MCC 5912 pertains to establishments that primarily sell drugs and pharmaceuticals, including over-the-counter and prescription medications, health products, and related goods.
High Risk; Restricted
This MCC is considered high-risk due to the nature of products sold, which can include controlled substances and prescription medications. As a result, transactions under this MCC may be subject to additional scrutiny and restrictions by card issuers and payment processors. Merchants operating under this MCC may need to comply with specific regulatory requirements and obtain necessary licenses.
Interchange Fee
Interchange fees for transactions under MCC 5912 typically range from 1.2% to 2.5%, with variability based on the card issuer and specific transaction types (e.g., prescription purchases or online orders).
Cashback Rewards
Cashback offers vary among card issuers, often ranging from 1% to 3% on purchases at drug stores and pharmacies. Some premium credit cards may offer higher rewards or specialized promotions for health and wellness-related products.
Rules and Restrictions
There are no special rules or restrictions imposed by payment processors for processing transactions under MCC 5912.
Tax Reporting
IRS tax implications depend on the nature of purchases. Prescription drugs are generally tax-exempt, but over-the-counter products may be subject to sales taxes depending on state and local laws.