MCC 7322: FAQ’S

Q. Do I really need a 7322 MID?

A. Yes. If you are a debt collection agency, Visa requires you to process certain transactions under MCC 7322. Visa created this Merchant Category Code specifically to offer new opportunities to the industry, as well as to track and regulate accounts receivable management (ARM) and debt collection activity. This ensures greater transparency for both card brands and issuing banks. Without a 7322 MID, your transactions may be declined or flagged as non-compliant.

Q. What if my software can’t connect to Paywire?

A. If your current payment software cannot support the MCC 7322 configuration on its own, you will need to use Paywire to manage the process. Our set-up allows you to process both standard transactions and those requiring MCC 7322 under separate merchant accounts. This ensures that transactions are processed  correctly and remain compliant. Payscout is working to complete connections to the handful of collection software platforms that are not already integrated to us. We will be happy to discuss any alternative solutions on a case by case basis.

Q. How much time do we have to make these changes?

A. Changes should be made as soon as possible. While MCC 7322 has technically been in place since October 2022, enforcement has only recently begun. Delays in compliance could result in declined transactions, fines, or interruptions in processing. It is strongly recommended to prioritize this transition immediately.

Q. Is there any distinction for b2b vs b2c transactions?

A. No. While the requirement to use MCC 7322  depends on the type of work you handle for your clients, there is no distinction between consumer or commercial payments within the card brand rules. The networks view any cardholder as the customer and the rules apply to all transactions, regardless of the source. If you’re unsure about your need for 7322 or your eligibility for other MCCs, it’s best to review your portfolio of transactions and consult with your dedicated relationship manager for proper categorization.

Q. Will debt collection agencies still be able to process credit cards?

A. Yes. Debt collection agencies can continue processing credit cards, but only under the correct MCC for eligible transactions. The eligibility depends on both the type of debt (e.g. medical, financial, etc) and the type of card being used. Improper processing of card transactions may be rejected if not aligned with Visa’s rules.

Q. Does this apply to Mastercard as well as Visa, or just to Visa?

A. Yes. Both Visa and Mastercard enforce compliance under MCC 7322. While the requirement originated with Visa, Mastercard has aligned its policies to ensure consistent treatment of debt-related payments.

Q. Do we have to do anything on our part to update our MIDs?

A. Yes. Merchants must be set up correctly to process both general transactions and debt-related transactions. Please reach out to RM@payscout.com to complete your updated ARM Questionnaire. This step ensures you are assigned the appropriate MCC MID and remain compliant.

Q. Is this need to process under 8931 applicable for ACHs, Debit cards or AMEX?

A. No. ACH transactions are not subject to this requirement. However, debit card and Amex transactions may be impacted. Please refer to the eligibility chart below for exact guidance on which payment types fall under MCC 7322, 8931, or 8099.

Q. Please confirm:  if our transactions do not meet the 4 triggers, we do not need the MCC 7322 MID?

A. Visa believes that you should be processing under MCC 7322. Even if your transactions do not meet the specific triggers, you must still be set up with a companion MID under MCC 7322. This is required to ensure that any debt-related payments are processed under the correct category without delay.

Q. Will HSA/FSA cards process under 7322?

A. No, HSA/FSA transactions require a medically oriented MCC, such as 8099, to be approved for processing. Please refer to the eligibility chart for details.

Q. What about AmEx Debit cards?  We’re starting to see these now.

A. Your AMEX card transactions will not fall under MCC 7322 since AMEX has not yet introduced the 7322 MCC, those transactions would get processed under a different MCC or rejected automatically as an invalid merchant type.

Q. Will someone at the merchant need to monitor and decide within Payscout if a payment needs to be processed through 7322?

A. Yes, but not at the time that transactions are being processed by your team; the gateway functionality will handle that decision making. However, merchants are responsible for reviewing their transactions regularly to ensure compliant card acceptance. While processors may provide guidance, it is ultimately the merchant’s duty to ensure payments are processed  correctly. Misclassification can lead to declined payments or compliance issues.

Q. We have payment plans that have been in place for years that may have been set up using credit cards. Will these arrangements that have already been set up still be able to process in our system once the change has been made?

A. Existing recurring credit card arrangements will continue to be processed under the updated system. Merchants do not need to re-enroll customers. However, once changes are in place, all new payment plans will be required to follow the MCC 7322 guidelines.

Q. What is the process to convert to the Paywire gateway from Latitude, as an example?

A. For all currently integrated software platforms, the process includes completing a Deployment Form. This ensures that your current system is transitioned properly, your MIDs are set up correctly, and your compliance requirements are met. Our team will guide you through each step of the conversion. Please reach out to RM@payscout.com.