MCC 1711 pertains to contractors providing services for heating, plumbing, and air conditioning systems, covering both residential and commercial installations, repairs, and maintenance. These businesses are integral to ensuring proper climate control and plumbing functions in various facilities.
Interchange Fee
The interchange fees for MCC 1711 transactions typically range from 1.5% to 3.25%, varying according to the card network, transaction type (e.g., card-present or card-not-present), and associated risk factors. Given the potential for high-value projects, larger transactions may incur different fee structures based on volume and processing agreements.
Cashback Rewards
Some credit cards may offer cashback or rewards for payments made to heating, plumbing, and air conditioning contractors, particularly if categorized under home improvement or services. Specific rewards will depend on individual credit card issuers and the terms they offer within their programs.
Rules and Restrictions
There are no special rules that payment processors typically enforce for transactions under MCC 1711. General rules for card-present and card-absent transactions apply, as specified by the relevant card networks and processor guidelines.
Tax Reporting
For tax purposes in the United States, payments under MCC 1711 are generally treated as payments for services. Depending on the transaction value, reporting may be required by the IRS. Buyers typically do not pay direct taxes on these services, but contractors must comply with relevant tax reporting obligations.