which helps banks and cardholders understand spending patterns and apply the right benefits or restrictions.

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MCCs also play a role in compliance and risk management. Certain industries may have higher fraud exposure or regulatory requirements, and MCCs allow financial institutions to monitor and control transactions accordingly. Additionally, MCCs are used to determine eligibility for rewards, cashback, or corporate expense policies, making them an important tool for both consumers and businesses.

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Monavate leverages MCCs to give businesses and cardholders better insights and control over spending. When issuing cards, Monavate can categorize transactions based on MCCs, allowing real-time tracking, spend limits by category, and tailored reporting. This functionality ensures that businesses not only process payments efficiently but also gain actionable intelligence on how funds are being used, making MCCs a powerful tool in the Monavate ecosystem for smarter financial management.

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