Merchant Category Code (MCCs): Why They Matter for Rewards

Key Takeaways

• The Merchant Category Code (MCC) is a four-digit code assigned to merchants based on the goods and services they offer.
• When credit card companies offer cashback, air miles, and rewards in specific spend categories, they determine eligibility according to the MCC.
• MCCs can be difficult to predict and may vary by payment provider, with some merchants being assigned multiple MCCs.
• When making large transactions, you might wish to confirm the merchant’s MCC before paying.
• One way to check the merchant’s is to lock your card, attempt a transaction that fails, and then check the details of the transaction, including the MCC, using your online banking app.

Credit cards often offer perks when you spend in certain categories such as groceries, restaurants and so on. In case you didn’t already know, banks decide what categories you’ve spent in according to the Merchant Category Code (MCC)—they don’t really bother about the exact retailer you patronised or the items purchased.

For the uninitiated, the MCC is a four-digit classification number assigned to types of goods and services offered by each merchant. Each time you make a purchase with your card, the transaction is classified according to the merchant’s MCC.

Why should you care? Because MCCs directly affect cashback eligibility, miles earning and rewards. For instance, if your credit card offers cashback for restaurant spending, but an establishment you dine at is classified as a hotel, you may not receive the advertised cashback.

Intrigued? This guide will cover what MCCs are, why they matter, and how to check MCCs. It will also offer some examples of how MCCs can affect you.

What Is a Merchant Category Code (MCC)?

The MCC is a four-digit number assigned to businesses based on the types of goods and services they offer. The MCC is assigned to a business when it begins accepting credit card payments via a particular payment provider.

It is possible for the same business to be assigned a different code by two different payment providers. The MCC that will apply to you depends on which card you use to pay.

Here are some examples of common MCCs for Visa and Mastercard:

Why MCCs Matter and How They Affect Your Credit Card Rewards?

Understanding MCCs is crucial if you wish to maximise cashback and miles.

First, knowing the merchant’s MCC will let you know when transactions are excluded from earning rewards. Misunderstanding a merchant’s MCC classification can lead to a transaction that earns no rewards.

Although MCCs are standardised four-digit numbers, they are assigned at the discretion of payment networks such as Visa, Mastercard, Amex and UnionPay, which can result in a single business having different categorisations across payment networks.

Moreover, credit card terms and conditions change frequently, so you should check those of your credit cards periodically.

It’s also worth noting that the MCC can vary from country to country, and there is no global MCC database. Just because a certain brand or business type is assigned a certain MCC in Singapore doesn’t mean it will be treated the same way overseas. For instance, a McDonald’s outlet might be classified as MCC 5814 (Fast Food Restaurants) in Singapore but MCC 5812 (Eating Places, Restaurants) in another country.

Examples of Common & Unexpected MCCs in Singapore

MCCs can sometimes defy logic. You should thus never assume you can predict a business’s MCC. When it comes to major expenses, it’s good practice to always check the business’s MCC before spending.

Here are some examples of tricky MCC scenarios:

• When eating at a restaurant that’s located in a hotel, your expenditure may not be coded as MCC 5812 (Eating Places, Restaurants). Instead, it might be classified under lodging, such as under MCC 3500 to 3999 (Lodging) or MCC 7011 (Lodging – Hotels, Motels, and Resorts).
• If your card rewards you for restaurant spending, always check the eligible MCCs in the Terms and Conditions, as there is more than one MCC for dining out, including MCC 5812 (Eating Places, Restaurants) and MCC 5814 (Fast Food Restaurants).
• When using Grab services, always check the Grab MCC, as there are several that might apply. GrabFood delivery might be classified under MCC 5812 (Eating Places, Restaurants) or MCC 5814 (Fast Food Restaurants), while Grab rides might be classified under MCC 4121 (Taxicabs/Limousines).
• Hotel and flight ticket spending might be coded as MCC 3500 to 3999 (Lodging), MCC 7011 (Lodging – Hotels, Motels, and Resorts) or MCC 3000 to 3350 (Airlines) when booked directly via the hotel or airline, but when purchased on aggregator platforms like Airbnb, Expedia, Klook, Pelago or Trip.com, they might be coded as MCC 4722 (Travel Agencies, Tour Operators).
• Purchases made on Lazada have multiple codes, such as MCC 5311 (Department Stores), MCC 5262 (Marketplaces), and MCC 5399 (Miscellaneous General Merchandise). However, when you shop at RedMart on Lazada, the code is MCC 5411 (Grocery Stores, Supermarkets).
• Likewise, Shopee also assigns multiple MCCs, depending on what you buy and from which seller. When you make purchases on Shopee, the Shopee MCC may be assigned one of the following codes: MCC 5262 (Marketplaces), MCC 5311 (Department Stores), MCC 5399 (Miscellaneous General Merchandise) or MCC 5411 (Grocery Stores, Supermarkets).
• Convenience stores in Singapore are usually assigned MCC 5499 (Miscellaneous Food Stores – Convenience Stores and Specialty Markets), not MCC 5411 (Grocery Stores, Supermarkets). They must thus be excluded from earning benefits for grocery spending if your card does not reward MCC 5499 spending.
• When buying from a merchant’s online platform, be aware that their online store might be assigned a different MCC from their brick-and-mortar establishment.

How Do You Check the MCCs in Singapore?

You now know it’s safest to check the MCC of a merchant before spending. But how to check the MCC code in Singapore?

Although some banks, like Citi, maintain a list of MCCs, there is unfortunately no MCC code checker that enables you to verify merchant classifications without jumping through hoops.

