Key takeaways
- High risk is about the chance of chargebacks, fraud, regulation or reputational damage, not about your business being bad.
- Some merchant category codes are high risk by definition; for others it depends on your model and history.
- Your acquirer assigns your MCC. Using a code that does not match your business breaks card network rules.
- The same business can be high risk with one provider and acceptable with another.
What is a merchant category code?
A merchant category code (MCC) is a four-digit number that card networks use to describe what a merchant sells. Your acquirer assigns it when you are onboarded. Issuing banks use it to approve or decline payments, apply rewards and restrictions, and monitor risk. Some codes trigger extra monitoring and registration requirements with the card networks.
High-risk industries and their MCCs
| Industry | Common MCC | Why it is high risk |
|---|---|---|
| Online casinos & iGaming | 7995 | Gambling regulation varies by country; issuers block or score these payments |
| Sports betting & lotteries | 7995 | Regulation, event-driven peaks, fast payouts |
| US state-licensed gambling | 7800, 7801, 7802 | Government-owned lotteries, licensed online casinos and racing in the US |
| Forex, CFD & trading | 6211 | Disputes after trading losses; licence scope |
| Crypto exchanges & ramps | 6051 | AML risk, card fraud, regulation |
| Travel agencies | 4722 | Future delivery, cancellations, supplier failure |
| Event tickets | 7922 | Future delivery and cancellations |
| Dating & social | 7273 | Recurring billing disputes, fraud |
| Adult content | 5967 | Reputational risk, disputes |
| Subscriptions & continuity | 5968 | “I didn’t sign up for this” disputes after trials |
| Outbound telemarketing | 5966 | High dispute and fraud rates |
| Pharmacies | 5912 | Licensing, prescription rules, counterfeit risk |
| Tobacco & vape | 5993 | Age verification and regulation |
| Alcohol | 5921 | Age verification and regulation |
| Digital goods & games | 5816 | Fraud and friendly fraud |
| Nutraceuticals & supplements | Varies by model | Trial offers, health claims, refunds |
Codes 7995, 5967, 5966 and several others fall under card network programmes that require extra registration and monitoring. Providers use the code your business actually fits.
High risk without a high-risk industry
A business in a normal industry can still be classed high risk because of how it operates:
- Chargebacks or refunds above about 1% of transactions
- Selling into many countries, or from a company registered abroad
- Large average tickets or sudden volume spikes
- Future delivery, pre-orders or long subscriptions
- A new business with no processing history
- A previous termination or a MATCH listing
Quick check: is my business high risk?
- Is your industry in the table above, or licensed or age-restricted where you sell?
- Do customers pay now for something delivered later, or on a recurring plan?
- Are your chargebacks or refunds above about 1% of transactions?
- Do you sell in several countries, or from a company registered in another country?
- Have you been declined, closed or terminated by a payment provider before?
One “yes” usually means some providers will see you as high risk. Two or more usually means you need a specialist provider. The Find my provider quiz shows which providers fit your answers.
What to do if you are high risk
- Apply only to providers that already accept your industry, licence and markets
- Prepare one complete, consistent application (why applications get rejected)
- Budget for higher fees and a rolling reserve (fees explained)
- Add local payment methods and a backup provider
Read next: high-risk payment gateways explained.
Frequently asked questions
What industries are considered high risk for payment processing?
Common examples are online gambling and betting, forex and trading, crypto, travel, event tickets, dating, adult content, subscriptions, telemarketing, pharmacies, tobacco and vape, alcohol, digital goods and nutraceuticals.
What is a high-risk MCC?
A merchant category code that card networks or providers associate with higher chargeback, fraud or regulatory risk, such as 7995 for betting and casinos, 5967 for inbound teleservices including adult content, or 6051 for crypto and quasi-cash.
What MCC is used for online gambling?
Online gambling, betting and casinos generally use MCC 7995. In the United States, state-licensed activities may use 7800 (government-owned lotteries), 7801 (government-licensed online casinos) or 7802 (government-licensed horse and dog racing).
Can a business in a normal industry be high risk?
Yes. High chargebacks or refunds, cross-border sales, future delivery, recurring billing, large tickets, no processing history or a previous termination can all make a business high risk.
Can I choose my own MCC?
No. Your acquirer assigns the MCC based on what you actually sell. Using a code that does not match your business breaks card network rules.
How do I find a payment provider for a high-risk industry?
Look for providers that already process your industry, accept your licence and serve your markets. Approvd matches you with those providers using the same rules for every provider.
This guide is general information, not legal or financial advice. Payment providers set their own terms and make all underwriting decisions.