MCC 4722 is designated for businesses that operate as travel agencies and tour operators. These services assist with booking flights, accommodations, packaged tours, and other travel-related activities for consumers and businesses.
High Risk
This MCC is considered high-risk for chargebacks and disputes due to the nature of travel agency and tour operator transactions, which can involve large sums of money, frequent cancellations, and potential disagreements over service quality or itinerary changes. Customers may dispute charges if the travel service fails to meet expectations or contractual obligations. However, this MCC is not typically blocked by card issuers.
Interchange Fee
Interchange fees for MCC 4722 transactions generally range from 1.3% to 3.5%, depending on the payment processor, transaction type, and perceived risk. Travel-related purchases often attract specialized rates, especially for international transactions.
Cashback Rewards
Many travel-focused credit cards offer significant rewards for purchases made through travel agencies and tour operators. These rewards typically include points or cashback on bookings, with the rate varying according to the card issuer’s terms and conditions.
Rules and Restrictions
There are no special rules imposed by payment processors specifically for MCC 4722 transactions. Standard card-present and card-absent transaction guidelines apply as set by card networks.
Tax Reporting
In the United States, payments made under MCC 4722 are typically classified as travel-related expenses. While travel agencies and tour operators may have reporting obligations, buyers are not generally taxed directly for their services.