Car Rental Agencies
Daily and short-term car rental agencies (not in 3300–3499).
What MCC 7512 covers
Merchant Category Code 7512 is the ISO 18245 identifier used by the card networks for car rental agencies. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
Daily and short-term car rental agencies (not in 3300–3499). 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 7512 covers Car Rental Agencies for daily and short-term rentals. These merchants range from large international chains to local independent rental firms.
Ticket sizes are medium to high, depending on rental duration and vehicle type, with transactions typically occurring at the counter (card-present) or through online booking (card-not-present). Many rentals involve a pre-authorisation for a security deposit and a final charge at the end.
Chargeback risk is medium to high. Common reasons include 'Services Not as Described' (e.
g. , vehicle condition), 'Merchandise Not Received' (e.
g. , booking cancelled but charged), or 'Credit Not Processed' (for deposit refunds).
'No Show' fees and post-rental charges for damage or fuel can also lead to disputes. Visa and Mastercard have specific rules around rental agreements and damage wavers.
Cardflo's advanced fraud prevention tools and the ability to manage complex authorisation flows, including pre-auths and incremental authorisations for security deposits and final billing, are crucial for this MCC. This helps manage the unique aspects of car rental transactions and reduces fraud exposure.
Acquirer & underwriting stance
Medium-risk standard board with monitoring. Pre-authorisation management and potential for post-rental disputes require attention.
A rolling reserve of 3-5% might be expected for newer or higher-volume independents.
How Cardflo handles MCC 7512
- Underwriting with acquirers that actively board MCC 7512 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
What are the common chargeback reasons for car rental agencies post-rental?
Post-rental chargebacks often arise from disputes over additional charges for damage, cleaning, fuel, or late returns.
To mitigate this, merchants must ensure clear photographic evidence of vehicle condition pre and post-rental, detailed rental agreements outlining all potential charges, and transparent communication with the customer about any extra fees.
How can car rental agencies manage pre-authorisations for deposits efficiently?
Efficient pre-authorisation management involves using appropriate authorisation amounts to cover potential liabilities, ensuring timely captures for actual charges, and promptly releasing unused funds. Cardflo's systems allow for flexible management of authorisations, including incremental authorisations if additional funds are needed due to extended rental or damage.
This helps avoid 'Credit Not Processed' disputes.
Are there specific Visa/Mastercard rules for rental damage charges?
Yes, Visa and Mastercard have specific requirements for charging a cardholder for rental vehicle damage. Merchants generally need to inform the cardholder of the damage within a certain timeframe (e.
g. , 90-120 days of return), provide itemised repair costs, and demonstrate that the damage occurred during the rental period and was not covered by insurance or a damage waiver, alongside proof the cardholder was properly notified and agreed upon the terms.
Failure to follow these rules can lead to chargeback reversals.
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