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Restricted & Prohibited Merchant List |
Restricted Merchant List
The Restricted Merchant List contains merchant types that have proven to be a higher risk to us. Some factors in this higher risk include:
- Higher incidence of bankruptcy or business closure.
- Higher incidence of customer dissatisfaction or buyer remorse, which results in a high number of returns and/or chargebacks.
- Charges accepted for future delivery of a product or service. This product or service may not be delivered at all or may not be as represented, resulting in returns and/or chargebacks.
• Higher incidence of engagement in illegal or fraudulent activities. While we do accept these types of merchants, we must look at them more closely to be assured that our risk due to factors such as those named above will be as minimal as possible. Underwriting will require additional information and supporting documentation to assist them in making their decision.
A merchant’s business is considered to be Restricted if more than 20% of sales are from one of these types of businesses.
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| General Merchant Types |
Description of Restricted Activity Types |
Typical MCCs* |
| Airlines |
To be underwritten by the Major Merchant Group. (Includes charter airlines) |
3000-3299 4511 |
| Adoption Agencies – Non-Profit |
Agencies such as Catholic Charities, Children’s Home Society, Luther Social Services, etc. Will generally be affiliated with main-line denominational churches. |
8398 |
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| Annual Memberships and Recurring Charges |
Any situation where a cardholder pays a scheduled charge over a period of time for a service or membership – example: country club dues, health club memberships, etc. |
7997 |
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| Auction Houses |
Sakes via an auction format of antiques, fine art and premium collectables to dealers, private buyers, museums and other institutions. |
8999 |
| Bail Bondsmen |
Merchants that post bail to the court system as security for the appearance of the arraigned individual. |
9223 |
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| Buying and Shopping Services and Clubs |
Merchants that provide buying and shopping services to individuals or businesses on a fee basis. These businesses do not directly sell the merchandise to the consumer, but act as an intermediary to facilitate the buying process. |
7278 |
| Checking Cashing Institutions (nonfinancial) |
This MCC must be used for the funding of an account, the purchase of foreign currency, money orders, travelers checks, or the transferring of a value to a stored value card occurring at non financials institutions such as currency exchanges, money merchants and hotels |
6051 |
| Collectibles and High Market Value Items |
Merchants falling into this category sell items with an arbitrary market value that is largely dependent on what the going rate is and what consumers are willing to pay, which results in frequent customer disputes. Also, fraud is frequently involved in these types of businesses – the product is a fake or its value is deliberately overestimated. |
5999, 5972 |
| Companion/Dating Services |
Any service that provides companions for social or other events, arranges introductions for the purpose of dating, etc. |
7273 |
| Computer hardware Computer software sales Computer maintenance/repair |
Merchants that sell, service computer hardware and programming software services for personal and business use. |
5732 5734 7379 |
| Computer network/Information services |
Merchants that provide electronic bulletin board access or on-line services via computers. Includes Internet Service Providers (ISPs). |
4816 |
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| General Merchant Types |
Description of Restricted Activity Types |
Typical MCCs* |
| Computer programming, Data processing and integrated Systems design services. |
Merchants that provide computer programming services, systems design, and data processing services on a contract or fee basis. They provide a variety of services such as computer software design and analysis, software or systems modifications, data entry or data processing, and training in the use of custom software. |
7372 |
| Cruise Lines |
To be underwritten by the Major Merchant Group |
4411 |
| Currency Exchanges |
Businesses offering currency conversion for foreign currency, travelers checks, drafts & wires, and precious metals |
6051 |
| Direct Marketing – combination catalog and retail merchant |
Merchants that are catalog merchants who also operate one or more retail outlets, which offer a face-to-face environment for sales. |
5965 |
| Direct marketing – other Direct marketers (not elsewhere classified) |
