MCC 7997 encompasses transactions related to membership clubs, sports and recreational activities, country clubs, and private golf courses.
High Risk
This MCC is considered high-risk for chargebacks and disputes due to the nature of membership clubs and recreational activities, which can involve recurring payments, membership cancellations, and potential disagreements over services or facilities provided. Customers may dispute charges if the club fails to meet expectations or contractual obligations. However, this MCC is not typically blocked by card issuers.
Interchange Fee
For MCC 7997, interchange fees typically range from 1.5% to 3%, varying based on the specific card type and issuing bank’s policies related to recreational and club-related transactions.
Cashback Rewards
Certain credit cards may offer cashback rewards for transactions involving MCC 7997, especially if categorized under leisure or recreational spending. However, many standard cards may exclude club memberships from cashback eligibility.
Rules and Restrictions
There are no special rules imposed by payment processors for transactions under MCC 7997. However, individual card issuers may impose their own terms and conditions.
Tax Reporting
In the context of MCC 7997, IRS tax reporting may apply to certain payments or dues if they involve taxable benefits or services.