Merchant category code (MCC) 6050 is designed for quasi-cash and member financial institutions. As such, it is often used for foreign currency transfers and remittances. When merchants are classified under the 6050 MCC code, it increases their regulatory scrutiny. Because of the higher rates of fraud and chargebacks, processors often charge MCC 6050 merchants more.  […]

As a business, there are times when you need to send real-time payouts to your customers, employees, vendors, and business partners. The right payout rail can make a difference. Traditional rails, like ACH and wire transfers, lack the speed and user experience that global companies require. By using Mastercard Send and Visa Direct for push […]

As a merchant, your chargeback rate can impact your processing fees, terms, and account availability. Your ideal rate can vary based on your industry benchmark. Some industries, like travel and SaaS, have higher chargeback rates than others.  By understanding major drivers and variations in chargeback rates by industry, you can take the next step toward […]

Because of its connection to the financial industry, merchant category code (MCC) 6211 involves extra regulatory burdens and compliance rules. On top of these challenges, businesses that are classified under MCC 6211 also face more underwriting requirements and transaction limits.  As a result, it’s important for merchants to work with a payment processor that understands […]

When you are considered a high-risk merchant, you have to deal with the constant threat of account terminations, holds, and card declines. Because of this, many high-risk merchants turn to Automated Clearing House (ACH) processing as a backup payment method. Instead of relying on cards, ACH uses a customer’s bank account to complete the payment. […]

When you operate in a high-risk industry, locating a payment gateway can be daunting. Because certain industries are more likely to experience fraud and chargebacks, payment gateways are less likely to approve these businesses. Even when a gateway is willing to work with high-risk businesses, they’ll often charge significantly higher fees or require rolling reserves. […]

According to recent measures, there are more than 34 million businesses in just the United States. As these companies grow in complexity, their payment strategies have to adapt. The right payment analytics software is essential for understanding trends, getting detailed insights, and optimizing payment systems. Basically, a payment analytics platform can convert raw data into […]

Payment processors and card networks rely on merchant category codes (MCCs) to understand risk profiles. Because  MCC 6051 (quasi-cash merchants) is considered a higher risk, merchants will face more challenges in getting their accounts approved. You’ll also need to negotiate with processors because there are often higher fees and more limits involved with this type […]

When you process payments remotely, there is an added level of risk involved. This is especially true for companies that operate in high-risk industries, such as CBD, gambling, nutraceuticals, and subscription-based companies.  To navigate these added risks, your company needs a high-risk virtual terminal. These terminals come with added features that give you better control […]

The United States hotel market size is estimated at $263.21 billion. Most of these companies will be assigned merchant category code (MCC) 7011. Because hospitality transactions involve cancellations, advance bookings, incremental adjustments, and no-show charges, they require specific types of payment processing services. The MCC 7011 (hotels) classification has a direct impact on interchange rates, […]