A merchant category code (MCC) is a four-digit number assigned to a business by credit card issuers for the purpose of appropriately allocating interchange fees. The code 5541 corresponds to automobile dealerships and gasoline service stations.
In order for businesses to be able to accept credit and debit cards, they need to have what’s called a merchant account with a financial institution. When you swipe your card at a store or enter your card information online, the transaction goes through what’s called an acquirer. The acquirer verifies that your card is legitimate and that you have enough funds available to cover the purchase. They then forward the transaction on to your card issuer who approves or declines the transaction. Once everything checks out, the sale is completed and merchants receive their funds, minus any processing fees charged by their acquirer or issuing bank.
The vast majority of businesses will fall into just a handful of MCC categories. For example, most retail stores will have an MCC of 5411 (general merchandise), while restaurants will have an MCC of 5812 (eating places). By knowing which MCC category applies to their business type, merchants can more accurately compare pricing between processors and identify which processors are likely to offer them the best rates.