3023 Mexicana

Introduction

• What it is: This MCC covers businesses that provide authentic Mexican food and beverages.
• Risk level: Medium — There can be financial fluctuations based on the economy and consumer trends.
• Acceptance difficulty: Medium — While many processors accept these businesses, some may require additional documentation.
• Typical business models: Mexican restaurants; food trucks; catering services; taco stands; grocery stores specializing in Mexican goods.
• For merchants: Expect moderate MDR rates; potential for reserve requirements; approvals may vary based on the business model.
• What PSPs expect: Clear menu items or service offerings; proof of business operations; food handling permits if applicable.

Payment Insights & Benchmarks

Merchants in this MCC should plan for higher payment friction compared to standard e-commerce. Acceptance often depends on method mix, fraud controls, and PSP risk appetite.

Payment methods

Cards: can be subject to stringent fraud checks, resulting in lower approval rates.

• E-wallets: widely used for both payments and refunds, offering more flexibility but varying acceptance.
• Bank transfers: popular for larger transactions, though they may incur longer processing times.
• Prepaid cards: suitable for customer anonymity but can limit transaction size.

Authentication & security

Strong authentication measures, such as 3DS, are typically adopted to reduce fraud risk.

• While these measures enhance security, they can lead to increased cart abandonment if not implemented smoothly.
• Continuous fraud monitoring is essential, especially for high-ticket items and new customer profiles.

Benchmarks (indicative, not guaranteed)

MDR: generally higher than standard e-commerce rates.

• Rolling reserves: may be required, often at higher percentages.
• Settlement cycles: typically longer, potentially exceeding 7 days.
• Chargeback ratios: likely to be above retail averages, reflecting higher risk.
• Card approval rates: often lower, with alternative payment methods seeing better acceptance.

Key metrics to monitor

Authorization rates segmented by card type and payment method.

• Chargeback ratios with breakdowns by cause and transaction type.
• Average transaction value and frequency of high-value transactions.
• Cart abandonment rates linked to authentication processes.

Risk & Compliance

Merchants categorized under the MCC 3023 (Mexicana) face significant scrutiny due to the inherent risks associated with cross-border transactions and potential for financial misconduct. PSPs and acquirers impose rigorous compliance checks to address fraud, chargebacks, and adherence to AML/KYC regulations.

Chargebacks & fraud

Common types of fraud include friendly fraud, where customers dispute legitimate transactions, and the use of high-risk credit cards for purchases.

• Chargebacks in the form of “item not received” or “goods not as described” are prevalent, often exacerbated by shipping issues or lack of transparency.
• Effective mitigation strategies include implementing robust verification processes, using device fingerprinting, and setting up velocity checks to monitor abnormal transaction patterns.

AML/KYC expectations

Merchants must conduct strong customer identity verification (IDV) processes, including effective sanctions and PEP (Politically Exposed Persons) checks.

• Monitoring of source-of-funds is crucial, especially for large or unusual transaction activities that may trigger further investigation.
• Triggers for manual review can include transactions with unusual geographic patterns, inconsistent account information, or suspicious payment methods.

Operational red flags

Lack of transparency regarding ownership; merchants should avoid white-label structures that obscure the true operators behind the business.

• Marketing practices that attract traffic from regions with high fraud rates can be alarming to PSPs/acquirers.
• Absence of clear policies regarding refunds or chargeback handling can lead to operational issues and increased scrutiny.
• Inadequate communication about transaction processes can lead to customer disputes and increased chargeback risk.

Onboarding Checklist

Merchants under this MCC should prepare a complete onboarding package before approaching PSPs or acquirers. A well-structured submission improves approval chances and shortens review times.

Legal & corporate documents

company registration and incorporation documents

• disclosure of beneficial owners (UBO) and corporate structure
• valid licenses for the relevant business activities
• policies: Terms of Service, Privacy, AML/KYC, Refund Policy, Responsible Gaming (if applicable)

Financials & risk management

recent financial statements and cashflow forecasts

• liquidity or reserve model for payouts
• description of antifraud setup and monitoring tools

Product & marketing

demo access or screenshots of the live platform

• marketing plan and traffic source overview (affiliates, SEO, PPC)
• geographic targeting information
• KYC flow details, including IDV providers and thresholds

Technical integration & security

payment architecture overview with supported methods/providers

• description of SCA/3DS flows, retry logic, and tokenization
• PCI DSS compliance status and data storage policy

Operations

customer support coverage (languages, 24/7 if available)

• SLA for dispute handling and chargeback response
• deposit, bet, and payout limits; self-exclusion mechanisms
• internal process for chargeback investigation and documentation

Regulation & Licensing

Licensing and certification are critical for merchants in this MCC, as PSPs and acquirers will require proof of compliance before onboarding. Recognition of licenses depends heavily on the merchant’s jurisdiction and the markets they target.

