Direct Marketing, Catalog Merchant.
Catalogue-only direct retailers.
- MCC
- 5964
- Category
- Miscellaneous Stores
- Cardflo support
- Yes
What MCC 5964 covers
Merchant Category Code 5964 is the ISO 18245 identifier used by the card networks for direct marketing, catalog merchant. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
Catalogue-only direct retailers. 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 5964 signifies direct marketing via catalogue merchants. These businesses primarily sell goods through mailed or online catalogues, enabling customers to order products for delivery.
Products can range from clothing and home goods to electronics. Ticket sizes are typically moderate, with a potential for larger orders, but generally lower than high-end retail.
Transaction frequency may be seasonal or driven by new catalogue releases.
Chargeback rates for catalogue merchants are generally moderate. Common reasons include 'Merchandise not received', 'Merchandise not as described', or 'Credit not processed' for returns.
Logistics and supply chain issues are often underlying factors in these disputes. The reliance on remote transactions means fraud can be a concern, necessitating strong fraud screening.
Cardflo's platform helps these merchants by providing robust fraud detection tools and efficient refund processing capabilities, crucial for handling returns and improving customer satisfaction.
To optimise acceptance, merchants should prioritise user-friendly online purchase flows and clear product descriptions, addressing the CNP nature of catalogue sales. Implement robust fraud screening, utilising tokenisation for recurring customers to streamline checkout.
Given the potential for 'Merchandise not received' disputes, integrate tracking information seamlessly into customer communications. Also, offer clear return policies and efficient refund processing to mitigate 'Credit not processed' chargebacks, balancing customer experience with financial risk.
Consider multi-acquirer routing to ensure transaction resilience, especially during peak catalogue campaign periods.
Acquirer and acquirer assessment stance.
Low-to-medium risk standard board. While card-not-present transactions carry inherent fraud risk, the sale of physical goods tends to be less risky than services.
Standard monitoring with typical transaction limits applies. A rolling reserve might be requested in cases of higher-than-average chargeback rates or for new merchants.
Dispute and chargeback profile.
Merchants frequently encounter "13.1 / 4853 (merchandise not as described)" and "13.2 / 4855 (merchandise not received)". Not as described often arises from discrepancies between catalogue images/descriptions and actual product.
Combat this with high-resolution photography, detailed specifications, and customer reviews. Not received typically occurs due to shipping delays or fulfilment errors.
Defend these by providing delivery confirmation, tracking numbers, and proof of postage. Clear communication on delivery expectations during purchase is also crucial.
See also: chargeback management · payment response codes · Compelling Evidence 3.0.
Book a scoping call to see how Cardflo would set you up.
How Cardflo handles MCC 5964
- Placement with acquirers that actively board MCC 5964 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 5964. 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
How can catalogue merchants best manage 'Merchandise not received' chargebacks?
To mitigate 'Merchandise not received' (Visa 13.1 / Mastercard 4855) chargebacks, merchants must use reputable shipping carriers that provide comprehensive tracking and delivery confirmation. Electronically linking tracking details to transactions and presenting this proof during disputes is critical.
Prompt communication with customers about shipping delays and offering timely refunds or reshipments for genuinely lost items can prevent many disputes from escalating to chargebacks.
What role does 3D Secure play for catalogue merchants, and what are the best practices for its implementation?
For catalogue merchants, 3D Secure (3DS) is a vital tool for combating fraud, especially since all transactions are card-not-present. Implementing 3DS2 allows for a more frictionless customer experience while still providing liability shift for fraudulent transactions.
Best practices include ensuring full 3DS2 integration, whitelisting trusted customers (if applicable), and providing clear messaging during the authentication flow. While some customers might abandon the payment if a challenging 3DS authentication occurs, the fraud protection often outweighs this risk for this MCC.
Are there specific challenges related to cross-border catalogue sales, and how can they be addressed via payments?
Cross-border catalogue sales face challenges like varying tax and customs regulations, differing local payment method preferences, and currency conversion issues. Merchants should clearly display all-inclusive prices (DDP) to avoid unexpected costs for customers.
Utilising a payment gateway like Cardflo that supports a wide range of local payment methods and dynamic currency conversion (DCC) can significantly improve conversion rates and customer satisfaction for international buyers.
How can I mitigate 'Merchandise not received' chargebacks when shipping physical goods from my catalogue sales?
To effectively mitigate 'Merchandise not received' chargebacks, integrate robust shipping tracking into your order fulfilment process. Ensure that every order receives a unique tracking number and that this information is promptly communicated to the customer via email confirmation.
Maintain proof of delivery records, including signed receipts where applicable, or electronic delivery confirmations for doorstep drops. Should a dispute arise, providing the acquirer with a valid tracking number showing delivery, especially with a signature confirmation, is your strongest defence.
Also, consider offering shipping insurance for higher-value items to protect against loss in transit, helping to reduce the financial impact of such disputes on your business.
What operational adjustments can reduce 'Merchandise not as described' disputes specific to catalogue product representation?
Reducing 'Merchandise not as described' disputes requires meticulous attention to product representation in your catalogues and online. Invest in professional, high-resolution photography that accurately depicts product colours, textures, and dimensions.
Complement visuals with comprehensive textual descriptions, including materials, sizes, and any unique features or limitations. If you sell clothing, provide detailed sizing charts.
For variations, such as colour or pattern, ensure customers clearly select their preference. Review product descriptions regularly and update them if actual items differ from stated specifications.
Proactively addressing potential discrepancies before shipment can significantly lower the incidence of these disputes and improve customer satisfaction.
Other MCCs in Miscellaneous Stores
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