Merchant account category
 

Hi there,
I have a question for those who really know how it works.

As far as I know, any high-risk merchant account has its own category (four-digit number). For example - the majority of merchants opened for porn have 5967 category (if I made a mistake ? correct me please).
Anyways, there is an opinion that acceptance of credit cards depends on a merchant account category.

For example - a transaction from the same credit card can be approved with 7273 merchant account category (dating) but declined with 5967 merchant category.
The reason is that a customer bank (the bank that issued a card) can block any transactions from merchant accounts having potentially dangerous category according to the bank?s opinion (the transaction is declined with a reason code 5 ? do not honor).
Can it be true?

And one more question.
I know cases from my own experience when a transaction was declined with direct merchant (same reason code - do not honor) but approved with 3rd party billing such as CCBill, Epoch, etc (transactions from Visa or MasterCard).
How can this happen?

Thank you

you can email me, [email protected]

Email sent

Any thoughts? :Oh crap

57 Transaction not permitted

The bank that has issued this card does not allow this type of purchase. Have the client call the 800 number on the back of their card for further explanation.

https://support.mindbodyonline.com/h...-decline-codes

seems to be an all inclusive list

As far as I know "57 Transaction not permitted" - it's different kind of decline, when credit card is closed for all online transactions or something like this...

Transaction can be declined for your merchant and approved by epch or ccbill.... Even for funds not available or do not honor etc this can be all thhe way round as well.... Issuer cant block any merchant adult or non adult this is what we been told by risk analyst

Hi,

1)
This is true indeed.

2)
3rd party billing solutions do not have any control of this kind of payment's acceptance.

You understood well how it works and therefore you know that the issuing bank is the one making the decision to honour or not in that case.

All I can think of is that the 3rd party has opened a merchant account 7273 (or even other) while on the direct merchant account it is a 5967.

Max

Thanks for info!