A guide to MCC 5964: Catalog merchant

What is MCC 5964? Learn its effects and how to check your code. Get JIM for iOS/Android to accept phone payments in seconds for a low 1.99% fee.

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Mar 25, 2026

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2 min read time

Merchant Category Code (MCC) 5964 is a classification used by the International Organization for Standardization (ISO) for catalog merchants. This code applies to businesses that market and sell their products through mail-order catalogs, flyers, or other printed materials. Customers typically place orders via mail, telephone, or fax after they view the catalog. The category covers a range of retailers who interact with customers primarily through direct mail and remote ordering systems.

Which businesses fall under MCC 5964?

MCC 5964 applies to a broad range of direct marketing establishments:

Mail-Order Apparel: These retailers sell clothing and accessories through printed catalogs. Customers order items like jackets from L.L.Bean or home goods from Lands' End via mail or phone.
Home Goods Retailers: This includes businesses that market furniture, decor, and kitchenware through catalogs. Companies like Crate & Barrel and Pottery Barn use this model for remote customer orders.
Specialty Food Purveyors: These merchants sell gourmet foods, often through seasonal or specialized catalogs. Well-known examples include Omaha Steaks for meats and Harry & David for fruit baskets.
Gardening Supply Companies: Businesses in this category mail catalogs for seeds, plants, and gardening tools. Gardeners often order from companies like Burpee or Johnny's Selected Seeds.
Hobby and Craft Suppliers: These companies cater to hobbyists by sending catalogs for specialized tools and materials. Woodworkers might receive catalogs from retailers like Rockler or Lee Valley Tools.
Book and Media Clubs: These businesses operate on a subscription model, sending catalogs for books or media. The Book of the Month club is a classic example of this direct-to-consumer approach.
Educational Material Suppliers: These companies provide school supplies and learning materials to educators and institutions through catalogs. Lakeshore Learning is a prominent business in this space.

Business implications of MCC 5964

Payment networks including Visa, Mastercard, American Express, and Discover use MCC 5964 to categorize transactions, which affects several aspects of business operations. These networks assess a merchant's risk level based on their MCC. For catalog merchants under MCC 5964, this can influence the interchange rates applied to their transactions, as card-not-present sales often carry different risk profiles.

Beyond risk assessment and transaction fees, the MCC code serves other operational functions. It helps with financial management and can shape customer spending habits, providing a framework for both internal processes and external interactions.

Expense tracking

Companies rely on MCC codes to automate the categorization of business purchases on credit card statements. This simplifies expense management by sorting spending into predefined buckets, which can support the process of identifying and substantiating business-related tax deductions.

Financial analysis

Businesses use MCC data to analyze spending patterns with catalog merchants. This information allows finance teams to track departmental costs, forecast future expenditures more accurately, and maintain better control over budgets by identifying where company funds are allocated.

Compliance and auditing

Consistent MCC application creates a clear audit trail for internal and external review. This simplifies the verification of expenses against company policy and helps confirm the legitimacy of business-related purchases.

Rewards and customer behavior

Credit card issuers use MCCs to determine eligibility for rewards, such as bonus points on specific purchase categories. This can influence where customers choose to shop, as they may favor merchants whose MCC aligns with their card’s reward structure.

How to verify your business's MCC

Catalog merchant owners should confirm their MCC classification for proper transaction processing and to avoid customer confusion regarding rewards eligibility. If you discover your business is incorrectly classified, for example, a mail-order apparel company coded as a physical bookstore, 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. To verify your classification, contact their customer service or review the details in your merchant agreement documents.
Review Processing Statements: Your monthly merchant statements typically display the assigned MCC code. Look for a four-digit number, often in the account information or business profile details section, to confirm your current code.
Check with Your Acquirer: Your acquiring bank or financial institution maintains the MCC code in their system. You can reach out to their merchant support team, and they can confirm your business's current classification.
Test Transaction Method: Some merchants process a small test transaction and check how it appears on a personal credit card statement. This method is less reliable than obtaining direct confirmation from your payment processor.

