MCC 4814 applies to businesses involved in the provision of prepaid and recurring phone services. This category encompasses both prepaid calling plans and ongoing subscription-based telecommunication services.
High Risk
This MCC is considered high-risk for chargebacks and disputes due to the nature of prepaid and recurring phone services, which can involve billing issues, service interruptions, and potential disagreements over service quality or terms. Customers may dispute charges if the services fail to meet expectations or contractual obligations. However, this MCC is not typically blocked by card issuers.
Interchange Fee
Interchange fees for transactions under MCC 4814 typically range from 1.6% to 3.0%, with variability based on transaction type, merchant agreement, and the nature of services provided. Higher-risk transactions, such as those involving prepaid plans, may attract higher fees.
Cashback Rewards
Some credit card programs may offer cashback rewards for telecommunications purchases, particularly when categorized as business or technology-related expenses. The reward percentage depends on the issuer's specific terms.
Rules and Restrictions
There are no special rules imposed by payment processors specifically for MCC 4814 transactions. General industry regulations for card-present and card-absent transactions apply based on the payment network’s policies.
Tax Reporting
In the U.S., payments for telecommunication services under MCC 4814 may have specific reporting requirements, especially for business expenses. Individual consumers generally do not face additional IRS tax obligations for these transactions.