General Contractors, Residential & Commercial
Building construction, renovations and project management.
What MCC 1520 covers
Merchant Category Code 1520 is the ISO 18245 identifier used by the card networks for general contractors, residential & commercial. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
Building construction, renovations and project management. Choosing the right MCC is critical: an incorrect code can lead to higher interchange, surcharges, or, in regulated categories, declined transactions and account holds.
MCC 1520 identifies general contractors involved in residential and commercial building construction, renovations, and project management. These merchants handle significant project values, often involving large, infrequent transactions representing milestone payments or deposits.
The business model is typically B2B or B2C for high-ticket services. Ticket sizes are generally very high, and payment frequency is dictated by project timelines rather than daily consumer purchases.
Chargebacks are uncommon but, when they occur, are typically for substantial amounts. They often stem from disputes over project completion, quality of work, adherence to contracts, or unauthorised charges.
Card-not-present fraud risk exists, particularly with upfront deposits. Due to the high value, schemes like Visa and Mastercard might scrutinise disputes more closely.
There are no specific scheme programmes, but strict contract adherence and clear communication are paramount.
Cardflo's robust acquiring network and enhanced KYB processes are well-suited for high-value B2B transactions common in construction. Our ability to manage large ticket sizes efficiently minimises processing friction, and our fraud monitoring tools provide an additional layer of security for these high-value, infrequent payments.
Acquirer & underwriting stance
Medium-risk specialist board. High ticket values mean disputes carry significant financial risk.
Thorough underwriting, stringent documentation requirements, and a potential rolling reserve (5-10% for 180 days) are common.
How Cardflo handles MCC 1520
- Underwriting with acquirers that actively board MCC 1520 businesses in your region.
- Underwriting for trades, contractors and project-based businesses with variable ticket sizes.
- Job-deposit and progress-payment flows supported on a single MID.
- Card-present and card-not-present routing for site visits and remote invoicing.
- Dispute support tuned to the documentation contractors actually keep.
Payment methods typically enabled
Common questions
What payment methods are most suitable for managing large milestone payments in construction?
For large milestone payments, bank transfers (e. g.
, SEPA, Faster Payments) and open banking payments are often preferred due to lower fees and irrevocability compared to card payments, which can be subject to chargebacks. For card acceptance, commercial cards with Level 2/3 data submission are beneficial for reduced interchange.
Cardflo facilitates a range of payment options to accommodate these high-value transactions securely.
How can general contractors mitigate chargebacks on high-value projects?
Mitigating chargebacks in construction involves meticulous documentation: detailed contracts, change orders, progress reports, signed customer approvals at each project phase, photographic evidence of work completed, and clear communication logs.
For card payments, using 3D Secure for online transactions and ensuring the cardholder is present for large deposits or final payments, using Chip & PIN, is highly recommended to shift liability.
Are there specific underwriting considerations for general contractors due to the nature of their business?
Yes, underwriters will typically focus on the contractor's financial stability, project pipeline, and claims history. Due to high project values and potential for large disputes, a longer trading history, proof of valid insurances (e.
g. , public liability, professional indemnity), and robust contractual agreements are often required.
Acquirers may also request references or project completion certificates.
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