A guide to MCC 5039: Construction materials (NEC)

What is MCC 5039? Learn its business impact and how to verify your code. Download JIM (iOS/Android) to accept phone payments in seconds for a 1.99% fee.

WRITTEN BY

Mar 25, 2026

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2 min read time

Merchant Category Code (MCC) 5039 is used to categorize businesses under Construction Materials, Not Elsewhere Classified (NEC) by the International Organization for Standardization (ISO). This code applies to merchants that sell a variety of building materials and supplies directly to consumers or contractors. Such transactions can include the sale of lumber, plumbing equipment, electrical supplies, and other general construction goods not specified by a more precise code.

Which businesses fall under MCC 5039?

MCC 5039 applies to a broad range of building material establishments:

General building material suppliers: These merchants offer a wide assortment of construction products not covered by a more specific MCC. Their inventory often includes everything from concrete mix and rebar to basic insulation and waterproofing materials.
Masonry supply yards: Businesses like local stone yards provide materials for masonry work. They sell items such as bricks, concrete blocks, stone veneers, mortar mixes, and sand to contractors and the public.
Roofing supply stores: These specialized stores stock materials required for roof installation and repair. Large distributors like ABC Supply Co. Inc. offer shingles, underlayment, flashing, and ventilation products under this code.
Drywall and plaster suppliers: This category includes businesses that focus on interior wall finishing materials. Companies such as L&W Supply provide gypsum board, joint compound, plaster, and the associated tools for installation.
Fencing supply stores: Merchants in this group sell materials for building fences directly to consumers and contractors. Their product lines include wood panels, chain-link mesh, vinyl posts, gates, and related hardware.
Scaffolding sales and rental: This includes companies that sell or rent temporary structures for construction projects. They provide access solutions like scaffolding towers, shoring equipment, and concrete formwork for various job sites.

Business implications of MCC 5039

Payment networks including Visa, Mastercard, American Express, and Discover use MCC 5039 to categorize transactions, which affects several aspects of business operations. The networks use this code to assess a business's risk profile, which influences the interchange fees applied to each sale. Businesses under MCC 5039 generally face standard rates reflective of the moderate risk in construction material sales.

This classification extends beyond payment processing, impacting other financial and administrative functions.

Expense tracking

Companies use MCC codes to automate purchase categorization on credit card statements. For contractors, this simplifies tracking job-specific material costs. These organized records can also substantiate business expenses for tax deductions, which makes bookkeeping more efficient for firms and sole proprietors.

Financial analysis

Businesses analyze spending patterns by MCC to manage budgets and forecast expenses. A construction firm, for example, can track its expenditures under MCC 5039 to monitor material costs across projects, identify trends, and negotiate better terms with suppliers.

Compliance and auditing

Consistent MCC application creates a clear audit trail. This allows companies to verify that expenses are legitimate and comply with internal spending policies, which simplifies the review process for auditors and financial controllers.

Rewards and customer behavior

Credit card issuers often tie rewards to specific MCCs. A card might offer extra points for construction material purchases, which encourages customers to use it at stores under MCC 5039, potentially increasing sales for those merchants.

How to verify your business's MCC

Construction material supplier owners should confirm their MCC classification to ensure proper transaction processing and avoid customer confusion regarding rewards eligibility. If you find out that your business is incorrectly classified - for example, a roofing supply store coded as a general contractor - contact your payment processor immediately to request reclassification.

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

Contact Your Payment Processor: Your merchant services provider assigned the MCC during account setup. This is the most direct way to confirm your code. Contact their customer service department or review the details in your original merchant agreement documents to verify your classification.
Review Processing Statements: Your monthly merchant statements typically display the assigned MCC. Look for a four-digit number, often located in the account information or business profile section of the document. This provides a regular opportunity to check that your code is correct.
Check with Your Acquirer: The acquiring bank or financial institution that processes your transactions also maintains your MCC code in their system. You can reach out to their merchant support team, and they can confirm the classification currently on file for your business account.
Test Transaction Method: Some merchants run a small test transaction on a personal credit card and then check the statement to see how the purchase is categorized. However, this method is less reliable than direct confirmation and may not reflect the official code.

