Charitable & Social Service Organizations
Registered charities and social-service organisations.
What MCC 8398 covers
Merchant Category Code 8398 is the ISO 18245 identifier used by the card networks for charitable & social service organizations. Acquirers, issuers and regulators use this code to set interchange, scheme fees, fraud rules and reporting categories for every transaction your business processes.
Registered charities and social-service organisations. 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 8398 covers registered charities and social services organisations. These merchants typically receive donations or fees for services, with ticket sizes varying widely from small regular contributions to large one-off donations.
Transaction frequency can be unpredictable, often driven by campaigns or seasonal giving.
Chargeback rates are generally low, but disputes can arise from 'friendly fraud' where cardholders claim not to recognise a donation, or from administrative errors. Visa and Mastercard have specific rules for charitable contributions, often categorising them distinctly for interchange purposes.
Some schemes offer reduced interchange for eligible charities.
Cardflo's chargeback tooling, including its representment services and data insights, can help these organisations efficiently manage donation disputes and reduce operational overhead, while its robust acquiring network can ensure secure processing of varied transaction sizes.
Acquirer & underwriting stance
Low-risk standard board. These merchants typically present a stable risk profile with predictable transaction patterns, especially for recurring donations.
Standard monitoring is usually sufficient.
How Cardflo handles MCC 8398
- Underwriting with acquirers that actively board MCC 8398 businesses in your region.
- Subscription and membership-billing infrastructure built for recurring revenue.
- Member-data tokenisation that survives card reissues and updates.
- Dunning and retry logic tuned to professional-services renewal patterns.
- Reporting aligned with how associations and professional bodies close their books.
Payment methods typically enabled
Common questions
Are there specific scheme rules for processing charitable donations?
Yes, both Visa and Mastercard have provisions for charitable donations. Visa sometimes categorises these transactions under specific interchange programmes, potentially offering lower rates for eligible non-profits.
Mastercard also has rules regarding donation processing, often requiring clear disclosure that the transaction is a charitable contribution. Accurate MCC assignment is key to benefitting from any preferential rates.
How can charities minimise 'friendly fraud' chargebacks for donations?
Charities can minimise 'friendly fraud' by ensuring clear transaction descriptors on cardholder statements (e. g.
, 'DONATION-CHARITYNAME'), sending immediate donation confirmation emails, and having a transparent refund policy. Cardflo's chargeback management tools assist in providing compelling evidence during disputes, such as donor details and acknowledgement, to prevent chargeback losses.
Can charities qualify for lower interchange rates?
Some card schemes, particularly Visa, offer specific non-profit interchange categories that may provide lower rates than standard retail transactions. Eligibility typically depends on the charity's registration status and the transaction type.
Cardflo helps merchants ensure correct MCC assignment and provides guidance on optimising interchange costs.
Other MCCs in Professional Services & Membership
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