Direct Marketing, Combination Catalog & Retail Merchant.
Multi-channel catalogue and retail merchants.
- MCC
- 5965
- Category
- Miscellaneous Stores
- Cardflo support
- Yes
What MCC 5965 covers
Merchant Category Code 5965 is the ISO 18245 identifier used by the card networks for direct marketing, combination catalog & retail merchant. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
Multi-channel catalogue and retail merchants. 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 5965 is designated for direct marketing merchants operating with a combination of catalogue and retail presence. These businesses leverage multiple sales channels, including physical stores, online catalogues, and direct mail.
Product offerings are diverse, covering various retail goods. Ticket sizes are typically moderate, reflecting a mix of in-store and online purchases.
Transaction frequency can be consistent, driven by both occasional retail visits and online orders.
Chargeback rates are generally moderate. Common types include 'Merchandise not received' for catalogue orders, 'Merchandise not as described' for both channels, and 'Damaged goods'.
Returns and refund processing can be complex due to the multi-channel nature, sometimes leading to 'Credit not processed' disputes. Fraud risk exists across both card-present and card-not-present transactions.
Cardflo helps these merchants by providing unified reporting across all sales channels, enabling a holistic view of transaction data and simplifying reconciliation. Our network of acquirer partners facilitates processing for both physical and online transactions.
Operators in this MCC should leverage their multi-channel presence. For CNP transactions, implement advanced fraud screening, utilising 3DS2 where appropriate, and tokenisation for returning online customers.
For card-present sales, ensure EMV chip and PIN compliance. Given the mix of physical and digital products, streamline return processes across all channels to prevent 'Credit not processed' disputes.
Multi-acquirer routing can provide resilience for both in-store and online peak periods, whilst maintaining clear audit trails for all transactions helps with dispute resolution.
Acquirer and acquirer assessment stance.
Low-to-medium risk standard board. While multi-channel retail provides diversity, the card-not-present component introduces some fraud risk.
Standard underwriting and monitoring apply. A rolling reserve is less common for established merchants unless chargeback ratios are consistently elevated.
Dispute and chargeback profile.
This MCC frequently sees "13.1 / 4853 (merchandise not as described)" and "13.2 / 4855 (merchandise not received)" from catalogue sales, alongside "13.7 / 4857 (credit not processed)" due to multi-channel returns.
'Not as described' can result from discrepancies between online images/catalogue descriptions and in-store viewing. 'Not received' is usually shipping related.
'Credit not processed' arises when a return is initiated but the refund is delayed or misapplied across channels. Defend with detailed product specs, delivery confirmations, and comprehensive refund processing logs.
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 5965
- Placement with acquirers that actively board MCC 5965 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 5965. 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 MCC 5965 merchants ensure consistent customer experience and payment processing across their catalogue and retail channels?
Consistency is key. Merchants should use an integrated payment solution that can process transactions from both their e-commerce platform (catalogue) and physical Point-of-Sale (POS) systems.
This enables unified reporting, centralised customer data, and streamlined refund processing, regardless of the original purchase channel. Cardflo offers such integrated solutions with its combined online gateway and in-store terminal capabilities.
What are the specific challenges with handling returns and refunds for multi-channel merchants, and how can payments systems assist?
Challenges include tracking purchases across channels, applying correct refund amounts (especially with promotions), and processing refunds to the original payment method even if returned in a different channel.
A robust payment system allows customer service to easily look up transactions by various identifiers (e. g. , order ID, card number, customer name) and process refunds directly through the same system that handled the original payment.
This reduces manual errors and 'Credit not processed' chargebacks.
How do EMV chip and PIN requirements contrast with 3DS for MCC 5965, and which offers better protection?
EMV chip and PIN provides the strongest protection for card-present transactions in retail stores, shifting fraud liability to the issuer when the chip is read. For card-not-present (catalogue/online) transactions, 3D Secure 2 (3DS2) offers similar liability shift against fraud.
Both are crucial for comprehensive fraud protection. While 3DS2 aims for frictionless authentication, some transactions may still require customer interaction.
Merchants in this MCC benefit from leveraging both technologies extensively across their respective channels to minimise fraud-related chargebacks.
How should a multi-channel merchant manage returns and refunds to prevent 'Credit not processed' chargebacks, especially with catalogue and store sales?
For multi-channel merchants, clear communication and consistent process are key to reducing 'Credit not processed' chargebacks. Establish a unified return policy that is easily accessible online and in-store.
Ensure store staff are trained on online return procedures and vice-versa. Implement a system where returns, regardless of their origin channel, are logged promptly upon receipt.
Process refunds within the mandated scheme timelines and provide customers with clear confirmation of the refund, including the amount and expected crediting date. Leveraging tokenisation can ensure refunds are accurately linked back to the original payment method, reducing errors.
Regular reconciliation between channels is also critical to prevent discrepancies.
What specific strategies can optimise fraud prevention for both card-present and card-not-present transactions within a combined retail and catalogue business?
Optimising fraud prevention for this MCC requires a dual strategy. For card-present transactions, ensure all POS terminals are EMV chip and PIN compliant to reduce counterfeiting and skimming fraud.
Train staff on suspicious transaction indicators. For card-not-present (catalogue/online) transactions, deploy advanced fraud screening tools that analyse behavioural data, device fingerprints, and IP addresses.
Implement 3DS2 for high-value or suspicious online orders, ensuring SCA compliance. Utilise tokenisation for returning customers to simplify authenticated purchases and reduce re-entering sensitive card data.
Regularly review transaction patterns across both channels to identify emerging fraud trends unique to your business, adjusting risk rules accordingly.
Other MCCs in Miscellaneous Stores
Related industries.
Related features.
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