MCC 7012 is used for transactions related to timeshare properties, encompassing sales, management, and related services.
High Risk
This MCC is considered high-risk for chargebacks and disputes due to the nature of timeshare transactions, which can involve significant financial commitments, complex contracts, and potential dissatisfaction with the property or services provided. Customers may dispute charges if the timeshare does not meet their expectations or if there are issues with the management or maintenance of the property. However, this MCC is not typically blocked by card issuers.
Interchange Fee
The interchange fees for timeshare transactions under MCC 7012 vary, generally ranging from 1% to 3%, based on the specific terms and agreements between the card network and the merchant.
Cashback Rewards
Cashback rewards on timeshare purchases are typically limited and vary widely among card issuers. Some may exclude timeshare-related transactions from earning rewards.
Rules and Restrictions
There are no special rules or restrictions imposed by payment processors specifically for MCC 7012. Standard payment processing rules apply.
Tax Reporting
Transactions under MCC 7012 related to timeshares may be subject to IRS tax reporting requirements, depending on the nature of the purchase and applicable federal and state tax laws.