Merchanttype

Merchanttype is a label used in commerce platforms and payment ecosystems to categorize a merchant by the nature of its business. The field is intended to support analytics, risk assessment, pricing, and regulatory compliance by providing a coarse view of merchant activity beyond the specific merchant category code (MCC) used by card networks. By grouping merchants into broader types, systems can generate insights, tailor services, and apply business rules more efficiently.

Classification and values

Typical categories include Retail, FoodService, Online, Travel, Hospitality, HealthCare, Utilities, Transportation, Entertainment, ProfessionalServices, Education, and Manufacturing. Some implementations use more granular subtypes or combine several categories to reflect mixed business models, such as a retailer that also operates digital services. The exact set of allowed values is implementation-dependent and may be mapped to MCCs or other industry codes.

Relation to MCCs and usage

Merchanttype complements MCCs by offering a higher-level or domain-driven view of a merchant. It is commonly stored as a property in merchant records within payment gateways, merchant accounts, and analytics platforms. Use cases include fraud scoring, eligibility for pricing tiers or programs, segmentation for marketing, and reporting dashboards that benefit from aggregated merchant groups rather than individual MCCs.

Governance and limitations

Classification can vary between systems and may be updated as a merchant’s business evolves. Inconsistent definitions across platforms can lead to ambiguity, and some merchants encompass multiple business lines, complicating assignment. Ongoing governance typically involves periodic review and mappings to ensure alignment with current activities.

See also

Merchant category code, merchant account, data taxonomy, risk scoring.