For those serious about chasing their miles, rewards points, or cashback, you can try to uncover the MCC of a merchant via these three methods illustrated below:

#1 Instarem App

If you spend using the Instarem Amaze Card, you can check the MCC of past and future transactions on the Instarem app.

To check the MCC for past transactions, log into the app and tap on [Activity]. You will see a list of past transactions made up to a year ago. When you select a transaction, you will see the MCC under “Merchant category code”.

You can also check the MCC for future transactions before spending on your Instarem Amaze Card. In order to do so, you need to trigger a failed transaction. You can do so either by locking your card or making a payment with insufficient funds in your account (i.e. from your Instarem wallet).

To use the first method, lock your card before spending. You can do so by logging into the Instarem app and tapping [Card] > [Manage]. There, disable the type of transaction you’re about to perform—In-store Purchase, Online Purchase or Magstripe Transactions.

Once you have locked your card, make a payment. The transaction will fail because your card has been locked, but the merchant’s MCC will have been logged.

To check the MCC, return to the app and tap [Activity] to see your past transactions. Select the most recently failed transaction to check the MCC under “Merchant category code”.

The biggest advantage of this method is that the MCC reported for your transaction is totally accurate. Its main disadvantage is that it is troublesome and time-consuming, making it too much of a hassle for small transactions.

#2 DBS Digibot

If you are a DBS cardholder, you can check the MCC before making a transaction via the DBS Digibot, available in the DBS Digibank app or the internet banking interface.

You can do this by blocking your card using the DBS Digibank app and making a failed transaction. To do so, log into the DBS Digibank app, tap [More] in the bottom right-hand corner and select [Payment Controls].

Select the card you wish to pay with, and choose the first option marked “Need to block transactions for a while? Switch this off to lock your card.” to lock the card.

After locking your card, use it to make a payment. The transaction will fail.

You can then log back into the DBS digibank app and check the transaction details. Tap the speech bubble in the top right-hand corner of the screen, and you’ll find yourself in the Digibot chat.

Select [Check Recent Transactions] > [Credit Cards] and select the card you used. Tap [View Transaction History] > [Decline Transactions] to find your transaction info. You’ll find the MCC name under “Merchant Category”.

This method ensures you know the MCC of your transaction with 100% accuracy. However, like the Instarem method, it is a big hassle and thus too much effort for small transactions.

#3 HeyMax

You can check MCCs on the HeyMax app. You’ll first need to register for an account.

Once that’s done, you can simply search for merchants on the app to see their MCC.

While HeyMax is meant for Singapore-based users, there are also some overseas merchants in their database.

HeyMax has the advantage of being easy and quick to use, without requiring a declined transaction. However, it is not 100% accurate.

In addition, for merchants that have been assigned multiple MCCs, such as Shopee or Lazada, HeyMax will list the potential MCCs, but is unable to determine the exact MCC for your particular transaction.

All in all, HeyMax is great for checking everyday spending without too much hassle, but for hefty transactions, you’ll probably want to use a more reliable but troublesome method to determine the MCC (i.e. via Instarem Amaze or DBS Digibot).

That said, you can get real-time tracking of your card transactions, points earned, remaining bonus cap, and MCC with the HeyMax Card Maximiser tool. These features can make your life a little easier.

Essentially, the Card Maximiser tool utilises Visa’s transaction data with HeyMax’s own proprietary algorithm to give you clarity on the rewards points earned on your linked Visa credit cards.

All you need to do is add your Visa credit card securely to HeyMax. Any transaction you make with your card will be reflected in the HeyMax app in real time, with no manual syncing required.

However, this only works with certain Visa cards as there’s currently no support for Mastercards or AMEX cards.

How to Optimise or “Change” Your MCC

Although there is no way to directly change a credit card MCC, there are some ways you can make a less-than-ideal MCC classification work in your favour.

Atome

Atome is a buy now, pay later (BNPL) instalment plan that lets you split one payment into three, six, nine, or 12 interest-free payments. Atome can be used at merchants such as Sephora, Agoda, Cathay Pacific, Sakae Sushi and Trip.com.

All Atome payments are coded as MCC 5999 (Miscellaneous and Specialty Retail Stores), and can be taken advantage of if your credit card offers upsized rewards for MCC 5999 transactions.

HeyMax

All HeyMax gift cards are coded as MCC 5311 (Department Stores), which is one of the most common MCCs credit card companies use for rewarding shopping transactions.

To take advantage of the HeyMax MCC, you can purchase HeyMax gift cards using a card that rewards you for MCC 5311 spending.

You can then use your gift card to spend on transactions from approved merchants, which include Amazon, Deliveroo, Foodpanda, Giant, Grab, Klook, Lazada and NTUC FairPrice.

Wogi

Wogi is a gift card provider categorised under MCC 5947 (Card, Gift, Novelty and Souvenir Shops).

You can buy a Wogi gift card using a card that rewards you for MCC 5947 transactions, and then use it at eligible merchants, which include Amazon, Cold Storage, Giant, Guardian, Shopee and Watsons.

How to Check MCC Before Paying (In-Person Payment)

When paying in-person, you can check the MCC by locking your card, making a failed transaction and then checking the MCC. This works if your credit card provider enables you to check transactions online. Most banks now have apps or at least an online banking interface that will let you check past transactions on the go.

Once you’ve confirmed the MCC, simply unlock your card, and then proceed to pay with the best card for the transaction—preferably one that will reward you handsomely in the appropriate spending category.

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