A merchant category code is a four-digit number classifying what your business sells. It is assigned during onboarding, it travels with every transaction you process, and it influences your interchange rate, your customers'' rewards, and occasionally whether their card works at all.
What it affects
| Area | Effect |
|---|---|
| Interchange rate | Some categories have preferential rates set by the networks |
| Customer rewards | Whether a card earns bonus points in a category |
| Card restrictions | Corporate cards can be limited to or blocked from categories |
| Underwriting | Some codes signal higher risk and attract more scrutiny |
| Tax reporting | Certain codes carry additional reporting obligations |
The interchange effect is invisible on flat-rate pricing, where you pay the same regardless. On interchange-plus it flows straight to your bill.
Common codes for software businesses
| MCC | Description |
|---|---|
| 5734 | Computer software stores |
| 5817 | Digital goods — software applications |
| 5818 | Digital goods — large digital goods merchant |
| 7372 | Computer programming and data processing |
| 7392 | Management and business consulting |
| 8999 | Professional services, not elsewhere classified |
Most SaaS businesses land on 5734, 5817 or 7372. The differences are minor for a typical software product, which is why it rarely gets attention — but it is worth knowing which one you carry.
When to check yours
Worth a look if you are on interchange-plus and your rates seem high, if customers report not earning expected rewards, if corporate cards are declining unexpectedly, or if your business has changed materially since onboarding. Ask your provider what code you are assigned — most will not volunteer it.
GOOD QUESTIONS
Frequently asked
Who assigns my MCC code?+
Your acquirer or payment provider assigns it during onboarding, based on how you describe your business. You generally cannot set it yourself, but you can query it if it looks wrong.
Does my MCC code affect my fees?+
Yes. Interchange rates vary by merchant category, and some categories — notably supermarkets, petrol and utilities — have preferential rates. On flat-rate pricing you will not see the effect; on interchange-plus you will.
What happens if my MCC code is wrong?+
You may pay higher interchange than necessary, your customers may not earn category rewards they expect, and some corporate cards with category restrictions may decline. It can also complicate underwriting if the code implies a risk profile that is not yours.
Can I change my MCC code?+
You can ask your provider to review it, with evidence of what you actually sell. Codes are not freely selectable — deliberately choosing a misleading one to get better rates is miscoding, and it is a serious compliance breach.