General Contractors, Residential & Commercial.
Building construction, renovations and project management.
- MCC
- 1520
- Category
- Contracted Services
- Cardflo support
- Yes
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.
General contractors must prioritise robust payment acceptance to mitigate the significant financial exposure of high-ticket projects. For B2C work, use 3DS2 on all card-not-present transactions for deposits and milestone payments to shift liability.
For B2B, ensure clear, signed contracts detail the payment schedule and scope of work. Multi-acquirer routing can help diversify risk, particularly if any single acquirer imposes a rolling reserve.
When a dispute occurs, comprehensive documentation will be your strongest defence. Given the high values, consider payment methods offering higher irrevocability for stage payments, such as bank transfers, for substantial project milestones.
Acquirer and acquirer assessment 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.
Dispute and chargeback profile.
The two most common chargeback reason codes are 13.1 / 4853 (services not as described or received) and 13.3 / 4840 (cancelled recurring transaction, often mistaken for a one-off payment dispute). These arise when clients dispute project completion, quality, or contract adherence.
Defeating these requires signed contracts, detailed scope-of-work documents, evidence of communication, photographic proof of progress, and completion certificates. For 13.3, demonstrate that the client agreed to the payment schedule and received the services up to that point.
See also: chargeback management · payment response codes · Compelling Evidence 3.0.
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How Cardflo handles MCC 1520
- Placement with acquirers that actively board MCC 1520 businesses in your region.
- Placement 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.
- Dedicated onboarding manager who knows the trade-services risk profile.
Payment methods typically enabled.
Onboarding checklist.
What acquirers typically ask to see when boarding MCC 1520. Cardflo collects this once and reuses it across every acquirer we route you through.
- Business registration and beneficial-owner documentation (KYB, UBO).
- Six months of processing statements or bank statements demonstrating trading volume.
- Standard-form contract, quotation template and change-order template.
- Refund, cancellation and deposit-handling policy shown at point of sale and on the website.
- Public liability and, where relevant, professional indemnity insurance certificates.
- Chargeback ratio and dispute history covering the last six months, including any Visa or Mastercard monitoring-programme status.
See also: Know Your Customer (KYC) · high-risk merchant · smart routing.
Talk to an acquiring specialist about your MID setup.
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.
How can contractors manage client expectations and payment schedules to reduce payment-related disputes on large projects?
To minimise disputes, general contractors should implement transparent and detailed contracts from the outset, outlining the full scope of work, project milestones, and a clear payment schedule linked to those milestones.
Use progressive invoicing, ensuring each payment corresponds to a clearly defined and completed stage of work. Document all client approvals for changes or additional work with signed change orders.
Regular, documented communication with clients about project progress, potential delays, and expected payment dates helps manage expectations effectively. Finally, ensure all invoices provide a clear breakdown of costs, cross-referencing with the agreed contract and change orders.
Offering varied payment options beyond cards, such as bank transfers for larger sums, can also improve irrevocability and reduce dispute potential.
What specific documentation should a residential contractor retain to defend against 'services not as described' chargebacks after project completion?
To successfully defend against 'services not as described' chargebacks, residential contractors should maintain an exhaustive record of the project. This includes the initial signed contract, detailed specifications, all approved change orders, and any correspondence (emails, messages) documenting client decisions or agreements.
Crucially, retain photographic or video evidence of work progress at various stages, especially before and after completion of key milestones. Secure client sign-offs or completion certificates upon project stages and final handover.
Keep records of any independent inspections or council approvals. Evidence of material purchases, labour hours, and even subcontractor invoices can further substantiate the work performed and costs incurred, providing a comprehensive audit trail for the acquirer.
Related features.
Related guides.
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