Merchant category code

What it means

In a prop firm, the MCC is assigned by the acquirer when the merchant account is set up, based on how the business is described. Prop evaluations do not fit neatly into one category, and acquirers have classified them in different ways, for example under securities-related or digital services codes.

The MCC influences which issuers decline transactions, the interchange rates that apply, which network monitoring programs cover the merchant and whether the merchant is treated as high risk.

Misdescribing the business to get a friendlier code is a serious risk: networks and acquirers treat it as a violation, and it can lead to account termination and listing on industry match files.