A merchant category code (MCC) is a numeric classification assigned to a merchant to describe its business type. Payment networks use MCCs to categorize card transactions; they generally identify the merchant’s category, not the exact item purchased.
MCCs can affect how transactions are processed, reported, or treated under card benefits and spending rules. For example, a cashback offer may apply only to selected categories, while a company may use MCC-based controls to flag or restrict certain types of spending. Because codes can be broad or imperfect, finance and security teams should treat them as one signal, not proof of what an employee bought, and review exceptions against receipts and policy.