3115 Tower air

Introduction

• What it is: This MCC covers businesses involved in the operation of tower air services.
• Risk level: Medium — The nature of air transportation carries inherent risks.
• Acceptance difficulty: Medium — PSPs may require additional documentation due to safety and regulation concerns.
• Typical business models: air transportation services; charter flight operators; regional airlines; aerial taxi services.
• For merchants: Higher MDR due to perceived risks; potential for reserve holds; thorough compliance checks during onboarding.
• What PSPs expect: Detailed business plan; safety certifications; clear operational protocols for service delivery.

Payment Insights & Benchmarks

Merchants operating in the Tower Air sector should anticipate unique challenges related to payment acceptance. Given the nature of this industry, it is crucial to understand the typical payment behaviors and financial dynamics that may affect operations.

Payment methods

Cards: may face high decline rates, particularly for international transactions.

• E-wallets: popular for ease of use, but may have varying acceptance across different platforms.
• Direct bank transfers: often reliable, yet can introduce longer processing times.
• Travel vouchers: utilized especially in this sector, they provide customers with flexibility but need to manage risk for non-redeemed vouchers.

Authentication & security

Strong customer authentication (SCA) is frequently required to mitigate online fraud risks.

• 3DS can be deployed, improving security but potentially impacting approval rates if improperly configured.
• Fraud monitoring should focus on transaction patterns, especially during peak travel seasons.

Benchmarks (indicative, not guaranteed)

MDR: likely higher than the average e-commerce rate due to perceived risks.

• Rolling reserves: common in high-risk industries, often in the range of 10-20%.
• Settlement times: may exceed the typical 3-5 days, with potential delays depending on payment methods.
• Chargeback ratios: generally higher than retail, influenced by disputed transactions in travel bookings.
• Approval rates: often lower than standard e-commerce, particularly for card payments.

Key metrics to monitor

Payment approval rates segmented by method and customer location.

• Trends in chargebacks and disputes by category (e.g., service issues versus fraud).
• Average transaction value to identify pressure points in customer spending.
• Times of peak transactions to evaluate capacity and fraud risk assessments.

Risk & Compliance

Merchants within the Tower Air MCC face significant risks related to financial transactions and customer interactions. PSPs and acquirers enforce stringent measures, requiring merchants to remain vigilant against potential fraud, chargebacks, and compliance with AML/KYC regulations.

Chargebacks & fraud

High risk of customer disputes related to nondelivery or service issues, leading to increased chargebacks.

• Friendly fraud is prevalent, with customers claiming they did not receive services or goods.
• Common fraud tactics include the use of stolen credit cards and identity theft.
• Mitigation tools such as velocity checks, chargeback alerts, and robust transaction monitoring systems are essential.

AML/KYC expectations

Mandatory strong customer identity verification (IDV) with comprehensive sanctions and PEP (Politically Exposed Persons) checks before processing transactions.

• Regular monitoring for suspicious activity, including unusual booking patterns or large payments from single users or IPs.
• Triggers for manual review include high-value transactions, rapid booking changes, and inconsistent customer details.

Operational red flags

Lack of transparency regarding ownership and operational control, often seen in white-label setups.

• Traffic sourced from flagged or restricted geographies, which may indicate fraudulent operations.
• Insufficient customer service practices, such as unclear refund policies or failure to address customer complaints effectively.
• Absence of responsible travel policies, such as clear terms and conditions for cancellations or no-shows.

Onboarding Checklist

Merchants operating within the TOWER AIR (MCC 3115) sector need to compile a comprehensive onboarding package to facilitate a smooth application process with PSPs or acquirers. Having these documents ready can significantly enhance the chances of approval and expedite the review process.

Legal & corporate documents

company registration and incorporation documents

• disclosure of beneficial owners (UBO) and corporate structure
• valid licenses for the aviation or transport services
• policies: Terms of Service, Privacy, AML/KYC, Refund Policy

Financials & risk management

recent financial statements and cashflow forecasts

• liquidity or reserve model for operational costs and payouts
• description of antifraud setup and risk management strategies

Product & marketing

demo access or screenshots of the booking platform

• marketing plan detailing traffic sources and promotional strategies
• geographic targeting information for service areas
• overview of customer journey and KYC process requirements

Technical integration & security

payment architecture overview including integration with travel booking systems

• description of SCA/3DS flows for online transactions and tokenization
• PCI DSS compliance status and data storage policy

Operations

customer support setup, including availability and languages offered

• SLA for dispute resolution and customer inquiries
• booking and cancellation policies, including limits and processes
• internal dispute handling process and chargeback protocols

Regulation & Licensing

Licensing and certification are vital for merchants in this MCC, as payment service providers (PSPs) and financial institutions will require proof of compliance before onboarding. Recognition of licenses is influenced by the merchant’s jurisdiction and the markets they intend to serve.

