Wig & Toupee Stores
Retail of wigs, hairpieces and extensions.
What MCC 5698 covers
Merchant Category Code 5698 is the ISO 18245 identifier used by the card networks for wig & toupee stores. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
Retail of wigs, hairpieces and extensions. 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 5698 applies to wig and toupee stores, encompassing retailers selling hairpieces, extensions, and related accessories. These merchants operate in physical stores or online, catering to customers seeking cosmetic solutions, theatrical supplies, or medical-related hair loss solutions.
Ticket sizes can range from moderate for synthetic pieces to high for human hair products or custom orders. Transaction frequency is generally low to moderate.
Chargebacks often arise from 'merchandise not as described' (colour, texture, quality discrepancies), 'item not received' for online orders, and 'fraudulent activity' due to the higher value of some products.
Customers may also dispute quality if products don't meet expectations post-purchase, leading to claims of 'defective merchandise'.
Cardflo's secure payment gateway prioritises data protection, crucial given the often sensitive nature of purchases in this sector. Comprehensive fraud prevention measures, like detailed real-time transaction screening and 3D Secure enforcement, are vital to protect against high-value fraud attempts.
Acquirer & underwriting stance
Medium-risk standard board with monitoring. The potential for high-value transactions and customer disputes if product quality or specifics are misunderstood warrants closer oversight.
Some acquirers might request a small rolling reserve, typically 5% for 90 days, especially for new online merchants with no prior processing history.
How Cardflo handles MCC 5698
- Underwriting with acquirers that actively board MCC 5698 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.
Payment methods typically enabled
Common questions
What are the key factors for wig and toupee stores to prevent 'merchandise not as described' chargebacks?
Accurate product representation is paramount. Utilise high-quality, professional photographs and videos showing products from multiple angles in various lighting conditions.
Provide detailed descriptions of fibre type (human vs. synthetic), cap construction, colour codes, length, and texture.
Offering swatches or colour rings, and having a clear return policy for hygiene reasons, can also mitigate disputes. Customer service should be well-trained to answer detailed product questions.
How do scheme rules address returns for hygiene-sensitive products like wigs?
Scheme rules generally do not dictate specific return policies for hygiene-sensitive products. However, they do require merchants to clearly communicate their return and refund policies to the cardholder *before* the transaction.
If a merchant has a 'no returns for hygiene' policy, this must be explicit. Failure to honour a stated return policy can lead to 'credit not processed' (Mastercard 4853) or 'cancelled merchandise' (Visa 13.
3) chargebacks, regardless of the product type.
What specific fraud indicators should wig and toupee merchants look for in online orders?
Key fraud indicators include large first-time orders (especially international), use of multiple cards for small purchases, shipping addresses that differ from the billing address, orders placed outside typical buying hours, and email addresses that look suspicious or are newly created.
High-value custom orders should also be scrutinised with additional verification steps. Cardflo's real-time fraud scoring can help flag these anomalies.
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