Paints, Varnishes & Supplies
Wholesale of paints, finishes and decorating supplies.
What MCC 5198 covers
Merchant Category Code 5198 is the ISO 18245 identifier used by the card networks for paints, varnishes & supplies. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
Wholesale of paints, finishes and decorating 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.
MCC 5198 identifies merchants wholesaling paints, varnishes, and related supplies. This encompasses B2B sales to hardware stores, construction companies, professional painters, and industrial clients.
Ticket sizes range from moderate for small-batch orders to high for bulk or industrial-grade purchases. Purchase frequency is often regular for established trade accounts or project-based.
Chargebacks are not typically high but can occur due to disputes over colour matching, product quality (e. g.
, incorrect grade or batch), or quantity discrepancies. 'Merchandise Not As Described' or 'Damaged Goods' are common reasons.
Batch control, clear product specifications, and careful packaging are essential for prevention.
This MCC is usually considered low-risk. Cardflo offers robust B2B payment solutions, including detailed reporting and reconciliation, which are beneficial for managing trade accounts and larger wholesale transactions.
Acquirer & underwriting stance
Low-risk standard board. No specific enhanced monitoring or reserves are usually required for these merchants.
How Cardflo handles MCC 5198
- Underwriting with acquirers that actively board MCC 5198 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 are the common chargeback issues for wholesale paint and varnish suppliers?
Chargeback issues for MCC 5198 typically stem from 'Merchandise Not As Described' due to discrepancies in colour, finish, or product specification, or 'Damaged Goods' if containers burst or products leak in transit.
Proper documentation of batch numbers, colour codes, and robust packaging protocols are essential for dispute resolution. Providing quality product images and descriptions pre-purchase also aids prevention.
How can B2B merchants in this MCC best manage trade credit and payment terms?
Many B2B merchants in MCC 5198 offer trade credit with specific payment terms (e. g.
, Net 30 days). While not directly a card payment, integrating these invoicing and payment term management systems with a robust payment gateway allows for seamless reconciliation.
Cardflo's B2B solutions facilitate invoice payments via various methods and provide detailed reporting to ease reconciliation of trade accounts.
Are there specific fraud patterns unique to the wholesale paint and varnish industry?
Fraud in wholesale paints and varnishes often involves attempts to purchase large quantities using stolen commercial card details or through account takeovers. These goods are re-sellable.
Merchants should implement stringent KYB practices, verify shipping addresses against billing addresses, and use 3D Secure for new or high-value customers. Cardflo's fraud prevention tools, including customisable rules, help mitigate such risks.
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