MCC 4816 applies to businesses offering computer networking and information services. This category covers services related to network infrastructure, data services, and other information-related solutions provided to individuals and businesses. In particular, cloud computing services are usually assigned this MCC.
High Risk; Restricted
This MCC is considered high-risk for fraud and illegal activity, and is therefore restricted. Registration with the card network is required for merchants who provide cyberlocker or remote file-sharing services, and special operational rules may apply. As a result, this MCC is blocked by many card issuers.
Interchange Fee
Interchange fees for transactions under MCC 4816 generally range from 1.8% to 3.0%, depending on the risk associated with the transaction, the merchant agreement terms, and the nature of network services provided. Rates may vary for card-present and card-absent transactions.
Cashback Rewards
Cashback or rewards for purchases related to MCC 4816 may be offered by certain credit cards that categorize network and technology-related expenses as eligible for enhanced rewards. This varies widely by issuer and card type.
Rules and Restrictions
There are no special rules imposed by payment processors specifically for transactions under MCC 4816. General card network policies and regulations for card-present and card-absent transactions apply.
Tax Reporting
For MCC 4816, tax reporting requirements in the U.S. may vary based on whether the services are for personal or business use. Generally, network and data services can have reporting implications if related to business expenses, but individual consumer use typically does not result in direct tax obligations.