MCC 8398: Charitable or social services organizations

Learn about MCC 8398, its business impact, and how to check your code. Download JIM for iOS/Android to take phone payments in seconds for a low 1.99% fee.

WRITTEN BY

Mar 25, 2026

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2 min read time

MCC 8398 is a merchant category code used by the International Organization for Standardization (ISO) to classify charitable and social service organizations. This code covers a range of non-profits, from community outreach programs to large foundations that accept donations. Transactions under this category include payments for welfare services, counseling, or financial contributions to a charity.

Which businesses fall under MCC 8398?

MCC 8398 applies to a broad range of charitable service establishments:

Charitable Organizations: These groups raise funds for specific causes, such as disaster relief or medical research. Well-known examples include the American Red Cross and the Make-A-Wish Foundation, which process donations under this code.
Community Service Groups: These organizations provide direct support and welfare services to local populations. The Salvation Army and Goodwill Industries use this MCC for transactions related to their social programs.
Animal Welfare Organizations: This category covers non-profits dedicated to animal protection, rescue, and care. Donations to groups like the ASPCA or The Humane Society of the United States fall under MCC 8398.
Youth Programs: Organizations focused on youth development, such as the Boys & Girls Clubs of America, use this code. It applies to payments for program fees and financial contributions that support their activities.
Religious Organizations: Churches, synagogues, and other faith-based groups use this MCC to collect tithes and offerings. These transactions are classified as charitable contributions when processed via credit or debit cards.
Environmental Non-Profits: Groups that work on conservation and environmental advocacy fall into this category. Donations to organizations like The Nature Conservancy or the World Wildlife Fund are processed using MCC 8398.
Foundations: Private or public foundations that distribute funds for charitable purposes use this code for incoming donations. This includes large institutions that make grants, such as the Ford Foundation.

Business implications of MCC 8398

Payment networks including Visa, Mastercard, American Express, and Discover use MCC 8398 to categorize transactions, which affects several aspects of business operations. These networks use the code to assess a business's risk profile. For charitable organizations under MCC 8398, this often results in lower interchange fees, as donations are considered low-risk transactions. This classification directly impacts the cost of accepting card payments.

Beyond risk assessment and processing fees, the MCC code influences other operational functions that help organizations manage their finances and understand donor behavior.

Expense tracking

Companies use MCCs to automatically sort business expenses on credit card statements. For purchases from organizations under MCC 8398, this simplifies the identification of charitable contributions, which may be eligible for tax deductions and streamlines financial records for tax season.

Financial analysis

Businesses analyze spending data associated with MCC 8398 to understand donation patterns and philanthropic expenditures. This information allows them to track charitable giving, forecast future contributions, and manage budgets for social responsibility initiatives or corporate partnerships with non-profits.

Compliance and auditing

Consistent application of MCC 8398 creates a clear audit trail for financial reports. This helps organizations verify expenses, confirm the nature of transactions, and demonstrate compliance with internal expenditure policies or external regulations.

Rewards and customer behavior

Credit card issuers often offer bonus rewards for donations, which makes transactions under MCC 8398 more attractive to cardholders. This can influence a donor's decision to contribute, as they may prefer a card that provides extra points or cash back for charitable giving.

How to verify your business's MCC

Charitable and social service organization owners should confirm their MCC classification for proper transaction processing and to avoid customer confusion regarding rewards eligibility. If you find that your business is incorrectly classified, for example, a charitable organization coded as a retail store, contact your payment processor immediately to request reclassification.

Here's how to verify if 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 documents.
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 of the statement. This code identifies how your transactions are categorized.
Check with Your Acquirer: The acquiring bank or financial institution that processes your payments maintains the MCC in their system. You can reach out to their merchant support team, and they can confirm your current classification.
Test Transaction Method: Some merchants process a small test transaction and check how it appears on a personal credit card statement. While this can offer a clue, the method is less reliable than direct confirmation, as statements may not always display the MCC.

