MCC 7995 covers transactions related to betting, lottery tickets, casino gaming chips, off-track betting, and wagers at race tracks.
High Risk; Restricted
This MCC is considered high-risk due to its association with gambling and betting activities. Transactions under this MCC are often subject to additional scrutiny and restrictions by card issuers. Merchants operating under MCC 7995 may be required to register with the card network and adhere to specific operational rules. Consequently, many card issuers block or limit transactions under this MCC to mitigate potential risks.
Interchange Fee
Transactions under MCC 7995 typically incur interchange fees ranging from 2% to 3.5%, depending on the type of card used and the issuing bank's policies for gambling and betting-related expenses.
Cashback Rewards
Most credit cards exclude MCC 7995 transactions from cashback or rewards programs due to their classification as gambling and betting-related expenses. However, some specialized cards may offer limited benefits.
Rules and Restrictions
There are no special rules or restrictions imposed by payment processors specifically for MCC 7995 transactions. However, individual card issuers may enforce their own restrictions or require additional verification for gambling-related purchases.
Tax Reporting
The IRS may require tax reporting on winnings and transactions associated with betting, lottery, or other gambling-related purchases under MCC 7995, subject to applicable federal and state regulations.