Equipment Rental & Leasing, Tool Rental, Furniture Rental
General equipment, tool and furniture rental.
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.
Acquirer & underwriting 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.
How Cardflo handles MCC 7394
- Underwriting 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.
Payment methods typically enabled
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.
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