How to choose a reliable payment service provider

Your MCC 8398 classification affects interchange rates, so your choice of payment processor is important. Providers vary in pricing, settlement speed, and support, and these differences have a cumulative effect on operations. Consider the following factors when you select a provider.

Transparent pricing: Flat-rate pricing offers predictability over complex models that obscure transaction costs. This clarity helps non-profits manage budgets. 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 provider should accept major cards like Visa and Mastercard and digital wallets like Apple Pay and Google Pay. This flexibility meets donor expectations and prevents lost contributions.
Fast fund access: Quick access to funds allows non-profits to cover immediate operational costs. Fast settlements help you manage cash flow for program expenses, payroll, and supplier payments without delay.
Security: Protect donor data with a processor that uses advanced security. End-to-end encryption and tokenization shield sensitive card information from fraud by replacing it with a unique identifier for each transaction.
Reporting: AI-powered analytics help track donation trends. JIM's AI assistant provides sales reports and transaction history through a chat interface, which simplifies financial oversight and planning.

Streamline payments with JIM

JIM offers charitable and social service organization owners a straightforward payment processing solution. The JIM tap-to-pay app turns your iPhone or Android phone into a payment terminal with no extra hardware. It uses NFC technology to accept donations and payments directly on your device. You pay a flat 1.99% per transaction, with no setup costs, monthly fees, or variable rates for premium cards.

For online donation drives, you can create payment links for 4.99% + $0.30 per sale (ideal for donation campaigns). Once a transaction completes, your funds become available instantly on a JIM Visa Prepaid Card. Add this card to Apple Pay or Google Pay to use your money right away. This immediate access to funds supports your organization's cash flow.

Frequently Asked Questions

Question

What is Merchant Category Code 8398?

Merchant Category Code 8398 is a four-digit classification number assigned to charitable and social service organizations by payment networks and the ISO. This code identifies transactions for non-profits, community service groups, and other philanthropic entities. Payment processors use this code to categorize transactions for interchange fees, reporting, and rewards programs.

Is Merchant Category Code 8398 high-risk?

Payment processors classify MCC 8398 as a low-risk category. This classification stems from the nature of the transactions, which are primarily donations with a low probability of fraud or chargebacks. As a result, organizations under this code benefit from more favorable interchange rates, which reduces their overall payment processing costs.

Can a business have multiple MCC codes?

Generally, a business operates under a single merchant account, which is assigned one MCC based on its primary source of revenue. However, a company with distinct business lines can open separate merchant accounts, each with its own MCC to reflect that specific activity. For instance, a museum (MCC 7991) might operate its gift shop under its primary code but use a separate merchant account with MCC 8398 to process donations for its non-profit foundation, which keeps the revenue streams distinct for financial reports.

What happens if my MCC code is wrong?

An incorrect MCC creates several problems for your organization and its supporters. Donors might miss out on credit card rewards for their contributions, which can affect their decision to give again. From a business perspective, you could pay inflated processing fees or receive preferential rates for which you do not qualify, a situation that can lead to penalties for violation of payment network regulations.

Can merchants choose their MCC code?

A business cannot arbitrarily choose its MCC code; the assignment is handled by its payment processor. The processor evaluates the company's primary operations and selects a code that aligns with ISO standards and payment network rules. While merchants cannot pick their code initially, they can request a reclassification from their provider if they feel the current one inaccurately describes their business.

How does MCC 8398 affect my payment processing costs?

MCC 8398 directly influences the interchange rates you pay on each transaction. Since payment networks consider charitable organizations low-risk, this code typically qualifies for some of the most favorable rates available. This classification reduces the cost to process donations, but the final amount you pay depends on your payment processor's pricing model.

Providers with interchange-plus pricing pass these low rates directly to you, though your fees will fluctuate with each card type. The exact savings depend on the card used for the donation, while flat-rate processors like JIM, a solution for both iOS and Android, absorb the variability and charge you a consistent fee regardless of card type.