MCC 1731 refers to businesses that operate as electrical contractors, offering services related to electrical installations, maintenance, and repairs in both residential and commercial settings. These contractors ensure electrical systems function safely and efficiently.
Interchange Fee
Interchange fees for MCC 1731 transactions typically range from 1.4% to 3%, depending on the payment processor, transaction type, and assessed risk. Electrical contractors handling large contracts may have different fee structures negotiated with specific card networks or banks.
Cashback Rewards
Some credit card issuers may offer cashback or reward points on payments made to electrical contractors. These rewards may be available under home improvement, maintenance, or service-related categories, though offerings will vary by card issuer and program details.
Rules and Restrictions
There are no special rules imposed by payment processors specifically for MCC 1731 transactions. Standard rules for card-present and card-absent transactions apply, as set forth by the card networks and processors.
Tax Reporting
For tax purposes in the United States, payments for services under MCC 1731 may require reporting to the IRS if they meet certain thresholds. Buyers are generally not taxed directly on these services, but electrical contractors must comply with relevant tax reporting regulations.