Drugs, Drug Proprietors & Druggists' Sundries
Wholesale pharmaceutical and druggist supplies.
What MCC 5122 covers
Merchant Category Code 5122 is the ISO 18245 identifier used by the card networks for drugs, drug proprietors & druggists' sundries. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
Wholesale pharmaceutical and druggist supplies. Choosing the right MCC is critical: an incorrect code can lead to higher interchange, surcharges, or, in regulated categories, declined transactions and account holds.
This MCC covers wholesale distributors of pharmaceutical products, drugs, and related druggists' sundries. Merchants typically supply pharmacies, hospitals, and clinics.
Due to the regulated nature of the products, ticket sizes can be substantial and orders are generally frequent and ongoing. Transaction frequency is driven by regular stock replenishment needs of healthcare providers.
Chargebacks are relatively low outside of specific product issues, with common reasons being 'merchandise not as described' (e. g.
, incorrect drug potency or formulation), 'goods not received' (e. g.
, temperature-sensitive delivery failures), or 'counterfeit merchandise' disputes for unapproved or fraudulent products.
Due to the sensitive nature of pharmaceuticals, explicit regulatory compliance is paramount, impacting scheme monitoring.
Cardflo's KYB process is designed to thoroughly vet these merchants for appropriate licensing and compliance, enhancing trust and reducing scheme risk, supported by our robust chargeback analytics to identify underlying issues.
Acquirer & underwriting stance
Regulated. Due to the highly regulated nature of pharmaceuticals, strict adherence to licensing and industry-specific regulations is required.
Standard reserves may be applied based on the merchant's financial stability and specific product lines.
How Cardflo handles MCC 5122
- Underwriting with acquirers that actively board MCC 5122 businesses in your region.
- High-volume, low-ticket processing tuned for retail authorisation patterns.
- Omnichannel routing across in-store, ecommerce and click-and-collect.
- EMV, contactless and wallet acceptance enabled on a single integration.
- Refund, void and partial-capture flows aligned with retail operations.
Payment methods typically enabled
Common questions
What specific licences or certifications are required for a merchant in MCC 5122 to process payments?
Merchants in MCC 5122 must typically hold wholesale distribution authorisations or licences from relevant national health authorities (e. g.
, MHRA in the UK, FDA in the US). These licences assure the legitimacy of their pharmaceutical supply chain.
Cardflo's KYB process requires submission and verification of these documents as part of the onboarding.
How does product recall affect chargebacks for wholesale pharmaceutical distributors?
In the event of a product recall, substantial chargebacks for 'merchandise not as described' or 'goods not received' can occur, as clients may reject or return recalled stock. Proactive communication and efficient return processes, alongside robust record-keeping, are essential to disputing these effectively.
Cardflo's chargeback tooling can help categorise and provide evidence for such cases.
Are there particular scheme rules regarding temperature-controlled shipments for pharmaceuticals?
While no specific MCC 5122 scheme rule dictates temperature control, 'goods not received' or 'merchandise not as described' chargebacks can arise if products are compromised during shipping due to improper temperature. Merchants should maintain clear delivery records, including temperature logs, to assist in chargeback representment.
Visa's Integrity Risk Program may flag merchants with frequent issues related to product integrity.
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