Use Case:

Merchant Category Codes (MCCs) are four-digit codes assigned by credit card networks to classify merchants based on the primary type of goods or services they provide. Certain MCCs are considered high-risk due to their association with increased potential for fraud, regulatory violations, or reputational harm. Examples of high-risk MCCs include those for gambling establishments, adult entertainment, and high-risk financial services like cryptocurrency exchanges.

The High-Risk Merchant Type risk analytic flags transactions where the MCC matches a high-risk classification. Customers can configure the analytic by selecting from a predefined list of high-risk MCCs and assigning each a risk level—weak, moderate, or strong—based on their organization’s compliance needs and risk tolerance. Transactions associated with these high-risk merchants are flagged for heightened scrutiny, allowing organizations to investigate further and ensure compliance with company policies.

For example, if an employee submits an expense linked to a high-risk merchant, such as a casino or a cryptocurrency exchange, the system flags the transaction for review, helping mitigate potential financial, regulatory, or reputational risks.