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Merchant Category Code (MCC) Meaning

A four-digit number used by the card networks to classify a business by the type of goods or services it provides. These codes are invisible to the consumer but critical for the back-end of the financial system.

MCCs are used for tax reporting, risk assessment, and reward programs. For example, your credit card knows to give you cash back on groceries because the merchant you shopped at is labeled with a specific grocery store code.

In the crypto industry, many banks use MCCs to auto-block transactions to prevent credit risk.

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