Merchants that sell products or services through a variety of direct response methods that include an order form or an address and/or telephone # the customer may use to place an order by mail, telephone or fax. These merchants often utilize mass-marketing techniques such as brochures, radio and television direct response ads, and TV infomercials. This also includes Direct Marketing of diet products, prize giveaways, and pay per call information services. |
5969 |
| Door to Door Sales |
Merchants that sell merchandise by means of house-to-house canvass. This mcc includes merchants that sell a variety of products door to door such as cosmetics, household items, bakery goods, dairy products, and magazine subscription sales |
5963 |
| Fulfillment Houses |
Businesses that fill subscriptions or orders on behalf of third parties |
7399 |
| Furniture Stores |
Sell home furnishings and typically offer a wide variety of finished furniture products and accessories for the home. |
5712 |
| Gambling |
Operations of gaming or betting establishments that may or may not be associated with hotels, restaurants, riverboats, and resorts |
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| Inbound Telemarketing |
Merchants that provide one or more audiotext/videotext services |
5967 |
| Jewelry stores |
Merchants that sell one or more types of fine jewelry or other precious stones mounted in precious metals and fashioned into rings, necklaces, bracelets, earrings and broaches. Does not include merchants that primarily sell china and/or crystal. |
5944 |
| Licensed/Certified Massage Therapists |
Must have a copy of a massage therapist license or certification |
8099 |
| Modeling Agencies/schools |
|
7399, 8299 |
| Oriental Rugs |
Retail sellers of floor coverings specializing in oriental rugs. |
5713 |
| Outbound telemarketing company |
Merchants that contact prospective buyers by telephone, mail (other than catalog), instructing the cardholder to call the merchants to generate sales. Examples of products include: cosmetics, health care products, vitamins, time-share realty, discount buying clubs, and membership clubs. Also includes “up-sellers”, merchants who solicit products of other Direct Marketing merchants when cardholders contact their call centers. |
5966 |
| Pawn Shops |
Merchants that lend money in exchange for personal property left with the merchants as security. The merchant may, upon default of the loan, sell the property to the general public. |
5933 |
| Pharmaceuticals via Internet |
Wholesale distributors of prescription and non prescription medicine, proprietary drugs, vitamins over the Internet |
5122,5912 |
| Precious Stones and Metals, watches and jewelry (wholesale) |
Merchants that are wholesale distributors of jewelry, precious stones and metals. Also includes wholesalers of costume jewelry, watches and watch parts, clocks, silverware, diamonds and gemstones, precious metals, gems and trophies. |
5094 |
| Prepaid phone cards, prepaid cell phone (stand alone seller) |
Merchants who primarily sells prepaid phone cards and prepaid cell phones |
4814 |
| Seminar marketers/Seminar planning services |
|
7399 |
| Sports forecasting/oddsmaking |
Includes any merchant or web site that allows bets to be placed on the outcome of a game of change, race, sporting competition, etc. Includes lotteries. |
7995 |
| Telecommunication Services |
These merchants provide telecommunication services including local and long distance telephone calls |
4814 |
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| General Merchant Types |
Description of Restricted Activity Types |
Typical MCCs* |
| Ticket Brokers/Agencies |
Although the ticket agencies may conduct much of their business in a non face-to-face manner, they are not considered direct marketing merchants because they do not directly solicit their business primarily through catalogs, telemarketing, etc. |
7922 |
| Third Party payment service providers |
Payment service that allows cardholders to register all their debts with that service, make payment to that service, and that service forwards payment to the creditors. Example: netgiro.com |
8999 |
| Timeshares |
Merchants that sell, lease and rent timeshares real estate and arrange timeshare condominium exchanges |
7012 |
| Travel Agencies and Tour Operators |
Businesses primarily providing travel information and booking services |
4722 |
| Used car and truck dealers |
Sale of used automobiles and motor homes, only, with no sales of new automobiles and motor homes |
5521 |
| Wire transfer-money orders |
Merchants that allow customers to transfer funds via a wire transfer money order. The transaction may occur in either a face to face or non face to face manner |
4829 |
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*Typical MCCs are generically assigned according to MC/VS general description of the merchant’s product, service or nature of the merchant’s business. The above merchant types do not have a unique MCC category codes specific to their business descriptor. “Best practices” is used to assign MCCs that is based on similar business environments by which other merchants might be referenced.
