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mcc-code-list-what-your-high-risk-business-needs-to-know
If you operate in a high-risk industry —such as CBD sales, gambling, adult entertainment, vaping, or cryptocurrency— you've likely dealt with payment rejections, high processing fees, or even the unexpected shutdown of your merchant account. What many don’t realize is that behind these issues lies a critical factor: the Merchant Category Code, or simply MCC.
In this guide, we explain what an MCC code list is, how it can directly affect your business, and how to use this information to make smarter, safer decisions when it comes to your payment strategy.
A Merchant Category Code (MCC) is a four-digit code assigned by card networks like Visa or Mastercard to classify the type of commercial activity a business performs.
For example, code 5814 applies to fast food restaurants or delivery services and is considered low risk. In contrast, 5967 refers to multi-level marketing (MLM), which is categorized as high risk due to a history of associated fraud. Code 7995 includes businesses involved in gambling and betting and is seen as very high risk due to strict financial regulations. Meanwhile, 5122 is used for pharmacies and pharmaceutical products, which can be problematic for businesses selling CBD or cannabis derivatives. Finally, 7273 is assigned to dating services or adult entertainment, often marked as high risk for regulatory and reputational reasons.
These codes are used internally by payment systems to automate crucial decisions such as approving or rejecting a transaction, applying specific fees, setting regional restrictions, or even determining whether a provider can work with your business.
An MCC code list is a complete and updated directory of all active MCC codes, including each code's number, the business category it represents, its risk level, and any potential banking or regulatory restrictions.
Understanding this list and identifying your assigned code is vital if you operate in a high-risk industry. It allows you to anticipate blocks, choose the right payment provider, and ensure your business continuity without unexpected disruptions.
An incorrect MCC classification can trigger automatic declines—even when the customer has sufficient funds. For example, if you sell natural supplements and your provider mislabels you under a pharmacy or controlled substances code, your transactions could be blocked with no warning.
Knowing your assigned MCC allows you to negotiate better terms, switch to a payment gateway that supports your industry, or find acquiring banks that accept your specific business category without added restrictions.
Many businesses lose their merchant accounts without prior notice due to conflicts with their MCC. This typically happens when the bank detects a code that’s restricted under its internal policies or under local law.
You don’t get to choose your MCC — it’s assigned by your acquiring bank or Payment Service Provider (PSP) when you set up your merchant account. However, you can and should request this information to ensure it accurately reflects your actual business activity.
You’ll often find your MCC in your payment processing agreement, monthly merchant account statements, or by contacting your provider’s technical support directly.
Some traditional payment gateways like Stripe or PayPal automatically block certain MCC codes based on risk level, regulatory concerns, or reputational factors.
The most commonly restricted MCCs include:
Working with a platform like NextGen Payment, which specializes in high-risk industries, offers a more flexible solution. Their network of acquiring banks supports high-risk verticals and provides tailored processing options to reduce friction and boost approval rates.
While Visa and Mastercard publish official MCC lists, they may be incomplete or fail to reflect the internal policies of each payment processor.
To gain a clearer, more actionable view of your situation, choose providers who:
An MCC code list isn’t just a technical reference. It’s a strategic tool that helps you understand and navigate the payment ecosystem—especially if you run a high-risk business. Knowing your MCC, understanding its impact, and working with a specialized provider can make the difference between scalable growth and being constantly blocked.
Is your payment provider blocking your business?
Talk to a NextGen Payment advisor today and learn how to optimize your transactions—even in the most restricted high-risk industries.
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