MCC Codes (or merchant category codes) are assigned to merchant accounts to differentiate between types of business & industries. Each MCC has different transaction patterns and differing levels of fraud risk. Issuing banks use MCC codes to determine if they will accept processed transactions. As an example, certain MCC codes may be banned in certain states and won’t allow the transaction to be processed (CBD/THC sales, Online gambling etc). MCC codes also determine your chargeback protections, meaning if you are assigned a high-risk MCC code, you will likely pay higher chargeback fees. Lastly, MCC codes can also effect the processing rates of the merchants. An incorrectly assigned MCC code could cause a merchant to pay higher than necessary processing fees. With Visa’s roughly 500 different MCC Codes it is important for a merchant to make sure they are assigned to the correct code.