When it comes to setting up accounts for gaming there are a few things to consider and understand.
If you are uncertain of the licensing requirement, and you are based in the UK, then you may want to contact the Gambling Commission for advice. Even though we will accept their determination we will need proof from them such as a copy of the confirmation letter.
What are the MCC CODEs ?
A merchant category code (MCC) is a four-digit number assigned to a business by credit card companies (for instance Visa andf MasterCard). The MCC is used to classify the business by the type of goods or services it provides, which in turn allows us to work out the risk.
MCC codes for gaming, gambling and lotteries
There’s a thin line between gaming and gambling, here’s how the card schemes consider this:
Skilled Gaming (MCC = 7999, 7994 or 7995):
- Are there money prizes to win?
VISA without license (MCC 7994/7999), Mastercard requires license and high risk MCC (= 7995)
- No money prizes but there are in-game products to win?
VISA without license (MCC 7994/7999), MasterCard if licence required (MCC = 7995 / 7994 / 7999)
- No money prizes and no products to win?
VISA and Mastercard no license required (MCC will be 7994/7999)
Gambling (MCC = 7995)
- Always license required from EU
As you can see from the examples above, it basically depends on whether there’s money to win at some point. For example: if you take part in an online first person shooter game, and if you beat all your opponents and can win prize money when reaching the first place; MasterCard will require a license.
What codes do banks/card schemes consider high risk?
MCC’s 7994 and 7999 are considered medium risk, while 7995 is considered high risk.
Even though 7995 is classed as high risk, we can still help (subject to full application). All we ask is that you are incorporated in the EU and have an EU license (if applicable).
As mention above, because certain gaming and lotteries are coded 7995 by Visa and MasterCard the following countries would automatically be blocked. Please be aware that card schemes don’t blanket block 7995 transactions, it is blocked in certain countries where local law prohibits online gambling using card payments. Please also note that this is not the country that YOU the merchant comes from, but the country YOUR CUSTOMER comes from.
The blocked list covers a couple of different things:
1) Companies registered in those countries
2) Companies whose director is resident in those countries
3) Transactions from cards issued in those countries
4) Transactions with billing addresses in those countries