Every merchant is assigned a merchant category code (MCC) — a four-digit number used by card networks to classify the primary business activity. MCCs determine how transactions are processed, how fees are structured, and how risk is assessed.
Let’s take a closer look at MCC 5499.
What is MCC 5499?
MCC 5499 encompasses merchants that sell specialty or limited-selection food products not classified under traditional grocery store categories. Some examples include:
- Specialty food stores (e.g., organic, gluten-free, or ethnic markets)
- Health food and dietary supplement shops
- Vitamin stores
- Health and wellness consumables stores
- CBD shops
- Ethnic and international food stores
- Specialty beverage retailers (e.g., tea, coffee, Kombucha)
- Meal prep and bulk pantry essential suppliers
- Niche snack and confectionery sellers
These businesses typically focus on niche offerings, providing a curated range of products that cater to specific customer preferences or dietary needs.
Is MCC 5499 considered high risk?
Generally, MCC 5499 is not classified as high risk. It is, however, considered a mid-risk MCC. Certain factors can elevate the risk profile:
- Product types: Stores selling items like dietary supplements or CBD products may face increased scrutiny due to regulatory considerations.
- Business model: Online specialty food retailers, especially those operating on a subscription basis, might encounter higher chargeback rates. (Although, many businesses classified with MCC 5499 would be reclassified to 5968 if they offer subscriptions.)
- Marketing practices: Using certain marketing practices, such as affiliate marketing, can create a higher risk profile.
Processors may apply enhanced due diligence during underwriting for businesses with these characteristics.
Does MCC 5499 require a license?
While there are no licensing requirements specific to MCC 5499, merchants must adhere to general food industry regulations:
- Health and safety standards: Compliance with local and federal food safety laws is mandatory.
- Labeling requirements: Accurate product labeling, especially for dietary supplements, is essential.
- Enhanced due diligence: Stores selling regulated products, such as CBD, require enhanced due diligence to ensure compliance.
Does MCC 5499 have special fees or pricing?
While MCC 5499 is generally considered a moderate-risk category, certain pricing factors apply:
- Higher rates for card-not-present orders, particularly for perishable shipments or temperature-sensitive goods.
- Risk adjustments for merchants selling regulated items such as dietary supplements or CBD-infused foods.
- Reserve requirements if a business has a high return rate or handles pre-orders for specialty products.
Maintaining accurate product descriptions, providing clear refund policies, and shipping on schedule can help lower perceived risk and improve pricing.
Can I have multiple MCCs if I offer multiple services?
Yes, if your operations are distinct and processed through separate merchant accounts.
For instance, a merchant running a health food store (MCC 5499) alongside a small café (MCC 5812) may qualify for separate codes. If all sales are processed through one POS system or merchant account, the classification will be based on the primary source of revenue.
What are some similar MCCs?
Merchants in similar categories include:
Using the correct MCC helps align fee schedules and ensures compliance with card network requirements.
Ready to Optimize Payment Processing for Your Specialty Food Sales?
AltoPay supports independent and specialty food retailers with payment solutions that account for product type, delivery method, and seasonal demand. We provide:
- Merchant accounts tailored for 5499-coded businesses
- Pricing models that reflect your unique inventory and sales channels
- Compliance and fraud prevention strategies to protect margins and reduce disputes
FREQUENTLY ASKED QUESTIONS
What else do I need to know about MCCs?
Are MCCs the same across all card networks and acquirers?
While many MCCs are applied consistently across card networks, the actual classification can differ between processors and acquirers. The code assigned depends not only on your industry but also on how each acquirer interprets your primary line of business, so discrepancies do occur.
Who decides my MCC?
Your MCC is assigned by your acquiring bank or payment processor during account setup. They match your business to the category that best represents your primary revenue stream using official lists from Visa and Mastercard. Although you cannot self-select, you can request a change if the designation is inaccurate.
How do I know what my MCC is?
You’ll typically find your MCC listed on your VAR sheet (also called a registration form, onboarding sheet, or MID credential form), in your merchant services agreement, or within your payment processing dashboard. If you’re unsure or can’t locate it, your provider can confirm it directly.
Does my MCC affect my interchange rate?
Yes. MCCs are a core factor in determining which interchange rates apply to your transactions. Codes tied to higher-risk or higher-cost industries usually carry higher processing fees than those in lower-risk retail or services.
Can my MCC affect my ability to process payments?
It can. Some MCCs are restricted or outright prohibited by certain processors. High-risk categories may be subject to reserves, stricter underwriting, or reduced processor options.
How often can my MCC change?
Most merchants keep the same MCC indefinitely. It only changes if your primary business activity shifts. To request an update, you’ll need to supply documentation proving the change.
What happens if I’m misclassified with the wrong MCC?
Incorrect classification can cost you more in fees and limit your payment options, so it’s important to have an accurate code. You can challenge your MCC by submitting evidence of your true business activity, such as invoices, catalogs, or marketing materials.
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
