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 5732.
What is MCC 5732?
MCC 5732 applies to merchants primarily engaged in selling consumer electronics. This includes televisions, audio equipment, cameras, drones, GPS devices, car stereos, home theater systems, and related accessories. The code is used by both physical storefronts and ecommerce retailers whose core offering is electronic goods.
Retailers that also offer installation, repair, or support services still fall under MCC 5732 if product sales account for the majority of revenue. However, a business primarily focused on repair work should be classified under MCC 7622 instead of 5732.
Similarly, merchants selling home appliances like refrigerators or washing machines would typically fall under MCC 5722, not 5732.
Merchants with mixed inventories that include electronics but do not primarily sell them may be assigned a different, more general category such as MCC 5999 or MCC 5399, depending on their catalog.
Is MCC 5732 considered high risk?
MCC 5732 is often classified as moderate to high risk by acquiring banks and processors. But technically, it is not a high-risk MCC per card brand rules — thus there is no high-risk registration required with this MCC.
Risk levels depend on the business model and fulfillment method. Factors that elevate risk include:
- Card-not-present transactions: Online sales increase exposure to fraud and chargebacks.
- High average ticket size: Expensive electronics attract fraud and can increase dispute volume.
- Delivery disputes: Delays, damaged items, or unclear shipping terms can trigger chargebacks.
- Subscription models: Offering electronics through installment or lease-to-own plans may add billing complexity.
Merchants with increased chargeback activity or inconsistent product fulfillment may face stricter onboarding or ongoing monitoring. Processors may also require rolling reserves or other safeguards, especially for newer electronics businesses or those scaling rapidly online.
Does MCC 5732 require a license?
There are no MCC-specific licensing requirements tied to electronics retail, but merchants must still comply with general retail and consumer protection obligations:
- Product labeling and safety disclosures: Especially important when selling refurbished or imported goods.
- Return and refund policies: Clear disclosures are essential to avoid disputes and chargebacks.
- CE certification: If products are sold within the EU, additional registration is required.
- Wholesale or purchasing agreements: Some processors and acquirers may require these agreements in order to confirm the business has the right to sell certain products. This typically happens if the business is selling name brand products.
Additionally, payment processors may require enhanced Know Your Business (KYB) documentation during underwriting, especially if the merchant’s product catalog includes high-value or newly regulated items such as drones or surveillance devices.
Does MCC 5732 have special fees or pricing?
MCC 5732 does not carry mandatory surcharge pricing from card networks, but many merchants in this category pay elevated processing rates due to risk exposure. Common pricing considerations include:
- Chargeback history: Higher-than-average dispute rates may trigger reserve requirements or tiered pricing.
- Business model: Drop-shipping or delayed fulfillment models may increase costs.
- Transaction type: Card-present transactions tend to receive lower interchange rates than card-not-present transactions.
Can I have multiple MCCs if I offer multiple services?
Yes, businesses offering multiple distinct services may request separate MCCs if each operation is legally and operationally distinct.
For example, a company operating an online electronics store and a separate repair business may be assigned MCC 5732 for the ecommerce division and MCC 7622 for the repair arm — provided each has its own website, merchant account, and accounting structure.
If services are blended under a single business entity or merchant account, the acquiring bank will assign the MCC based on the primary source of revenue. Documentation such as separate branding, websites, or business licenses may be required to justify reassignment.
What are some similar MCCs?
Depending on your product focus or operational model, you may be better classified under or compared to:
Selecting the most appropriate MCC helps ensure accurate interchange rates and risk scoring.
Ready to Optimize Payment Processing for Your Electronics Business?
AltoPay specializes in providing reliable, risk-aligned payment solutions for electronics retailers. Whether you run a high-volume ecommerce storefront or a specialty AV shop, we help you onboard confidently, manage risk, and keep processing costs under control.
FREQUENTLY ASKED QUESTIONS
What else do I need to know about MCCs?
Are MCCs the same across all card networks and acquirers?
For the most part, card networks draw from the same standardized MCC list. But, how those codes get applied can differ.
Your business might be placed in one category by a certain acquirer and a slightly different one by another acquirer, depending on their interpretation of your services.
Who decides my MCC?
An MCC is assigned by your payment processor or acquiring bank during underwriting. They review your core products or services and choose the code that most closely matches.
You can’t select your own MCC, but you can request a review if it doesn’t align with your actual operations.
How do I know what my MCC is?
Your MCC is probably listed on your merchant account approval letter, VAR sheet, or in your processor’s online portal. If you’re still unsure, your processor, acquirer, or payment partner can confirm it.
Does my MCC affect my interchange rate?
Yes. MCCs determine the rate tier your transactions fall into. Higher-risk industries often face higher interchange costs due to increased fraud or dispute potential.
Can my MCC affect my ability to process payments?
Potentially. Processors may decline certain MCCs or impose special conditions, such as reserves and capped monthly volumes.
How often can my MCC change?
It changes only when your primary business type changes. Any request to reclassify must be supported by proof of your updated business model.
What happens if I’m misclassified with the wrong MCC?
Contact your processor, acquirer, or payment provider with detailed information about your actual business activity. Documentation such as product lists, website screenshots, marketing materials, and processing history can support your request for reassignment.
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.
