MCC 5967: What Merchants Need to Know About Direct Marketing

Merchant Category Codes (MCCs) enable the payment network companies, acquiring banks, and payment processors to categorize the merchants depending on the type of product or service that they provide. In the field of payment processing, MCCs are very important in determining the merchant's classification and evaluation. 

The codes 5967 and 5969 are critical in merchant category codes. The codes are associated with various merchant activities based on the type of payment network and classification system that is employed. For business enterprises seeking a merchant account, the knowledge of MCC 5967 and MCC 5969 classification will be instrumental in establishing the requirements of the process. 

Keep in mind that there is one critical difference between MCC 5967 and others: MCC 5967 does not have a similar description on Visa and Mastercard. Specifically, Visa categorizes MCC 5967 as Adult Content and Services, whereas Mastercard classifies MCC 5967 as Direct Marketing. In addition, MCC 5969 means Other Direct Marketers Not Elsewhere Classified. 

This post will discuss what MCC 5967 means, how it differs from MCC 5969, and what merchants should consider when choosing a payment processing provider. 

What Is MCC 5967? 

It is a four-digit merchant category code within the payment card classification system. The interpretation of MCC 5967 will depend on the card network classification policy. 

The code is recognized by Visa as containing adult digital content and services provided through websites, subscription, video streaming, or audio-text services. Businesses in this sector may also need suitable adult payment processing solutions. 

It is recognized by Mastercard as being a Direct Marketing: Inbound Telemarketing Merchants. This refers to certain information and content services provided through media such as telephones, faxes, or Internet, where the customer initiates contact with the merchant. 

The importance of the different classification of the code cannot be ignored by the business during their process of payment processing. This is the reason why businesses should not consider MCCs as having similar meanings in all card payment networks. 

Why Does MCC 5967 Matter to Merchants? 

MCC code 5967 assists in understanding the nature of the merchant’s activity in the payment cycle. The payment processors and acquirers may make use of this code while evaluating the application, determining requirements, and managing the payment activity. For merchants, the effects may be: 

• Merchant account eligibility 

• Underwriting requirements 

• Risk assessment 

• Compliance obligations 

• Payment solution availability 

The effect of MCC 5967 is specific to the provider, the particular card network, and the business model followed by the merchant. But, in general terms, a Merchant Category Code doesn’t establish all the risk factors for the merchant nor is an automatic acceptance or rejection determinant. Adult businesses should also consider suitable banking solutions for adult businesses.

What Is MCC 5969 Direct Marketing? 

MCC 5969 is most often referred to as Direct Marketing: Other Direct Marketers Not Elsewhere Classified in terms of Visa and Mastercard merchant classifications. This classification is meant for those specific direct marketing enterprises that don't come under any other specific classification. 

Direct marketing normally consists of selling products/services in ways that will lead to a customer responding to the specific offer made. In network terminology, direct marketing can be referred to as the process that involves direct mailing, telephonic calls, emails, and websites. 

When Might MCC 5969 Apply? 

MCC 5969 may be relevant when a business sells products or services through direct marketing methods and its activity does not fit a more specific MCC. 

However, the fact that a business uses email marketing, online advertising, or a website does not automatically mean it should receive MCC 5969. Classification depends on the nature of the business and the applicable network criteria, not simply the marketing channel. Merchants should explain their actual products, services, sales methods, and billing model to their payment provider so the correct classification can be assessed. 

MCC 5967 vs MCC 5969: What Is the Difference? 

At times, both MCC 5967 and MCC 5969 codes may appear related, but they are not interchangeable. The description and eligibility of both codes change based on the payment network’s rules. 

A business should not select an MCC based on which description appears more favorable. However, this needs to be the other way around. The classification should accurately represent their business activity and be confirmed with the acquiring institution or payment provider. 

How Does an MCC Affect Payment Processing? 

As you already know, the MCC is one part of the information used to identify a merchant within the payment ecosystem. It can influence how a payment provider evaluates and supports a business. However, MCC is not the only factor that affects payment processing. 

1. Merchant Onboarding and Approval 

During a merchant account application, the provider typically reviews the business's products or services, ownership, operating countries, website, expected transaction volume, and other relevant information. Businesses operating in the money services sector may also need specialized MSB payment processing. The MCC makes it easy to categorize the business during this process. If the merchant’s activity falls into a category requiring additional review, the provider may request further documentation or clarification. 