How to choose a reliable payment service provider

Your MCC 5039 classification affects interchange rates, making your choice of payment processor a major business decision. Processors vary in pricing, settlement speed, and support, with differences that compound over time. Consider these factors to select the right partner for your business.

Transparent pricing: Opt for flat-rate pricing to avoid complex models, simplify cost forecasting, and prevent surprise fees. 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.
Payment method support: Your processor should accept all major credit cards, including Visa, Mastercard, and Discover. Support for digital wallets like Apple Pay and Google Pay is also necessary to meet modern customer expectations.
Fast fund access: Quick access to funds is important for cash flow in the construction supply industry. Instant settlements let you cover immediate expenses like restocking inventory, paying suppliers, and meeting payroll without delay.
Security: A secure processor protects your business and customers with encryption. Look for providers that use tokenization for every transaction, so sensitive card numbers are never stored on your device or in your system.
Reporting: Effective reporting tools help you track performance and make informed decisions. The JIM AI assistant provides sales reports and transaction history through a simple chat interface, offering quick business insights.

Streamline payments with JIM

JIM offers construction material supplier owners a straightforward payment processing solution. You can turn your iPhone or Android phone into a payment terminal with the JIM tap-to-pay app, which uses NFC technology to accept payments without extra hardware. The pricing is a flat 1.99% per transaction. You face no setup costs, monthly fees, or variable rates for premium cards. This simple structure helps you predict your expenses accurately.

For remote transactions, you can use payment links for 4.99% + $0.30 per sale (ideal for deposits on large material orders). After a sale, your funds become available instantly on your JIM Visa Prepaid Card. You can add this card to Apple Pay or Google Pay, which allows you to use your revenue right away for business needs. JIM gives you immediate access to your cash flow.

Frequently Asked Questions

Question

What is Merchant Category Code 5039?

Merchant Category Code 5039 is a four-digit classification number assigned to businesses that sell construction materials not elsewhere classified by payment networks and the ISO. This code identifies merchants that supply a variety of building materials, such as lumber, plumbing equipment, and electrical supplies. Payment processors use this code to categorize transactions for interchange fees, reporting, and rewards programs.

Is Merchant Category Code 5039 high-risk?

No, MCC 5039 is not considered high-risk. Payment processors classify it as a standard-risk category because of its stable transaction patterns and lower chargeback frequency. This risk assessment reflects that sales are often business-to-business, which reduces fraud likelihood. Consequently, merchants with this code receive moderate interchange rates instead of the higher fees associated with high-risk accounts.

Can a business have multiple MCC codes?

Generally, a merchant account receives a single MCC that corresponds to its predominant business activity. For companies with distinct revenue streams, it is possible to maintain separate merchant accounts, each with a unique MCC. For instance, a large general contracting firm, typically under MCC 1799, might also run a retail outlet that sells surplus building materials to the public. This separate storefront would qualify for its own merchant account under MCC 5039, distinct from the primary contracting services.

What happens if my MCC code is wrong?

An incorrect MCC classification has direct consequences for your business and its customers. Patrons may not get the credit card rewards they anticipate from construction material purchases, which can harm satisfaction and discourage repeat business. Additionally, your business may be subject to inappropriate interchange rates, causing you to overpay on fees or violate network rules with unearned discounts. Such a mistake affects both your finances and customer perception.

Can merchants choose their MCC code?

Merchants do not have the autonomy to choose their own MCC code. Instead, payment processors assign the classification based on the business's principal activities, in accordance with ISO standards and payment network rules. However, if a business owner finds that their assigned code does not accurately reflect their operations, they can formally request a reclassification from their payment service provider.

How does MCC 5039 affect my payment processing costs?

MCC 5039 directly influences the interchange rates you pay on each transaction. This code places your business in a moderate-risk category, with rates that are typically lower than high-risk industries but higher than low-risk sectors like grocery stores. The exact impact on your bottom line depends on your processor’s pricing model. For example, an interchange-plus model passes the variable card network fees directly to you, so your costs fluctuate with every sale.

This contrasts with a flat-rate model where the processor sets a single rate for all transactions. This approach offers more predictable expense management, while flat-rate processors like JIM absorb the variability and charge you a consistent fee regardless of card type.