1520medium risk

General Contractors

MCC 1520 is the merchant category code designated for general contractors. This classification is used by payment processors and card networks to categorize businesses for transaction processing, risk assessment, and interchange fee determination. Classified as medium-risk, businesses using MCC 1520 may experience moderate underwriting requirements and should be prepared for standard compliance checks. Understanding the specific requirements and considerations for this MCC code is crucial for businesses in the general contractors industry to ensure proper payment processing setup and compliance.

Contracted Services
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Quick Facts

MCC Code
1520
Risk Level
medium
Category
Contracted Services
Popularity
Popular Code

Typical Business Types

MCC 1520 is commonly used by the following types of businesses:

Home builders
Commercial construction
Renovation contractors
Construction companies

Processing Considerations

Important Information

Medium-risk due to high transaction amounts and potential for disputes. May require additional documentation and underwriting.

Application Requirements Checklist

Documents and requirements needed for MCC 1520 merchant account

Completion Progress0%
Valid business license or registration
Proof of general contractors operations
Business bank account in company name
Tax identification number (EIN/TIN)

Complete Documentation

Having all documents ready speeds up approval

Accurate Information

Ensure all provided information is current and accurate

Industry Specific

Some requirements may vary by business type

Processing Fee Calculator

Estimate your monthly processing fees for MCC 1520

Estimated Monthly Fees

Transaction Count:500
Percentage Fees:$1150.00
Transaction Fees:$150.00
Total Monthly Fees
$1300.00
Effective Rate: 2.60%

Note: This is an estimate based on the qualified rate for MCC 1520. Actual rates may vary based on your specific merchant agreement, processing history, and business type.

Industry Insights & Statistics

Key metrics and data for MCC 1520 businesses

Avg Transaction
$1,000 - $10,000

Typical transaction range

Chargeback Rate
0.5% - 1.5%

Industry average

Approval Rate
~60%

Medium difficulty

Risk Level
Medium

Underwriting complexity

Industry Statistics & Trends

The general contractors industry processes billions in transactions annually

Average business in this category sees 100-500 transactions per month

Industry growth rate: 3-5% annually

Digital payment adoption in this sector: 60%+

Approval Difficulty Breakdown

Documentation RequirementsModerate
Underwriting Timeline2-4 days
Reserve RequirementsSometimes

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MCC 1520 Payment Processing Guide

Understanding MCC 1520 for general contractors is essential for proper payment processing setup. This comprehensive guide covers everything you need to know about using this merchant category code.

What is MCC 1520?

MCC 1520 is designated for general contractors. This merchant category code is classified as medium risk by payment processors and is commonly used by businesses such as home builders, commercial construction, renovation contractors.

Key Features and Requirements

  • Risk Classification: medium risk level affects processing rates and requirements
  • Business Types: Suitable for home builders, commercial construction, renovation contractors, construction companies
  • Category: Part of the contracted services merchant category
  • Processing Considerations: Medium-risk due to high transaction amounts and potential for disputes. May require additional documentation and underwriting.
  • Typical Limits: Daily: $10,000 - $100,000, Per Transaction: $1,000 - $10,000

Compliance Requirements

  • PCI DSS compliance for card data security
  • Adherence to card brand rules and regulations
  • Accurate transaction descriptors and coding

Fraud Prevention Best Practices

  • Implement address verification (AVS) for all transactions
  • Use CVV verification for card-not-present transactions
  • Monitor for unusual transaction patterns
  • Set appropriate transaction limits
  • Review high-value transactions manually
  • Keep customer communication records
  • Use fraud detection tools provided by processor

Seasonal Business Patterns

Construction and contracting services often see peaks in Spring and Summer months when weather conditions are favorable.

Common Application Decline Reasons

Avoid these common pitfalls when applying for MCC 1520:

  • Incomplete or inaccurate business information
  • Mismatch between stated and actual business activities
  • Poor credit history or financial instability
  • Insufficient documentation provided
  • Business location or ownership concerns
  • Unusual transaction patterns

Technical Integration Notes

Integration for MCC 1520 businesses typically involves standard payment gateway APIs. Both online and offline payment methods should be considered based on your business model. Ensure your integration supports proper transaction coding and includes all required fields for medium-risk processing.

Benefits of Using MCC 1520

  • Accurate Classification: Ensures your business is properly categorized for optimal processing
  • Appropriate Rates: Access to competitive rates for your business type
  • Compliance: Meets industry standards and payment network requirements
  • Risk Management: Proper classification helps with fraud prevention and risk assessment

Getting Started with MCC 1520

To set up payment processing with MCC 1520, you'll need to work with a qualified payment processor who understands the requirements for general contractors:

  1. Documentation: Gather necessary business documentation and licenses
  2. Application: Complete merchant account application with MCC 1520
  3. Underwriting: Payment processor reviews your application and business model
  4. Setup: Configure payment processing systems and integrate with your business
  5. Testing: Test payment processing before going live

Need Help with MCC 1520 Payment Processing?

Our payment processing experts specialize in contracted services businesses and can help you set up merchant account solutions with the right MCC code for optimal processing.

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Frequently Asked Questions

Common questions about MCC 1520 payment processing

MCC 1520 is the merchant category code for general contractors. It's used by payment processors to classify businesses in this industry for appropriate processing rates and risk assessment.

Have more questions about MCC 1520?

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