Merchant Category Code (MCC) 7399: Business Services Not Elsewhere Classified

What is MCC 7399?

In the credit card industry, Merchant Category Code (MCC) 7399 is a broad classification used to group businesses that offer services not specifically defined by other MCCs. This category acts as a catch-all for various business services that don’t fit into the predefined categories of card networks such as Visa, Mastercard, and American Express. MCC 7399, known as “Business Services – Not Elsewhere Classified,” is used by credit card companies to identify transactions related to diverse and uncategorized business services.

Types of Businesses Under MCC 7399

Due to its general nature, MCC 7399 can include a wide range of services: 

• Consulting Services: This can include management consultants, business advisors, or other professionals who provide expert advice in various fields such as strategy, operations, HR, and more.
• Marketing and PR Services: Businesses that offer marketing, public relations, and similar services often fall under this category when a more specific MCC does not apply.
• Outsourced Administrative Services: Companies that handle outsourced work, such as administrative support, virtual office services, or other back-office functions for different businesses.
• Research and Development Services: Firms engaged in R&D activities across various industries that do not have a specific MCC related to their primary business operations.
• Specialized Design Services: This includes businesses offering graphic design, interior design, industrial design, and other similar services.
• Freelance Services: Independent professionals offering specialised services that do not fit into more narrowly defined categories.

Importance of MCC 7399

Like all MCCs, Understanding how MCC 7399 applies to your business is important for several reasons:

• Tax Reporting: Businesses classified under MCC 7399 may have specific tax reporting requirements based on the nature of their services. 
• Interchange Fees: Payment networks use MCCs to determine the appropriate interchange fees for different types of businesses. The interchange rates for MCC 7399 may differ from other service-based MCCs due to the varying risk profiles and transaction volumes associated with these diverse business services.
• Spending Analysis: For businesses that accept payment cards, having transactions categorised under MCC 7399 can provide insights into spending patterns related to various business services procured from third-party providers. This data can be useful for expense management and budgeting purposes.
• Risk Management: Payment processors and card networks may use MCC 7399 as a factor in their risk management strategies, as certain business services could be associated with higher fraud risks or chargeback rates compared to other merchant types.

While MCC 7399 is a broad category, it enables payment processors to accurately classify and process transactions for a diverse range of business services, facilitate tax compliance, determine appropriate interchange fees, provide spending insights, and manage risk effectively.

Businesses classified under this MCC should ensure their transactions are accurately recorded to avoid issues with transaction processing and reporting.