To determine if your business is considered high risk, Visa and Mastercard classify merchants using a Merchant Category Code (MCC). Each business is assigned an MCC based on the type of goods or services it provides. Some industries and businesses fall into categories that are labeled as "high risk" by these payment networks due to factors such as high chargeback rates, regulatory scrutiny, or the nature of the products offered.
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There is an official list of MCC codes that Visa and Mastercard consider high risk. These include industries like adult entertainment, online gaming, travel agencies, subscription services, and certain financial services. If your business falls under one of these MCC codes, it will be categorized as high risk.
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If you're unsure about your MCC or whether your business is high risk, we can help review your business model and guide you through the process. Feel free to consult our blog post about high risk mcc codes for more information.
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