F18-MERCHANT TYPE: This is the merchant's category code (MCC) information.
It must contain values from the Mastercard or Visa MCC Code list. It is a 4-digit numeric value.
For transactions made at an ATM, MCC code 6011 should be sent.
The role of the MCC in authorization
The MCC (Merchant Category Code) sent in field F18 is one of the key pieces of information the issuing bank uses when making its approval decision. Based on this information, the bank can perform the following checks:
- Blocking the card's use in certain sectors (for example, games of chance)
- Rejecting installment transactions in sectors where installments are not allowed
- Applying sector-specific campaigns and reward points
- Performing additional checks in sectors with a high fraud risk
Who determines the MCC?
The MCC is determined by the acquirer during the merchant agreement process, based on the merchant's line of business, and is then defined in the system. During the transaction, the POS either reads this value from its parameters, or the acquirer adds it to the message itself. For this reason, assigning the wrong MCC to a merchant can cause many problems, ranging from campaigns being applied incorrectly to violations of installment rules.
Special MCC values
Special MCC values are used for certain transaction types. The 6011 code mentioned in this article refers to a cash withdrawal from an ATM. 6010, on the other hand, is used for manual cash withdrawal transactions made with a card at a bank branch. Thanks to these codes, the issuing bank can distinguish whether a transaction is a purchase or a cash withdrawal.
