Compliance Bulletin

New Merchant Category Codes Available Related to Gaming
April 27, 2015

The International Organization of Standardization or ISO, which is responsible for issuing merchant category codes (MCCs) used to help issuers and others comply with the Unlawful Internet Gambling Enforcement Act of 2006 and Regulation GG, has issued new MMCs related to gaming but that do not necessarily indicate covered activity. While the card networks have allowed card issuers to block merchant card authorization requests categorically using MCC 7995 (gaming transaction), the ISO’s new MCCs indicate certain forms of legal gambling such as lotteries, casinos, and horse and dog racing. Unlike with MCC 7995 transactions, the card networks will not allow automatic blocking of these transactions bearing the new MCCs. Therefore, effective April 17, 2015, an issuer will be presented with a decision about handling these transactions. For more information, please see CBA’s Regulatory Compliance Bulletin, which was written by Ted Kitada, senior counsel with Wells Fargo Bank and chairman of CBA’s Legal Affairs Committee.