Operator licenses

Secretaría de Gobernación (SEGOB) — the primary licensing authority for gaming in Mexico, ensuring compliance with local regulations.

• Appropriate local state gaming commissions — in Mexico, states have individual licensing requirements for casinos and gaming activities.
• International licenses (e.g., UKGC) may also be recognized depending on the target market of the merchant.
• Licenses from jurisdictions such as Curacao and Malta might be less recognized within Mexico but can facilitate operations in international markets.

Geo-restrictions

The Mexican market has specific licenses for different types of gaming, making it essential for merchants to understand local regulations.

• Transactions may be restricted for operators without proper licensing in jurisdictions where they wish to operate.
• Some international PSPs may refuse to process payments related to unlicensed gaming operations.

Certifications & audits

PCI DSS compliance for secure payment processing and handling of cardholder data.

• Regular audits and compliance reviews related to AML regulations.
• Technical audits of gaming software and operations to ensure integrity and fairness.
• Responsible Gaming certifications to promote player safety and compliance with local and international standards.

Official Definitions & Network Comparisons

This section shows how major card networks define this MCC and highlights practical differences that affect merchant onboarding.

Explanation:

While the definitions are aligned around travel services, differences in terminology and regulatory focus can affect merchant classification. For example, "reservation services" may carry different implications than "travel agencies." Compliance requirements can be stricter in some regions, reflecting local industry standards. Common denial reasons often include inadequate documentation, failure to meet operational standards, or lack of proper licensing.

Alternative MCC Codes

Merchants often confuse this MCC with other categories. The table below shows which codes are related, why they are confused, and what risks misclassification brings.

Rule of thumb for merchants:

If your business primarily involves aircraft operations or services related to air travel, ensure you classify accurately under MCC 3023. Trying to fit in another MCC can lead to compliance challenges and potential penalties.

Best Practices for Merchants

Merchants operating under the MCC 3023 must pay particular attention to payment processing, risk management, and operational efficiency. Adopting the practices outlined below will aid in enhancing acceptance rates, minimizing disputes, and fostering robust relationships with payment service providers.

Classification & transparency

always ensure the correct MCC is utilized to avoid account complications

• clearly state the nature of services offered and related policies on the website
• maintain accurate billing descriptors to reflect the transactions clearly

Fraud & chargeback reduction

integrate 3DS or step-up authentication for transactions identified as high risk

• employ unambiguous billing descriptors and provide immediate confirmation via email or SMS
• capture and log transaction details to support evidence in case of disputes

Payment acceptance optimization

support various payment methods (credit/debit cards, wallets, bank transfers) to maximize acceptance

• strategically route transactions based on geography, banking institutions, and performance testing
• establish separate Merchant Identifiers (MIDs) for different product lines to comply with scheme regulations

Operational discipline

monitor key performance indicators (KPIs) such as authorization rates, chargeback ratios, and customer lifetime value (LTV)

• conduct regular compliance audits, ensure internal policy updates, and perform test transactions to validate processes
• designate a specific team member to handle disputes and ensure responses adhere to service level agreements (SLAs)

Payouts & liquidity

create liquidity buffers to accommodate rolling reserves and potentially extended payout timelines

• implement automated anti-money laundering (AML) checks for withdrawal requests, particularly at critical thresholds
• closely observe payout frequencies and identify any suspicious withdrawal patterns to mitigate risks

Business Scope & Examples

This MCC covers businesses primarily engaged in the manufacture and sale of Mexicana products, such as food items, beverages, and cultural merchandise. Merchants classified under this category usually provide services or platforms where customers make payments for authentic Mexicana goods and experiences. The scope includes both retail and wholesale operations related to the Mexicana cultural landscape.

Models

retail stores selling traditional Mexicana food products (e.g., tortillas, spices)

• restaurants offering authentic Mexicana cuisine
• specialty liquor shops focusing on Mexican beverages (e.g., tequila, mezcal)
• online platforms selling Mexicana crafts and cultural merchandise

Borderline cases

General Latin American food — establishments that serve a broader range of Latin American cuisines may not fall strictly under this MCC; classification may depend on the focus on Mexicana culture specifically.

• Cultural festivals — events showcasing various Latin American cultures; while they may include Mexicana aspects, they need to be primarily focused on Mexicana for appropriate classification.

Signals for correct classification

business primarily sells or promotes authentic Mexicana cultural products

• majority of offerings represent traditional Mexicana recipes or craftwork
• vendor is recognized for their contribution to preserving and sharing Mexicana heritage