Operator licenses

Federal Aviation Administration (FAA) — essential for airlines operating within the United States, ensuring compliance with federal regulations.

• International Civil Aviation Organization (ICAO) certification — recognized globally for compliance with international aviation regulations.
• National Transportation Safety Board (NTSB) — oversight on the safety aspects of air operations in the U.S. considering accident investigations.
• State aviation authorities — may require additional licenses or permits that vary by state, particularly for regional carriers.

Geo-restrictions

Many countries impose strict licensing requirements for airlines which create limitations on foreign carriers operating in their territories.

• The EU has regulations that may prohibit non-EU airlines from entering certain routes without specific licenses.
• Geographic restrictions often affect insurance and liability coverage, impacting operational capabilities in various regions.

Certifications & audits

PCI DSS compliance for handling credit card payments and customer data protection.

• Safety management system audits to ensure adherence to federal and international safety standards.
• Annual maintenance and safety audits by regulatory bodies to maintain operational licenses.
• Environmental audits to assess compliance with local and international environmental regulations affecting flight operations.

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 networks generally agree on the nature of services related to towers, their wording and focus differ, particularly regarding licensing and regional considerations. Some networks are stricter about documentation and may require specific licenses based on the nature of the service. Common issues leading to denial include insufficient certification, geographic restrictions, and unclear project details.

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 is primarily involved in providing air travel services, it should be classified under MCC 3115. Misclassifying your services can lead to compliance issues, including potential fines or account closures. Always align your MCC with your main business function to avoid risk.

Best Practices for Merchants

Merchants operating under MCC 3115 (Tower Air) must navigate specific challenges related to payment processing and customer expectations. Adhering to best practices can help enhance service reliability, reduce risk, and foster long-term partnerships with payment service providers (PSPs).

Classification & transparency

always use the correct MCC for your airline services to avoid complications with payment processors

• provide clear disclosures about ticket policies, fees, and refund procedures on your website
• maintain transparent descriptions for transactions to help customers recognize charges

Fraud & chargeback reduction

implement 3DS or step-up authentication on transactions with higher risk signals such as unusual locations or large purchases

• ensure billing descriptors reflect your brand name clearly and instantly confirm transactions via email or SMS notifications
• keep detailed logs of ticketing events, customer communications, and service changes to support dispute resolution

Payment acceptance optimization

offer diverse payment methods (credit cards, digital wallets, local bank transfers) to accommodate customer preferences

• analyze transaction data to optimize routing based on geographical trends and customer behavior
• separate MIDs may be advantageous for different service offerings (e.g., domestic vs. international flights)

Operational discipline

monitor KPIs such as booking conversion rates, chargeback frequency, and customer satisfaction scores

• conduct regular compliance audits and update policies to address any emerging industry regulations or practices
• designate a team to handle disputes and set clear service level agreements (SLAs) for response times

Payouts & liquidity

maintain sufficient liquidity to manage rolling reserves required by PSPs for high-risk industries

• automate anti-money laundering (AML) checks for ticket sales and refunds to ensure compliance and reduce risk
• promptly monitor payout delays or issues to maintain customer service quality and operational integrity

Business Scope & Examples

This MCC includes businesses that primarily deal with the manufacturing, distribution, and sale of fresh or processed food products. Merchants classified under this category typically operate in sectors that provide essential food items to consumers and other businesses, focusing on various forms of food supply and production.

Models

wholesale food distributors

• grocery store chains
• specialty food retailers (e.g., organic, ethnic foods)
• food processing plants (e.g., canned goods, frozen foods)
• meal delivery services

Borderline cases

Food delivery apps — platforms that order food from restaurants; may sometimes fall into the restaurant MCC rather than 3115.

• Catering services — may provide food for events but can be seen as service-oriented rather than food product-focused, affecting classification.

Signals for correct classification

business primarily sells food products directly to consumers or businesses

• significant portion of revenue comes from food sales rather than services
• products are physical goods with nutritional value