MCC 1520 covers businesses categorized as general contractors, providing construction, renovation, and building services for both residential and commercial properties. This includes managing building projects, coordinating labor, and overseeing project delivery from start to finish.
Interchange Fee
Interchange fees for MCC 1520 typically range from 1.5% to 3% depending on the transaction type, volume, and risk level assessed by the payment processor or card network. General contractors may incur slightly higher fees due to the large transaction amounts and potential project-related risks.
Cashback Rewards
Some credit cards may offer cash back or points on purchases with general contractors, often falling within categories like home improvement or large-scale services. However, the availability of such rewards depends on the specific card issuer’s terms and conditions and the nature of the transaction.
Rules and Restrictions
There are no special rules enforced specifically for transactions under MCC 1520. Payment processors typically apply standard rules for both card-present and card-absent transactions based on the card network and risk profile.
Tax Reporting
For tax purposes, transactions under MCC 1520 are treated as payments for services, and certain payments may require reporting to the IRS based on the transaction's value and nature. Generally, buyers are not directly taxed on these services, but proper tax compliance must be followed by the businesses involved.