Leveraging Your Card Rewards With Merchant Category Codes


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A credit card rewards program is a great way to encourage shoppers to buy products or services from various stores. By shopping, they get something in return. However, sometimes they get disappointed when they don’t get a reward for the purchase they have made. The reward points are not for every business and by knowing about the merchant category codes, shoppers can prevent such awkward situations.

Leveraging Your Card Rewards With Merchant Category Codes

What is an MCC?

MCC is a four-digit code for businesses that use credit cards for transactions. The various credit card companies like VISA, MasterCard, and others have their system for assigning the MCC code. These codes represent the type of business you do.

Why credit card companies use MCC?

The main reason why credit card companies use MCC is to track consumer purchases and also to maintain the reward point system. The credit card companies can give the customers a detailed statement about their purchases. So, there is no way that the customer can deny any purchase made. MCC codes can be used for marketing purposes as well.

Why you get a reward for some purchases and don’t get for the others?

Some companies have more than one line of business. For example, you can have a travel agency and a restaurant as well. You will be assigned the MCC code for the business that’s most profitable. So, if you earn more revenue from your travel business, then you will get the MCC for that business. When a customer dines at your restaurant he or she won’t get the reward point.

How can you make the best use of the MCC?

If you know the MCC of a business, you can plan your shopping to get the maximum reward points. For example, if you get rewarded for purchasing office items, then you can buy other things like candy or milk from the office supply store instead of buying them for other groceries which may not give you the reward points. This way you can build up your reward points.

Reward points can save a lot of money at the end of the year on your shopping. Knowing the merchant category codes for different businesses can help you to choose the right places to shop so that you can get the maximum rewards. You can find the MCC codes on the sites of the various card companies like VISA and MasterCard. Just have these codes handy before going on your next shopping.


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