ISO 18245:2023 defines Merchant Category Codes for classifying merchant business activity. A shared vocabulary helps issuers, acquirers and analysts interpret merchant categories consistently in payment data, while an MCC describes the activity rather than identifying a business.
TL;DR:
- ISO 18245:2023 defines merchant-category code values.
- Classification follows the merchant’s business, trade or services.
- The standard does not mandate when MCCs must be used.
Summary
Classification purpose
ISO 18245:2023 defines code values for classifying merchants according to the type of business, trade or services supplied. These merchant category codes provide a shared classification vocabulary for retail financial transactions.
Category coverage
The public abstract limits the specified values to merchant categories generally expected to originate retail financial transactions. The code describes the merchant category, rather than providing the complete terms of an individual purchase.
Use is separately determined
The standard expressly does not mandate the use of merchant category codes in any particular situation. Requirements imposed by a payment scheme, benefit product or acquiring agreement must therefore be distinguished from the existence of the code list.
Published edition
ISO lists edition 2, published in February 2023, replacing the 2003 edition. It also identifies maintenance-agency or registration-authority support. Detailed code assignment should follow the applicable maintained information and relevant operating rules.
Keywords
- MCC
- Merchant Categories
- Business Classification
- Retail Transactions
- Code Values
- Trade Categories
- Merchant Services
- Maintenance
- Financial Data
- Category Assignment