Massage Parlors
Therapeutic and recreational massage services.
What MCC 7297 covers
Merchant Category Code 7297 is the ISO 18245 identifier used by the card networks for massage parlors. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
Therapeutic and recreational massage services. 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 7297 is designated for Massage Parlours, which includes businesses offering therapeutic and recreational massage services.
This MCC is often associated with higher scrutiny due to potential links with illicit activities, despite many legitimate businesses, such as wellness spas or physiotherapy clinics, also falling under or closely related to this category. Ticket sizes vary from modest single sessions to larger packages.
Transaction frequency can be regular for repeat clients but also includes one-off bookings.
Chargebacks can arise from service dissatisfaction, 'no-show' disputes if deposits were taken, or unauthorised transactions. A significant concern for acquirers is the reputational risk and potential for illegal activity, which can lead to increased fraud and money laundering risks.
Schemes like Visa and Mastercard rigorously monitor this MCC for compliance with legal and ethical standards.
Cardflo helps legitimate businesses in this category by providing robust KYB onboarding to demonstrate compliance and operational transparency. Our chargeback tooling is essential for documenting services rendered and managing disputes effectively.
Acquirer & underwriting stance
High-risk specialist board due to potential for illicit activities and reputational risk. Expect enhanced due diligence, stricter monitoring, and often a rolling reserve of 5-10% for a minimum of 180 days to mitigate financial and reputational exposure.
How Cardflo handles MCC 7297
- Underwriting with acquirers that actively board MCC 7297 businesses in your region.
- B2B card-not-present processing with Level 2 and Level 3 data support.
- Virtual-card, AP-automation and procurement-card acceptance.
- Invoice-linked payment flows and pay-by-link options for receivables teams.
- Settlement and reconciliation that maps cleanly to ERP and accounting systems.
Payment methods typically enabled
Common questions
Why is MCC 7297 considered high-risk, and what does it mean for processing applications?
MCC 7297 is high-risk due to its historical association with illicit activities like human trafficking or prostitution, even though many legitimate massage businesses exist. For processing applications, this means enhanced due diligence (KYB), more stringent documentation requirements, and likely higher processing fees.
Acquirers, including Cardflo, will conduct thorough background checks and require detailed information on business operations, licensing, and advertising practices.
What specific operational measures can a legitimate massage parlour take to improve its chances of approval and reduce risk perception?
Legitimate massage parlours should prominently display all required local and national licences. Transparent pricing, detailed service menus, and clear booking/cancellation policies are crucial.
Avoiding suggestive advertising, maintaining professional premises, and implementing robust ID verification for staff and potentially clients can also help. Cardflo's KYB process is designed to capture these details to build a strong case for approval.
What kind of reserve requirements can businesses in MCC 7297 typically expect?
Businesses in MCC 7297, due to the high-risk classification, frequently face rolling reserves. This typically involves holding back a percentage (e.
g. , 5-10%) of daily or weekly transaction volume for a set period (e.
g. , 180 days).
This measure protects the acquirer against potential future chargebacks or fines. The exact percentage and duration are determined during underwriting based on the specific business profile and perceived risk.
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