Your Guide to Merchant Category Code (MCC) 4722: Travel Agencies and Tour Operators

What is MCC 4722?

The Merchant Category Code (MCC) 4722 is an identifier used in the payment processing industry, specifically designated for businesses operating as travel agencies and tour operators.

Merchant Category Codes (MCCs) are four-digit numbers assigned by credit card networks like Visa and Mastercard to classify businesses according to the type of services or goods they provide. These codes are vital for the secure and efficient processing of card transactions, impacting aspects such as clearance of charges and calculation of rewards for cardholders

This article covers what type of businesses fall under MCC 4722 and shares the implications of this categorization.

MCC 4722 Scope

MCC 4722 encompasses businesses primarily engaged in providing travel-related services that include: 

• Travel Booking Services: Merchants that provide traditional and online travel booking services, such as reserving flights, hotels, rental cars, and other travel arrangements.
• Tour Operators: The code encompasses businesses that operate tours and travel packages, offering bundled services like transportation, accommodation, sightseeing activities, and guided tours for travellers.
• Travel-Related Services: Other travel-related services provided by merchants, such as travel insurance, visa assistance, or currency exchange services related to travel.
• Charters and Excursions: Tour operators and travel agencies that offer chartered transportation services or day excursions from a specific location.

MCC 4722 Assignment

For merchants, the accurate assignment of an MCC can influence several aspects of their business operations. Using the Merchant Category Code (MCC) 4722 for travel agencies means:

• Accurate Transaction Categorization: Assigning the correct MCC 4722 ensures that transactions from travel agencies are properly identified and categorised within the payment processing system. 
• Tailored Interchange Rates: Payment networks use MCCs to determine the appropriate interchange rates charged to merchants. The interchange rates for MCC 4722 are tailored to the risk profile and transaction volumes associated with travel agencies.
• Tax Compliance: Having transactions accurately coded under MCC 4722 can facilitate proper tax reporting and compliance for travel agencies. 
• Risk Management: MCC 4722 allows payment processors and card networks to identify and apply appropriate fraud prevention measures or additional security checks tailored to the potential risks associated with travel agencies and tour operators.
• Spending Analysis: For businesses that accept payment via cards, having travel-related expenses categorised under MCC 4722 can provide valuable insights into their spending patterns on travel services, enabling better expense management and budgeting.

Applying the correct MCC 4722 for travel agencies and tour operators allows for accurate transaction processing, tailored interchange rates, tax compliance, risk management, spending analysis, and adherence to industry-specific requirements, benefiting both merchants and the payment ecosystem. 

For businesses in the travel and tour industry, ensuring the proper use of MCC 4722 prevents unnecessary fees and streamlines financial operations. It also guarantees customers that their payments are processed securely and accurately, enhancing trust and reliability in the service provided.