A guide to MCC 5310: Discount stores

What is MCC 5310? Uncover its business effects and how to confirm your code. Get JIM on iOS/Android and take phone payments in seconds for just 1.99%.

WRITTEN BY

Mar 25, 2026

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2 min read time

Merchant Category Code (MCC) 5310 is a classification used for discount stores by the International Organization for Standardization (ISO). This code applies to businesses that offer a wide range of general merchandise at reduced prices. Transactions at retailers like department stores or warehouse clubs that sell products below the suggested retail price typically fall under this category. These establishments provide a variety of goods, from apparel to household items, directly to consumers.

Which businesses fall under MCC 5310?

MCC 5310 applies to a broad range of retail establishments:

Discount Department Stores: These large stores offer a wide variety of general merchandise below typical retail prices. Well-known examples include major chains like Target and Walmart.
Warehouse Clubs: These membership-based retailers sell products in bulk quantities at low prices. Shoppers can find everything from groceries to electronics at places like Costco and Sam's Club.
Off-Price Retailers: These stores provide brand-name apparel and home goods at a fraction of the original cost. Chains such as T.J. Maxx and Ross Dress for Less operate under this model.
Dollar Stores: These retailers specialize in selling a wide assortment of items at very low price points. Popular examples of this format are Dollar General and Dollar Tree.
Factory Outlets: Owned by manufacturers, these stores sell their own branded products directly to consumers at a discount. Examples include Nike Factory Stores and Coach Outlet locations.
Surplus Stores: These establishments sell overstock, returned, or slightly damaged goods at deeply discounted prices. A well-known example is the chain Ollie's Bargain Outlet.

Business implications of MCC 5310

Payment networks including Visa, Mastercard, American Express, and Discover use MCC 5310 to categorize transactions, which affects several aspects of business operations. These networks assess a merchant's risk profile based on their MCC. For discount stores under MCC 5310, the high volume of transactions and lower average ticket sizes can influence this assessment, which in turn determines the interchange rates charged for processing payments.

Beyond risk assessment and transaction fees, MCC 5310 also has an impact on other financial and operational functions for businesses that make purchases from these stores.

Expense tracking

Companies rely on MCCs to automate expense management. When an employee makes a purchase at a discount store, the transaction is automatically categorized as general merchandise on company card statements. This simplifies tracking and can support claims for business-related supply deductions.

Financial analysis

This MCC code allows businesses to analyze spending patterns with precision. By isolating purchases from discount stores, finance teams can track expenditures on general supplies, identify cost-saving opportunities, and develop more accurate budgets for future operational needs.

Compliance and auditing

Consistent MCC coding provides a clear audit trail for financial review. It allows auditors to quickly verify that expenses align with company policy, which strengthens internal controls and confirms compliance.

Rewards and customer behavior

Credit card issuers use MCCs to determine rewards eligibility. Some cards offer bonus points for purchases at department or discount stores, which can influence where customers choose to shop. This coding directly connects business categorization to consumer spending habits.

How to verify your business's MCC

Discount store owners should confirm their MCC classification to support proper transaction processing and prevent customer confusion regarding rewards eligibility. If you discover an incorrect classification, for example, a discount store coded as a specialty apparel shop, 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 code when you set up your account. To confirm 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. Look for a four-digit number in the account information or business profile section of the statement to verify your current classification.
Check with Your Acquirer: The acquiring bank or financial institution that processes your transactions maintains the MCC code in their system. You can reach out to their merchant support team, and they can confirm your current business classification.
Test Transaction Method: Some merchants run a small test transaction on a personal credit card to see how it appears on the statement. However, this method is less reliable than direct confirmation from your payment processor or acquiring bank.

How to choose a reliable payment service provider

Your MCC 5310 classification influences interchange rates and processing requirements, making your choice of payment processor a major business decision. Providers differ in pricing, settlement speed, and support, with variations that affect your bottom line. Consider these factors when you select a provider:

Transparent pricing: Flat-rate pricing prevents hidden costs common in complex fee structures. The JIM tap-to-pay app for iPhone and Android, for instance, 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, plus digital wallets like Apple Pay and Google Pay to meet customer expectations.
Fast fund access: Quick access to funds is necessary for the high-volume nature of discount retail. Faster settlements improve cash flow for immediate needs like inventory restocks, supplier payments, and payroll.
Security: A provider must protect customer data with encryption and tokenization. Secure systems use tokenization for each transaction, so card numbers are never stored on your device or in your system.
Reporting: Advanced analytics help you track performance. The JIM AI assistant, for example, provides sales reports and transaction history through a chat interface to inform your business decisions.

Streamline payments with JIM

JIM offers discount store owners a straightforward payment processing solution. The JIM tap-to-pay app turns your iPhone or Android into a payment terminal that requires no extra hardware. It uses NFC technology to accept tap-to-pay transactions directly on your phone. You benefit from a flat 1.99% rate per transaction with no setup costs, monthly fees, or variable rates for premium cards.

You can also create payment links for online sales or special orders at 4.99% + $0.30 per sale. After a transaction completes, your funds are available instantly on your JIM Visa Prepaid Card. Add this card to Apple Pay or Google Pay for immediate use. This gives you quick access to your revenue for inventory, payroll, or other business needs.

Frequently Asked Questions

Question

What is Merchant Category Code 5310?

Merchant Category Code 5310 is a four-digit classification number assigned to discount stores by payment networks and the ISO. This code identifies transactions at businesses that offer a wide range of general merchandise below standard retail prices. Payment processors use this code to categorize transactions for interchange fees, reporting, and rewards programs, which affects both merchants and consumers.

Is Merchant Category Code 5310 high-risk?

Payment processors classify MCC 5310 as a standard-risk category. This assessment is due to the high volume of in-person transactions and low average purchase amounts, which reduce the likelihood of fraud and chargebacks. Consequently, businesses under this code often benefit from favorable interchange rates and face less stringent underwriting requirements from payment providers.

Can a business have multiple MCC codes?

Payment processors typically assign one MCC code to a merchant account based on its main business activity. A company with distinctly separate operations, however, can hold multiple merchant accounts with different codes. For example, a large grocery store (MCC 5411) might also operate a discount general merchandise section with its own checkout system. This separate division would justify a second merchant account classified under MCC 5310 to differentiate sales and streamline financial analysis for both business units.

What happens if my MCC code is wrong?

An incorrect MCC can prevent customers from getting the credit card rewards they expect, which may influence their shopping preferences and discourage return visits. This misclassification could also mean your business pays higher interchange fees than necessary. On the other hand, if you benefit from a lower rate intended for a different industry, you risk non-compliance with payment network regulations and potential penalties.

Can merchants choose their MCC code?

Merchants do not have the ability to choose their own MCC code. Instead, payment processors assign the classification based on a company's main line of business and follow guidelines from the ISO and card networks. If a business owner believes their current code inaccurately reflects their operations, they can contact their payment provider. The provider can then review the business model and reclassify the account to the correct category if necessary.

How does MCC 5310 affect my payment processing costs?

Your MCC code directly influences the interchange rates you pay on every transaction. For discount stores, MCC 5310 typically carries moderate rates that are lower than high-risk industries but higher than categories like grocery stores or gas stations.

The exact effect on your costs depends on your processor’s pricing model. Interchange-plus pricing passes these rates directly to you, so your costs fluctuate with each card type. In contrast, flat-rate processors like JIM absorb the variability and charge you a consistent fee regardless of card type.