MCC 4121 pertains to businesses that provide transportation services through taxicabs and limousines. This includes both traditional taxi services and limousine services for personal or corporate travel needs.
High Risk
This MCC is considered high-risk for chargebacks and disputes due to the nature of taxicab and limousine services, which can involve issues such as fare disputes, service quality, and cancellations. Customers may dispute charges if the service fails to meet expectations or if there are disagreements over the fare charged. However, this MCC is not typically blocked by card issuers.
Interchange Fee
Interchange fees for MCC 4121 transactions generally range from 1.5% to 3% based on the card network and transaction type. Payment processors may consider factors like transaction size, frequency, and perceived risk in determining applicable fees.
Cashback Rewards
Certain credit cards may offer cashback or rewards on spending for taxicabs and limousine services. These rewards often fall under travel or transportation spending categories, with specific offers varying based on card issuer terms and conditions.
Rules and Restrictions
There are no special rules imposed by payment processors specifically for MCC 4121 transactions. General rules for card-present and card-absent transactions apply as set forth by the card network's policies.
Tax Reporting
In the United States, payments under MCC 4121 are generally treated as transportation service payments. Depending on transaction values and specific criteria, reporting obligations to the IRS may arise for service providers, but buyers are typically not directly taxed for these services.