High Risk
MCC Codes
21 merchant category codes classified as high-risk by Visa, Mastercard, and major acquirers. These codes carry elevated processing fees, stricter compliance requirements, and higher chargeback monitoring thresholds.
What does high-risk mean for merchants?
Higher processing costs
Interchange rates are 0.5-2% above standard. Acquirers add risk premiums and may require rolling reserves of 5-10%.
Stricter compliance
Enhanced due diligence, ongoing monitoring, and card network registration programs (like Visa GBPP) apply.
Limited acquirer access
Many mainstream processors decline high-risk MCCs. Specialized acquirers or payment orchestration is required.
Entertainment & Recreation
3 codesFinancial Services
4 codesFinancial Institutions — Manual Cash Disbursements
Bank cash advances · Credit union withdrawals
Financial Institutions — Automated Cash Disbursements (ATMs)
ATM withdrawals · Cash machine transactions
Non-Financial Institutions — Foreign Currency, Money Orders, Cryptocurrency
Coinbase · Travelex · Western Union (non-wire) · Crypto exchanges
Securities — Brokers & Dealers
Robinhood · E-Trade · Charles Schwab · TD Ameritrade
Lodging
1 codesMiscellaneous Retail
7 codesDirect Marketing — Travel Related
Timeshare sales · Vacation clubs · Travel clubs
Direct Marketing — Outbound Telemarketing
Telemarketing companies · Phone sales operations
Direct Marketing — Inbound Teleservices
Infomercial orders · TV shopping orders · Phone order services
Direct Marketing — Continuity/Subscription Merchants
Subscription boxes · Free trial offers · Negative-option billing · Nutraceutical subscriptions
Direct Marketing — Other (Not Elsewhere Classified)
Direct mail offers · Catalog sales · Multi-channel direct marketing
Pawn Shops
Local pawn shops · National chains
Cigar Stores & Stands
Cigar shops · Tobacco retailers · Vape shops
Personal Services
2 codesRetail Stores
3 codesDrugs, Drug Proprietaries, & Druggist Sundries
Pharmaceutical wholesalers · Online pharmacies · CBD retailers
Precious Stones, Metals, & Jewelry (Wholesale)
Gold dealers · Diamond wholesalers · Precious metal exchanges
Chemicals & Allied Products (Not Elsewhere Classified)
Chemical suppliers · Industrial chemical distributors
Utilities & Telecom
1 codesFrequently asked questions
What makes an MCC code high-risk?
An MCC code is classified as high-risk when the associated industry has elevated chargeback rates, regulatory scrutiny, or fraud exposure. Card networks like Visa and Mastercard maintain lists of high-risk MCCs that trigger enhanced due diligence, higher reserve requirements, and increased processing fees.
How do high-risk MCC codes affect processing fees?
High-risk MCC codes typically carry interchange rates 0.5% to 2% higher than low-risk codes. Acquirers also add risk premiums, and merchants may face rolling reserves of 5-10% of transaction volume. Some processors refuse high-risk MCCs entirely.
Can I change my MCC code to avoid high-risk classification?
No. MCC codes are assigned based on your primary business activity and must accurately reflect what you sell. Misrepresenting your MCC code is a violation of card network rules and can result in account termination, fines, and placement on the MATCH/TMF list.
Which acquirers support high-risk MCC codes?
Specialized high-risk acquirers and payment facilitators support these codes. Tagada's payment orchestration routes transactions to acquirers that accept your specific MCC, ensuring maximum approval rates even for high-risk verticals.
How does payment orchestration help high-risk merchants?
Payment orchestration platforms like Tagada route transactions across multiple acquirers based on MCC, card type, geography, and risk signals. This diversification improves approval rates by 8-15% for high-risk merchants and reduces dependency on any single processor.
High-risk payment processing, solved
Tagada routes high-risk transactions across specialized acquirers that accept your MCC — improving approval rates by 8-15% and reducing processor dependency.