Prohibited Merchant List
Prohibited Merchants are defined as any merchant:
- That brings an unacceptable level of reputation, legal, or other risks to Allied Systems (including but not limited to all illegal activities or pyramid schemes); and
- With any amount of sales volume associated with a merchant activity type on the
Prohibited list. The Prohibited Merchant List is not meant to be all-inclusive. Be aware that applications for other business types not listed here may also be declined due to the type of business. .
| General Business Types |
Description of Prohibited Activity Types |
Typical MCCs* |
| Adoption Agencies – for profit |
Agencies that take payment for the placement of babies with adoptive parents. |
7399 |
| Adult Entertainment |
Includes adult video stores, adult book stores, exotic dancing establishments, “peep” shows, phone sex lines, strip bars, adult novelties, 900 # telephone services, etc. |
5813 5942 5969,5967 |
| Bankruptcy lawyers |
Lawyers or legal firms whose principal business is counseling debtors through consumer bankruptcy |
8111 |
| Child Pornography |
Any merchant who provides products or services associated with actual or suggested child pornography. Includes any merchant or web site who uses the following terminology to market their product: “lolita,” “pedo,” “preteen,” or any other terminology that suggests child pornography. |
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| Collection Agencies, Refinancing Debt |
Cannot use credit card to pay existing debt Exception: Fees related to mortgage refinancing are accepted. |
7399 |
| Counseling Centers (nonlicensed) |
Merchants that provide a variety of counseling services such as debt and financial counseling, marriage and family counseling, alcohol and drug abuse counseling, and other personal counseling. |
7277 |
| Credit Restoration |
Any company that assists people with rebuilding their credit |
7399 5969 |
| Direct marketing – Travel related arrangement services |
Merchants that typically offer their services via outbound telemarketing calls in which the merchant initiates direct contact with the consumer to generate a sale. The merchant may also use mailings, magazine or TV ads. Travel-related services may also consist of discount travel clubs and subscriptions to travel services and/or travel related newsletters. |
5962 |
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| General Business Types |
Description of Prohibited Activity Types |
Typical MCCs* |
| Drug Paraphernalia |
Any business whose products are solely intended for aiding the consumption of illegal drugs |
5122 |
| Fortune tellers |
Includes fortunetellers, tarot card readers, and mystics. |
7996 |
| Gun Sales on the Internet |
Any sales of firearms over the internet |
5941 |
| Internet Gambling |
Operations of gaming or betting establishments that occur on the internet. |
7995 |
| Investor services/Investment clubs, Sales of Stocks, Securities, Options and Other Investments |
Merchants that buy sell and broker securities, stocks, bonds, commodities and mutual funds. |
7399,6211 |
| Protection Services |
Any company that sells protection, insurance, or registration service against things such as identity theft, Internet fraud, credit card theft or fraud, etc. |
7299,5966 |
| Sexual Encounter Firms |
Includes massage parlors, spas, etc., where sexual encounters are permitted |
7297 |
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*Typical MCCs are generically assigned according to MC/VS general description of the merchant’s product, service or nature of the merchant’s business. The above merchant types do not have a unique MCC category codes specific to their business descriptor. “Best practices” is used to assign MCCs that is based on similar business environments by which other merchants might be referenced.
Electronic Check Service (ECS) Electronic Check Service (ECS) is defined as a process in which the merchant uses a “point-ofsale” system to convert a customer’s paper check into an electronic transaction that is submitted for authorization and settlement to the Allied Systems Network.
- Merchant must be operating in an environment where the credit card is present 80% or more of the time;
- The merchant must not be on the prohibited list; and
- Merchant ‘s applying for the ECS with guarantee product must not be on the Prohibited Guarantee product list (Encircle Prohibited MCC list is found below).
- Existing Allied Systems merchants must be in good standing with Allied Systems
ECS product types: ECS with Guarantee- Offers conversion of the paper check to an electronic transaction and guarantee of the check by either the participating bank or Encircle (formerly BankServ). The guarantor retains the risk for all transactions processed.
ECS with Verification- Offers conversion of the paper check to an electronic transaction and verification of the check by either the participating bank or by 3rd party check services. The merchant retains the risk for all the transactions processed.
ECS conversion only- Offers conversion of the paper check to an electronic transaction. It is like a merchant selecting this option will use their own proprietary negative file or simply wishes to deposit checks electronically. The merchant retains the risk for all transactions processed.
