Car Rental Agencies.
Daily and short-term car rental agencies (not in 3300–3499).
- MCC
- 7512
- Category
- Business Services
- Cardflo support
- Yes
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.
Car rental agencies must configure their acceptance to manage pre-authorisations effectively for security deposits, ensuring sufficient funds are held without causing customer friction. Optimise your gateway for multi-acquirer smart routing to maximise authorisation rates for international customers.
Implement robust digital contracting and evidence capture for vehicle condition and damage. Dispute management should focus on rapid retrieval of rental agreements, proof of vehicle handover, and photographic evidence for post-rental charges.
Consider flexible refund policies for cancelled bookings to pre-empt disputes.
Acquirer and acquirer assessment 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.
Dispute and chargeback profile.
The most frequent dispute reason codes are 13.1 / 4853 (services not as described), 13.3 / 4855 (non-receipt of goods or services), and 13.6 / 4858 (credit not processed). 'Services not as described' often relates to vehicle condition.
'Non-receipt' might stem from disputed booking cancellations, while 'credit not processed' highlights issues with deposit refunds. Combat these with signed rental agreements, vehicle condition checklists with customer signatures, photographic evidence, proof of delivery/return, and clear communication of refund policies and timelines.
See also: chargeback management · payment response codes · Compelling Evidence 3.0.
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How Cardflo handles MCC 7512
- Placement 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.
- Dedicated onboarding manager experienced with B2B and corporate merchants.
Payment methods typically enabled.
Onboarding checklist.
What acquirers typically ask to see when boarding MCC 7512. 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
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.
How should a car rental agency best handle pre-authorisation and final charge for vehicle rentals, especially regarding security deposits?
A car rental agency should use pre-authorisation to secure the security deposit on the customer's card at the time of vehicle pickup. Clearly communicate the deposit amount and its purpose, along with the expected release timeframe.
Upon vehicle return, if no damages or extra charges apply, ensure the pre-authorisation is promptly released, ideally within 24-48 hours. The final rental charge should then be processed as a separate transaction.
For additional post-rental charges (fuel, damage), obtain signed documentation or photographic evidence and process these via a subsequent charge.
What specific operational data should a car rental firm retain to defend against disputes regarding vehicle condition or damage charges?
To defend against vehicle condition disputes, car rental agencies must maintain comprehensive, time-stamped photographic or video evidence of the vehicle's condition both at checkout and check-in. This should include all angles and close-ups of any pre-existing damage.
Obtain explicit customer signatures on a vehicle condition report at both stages. Additionally, retain records of any damage waivers purchased or declined, detailed repair invoices for post-rental damage, and communication logs related to damage notification.
This evidence is crucial for Visa/Mastercard dispute processes.
Other MCCs in Business Services
Related industries.
Related features.
Related guides.
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