MCC 4812 applies to businesses engaged in the sale and distribution of telecommunication equipment and telephone-related products. This classification covers both hardware sales and associated services related to telecommunications.
High Risk
This MCC is considered high-risk for chargebacks and disputes due to the nature of telecommunication equipment and telephone sales, which can involve significant expenses, technical issues, and potential disagreements over product functionality or service quality. Customers may dispute charges if the equipment or services fail to meet expectations or contractual obligations. However, this MCC is not typically blocked by card issuers.
Interchange Fee
Interchange fees for MCC 4812 typically range from 1.4% to 3.2%, depending on transaction risk, payment method, and merchant agreements. Fees may vary based on whether transactions are business-to-business or consumer-facing.
Cashback Rewards
Some credit cards offer rewards for purchases made in the telecommunications sector, including equipment sales. Reward rates vary, typically falling under broader technology or business expense categories, depending on the card issuer’s terms.
Rules and Restrictions
There are no special rules imposed by payment processors specifically for MCC 4812 transactions. General card-present and card-absent rules apply as dictated by card networks and payment platforms.
Tax Reporting
In the United States, payments made under MCC 4812 are classified as product or service expenses. Tax obligations for buyers depend on the purchase purpose, but telecommunications equipment and services may have relevant reporting rules for businesses.