Equipment Rental & Leasing, Tool Rental, Furniture Rental.
General equipment, tool and furniture rental.
- MCC
- 7394
- Category
- Business Services
- Cardflo support
- Yes
What MCC 7394 covers
Merchant Category Code 7394 is the ISO 18245 identifier used by the card networks for equipment rental & leasing, tool rental, furniture rental. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
General equipment, tool and furniture rental. 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 7394 applies to merchants engaged in equipment rental and leasing, including tool rental, furniture rental, and general equipment hire. This covers a wide range of items from construction machinery and party supplies to office furniture.
Transaction sizes vary significantly based on the item and rental duration, from small daily tool hires (£10-£50) to large monthly equipment leases (£1,000+). Frequency is often sporadic for one-off rentals but can be recurring for longer-term leases.
Chargebacks can occur due to disputes over equipment condition on return, unreturned items, or disagreements on rental duration or extra charges (e. g. , late fees). Authorisations are crucial to cover potential damages.
Cardflo’s robust pre-authorisation and partial capture capabilities are highly beneficial, allowing merchants to secure funds for potential damages or extended rentals while only capturing the actual rental fee. This helps mitigate financial losses from disputes over damaged or unreturned equipment.
Operators within equipment rental and leasing must configure acceptance to manage higher average ticket sizes and potential damage disputes.
Leverage Strong Customer Authentication (SCA) for upfront payments and consider robust pre-authorisation schemes for security deposits, ensuring sufficient funds are held against potential damages or unreturned items. Recurring billing should be used for long-term leases, with clear terms communicated.
Given acquirer scrutiny on inventory management, be prepared to demonstrate clear asset tracking and damage assessment policies. This approach mitigates risk associated with item recovery and disputes over item condition.
Acquirer and acquirer assessment stance.
Medium-risk standard board with monitoring. This MCC carries elevated risk due to potential damage to rented goods, unreturned items leading to disputes, and the need for significant pre-authorisation amounts.
Underwriting focuses on deposit policies, inventory management, and dispute history. Reserves based on a percentage of transaction volume (e. g. , 5-10%) for 6-12 months are common to cover potential losses.
Dispute and chargeback profile.
This trade primarily faces disputes under 13.1 / 4853 (services not as described) for alleged poor equipment condition or malfunction, and 13.3 / 4855 (not as described/defective merchandise) if the renter claims the item was faulty.
Additionally, 10.4 / 4834 (point of interaction error) for incorrect charges or unreturned security deposits. Combat these with detailed rental agreements, pre- and post-rental inspections with photographic or video evidence, clear documentation of damage fees, and proof of equipment delivery and return.
A signed waiver for condition acceptance is also highly effective.
See also: chargeback management · payment response codes · Compelling Evidence 3.0.
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How Cardflo handles MCC 7394
- Placement with acquirers that actively board MCC 7394 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.
- Dedicated onboarding manager experienced with B2B and corporate merchants.
Payment methods typically enabled.
Onboarding checklist.
What acquirers typically ask to see when boarding MCC 7394. 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 B2B volume.
- Standard master services agreement or engagement letter template.
- Level 2 / Level 3 data capability evidence for commercial-card processing.
- Refund, cancellation and dispute-handling policy for recurring or retainer billing.
- Chargeback ratio and dispute history covering the last six months, including any Visa or Mastercard monitoring-programme status.
See also: Know Your Customer (KYC) · high-risk merchant · smart routing.
Talk to an acquiring specialist about your MID setup.
Common questions
How should authorisation holds be managed for equipment rental security deposits?
For equipment rental security deposits, merchants should use 'authorisation holds' (or pre-authorisations) on the customer's card. This blocks the deposit amount on the cardholder's available credit without actually charging them.
Upon return of the equipment in good condition, the hold is simply released. If damages occur, a partial capture can be initiated within the scheme's allowed timeframe (typically up to 30 days), charging only the necessary amount.
Cardflo's gateway supports these critical functions.
What specific evidence is needed to defend a chargeback for 'damaged or unreturned equipment'?
To defend against chargebacks for damaged or unreturned equipment, merchants need a signed rental agreement detailing terms and conditions, photos/videos of the equipment's condition before and after rental, proof of delivery/pickup, and clear documentation of damage assessments or non-return.
Invoices for repair costs or replacement are essential. Communicating these policies clearly to the customer upfront is also key.
Are there different interchange rates for B2B vs. B2C equipment rentals?
Yes, depending on the card scheme and region, B2B transactions (e. g. , commercial or corporate cards used by businesses) often have different, sometimes higher, interchange rates compared to consumer cards.
Merchants in MCC 7394 should be aware of this, especially if dealing with a high volume of corporate clients. Cardflo's transaction reporting can help identify these patterns and provide insights into overall processing costs.
How should a tool rental business manage security deposits to prevent disputes and potential chargebacks?
A tool rental business should handle security deposits by implementing a clear, written policy, agreed upon by the customer at the time of rental.
Utilise a pre-authorisation hold on the customer's card for the deposit amount rather than an immediate charge, which can be released upon the safe return of the equipment.
Document the condition of the tool both at dispatch and on return, ideally with photographic evidence, noting any pre-existing damage. If a portion of the deposit is withheld for damage or late fees, provide a detailed breakdown and justification to the customer promptly.
This transparency will significantly reduce 'not as described' chargebacks.
What payment procedures mitigate chargebacks for expensive construction equipment leases in relation to unreturned or damaged items?
For expensive construction equipment leases, implement comprehensive payment procedures. Firstly, ensure a robust lease agreement detailing responsibilities for damage, loss, and return conditions.
Secure a substantial pre-authorisation hold on the customer's payment card for the full replacement cost, or a significant portion thereof, to cover potential unreturned items or severe damage.
Conduct thorough joint inspections with the customer at lease commencement and termination, documenting equipment condition with dated and signed reports, supplemented by high-resolution photographs or video.
Engage third-party delivery tracking with proof of delivery and return, and ensure these documents are readily available for chargeback defence.
Other MCCs in Business Services
Related industries.
Related features.
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