How to choose a reliable payment service provider

Your MCC 5964 classification affects interchange rates and processing requirements, so your choice of payment processor is a major business decision. Processors handle these transactions differently, and variations in pricing, settlement speed, and support can impact your bottom line. Consider these factors when you select a provider.

Transparent pricing: Look for a provider with a simple flat-rate structure to avoid complex interchange-plus models. 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: 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 necessary for catalog merchants to manage cash flow effectively. Instant settlements allow you to restock inventory, cover supplier payments, and meet payroll without delays.
Security: Choose a processor that protects customer data with encryption and tokenization. With tokenization, actual card numbers are never stored on your device, which reduces the risk of data breaches.
Reporting: Modern processors offer advanced analytics to track business performance. The JIM AI assistant provides sales reports and transaction history through a simple chat interface, which helps with financial analysis.

Streamline payments with JIM

JIM offers catalog merchant owners a straightforward payment solution. The JIM tap-to-pay app converts your iPhone or Android into a payment terminal with NFC technology, so you require no extra hardware. You pay a flat 1.99% per transaction, with no setup costs, monthly fees, or variable rates for premium cards.

You can also send payment links for phone orders (a common scenario for catalog merchants) at a rate of 4.99% + $0.30 per sale. After a transaction, funds are available instantly on your JIM Visa Prepaid Card. Add this card to Apple Pay or Google Pay for immediate use and maintain healthy cash flow for your business.

Frequently Asked Questions

Question

What is Merchant Category Code 5964?

Merchant Category Code 5964 is a four-digit classification number assigned to catalog merchants by payment networks and the International Organization for Standardization (ISO). This code identifies businesses that sell goods through mail-order catalogs and other direct marketing materials. Payment processors use this code to categorize transactions, which influences interchange fees, financial reporting, and customer rewards programs.

Is Merchant Category Code 5964 high-risk?

Payment processors classify MCC 5964 as a high-risk category. This designation stems from the card-not-present nature of catalog transactions, which carry an elevated likelihood of fraud and chargebacks. Consequently, merchants with this code often encounter higher processing fees and stricter underwriting requirements from their payment service providers.

Can a business have multiple MCC codes?

A merchant account typically receives a single MCC code that reflects the business's predominant activity. However, businesses with distinctly separate lines of business can maintain multiple merchant accounts, each with its own appropriate code. For instance, a brick-and-mortar bookstore (MCC 5942) might also operate a mail-order catalog for signed first editions. This catalog business would require a separate merchant account classified under MCC 5964 to properly categorize its distinct card-not-present transactions.

What happens if my MCC code is wrong?

An incorrect MCC code creates several problems for your business. Customers might miss out on expected credit card rewards, a factor that can shape their shopping preferences and reduce repeat business. Furthermore, a misclassification can result in improper interchange rates. This could mean you pay higher transaction fees than necessary or, conversely, violate payment network rules by receiving a preferential rate meant for another industry, which complicates your financial compliance.

Can merchants choose their MCC code?

Merchants do not select their own MCC code; the choice is not arbitrary. Instead, your payment processor assigns the code that best describes your primary business function, following standards set by the ISO and payment networks. If the assigned code misrepresents your business, you have the option to petition your processor for a re-evaluation and reclassification. This helps align your classification with your actual business activities.

How does MCC 5964 affect my payment processing costs?

MCC 5964 directly influences the interchange rates you pay on each transaction. Since catalog merchants are a high-risk category due to card-not-present sales, these rates are typically higher than those for lower-risk industries like grocery stores. The specific financial impact on your business, however, depends on your payment processor’s pricing model.

Processors with an interchange-plus model pass these variable rates to you, so your costs fluctuate with each sale. In contrast, flat-rate processors absorb this variability. A provider like JIM, available for both iOS and Android, charges a consistent fee for every transaction, regardless of the card type. This approach offers predictable costs for your business.