A guide to MCC 5331: Variety stores

Learn about MCC 5331 for variety stores and how to verify it. Download JIM for iOS/Android to accept phone payments in seconds for a low 1.99% fee.

WRITTEN BY

Mar 25, 2026

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2 min read time

Merchant Category Code (MCC) 5331 is a classification used for variety stores by the International Organization for Standardization (ISO). This code applies to businesses that offer a wide assortment of general merchandise, often at a single, low price point. These retailers, sometimes known as dollar stores or five-and-dime shops, sell a mix of items like household goods, small toys, and seasonal decorations, distinguishing them from more specialized retail outlets.

Which businesses fall under MCC 5331?

MCC 5331 applies to a broad range of retail establishments:

Dollar Stores: These retailers offer a wide array of products, typically priced at one dollar or other low, fixed price points. Chains like Dollar General and Dollar Tree are prime examples of this model.
Variety Stores: This category includes traditional five-and-dime shops that sell a mix of inexpensive household goods, toys, and candy. Ben Franklin stores are a well-known example of this classic format.
Discount General Merchandise Stores: These businesses sell a broad assortment of goods, often including closeout or overstock items, at prices lower than traditional retail. Examples include chains like Big Lots and Ollie's Bargain Outlet.
Party Supply Stores: Establishments focusing on decorations, costumes, and favors for events fall under this code. Party City is a prominent retailer in this space, offering a diverse mix of themed merchandise.
Novelty and Souvenir Shops: Often found in tourist destinations, these shops sell a wide range of inexpensive mementos and gift items. They offer a varied selection of locally themed trinkets and apparel.
Closeout and Liquidation Retailers: These stores specialize in selling merchandise from other businesses that are closing or have excess inventory. They provide a diverse and ever-changing product mix to consumers at a discount.

Business implications of MCC 5331

Payment networks including Visa, Mastercard, American Express, and Discover use MCC 5331 to categorize transactions, which affects several aspects of business operations. These networks assess a merchant's risk profile based on their MCC. For variety stores under MCC 5331, this classification influences the interchange rates charged for processing credit card payments, directly impacting profitability.

Beyond risk assessment and transaction fees, this code serves other operational functions. It helps standardize financial data for analysis and reporting, providing a framework for both internal and external processes. These applications extend into expense management, compliance, and even customer loyalty.

Expense tracking

Companies rely on MCC codes to automate the categorization of business purchases. When an employee uses a corporate card at a variety store, the transaction is automatically labeled under MCC 5331 on the statement, which simplifies expense reporting and budget allocation.

Financial analysis

Businesses analyze spending data sorted by MCC to identify patterns and manage budgets. Tracking expenditures under MCC 5331 allows a company to see how much is spent on miscellaneous supplies from discount retailers, which informs future forecasting and cost-control strategies.

Compliance and auditing

Consistent application of MCC 5331 creates a clear audit trail. This simplifies the process for internal and external auditors to verify that expenses align with corporate spending policies and financial records.

Rewards and customer behavior

Credit card issuers often structure reward programs around specific MCCs. A card might offer bonus points for general merchandise, but the MCC 5331 classification for variety stores could place it in a different rewards category, influencing a cardholder's choice of where to shop.

How to verify your business's MCC

Variety store owners should confirm their MCC classification to allow for proper transaction processing and avoid customer confusion regarding rewards eligibility. If you find out that your business is incorrectly classified—for example, a variety store coded as a grocery store—contact your payment processor immediately to request reclassification.

Here's how to verify is your MCC classification is set up correctly:

Contact Your Payment Processor: Your merchant services provider assigned the MCC during account setup. To confirm your classification, contact their customer service department or review the details in your merchant agreement. This is the most direct way to get an accurate answer.
Review Processing Statements: Your monthly merchant statements typically display the assigned MCC. Look for a four-digit number in the account information or business profile section. This code identifies your business category for all transactions processed during that period.
Check with Your Acquirer: The acquiring bank or financial institution that handles your payments maintains the MCC code in their system. You can reach out to their merchant support team, and they can confirm your current classification directly from their records.
Test Transaction Method: Some merchants run a small test transaction and check how it appears on a personal credit card statement. While this can offer a clue, this method is less reliable than direct confirmation from your payment processor or acquirer.