Encircle Prohibited MCC list
| 9223 |
BAIL AND BOND PAYMENTS |
PROHIBITED MCC |
| 5813 |
BARS AND DRINKING ESTABLISHMENTS |
PROHIBITED MCC |
| 5813 |
BARS, COCKTAIL LOUNGE, DISCO, CLUB ETC |
PROHIBITED MCC |
| 7995 |
BETTING/GAMBLING/CASINOS |
PROHIBITED MCC |
| 7273 |
DATING AND ESCORT SERVICES |
PROHIBITED MCC |
| 5964 |
DIRECT MARKETING, CATALOG |
PROHIBITED MCC |
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| 5965 |
DIRECT MARKETING, CATALOG & RETAIL |
PROHIBITED MCC |
| 5968 |
DIRECT MARKETING, CONTINUITY |
PROHIBITED MCC |
| 5967 |
DIRECT MARKETING, INBOUND TELEMARK |
PROHIBITED MCC |
| 5969 |
DIRECT MARKETING, OTHER |
PROHIBITED MCC |
| 5966 |
DIRECT MARKETING, OUTBOUND TELEMARK |
PROHIBITED MCC |
| 5960 |
DIRECT MARKETING, SUBSCRIPTION |
PROHIBITED MCC |
| 5962 |
DIRECT MARKETING, TRAVEL |
PROHIBITED MCC |
| 5964 |
DIRECT MARKETING-CATALOG MERCHANTS |
PROHIBITED MCC |
| 5965 |
DIRECT MARKETING-COMB. CATALOG/RETAIL |
PROHIBITED MCC |
| 5968 |
DIRECT MARKETING-CONTINUITY/SUBSCRIP. |
PROHIBITED MCC |
| 5967 |
DIRECT MARKETING-INBOUND TELEMARKET |
PROHIBITED MCC |
| 5960 |
DIRECT MARKETING-INSURANCE SERVICES |
PROHIBITED MCC |
| 5969 |
DIRECT MARKETING-OTHR DIRECT MARKET |
PROHIBITED MCC |
| 5966 |
DIRECT MARKETING-OUTBOUND TELEMARKET |
PROHIBITED MCC |
| 5962 |
DIRECT MARKETING-TRAVEL-RELATED |
PROHIBITED MCC |
| 5963 |
DOOR TO DOOR SALES |
PROHIBITED MCC |
| 7361 |
EMPLOYMENT AGENCIES |
PROHIBITED MCC |
| 7273 |
ESCORT SERVICES |
PROHIBITED MCC |
| 6012 |
FINANCIAL INSTITUTIIONS, MERCHANDISE |
PROHIBITED MCC |
| 6010 |
FINANCIAL INSTITUTIONS |
PROHIBITED MCC |
| 6011 |
FINANCIAL INSTITUTIONS-AUTOMATED CASH |
PROHIBITED MCC |
| 6010 |
FINANCIAL INSTITUTIONS-MANUAL CASH |
PROHIBITED MCC |
| 6012 |
FINANCIAL INSTITUTIONS-MERCH. AND SERV |
PROHIBITED MCC |
| 6300 |
INSURANCE SALES, UNDERWRITING |
PROHIBITED MCC |
| 6300 |
INSURANCE SALES, UNDERWRITING, PREM |
PROHIBITED MCC |
| 7297 |
MASSAGE PARLORS |
PROHIBITED MCC |
| 5933 |
PAWN SHOPS |
PROHIBITED MCC |
| 6211 |
SECURITIES BROKERS/DEALERS |
PROHIBITED MCC |
| 5972 |
STAMP AND COIN DEALERS |
PROHIBITED MCC |
| 5972 |
STAMP AND COIN STORES |
PROHIBITED MCC |
| 4722 |
TRAVEL AGENCIES |
PROHIBITED MCC |
| 4829 |
WIRE TRANSFER MONEY ORDERS |
PROHIBITED MCC |
| 4829 |
WIRE TRANSFER MONEY ORDERS (WTMOS) |
PROHIBITED MCC |
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