Wrecking & Salvage Yards.
Auto wrecking, salvage and dismantling yards.
- MCC
- 5935
- Category
- Miscellaneous Stores
- Cardflo support
- Yes
What MCC 5935 covers
Merchant Category Code 5935 is the ISO 18245 identifier used by the card networks for wrecking & salvage yards. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
Auto wrecking, salvage and dismantling yards. 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 5935 covers wrecking and salvage yards, including auto dismantlers and metal recycling facilities. Transactions typically involve large, infrequent purchases of salvaged vehicles or parts, or smaller, high-frequency sales of scrap metal by weight.
Chargebacks are generally low, usually arising from disputes over part condition, incorrect vehicle identification, or non-delivery for online parts sales. Fraud risk is minimal in physical operations but present for online vehicle part sales, particularly for high-value components.
Accurate inventory management and clear descriptions are key. Cardflo's payment solutions support diverse transaction types, from in-person bulk sales to online parts commerce, with adaptable fraud screening to protect against specific risks without hindering legitimate trade.
Merchants in wrecking and salvage yards should ensure clear invoicing, accurately describing parts or vehicle condition. For online sales of specific auto parts, detailed product descriptions with photos are crucial to prevent disputes.
Implement 3DS2 for CNP transactions for liability shift, particularly for higher-value components. Given often direct, high-value transactions, securing proof of delivery or collection forms signed by the customer is important.
A multi-acquirer strategy can help manage transaction costs and ensure high authorisation rates for varying ticket sizes, from small scrap sales to full vehicles.
Acquirer and acquirer assessment stance.
Low-risk standard board for most operations. Online sales of specific, high-value auto parts might warrant a slightly higher risk assessment, but generally no reserve is needed.
Dispute and chargeback profile.
The most common chargeback reason codes for salvage yards are 13.3 / 4837 (defective/not as described) for parts or 13.1 / 4853 (services not as described) if a customer disputes the state of a purchased vehicle or scrap metal quality.
For online sales, 13.5 / 4855 (merchandise not received) can occur. Defences include comprehensive written descriptions and high-resolution photos of items, clearly stated return/warranty policies, proof of delivery via tracking, and signed collection notes for in-person pickups.
See also: chargeback management · payment response codes · Compelling Evidence 3.0.
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How Cardflo handles MCC 5935
- Placement with acquirers that actively board MCC 5935 businesses in your region.
- MCC review during onboarding to confirm the right code for your products.
- Reclassification support if scheme rules or product mix change post-launch.
- Multi-acquirer routing to keep approvals stable for broad merchant categories.
- Dispute support tuned to the mixed-product chargeback profile this MCC sees.
- Dedicated onboarding manager rather than a generic ticket queue.
Payment methods typically enabled.
Onboarding checklist.
What acquirers typically ask to see when boarding MCC 5935. 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 pattern.
- Product catalogue extract confirming the MCC covers the goods actually sold.
- Refund, exchange and cancellation policy shown at point of sale and on the website.
- PCI DSS SAQ appropriate to the environment (A, A-EP or D as relevant).
- Website terms of service, privacy policy and clear merchant descriptor.
See also: Know Your Customer (KYC) · high-risk merchant · smart routing.
Talk to an acquiring specialist about your MID setup.
Common questions
What specific challenges do wrecking and salvage yards face regarding payment processing for used parts?
The primary challenges for wrecking and salvage yards selling used parts involve accurately describing the condition and compatibility of salvaged items, which can lead to 'not as described' chargebacks. Online sales require robust inventory management to ensure parts are available and correctly identified.
Furthermore, the varying value of parts means fraud detection needs to be adaptable, flagging suspicious high-value orders while allowing frequent low-value sales.
Are there any scheme rules about selling motor vehicle parts (new or used)?
There are no specific scheme rules solely dedicated to used motor vehicle parts, but general e-commerce and consumer protection rules apply. Merchants must provide accurate product descriptions, clear return/warranty policies, and promptly fulfil orders.
For high-value new or used parts sold online, schemes like Visa and Mastercard encourage the use of 3D Secure 2 to protect against fraud and shift liability. Consistently high dispute rates for 'goods not as described' or 'services not rendered' could lead to scheme monitoring.
How can Cardflo's payment gateway support both in-person and online sales for salvage yards?
Cardflo offers a unified platform that supports both physical point-of-sale (POS) terminals for in-person transactions and an e-commerce gateway for online sales of parts. This allows salvage yards to manage all their payment channels through a single system.
Our API can integrate with inventory systems to ensure accurate stock levels for online listings, and our fraud tools can be configured for different risk profiles of in-person (lower risk) versus online (higher risk) transactions, providing flexible and secure processing.
What specific documentation is most effective when disputing a chargeback for a 'not as described' auto part?
When disputing a 'not as described' chargeback for an auto part, provide comprehensive documentation.
This should include a detailed product description from your catalogue or website, high-resolution photographs of the actual part sold (taken before shipping, if possible), and any part numbers or VIN compatibility information.
Include proof of purchase, the original invoice, and any communication with the customer where the part's condition was discussed. If applicable, also supply shipping tracking and delivery confirmation.
This evidence demonstrates that the item matched its description at the point of sale and delivery.
How can a wrecking yard securely process payments for large, high-value vehicle purchases to mitigate fraud?
For large, high-value vehicle purchases, especially when the customer is not present for payment, a multi-faceted approach to security is best. Always use 3D Secure 2 to authenticate the cardholder and shift fraud liability.
For added protection, consider requesting additional verification, such as a scanned copy of the buyer's driving licence and the vehicle's registration details, matching them against the payment information. Also, ensure the delivery address matches the billing address.
If possible, for non-local buyers, suggest a bank transfer for such high-ticket items, which carries no chargeback risk, or split payments using a card for a deposit and bank transfer for the balance.
Other MCCs in Miscellaneous Stores
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