That’s why businesses should describe their operations accurately from the beginning. A mismatch between the declared business model and actual transactions can create problems during onboarding or later reviews. 

2. Risk Assessment 

Payment providers assess multiple factors when determining a merchant’s risk profile. Depending on the business, the risk assessment may include: 

• Transaction volume and average payment value 

• Refund and chargeback history 

• Subscription and recurring billing practices 

• Customer acquisition methods 

• Product or service delivery 

• Geographic exposure 

• Compliance and fraud controls 

Keep in mind that an MCC may inform the assessment, but merchants within the same category can still have different risk profiles. For example, two businesses may share the same MCC classification while having very different refund policies, customer experiences, and transaction histories. 

3. Processing Fees and Commercial Terms 

The payment processing cost depends on the provider’s pricing model, the acquiring arrangement, transaction characteristics, and other commercial factors. An MCC may be relevant to a provider’s pricing or underwriting assessment, but there is no universal processing fee that applies to every merchant with MCC 5967 or MCC 5969. 

For this very reason, before signing an agreement, ask for the complete pricing structure. Review transaction fees, monthly charges, refund and chargeback fees, settlement terms, and any reserve or funding conditions that may apply. 

4. Ongoing Monitoring and Compliance 

The payment provider may review a merchant’s activity after onboarding to confirm that its transactions remain consistent with the approved business model. Any changes to products, services, billing practices, or operating markets may require the merchant to notify its provider or undergo another review. 

Merchants should maintain accurate business information and communicate material changes rather than assume that their original classification will automatically cover new activities. 

What Should Merchants Know Before Applying for an MCC 5967 Merchant Account? 

Businesses whose activities fall within the relevant MCC 5967 definition should prepare for the payment provider’s review and confirm that the provider supports their business model. They should also consider global payment solutions when operating across different markets. The first thing a business needs is to establish which network definition applies. A merchant accepting Visa payments may face a different classification interpretation from one accepting Mastercard payments. 

Prepare Clear Business Information 

Merchants should be ready to explain what they sell, how customers access the service, how payments are collected, and whether the business uses one-time payments or recurring subscriptions. Depending on the provider and business model, the merchant account application may require: 

• Company registration and ownership information 

• Website or application details 

• Product and service descriptions 

• Pricing and subscription terms 

• Refund and cancellation policies 

• Expected transaction volume and average payment value 

• Customer acquisition methods 

• Information about operating markets 

Review Billing and Customer Communication 

For any business that has subscription services or recurring charges, it is important for consumers to know everything about the cost, how often the charges will be made, how the service will renew, and how to cancel it before they pay. This will help to minimize misunderstandings and conflicts. 

Check Provider Eligibility Before Integrating 

Just because it’s a payment gateway doesn’t mean it works for all merchants. Make sure that the payment gateway company supports the kind of business you are running and that it can provide the services required. Furthermore, find out if the payment gateway company will accept the countries in which your business operates as well as the currency you use. 

How FirmEU Helps Merchants Explore Payment Processing Options 

We facilitate the process of identifying potential banking and payment processing firms through its extensive partner network, which includes over 250 verified partners. The matchmaking service takes into account various parameters, including the nature of business operations, geographic presence, and transaction needs. We help businesses with: 

• Explore payment providers that may support their industry 

• Identify potential partners for online payment acceptance 

• Compare options based on operating markets and payment needs 

• Find providers to approach for further eligibility and underwriting checks 

FirmEU is an independent matching portal that is neither a bank nor a payment processor. It is not involved in any way with processing payments, managing funds of clients, setting MCCs, and ensuring account approval for merchants. This task is handled by the corresponding acquiring bank or payment system. 

Conclusion 

MCC codes 5967 and 5969 are merchant codes that need to be known by organizations before making any application for payment processing. The difference lies in the fact that MCC code 5967 has different descriptions with Visa and Mastercard. With Visa, it comes under adult content and services, whereas Mastercard considers it to fall under direct marketing and inbound telemarketing merchants. 

While the codes may affect the classification of the merchant and its evaluation, these will not be the sole determinants for approval, fees, and risk. The responsibility for determining this rests on the provider as per the network regulations. Looking for a payment processing partner for your business? Connect with FirmEU to explore potential providers based on your business model, operating markets, and payment requirements. 

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