How to choose a reliable payment service provider

Your MCC 5331 classification directly affects interchange rates and processing requirements. Since payment processors handle these transactions differently, your choice of provider matters. Variations in pricing models, settlement speeds, and support can accumulate to affect your bottom line. Consider the following factors when you select a partner.

Transparent pricing: A flat-rate model simplifies cost management compared to complex tiered structures. The JIM tap-to-pay app for iPhone and Android charges 1.99% per transaction with no setup costs, monthly fees, or premium card surcharges, which makes financial forecasting straightforward.
Payment method support: To meet customer expectations, your processor should accept all major credit cards like Visa, Mastercard, and Discover, along with popular digital wallets such as Apple Pay and Google Pay.
Fast fund access: Quick access to funds is important for cash flow management in a variety store. It allows you to restock inventory, cover supplier payments, and meet payroll without delay, which keeps operations smooth.
Security: Top processors protect your business and customers with end-to-end encryption and tokenization. With tokenization, actual card numbers are never stored on your device, which reduces your liability in a data breach.
Reporting: Modern processors offer advanced analytics to track performance. The JIM AI assistant, for example, provides sales reports and transaction history through a simple chat interface to inform business decisions.

Streamline payments with JIM

JIM offers variety store owners a straightforward payment solution. The JIM tap-to-pay app transforms your iPhone or Android device into a payment terminal with NFC technology, so you need no extra hardware. You get a flat 1.99% rate per transaction. There are no setup costs, monthly fees, or variable rates for premium cards.

For remote sales, you can use payment links for 4.99% + $0.30 per sale (for example, to take deposits on custom party supply orders). After a sale, your funds become available instantly on a JIM Visa Prepaid Card. You can add this card to Apple Pay or Google Pay for immediate use.

Frequently Asked Questions

Question

What is Merchant Category Code 5331?

Merchant Category Code 5331 is a four-digit classification number assigned to variety stores by payment networks and the ISO. This code identifies transactions from businesses that sell a wide assortment of general merchandise, such as dollar stores and party supply shops. Payment processors use this code to classify transactions, which determines interchange fees, simplifies reporting, and affects customer rewards programs.

Is Merchant Category Code 5331 high-risk?

MCC 5331 is considered a low-risk category by payment processors. This classification stems from the low average transaction value and infrequent chargebacks common to variety stores. Consequently, businesses under this code benefit from favorable interchange rates and less stringent underwriting requirements from financial institutions.

Can a business have multiple MCC codes?

A business is typically assigned one MCC per merchant account that reflects its primary activity. However, a company with distinct business lines can maintain separate merchant accounts, each with its own code. For instance, a large hotel (MCC 7011) might also operate an on-site souvenir shop that sells a wide assortment of novelty items. That retail operation could have a separate merchant account classified under MCC 5331 to process its specific transactions.

What happens if my MCC code is wrong?

An incorrect MCC can create negative consequences for your business. Customers might not get the credit card rewards they expect, which can affect their shopping preferences and discourage them from returning. Additionally, your business could face improper interchange rates, causing you to overpay in fees or violate network rules by accepting rates meant for another industry. This misclassification ultimately impacts both customer loyalty and your financial health.

Can merchants choose their MCC code?

Merchants do not have the autonomy to choose their MCC code. Instead, payment processors assign the classification based on the business's primary activities and revenue streams, adhering to guidelines from the ISO and payment networks. If a business owner finds that their assigned code does not accurately reflect their operations, they can submit a request to their payment processor for reclassification to the appropriate category.

How does MCC 5331 affect my payment processing costs?

MCC 5331 directly influences the interchange rates you pay on each transaction. Variety stores generally receive moderate rates, which are lower than those for high-risk industries but often higher than categories like grocery stores or gas stations. The specific effect on your costs, however, depends on your payment processor's pricing structure.

An interchange-plus model passes these variable rates directly to you, so your costs fluctuate with every card type used. In contrast, other providers use a different approach, while flat-rate processors like JIM absorb the variability and charge you a consistent fee regardless of card type.