MCC 5993 represents retail locations and stands that sell cigars, cigarettes, e-cigarettes, vapes, and related accessories.
High Risk
This MCC is considered high-risk for chargebacks and disputes due to the nature of tobacco and related product transactions, which can involve age restrictions, health concerns, and potential regulatory issues. Customers may dispute charges if the products are not delivered as expected, are damaged, or if there are issues with age verification. However, this MCC is not typically blocked by card issuers.
Interchange Fee
Interchange fees for transactions under MCC 5993 vary based on the card type, typically ranging from 2.0% to 3.5% due to the high-risk classification of these goods.
Cashback Rewards
Cashback rewards for this category are often lower than standard purchases, with some card issuers excluding such transactions from reward eligibility altogether.
Rules and Restrictions
There are no special rules or restrictions imposed by payment processors for transactions under this MCC, beyond standard regulatory compliance for tobacco products.
Tax Reporting
Purchases under MCC 5993 are subject to applicable state and local excise taxes. The IRS does not apply a specific buyer tax based solely on this MCC code.