A guide to MCC 5970: Craft or artist's supply shops

Unpack MCC 5970, its business effects, and how to verify your code. Download JIM (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

MCC 5970 is a merchant category code used to categorize craft or artist's supply shops by the International Organization for Standardization (ISO). This code applies to businesses that primarily sell materials for hobbies, arts, and crafts. Transactions at stores offering items like paint, yarn, beads, and scrapbooking supplies fall under this classification. The focus is on retailers providing supplies for creative projects rather than selling finished artwork.

Which businesses fall under MCC 5970?

MCC 5970 applies to a broad range of creative retail establishments:

Craft superstores: These large-format retailers offer a wide variety of supplies for numerous hobbies under one roof. Think of national chains like Michaels or Hobby Lobby, which cater to a general crafting audience.
Art supply stores: These shops focus on materials for fine arts, such as painting, drawing, and sculpting. Well-known examples include Blick Art Materials and local independent art supply providers.
Fabric and sewing shops: Businesses selling textiles, thread, patterns, and sewing notions fall into this category. Jo-Ann Fabric and Craft Stores is a prominent example that serves this market.
Yarn and knitting stores: These specialized boutiques cater to fiber artists with a selection of yarn, needles, and crochet hooks. They are often small, independent businesses found in local shopping districts.
Bead shops: Retailers that specialize in selling beads, findings, and tools for jewelry making use this code. These can be local specialty stores or larger chains dedicated to beading supplies.
Scrapbooking retailers: Stores that concentrate on paper, stickers, albums, and embellishments for memory keeping are included. While many are local, they serve a dedicated hobbyist community.

Business implications of MCC 5970

Payment networks including Visa, Mastercard, American Express, and Discover use MCC 5970 to categorize transactions, which affects several aspects of business operations. These networks assess a business's risk profile based on its MCC. For art and craft supply stores under MCC 5970, this classification influences the interchange rates charged for processing credit card payments.

Because these stores typically involve in-person transactions with lower fraud rates, they often receive more favorable interchange fees. Beyond risk assessment and fees, the MCC code also serves other operational functions for both the business and its customers.

Expense tracking

Companies use MCC 5970 to automate expense categorization. When employees purchase supplies, credit card statements automatically label the transaction as "art/craft supplies." This simplifies bookkeeping and helps identify eligible expenses for potential business-related tax deductions on materials.

Financial analysis

Businesses analyze spending data associated with MCC 5970 to understand procurement patterns. This information allows them to track material costs, forecast future supply expenses, and manage departmental budgets more effectively by identifying where and how often supplies are purchased.

Compliance and auditing

The consistent application of MCC 5970 creates a clear audit trail. This simplifies the process for internal and external auditors to verify that expenses claimed as art or craft supplies are legitimate business purchases.

Rewards and customer behavior

Credit card issuers often offer bonus rewards for specific spending categories. A store coded as MCC 5970 may qualify for a cardholder's "hobby" or "shopping" bonus, which can influence a customer's decision to shop there over a competitor.

How to verify your business's MCC

Art and craft supply shop owners should confirm their MCC classification to ensure proper transaction processing and avoid customer confusion regarding rewards eligibility. If you find that your business is incorrectly classified, for example, a craft supply store coded as a general merchandise 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 verify your classification, contact their customer service department or review the details in your original merchant agreement documents. This is the most direct method for confirmation.
Review Processing Statements: Your monthly merchant statements typically display the assigned MCC code. Look for a four-digit number listed in the account information or business profile section to confirm your current classification and review your transaction details.
Check with Your Acquirer: The acquiring bank or financial institution that processes your payments also maintains the MCC code in their system. Their merchant support team can confirm your current classification upon request over the phone or through their support portal.
Test Transaction Method: Some merchants run a small test transaction on a personal credit card. They then check the statement to see how the purchase is categorized. This method is less reliable than direct confirmation from your payment processor.

