Direct Marketing, Travel-Related Arrangements
Direct-response travel reservation and arrangements.
What MCC 5962 covers
Merchant Category Code 5962 is the ISO 18245 identifier used by the card networks for direct marketing, travel-related arrangements. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
Direct-response travel reservation and arrangements. 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 5962 identifies merchants engaged in direct marketing for travel-related arrangements, such as booking holidays, flights, or accommodation via online channels or telemarketing. This includes online travel agencies (OTAs) that operate primarily through direct response.
Ticket sizes can vary substantially, from low-value individual components like car hire to high-value package tours. Purchase frequency is typically sporadic, often linked to holiday seasons or specific travel needs.
Chargebacks are a significant concern, frequently driven by travel disruptions, cancellations, or discrepancies between advertised and delivered services. Common dispute reasons include 'Cancelled services' or 'Services not as described'.
The travel industry is often scrutinised under scheme programmes like Visa's Integrity Risk Program due to its high-risk nature regarding chargebacks.
Cardflo assists these merchants through an acquiring network that includes specialist travel acquirers, capable of handling higher transaction volumes and specific industry risks, and providing chargeback mitigation tools tailored to the complexities of travel cancellations and adjustments.
Acquirer & underwriting stance
Medium-to-high risk standard board with enhanced monitoring. Due to inherent risks like service cancellations, no-shows, and disputes over service quality, acquirers often impose rolling reserves of 10-15% for 180-365 days, particularly for merchants with less financial history or higher chargeback rates.
Real-time chargeback alerts are usually mandated.
How Cardflo handles MCC 5962
- Underwriting with acquirers that actively board MCC 5962 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.
Payment methods typically enabled
Common questions
What are the primary chargeback triggers for travel-related direct marketing, and how can they be managed?
Key triggers include 'Cancelled services' (Visa 13. 5 / Mastercard 4807) due to travel disruptions (e.
g. , flight cancellations, hotel closures), and 'Services not as described' (Visa 13.
3 / Mastercard 4855) when the delivered travel experience differs from marketing. Management involves clear cancellation policies prominently displayed, proactive customer communication during disruptions, and robust documentation of service agreements (e.
g. , booking confirmations, terms and conditions) for effective dispute representation.
How do 3D Secure exemptions apply to MCC 5962 merchants, and should they be utilised?
Merchants in this MCC can potentially benefit from 3D Secure (3DS) exemptions for low-value transactions or recurring payments, as per PSD2 Strong Customer Authentication (SCA) regulations in Europe. However, given the high-risk nature of travel, adopting 3DS for all relevant transactions is generally advisable.
While it might add a step to the customer journey, it shifts liability for fraudulent transactions from the merchant to the issuer, significantly reducing fraud-related chargebacks. Cardflo encourages merchants to strategically apply 3DS; our gateway supports various 3DS versions including 2.
0 enabling frictionless flows.
What payment methods are most favoured by customers for direct marketing travel arrangements, and why?
Customers often prefer digital wallets like Apple Pay and Google Pay for convenience and security, and also established payment methods like PayPal due to its buyer protection policies. Instalment payment options (e.
g. , Klarna) are also gaining popularity for higher-value bookings, allowing customers to spread the cost.
Providing a diverse range of APMs caters to customer preferences and can boost conversion rates, which Cardflo helps facilitate through its extensive APM coverage.
Other MCCs in Miscellaneous Stores
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