A Merchant Category Code (MCC) is a four-digit number listed in ISO 18245 for retail financial services. MCC is used to classify the business by the type of goods or services it provides. MCCs are assigned by merchant type (e.g. one for hotels, one for office supply stores, etc.) or by merchant name (e.g. 3000 for United Airlines).
A MCC is assigned to a merchant by the card company when the business first starts accepting cards as a form of payment. The code reflects the primary category in which the merchant does business and may be used :
In the United States, it can be used to determine whether or not a payment needs to be reported to the Internal Revenue Service for tax purposes.
References
Merchant category code Wikipedia(Text) CC BY-SA