MCC 9399 is used for government services that are not categorized elsewhere, covering a wide range of public administration activities.
High Risk
This MCC is considered high-risk for chargebacks and disputes due to the nature of government services, which can involve complex transactions, potential delays, and disagreements over service delivery. Customers may dispute charges if the government service fails to meet expectations or contractual obligations. However, this MCC is not typically blocked by card issuers.
Interchange Fee
Interchange fees for government services typically range from 1.5% to 3.5%, depending on the card network and any specific agreements with government agencies.
Cashback Rewards
Transactions for government services often do not qualify for cashback rewards with most card issuers, as they are treated as non-rewardable purchases.
Rules and Restrictions
There are no special rules or restrictions imposed by payment processors for MCC 9399 transactions.
Tax Reporting
Payments under MCC 9399 for government services are not typically taxable purchases by the IRS, as they pertain to government obligations and services.