MCC 5816 is designated for purchases of digital games, including software, mobile games, downloadable content, and in-app purchases.
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 operate games of skill, and special operational rules may apply. As a result, this MCC is blocked by many card issuers.
Interchange Fee
The interchange fee for transactions under MCC 5816 generally ranges from 1.5% to 3.5%, depending on the card type and issuer network. Premium cards may incur higher rates.
Cashback Rewards
Many card issuers offer 1% to 3% cashback for digital game purchases, with some promotions providing even higher rewards for gaming-related spending.
Rules and Restrictions
There are no special rules or restrictions imposed by payment processors for processing transactions under this MCC.
Tax Reporting
Digital game purchases may be subject to state and local sales taxes based on the buyer's location. No specific federal tax from the IRS is uniquely applicable to digital game purchases.