Are some MID / MCC, more successful than others?

I currently run a financial subscription service for consumers, and I am having a lot of trouble with payments going through and I am wondering if there are any known MID/MCC's that are more successful/ lower risk than others that I would be able to negotiate with my merchant processor in order to combat this?

 

Yes, for example mcc code 6051 have quite high acceptance rate- arround 85%. Would this help?

 

In the payment processing industry, the Merchant Identification Number (MID) and the Merchant Category Code (MCC) play significant roles in determining how transactions are classified and processed. While there are no specific MIDs that are universally recognized as "lower risk," certain MCCs may be associated with lower-risk categories, which can sometimes lead to higher approval rates for transactions.

Common MCCs for Financial Services:

MCC 6012 - Financial institutions, such as banks and credit unions.
MCC 6010 - Money orders and wire transfers.
MCC 6051 - Non-financial institutions that provide financial services.
MCC 7995 - Betting, casinos, and gambling, which is typically considered higher risk but can be appealing depending on your service.
Factors Affecting Payment Success Rates:

Business Type: Certain types of businesses are perceived as riskier than others. Financial services, adult entertainment, and subscriptions can sometimes fall into higher-risk categories.

Chargeback Ratio: A high chargeback ratio can affect your merchant account's status. Working to reduce chargebacks can improve your standing.

Location and Time of Transaction: Domestic transactions are typically viewed as less risky than international ones. Additionally, transactions made during business hours may have different rates of acceptance.

Verification Procedures: Implementing thorough verification processes for new customers, such as KYC (Know Your Customer) and other anti-fraud measures, can also help lower the perceived risk.

Negotiating with Your Merchant Processor:

Discuss Your Business Model: Communicate clearly with your merchant processor about your business model. Providing data that demonstrates a stable transaction history and low chargeback rates can help in negotiations.

Consider Alternative Processors: If your current processor has a high rate of declines, it might be beneficial to seek processors with a history of working with subscription services.

Request Different MCCs: Depending on the specifics of your service, some processors may allow you to classify your business under a different MCC that is viewed as lower risk.

Utilize a High-Risk Processor: If you are operating in a higher-risk area, you may need to work with a processor that specializes in high-risk merchant accounts. These processors understand the complexities and can provide tailored services.

In conclusion, while switching MIDs/MCCs can potentially reduce transaction declines, it's crucial to maintain compliance and transparency with your payment processor. Work closely with them to address your concerns and explore options that suit your business model.