 TITLE: How Credit Card Issuers Classify Dining Purchases CONTENT: What Are Merchant Category Codes?\n---------------------------------\nCredit card issuers use four-digit numbers that are known as merchant category codes, or MCCs, to classify different types of businesses.\nMCCs were created by the IRS in 2004 to help credit card networks and issuers identify businesses, analyze customer behavior and spending, track payment processing charges and determine bonus rewards on purchases. When a business establishes a payment system with a credit card payment network, such as Mastercard or Visa, it is assigned a merchant category code based on what it sells or the service it provides.\nBecause MCCs are assigned by the payment networks or self-designated by the businesses themselves, credit card issuers—banks such as Bank of America or Chase—do not control which businesses fall under which merchant category codes. You might find that some food delivery services use an MCC that your credit card issuer considers \"dining,\" and earns bonus rewards on orders as a result. On the other hand, a business you consider a restaurant might not earn any bonus rewards on dining expenses because of the MCC it is categorized under.\nCredit card issuers have their own systems of classifying different types of businesses too. While based on merchant category codes, they can vary from the official MCCs and from other issuers' categories.\nIt's good to pay attention to merchant category codes so you understand how credit cards might group different types of businesses. However, it's more important to look at how your specific credit card will code purchases—dining and otherwise—so you can set your rewards earnings expectations accordingly. END