What is the usefulness of MCC?

[Bhavik567]

How do CC companies care what I use my card for as long as they get their 2-3%? Could anyone possibly shed some light on this? I mean if a platform shares 3% with credit card companies and facilitates rent/utility payment, why would CC companies not be ok with that?

 

[sxchzy]

mdr isnt fixed at 2-3%
depending on category for example educational institution it is less while compared to lets say a electronics store

 

[Bhavik567]

I mean to say suppose I am a merchant and ready to pay 2-3%, can I accept any sort of payment? If not, why? If yes, why is no one doing this?

 

[sxchzy]

1.To be registered as a merchant and get a pos you would require to open a pan or gst in your buinsess name
and accepting payments at 2-3% discount would be considered as income
for which you need to file ITR 4
and people who tried this have gotten thier money frozen for 540 days had they not raised a chargeback

 

[Bhavik567]

Thanks for the reply. However, I didn't understand the last part about chargeback.

Now, let me explain my problem. My residence is going through major renovations and I have to pay 10 lakh plus before February. For quarterly maintenance, I use my Burgundy Magnus through RedGiraffee up to Rs. 50000 tp pay my housing society. I don't mind paying 2-3% extra if I can pay Rs 10 lakh plus in the same manner as accelerated ER points will kick in. But is there a platform that can facilitate this?

 

[Bhavik567]

I am new to Technofino so please help me with my query or tag someone who might be able to help. Thanks.

 

[Bhavik567]

@TechnoFino Would appreciate if you could assist here!! Thanks

Thanks for the reply. However, I didn't understand the last part about chargeback.

Now, let me explain my problem. My residence is going through major renovations and I have to pay 10 lakh plus before February. For quarterly maintenance, I use my Burgundy Magnus through RedGiraffee up to Rs. 50000 to pay my housing society. I don't mind paying 2-3% extra if I can pay Rs 10 lakh plus in the same manner as accelerated ER points will kick in. But is there a platform that can facilitate this?

 

[SSV]

I am new to Technofino so please help me with my query or tag someone who might be able to help. Thanks.

Until the expert comes in here, you can go thru this meanwhile

Merchant category codes (MCCs): Everything businesses need to know | Stripe

What are merchant category codes (MCCs)? Here’s what businesses need to know about MCCs, how they’re used and how to look up MCCs.

stripe.com

Merchant Category Codes (MCC): what are they and why they’re important

Learn what merchant category codes (MCC) are, how they work and why it’s an important way to classify your business

www.checkout.com

 

[Bhavik567]

Thanks for the reply. However, I didn't understand the last part about chargeback.

Now, let me explain my problem. My residence is going through major renovations and I have to pay 10 lakh plus before February. For quarterly maintenance, I use my Burgundy Magnus through RedGiraffee up to Rs. 50000 tp pay my housing society. I don't mind paying 2-3% extra if I can pay Rs 10 lakh plus in the same manner as accelerated ER points will kick in. But is there a platform that can facilitate this?

@Vaastav Can you help here?

 

[Bhavik567]

1.To be registered as a merchant and get a pos you would require to open a pan or gst in your buinsess name
and accepting payments at 2-3% discount would be considered as income
for which you need to file ITR 4
and people who tried this have gotten thier money frozen for 540 days had they not raised a chargeback

Can a cooperative housing society get a POS?

 

[sxchzy]

Tell them to ask for one

 

[Bhavik567]

Tell them to ask for one

And if they are approved, who decides the MCC? Can they say they don't mind paying a higher charge but don't want utility / rent MCC?

 

[TechnoFino]

Thanks for the reply. However, I didn't understand the last part about chargeback.

Now, let me explain my problem. My residence is going through major renovations and I have to pay 10 lakh plus before February. For quarterly maintenance, I use my Burgundy Magnus through RedGiraffee up to Rs. 50000 tp pay my housing society. I don't mind paying 2-3% extra if I can pay Rs 10 lakh plus in the same manner as accelerated ER points will kick in. But is there a platform that can facilitate this?

I'd suggest you to use BharatNxt in that case... you can pay your vendor using your credit cards. Remember, the bank might ask for documents to prove the payment was made for personal use only, so get an invoice from the merchant and keep it.

 

[Bhavik567]

I'd suggest you to use BharatNxt in that case... you can pay your vendor using your credit cards. Remember, the bank might ask for documents to prove the payment was made for personal use only, so get an invoice from the merchant and keep it.

What will be the MCC code in case I use BharatNxt to pay my housing society? Not afraid of scrutiny as it is a valid expense, no round tripping.

 

[TechnoFino]

What will be the MCC code in case I use BharatNxt to pay my housing society? Not afraid of scrutiny as it is a valid expense, no round tripping.

Utility, most probably

 

[Bhavik567]

Then it doesn't serve my purpose right? Utility spend not eligible for accelerated ER points on Magnus.

Utility, most probably

 

[Vaastav]

@Vaastav Can you help here?

Sorry, I don't have much idea about Credit Card 2 Bank. @Abhishek012 Might help better.

From what I know, all the platforms (like Snapay, Cred, BharatNxt, etc.) that will allow this will have their MCC of utility, and this is excluded by Magnus.

 

[Bhavik567]

Thanks @Vaastav .

@Abhishek012 Since I/merchant are willing to pay higher MDR, I feel there has to be a way. This is a legitimate expense for me. Please let me know if you can think of some way. I have a couple of months to solve this. Thanks.

 

[Abhishek012]

Thanks @Vaastav .

@Abhishek012 Since I/merchant are willing to pay higher MDR, I feel there has to be a way. This is a legitimate expense for me. Please let me know if you can think of some way. I have a couple of months to solve this. Thanks.

Are you a merchant ? If you are a merchant then you already earn enough profit to pay 1% to 2% MDR or Increase the selling price of your product.

Some merchants also disabled credit cards payment and accept only normal UPI payment or all debit cards or only RuPay debit cards and normal UPI.

RuPay CC link UPI payment also free upto Rs2000 for small merchants.

 

[Bhavik567]

Are you a merchant ? If you are a merchant then you already earn enough profit to pay 1% to 2% MDR or Increase the selling price of your product.

Some merchants also disabled credit cards payment and accept only normal UPI payment or all debit cards or only RuPay debit cards and normal UPI.

RuPay CC link UPI payment also free upto Rs2000 for small merchants.

I don't mind reimbursing the merchant for his MDR charges is what I mean.