Tailors, Alterations.
Tailoring, alteration and bespoke garment services.
- MCC
- 5697
- Category
- Clothing Stores
- Cardflo support
- Yes
What MCC 5697 covers
Merchant Category Code 5697 is the ISO 18245 identifier used by the card networks for tailors, alterations. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
Tailoring, alteration and bespoke garment services. 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 5697 identifies tailors and alteration services. These are typically small, local businesses providing bespoke clothing, alterations, repairs, or dry-cleaning services.
Transactions are usually card-present, with ticket sizes varying from small for minor repairs to significant for custom garments. Frequency might be sporadic for bespoke work but regular for alterations.
Chargebacks are less common but can arise from 'services not as described' (e. g. , unsatisfactory alterations, missed deadlines) or 'credit not processed' if a client is due a refund for unfulfilled services.
Fraud is generally low inherent risk due to the service-based, often in-person nature of the business. Online presence might extend to appointment booking or basic service information.
Cardflo's reliable POS integration and support for various card terminals allow these small businesses to accept payments securely and efficiently in-store. Clear transaction descriptors can help customers recognise charges on their statements, preventing customer confusion-based disputes.
Operators of tailoring and alteration services should primarily focus on card-present solutions for their walk-in clients, integrating simple, reliable POS systems. For bespoke work, where ticket sizes are higher, consider requiring a deposit upfront and the balance upon completion, to mitigate non-payment risks.
Online booking with prepayment options should leverage 3DS for CNP transactions, protecting against 'services not rendered' claims if a client cancels or fails to show. Ensure transparent service descriptions and clear pricing to manage customer expectations and minimise disputes related to service quality or cost.
Acquirer and acquirer assessment stance.
Low-risk standard board. These merchants typically operate with low chargeback rates and stable revenue.
Reserve requirements are very infrequent and usually only in cases of significant, verifiable financial instability.
Dispute and chargeback profile.
Merchants in this sector commonly face '4853 (services not as described)' and '13.1 (services not rendered)'. 'Services not as described' arises from client dissatisfaction with the tailoring outcome, believing the finished item doesn't match their instructions or original garment.
Counter this with detailed work orders signed by the client, photographic evidence before and after, and clear communication logs. 'Services not rendered' happens when clients pay for work not yet provided or if a refund isn't processed.
Maintain clear records of service completion and refund processing timestamps.
See also: chargeback management · payment response codes · Compelling Evidence 3.0.
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How Cardflo handles MCC 5697
- Placement with acquirers that actively board MCC 5697 businesses in your region.
- Refund and exchange handling tuned to fashion and apparel return patterns.
- Seasonal-peak routing that scales through Black Friday and end-of-season sales.
- Buy-now-pay-later integrations for typical apparel basket sizes.
- Wallet acceptance and tokenisation for repeat fashion buyers.
- Dedicated onboarding manager familiar with apparel and fashion retail.
Payment methods typically enabled.
Onboarding checklist.
What acquirers typically ask to see when boarding MCC 5697. 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 demonstrating average basket size and returns rate.
- Refund, exchange and sizing-guide policy shown at checkout and in-store.
- PCI DSS SAQ appropriate to the environment (A, A-EP or D as relevant).
- Supplier or brand documentation where the merchant sells third-party labels.
- Six months of processing statements or bank statements demonstrating trading pattern.
See also: Know Your Customer (KYC) · high-risk merchant · smart routing.
Talk to an acquiring specialist about your MID setup.
Common questions
How can small tailoring businesses prevent 'services not as described' chargebacks?
Prevention relies on clear communication: setting client expectations regarding turnaround times, garment fit, and material changes. Before commencing work, obtain client approval on design and measurements.
For alterations, take 'before' photos if complex, and always allow the customer to inspect and try on the garment before final payment. A detailed and transparent policy regarding alterations and rework is also essential.
Are there specific payment terminal features that benefit tailors and alteration shops?
For these businesses, a mobile payment terminal (MPOS) that supports tap-to-pay (contactless), chip-and-PIN, and Apple/Google Pay is ideal. Features like itemised billing, tip functionality, and email receipt options enhance customer experience.
Integration with booking or CRM software can streamline operations. Cardflo offers a range of modern terminal solutions suitable for various business sizes.
What is the typical dispute window for 'services not rendered' for tailoring services?
For 'services not rendered' (Visa reason code 13.1, Mastercard 4855), cardholders generally have up to 120 days from the date the service was supposed to be performed or the date the cardholder became aware the service would not be performed,
not to exceed 540 days from the transaction date. Prompt completion of work and clear communication about any delays are key to avoiding these disputes.
How can I best handle prepayments for custom tailoring or large alteration jobs to minimise financial risk?
For custom tailoring or significant alteration projects requiring upfront payments, implement a clear deposit policy outlining what portion is non-refundable if the client cancels after work has commenced. Ensure your payment gateway supports level 2/3 data for Business-to-Business (B2B) clients to reduce interchange costs.
Utilise 3DS2 for all online prepayments to shift liability for fraudulent transactions to the issuer. Always provide a detailed, itemised invoice at the point of payment, clearly stating the services included, and obtain a signature of agreement where possible for in-store transactions.
For online bookings, ensure terms and conditions are prominently displayed and explicitly accepted by the customer during checkout.
What specific actions improve my chances of winning a 'services not as described' chargeback for a bespoke garment?
To win 'services not as described' disputes, meticulous documentation is key. Retain all client correspondence, including initial consultations, design sketches, fabric choices, and fitting notes.
Photographic evidence of the garment at various stages of completion, especially the final product, is highly effective. If possible, have the client sign a service completion and satisfaction report upon collection.
Should an issue arise, offer a clear, documented resolution process, such as further alterations or a store credit, before a chargeback is initiated. This demonstrates good faith and attempts at resolution, which strengthens your case.
Other MCCs in Clothing Stores
Related industries.
Related features.
Related guides.
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