How to choose a reliable payment service provider

Your MCC 5970 classification directly affects interchange rates and processing requirements, making your choice of payment processor a major business decision. Different providers handle transactions for art and craft supply stores with variations in pricing, settlement speed, and support. These differences can accumulate, so consider the following factors.

Transparent pricing: Look for a processor with a simple, flat-rate structure to avoid complex interchange-plus or tiered models that obscure the true cost. 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 like Visa, Mastercard, and Discover, plus digital wallets such as Apple Pay and Google Pay to accommodate modern customer preferences.
Fast fund access: Quick access to funds is important for managing cash flow in a retail environment. This allows you to cover immediate needs like restocking inventory, making supplier payments, and meeting payroll without delay.
Security: A secure processor protects customer data with methods like encryption and tokenization. With tokenization, sensitive card numbers are never stored on your device, which reduces your liability in the event of a data breach.
Reporting: Modern processors offer more than just basic transaction logs. JIM's AI assistant provides sales reports and a complete transaction history through a simple chat interface, offering valuable business insights.

Streamline payments with JIM

JIM offers art and craft supply shop owners a straightforward payment processing solution. With the JIM tap-to-pay app, you turn your iPhone or Android phone into a payment terminal without extra hardware. JIM uses NFC technology to accept contactless payments. You benefit from a flat 1.99% rate per transaction, with no setup costs, monthly fees, or variable rates for premium cards. This simple structure simplifies your expense management.

You can also use link payments for remote sales (like custom orders or workshop registrations) at a rate of 4.99% + $0.30 per sale. After each transaction, your funds become instantly available on a JIM Visa Prepaid Card. Add this card to Apple Pay or Google Pay to use your earnings immediately for business expenses or supplies.

Frequently Asked Questions

Question

What is Merchant Category Code 5970?

Merchant Category Code 5970 is a four-digit classification number assigned to art and craft supply stores by payment networks and the ISO. The code identifies retailers that primarily sell materials for creative projects, such as paint, yarn, and scrapbooking supplies. Payment processors use this code to classify transactions for interchange rates, expense reporting, and customer rewards.

Is Merchant Category Code 5970 high-risk?

MCC 5970 is classified as a low-risk category by payment processors. This classification stems from the nature of its transactions, which are predominantly in-person purchases with a low likelihood of fraud or chargebacks. As a result, businesses under this code often benefit from more favorable interchange rates, which reduces their overall payment processing costs.

Can a business have multiple MCC codes?

Generally, a business receives a single MCC code for its merchant account, determined by its primary source of revenue. However, a company with diverse operations might establish separate merchant accounts to manage distinct revenue streams. For example, a large home goods store that also features a dedicated craft section could have its main business under a general merchandise code, but use a separate merchant account with MCC 5970 specifically for its art and craft supply sales.

What happens if my MCC code is wrong?

An incorrect MCC code creates several negative consequences for your business. Customers who anticipate credit card rewards on craft purchases may not get them, a frustration that can influence their future shopping preferences. Your business might also face improper interchange rates, which could inflate your processing costs. Alternatively, you could violate network rules if you receive a preferential rate from another industry, which may result in financial penalties.

Can merchants choose their MCC code?

Merchants do not select their own MCC code. Instead, payment processors assign the code after evaluating a business's primary source of revenue, following guidelines from the ISO and card networks. While the initial choice is not up to the merchant, they can contact their processor to request a reclassification if they believe the assigned code inaccurately represents their business.

How does MCC 5970 affect my payment processing costs?

Your MCC 5970 classification directly influences the interchange rates you pay on each transaction. As a low-risk category, art and craft supply stores generally receive favorable rates. These fees are typically lower than those for high-risk industries but can be higher than rates for businesses like grocery stores or gas stations.

The exact effect on your bottom line depends on your payment processor’s pricing model. Interchange-plus models pass these variable rates directly to you, while flat-rate processors like JIM absorb the variability and charge you a consistent fee regardless of card type.