Medium Risk
MCC Codes
2 merchant category codes with moderate risk classification. These industries require additional documentation but are accepted by most mainstream payment processors.
What does medium-risk mean for merchants?
Slightly higher fees
Interchange rates are 0.1-0.5% above standard. Most acquirers accept these codes without rolling reserves.
Additional documentation
Expect enhanced KYC/KYB during onboarding — business licenses, refund policies, and delivery proof may be required.
Chargeback sensitivity
Card networks monitor these MCCs more closely. Exceeding 1% chargeback rates can trigger escalation programs.
Contracted Services
1 codesFrequently asked questions
What qualifies as a medium-risk MCC code?
Medium-risk MCC codes cover industries with moderate chargeback rates or some regulatory complexity — such as travel, subscription services, and certain retail categories. They sit between low-risk (standard retail) and high-risk (gambling, adult content) in terms of processing requirements.
Do medium-risk MCCs cost more to process?
Medium-risk MCCs typically have interchange rates slightly above standard — usually 0.1-0.5% higher. Some acquirers may require enhanced documentation during onboarding, but rolling reserves are rare. Most mainstream processors accept medium-risk MCCs.
Can a medium-risk MCC become high-risk?
Yes. If a merchant operating under a medium-risk MCC consistently exceeds chargeback thresholds (typically 1% of transactions), card networks may escalate monitoring. The MCC classification itself does not change, but the merchant's risk profile with their acquirer does.
What documentation do medium-risk merchants need?
Beyond standard KYC/KYB, medium-risk merchants may need to provide business licenses, proof of product delivery capabilities, refund policies, and customer service procedures. Requirements vary by acquirer and jurisdiction.
How does Tagada handle medium-risk payment routing?
Tagada's orchestration engine evaluates each transaction's risk signals — MCC, card type, issuing bank, geography — and routes to the acquirer most likely to approve. For medium-risk MCCs, this intelligent routing improves approval rates by 5-10% compared to single-acquirer setups.
Optimize medium-risk payment processing
Tagada's intelligent routing selects the best acquirer for each transaction based on MCC, card type, and geography — improving approval rates by 5-10% for medium-risk merchants.