What is an MCC code?
MCC is the abbreviation of Merchant Category Code, and the Chinese name is the merchant industry code. There are tens of millions of merchants across the country. When UnionPay distributes POS to merchants, it will set a merchant number. This number is very particular. This number is usually 15 digits, consisting of institution code (3 digits) + area code ( 4 digits) + merchant type MCC code (4 digits) + merchant sequence number (4 digits), and MCC code is an important part of this merchant number.
What is one machine, one code?
After the cardholder swipes the card on the merchant's POS machine for successful consumption, a receipt will be printed, with the merchant number on it. The 8th to 11th digits (4 digits) are the mcc code of the merchant's POS machine. This code corresponds to It's the business of business. At present, the handling fee for the people's livelihood category is 0.38%, the general category is 0.78%, and the dining and entertainment category is 1.25%. Some pos machine practitioners, for their own benefit, will tell merchants that pos machines with cheap procedures are installed. code), when the merchant swiped the card, the mcc code on the receipt does not match the actual business item. In this case, UnionPay discovered that the account should be withdrawn or frozen, so the merchant should not use the pos machine indiscriminately! Beware of taking small advantages and taking big losses!
What is a set code?
Have you ever encountered the following situations in actual credit card consumption? Obviously, he invited a friend to dinner at a restaurant, and after paying with a credit card, the transaction receipt showed that the name of the merchant was xx real estate company, xx wholesale company, etc., which obviously did not match the type of merchant. And after checking the bill, it is found that the transaction that should have points did not accumulate points, which is the encounter with the POS machine code.
That is , why do arbitrage POS machines have to jump codes by changing the transaction category ?
The pos machines used by merchants should be different according to the type of merchants, and the corresponding handling fees for credit card transactions also vary. Entertainment and dining places such as ktv, bars, and restaurants generally use high-rate POS machines, and merchants bear higher handling fees. Therefore, in order to encourage credit card consumption, banks will reward cardholders for such transactions with credit card points. The third-party pos code is that merchants use pos machines that do not match their own types in order to reduce the rate of swiping cards, deceiving customers and causing customers to swipe cards without points.