MCC 9406 covers transactions associated with government-operated lotteries outside the US region, including the purchase of lottery tickets and participation in state-run lottery draws.
High Risk; Restricted
This MCC is considered high-risk due to its association with gambling and lottery activities, and is therefore restricted. Merchants operating under this MCC may be subject to additional scrutiny and must comply with regional gambling laws and card network regulations. As a result, transactions under this MCC may be blocked or declined by some card issuers.
Interchange Fee
Interchange fees for MCC 9406 typically range from 1.5% to 3% depending on the issuing bank, card type (debit, credit, etc.), and terms established with the acquiring bank.
Cashback Rewards
Most card issuers do not offer cashback rewards for transactions under MCC 9406, as these are often classified as gambling or lottery transactions, subject to issuer restrictions.
Rules and Restrictions
There are no special rules enforced by payment processors for transactions under MCC 9406. However, restrictions may vary based on regional gambling laws and individual card issuer policies.
Tax Reporting
The IRS does not apply taxes to buyers for MCC 9406 transactions, as these pertain to non-US government lotteries. Taxation may be subject to local laws of the lottery-operating country.