MCC 4900 covers utilities services such as electricity, gas, water, and sanitary services. These services are essential utilities that support both residential and commercial usage.
Interchange Fee
Interchange fees for transactions under MCC 4900 may vary based on the issuing bank, typically ranging from 0.75% to 2.25% of the transaction amount.
Cashback Rewards
Some credit card issuers may offer cashback on utility payments. This usually applies to cards with specific cashback categories or promotions and can range from 1% to 5%.
Rules and Restrictions
There are no special rules imposed by payment processors for processing transactions under MCC 4900. Standard transaction and billing procedures for utility services apply.
Tax Reporting
Utility services under MCC 4900 are generally subject to taxation based on local or state tax regulations. The IRS may consider utility services as a deductible expense under certain business and personal tax contexts.