3117 Viasa

Introduction

• What it is: This MCC encompasses businesses that primarily deal in the sale of meat and meat-derived food products.
• Risk level: Medium — This category may face scrutiny due to perishable goods and supply chain management.
• Acceptance difficulty: Medium — While generally straightforward, some processors may require specific certifications.
• Typical business models: butcher shops; meat wholesalers; specialty meat retailers; meat processors; charcuterie shops.
• For merchants: Expect moderate MDR; potential for chargebacks; possible stock management and invoicing challenges.
• What PSPs expect: Proof of business registration; health and safety compliance documentation; clear product descriptions and sourcing transparency.

Payment Insights & Benchmarks

Merchants in this MCC should plan for increased complexities in payment processing. Acceptance rates and chargebacks can vary significantly due to the nature of the products sold and customer interactions.

Payment methods

Cards: generally accepted, but may experience higher declines due to fraud prevention measures.

• E-wallets: popular for their convenience but may have varying acceptance based on provider relationships.
• Bank transfers: reliable for larger transactions but can involve longer settlement times.
• Mobile payments: growing in usage, yet acceptance can depend on customer technology adoption.

Authentication & security

Strong customer authentication (SCA) practices are often required, impacting transaction flow.

• Using 3DS can decrease fraud rates but might lead to customer friction.
• It’s essential to track unauthorized use and friendly fraud, which remain common challenges.

Benchmarks (indicative, not guaranteed)

MDR: typically higher than average for e-commerce transactions.

• Rolling reserves: frequently requested, often around 10-20%.
• Settlement cycles: usually longer, often exceeding 5 days.
• Chargeback ratios: often higher than standard retail, requiring vigilant monitoring.
• Approval rates: can be lower than average, with potential variations based on card type.

Key metrics to monitor

Authorization success rates across different payment methods.

• Chargeback rates, particularly focusing on reason codes.
• Customer interactions and friction points during transactions.
• Average transaction values and trends in transaction frequency.

Risk & Compliance

Merchants under the MCC 3117, particularly in the Visa ATM and banking sector, face significant financial and reputational risks. PSPs and acquirers apply rigorous scrutiny to ensure compliance with fraud prevention, chargeback management, and AML/KYC regulations.

Chargebacks & fraud

Common types of fraud include carding fraud (using stolen card details for small transactions) and account takeover attempts.

• Chargebacks often stem from friendly fraud, where legitimate customers dispute valid transactions or claim they did not authorize the payment.
• Mitigation tools include device fingerprinting, behavioral analytics, and chargeback alerts to identify potentially fraudulent activities quickly.

AML/KYC expectations

High standards for customer identity verification (IDV), demanding robust documentation and thorough background checks.

• Regular sanctions and politically exposed persons (PEP) checks are essential to comply with AML requirements.
• Manual review triggers include unusual transaction patterns, multiple accounts from a single IP, and discrepancies in customer information or transaction history.

Operational red flags

Lack of transparency regarding ownership can raise concerns, particularly if the merchant operates as a white label without clear operator details.

• Traffic sources that are unverified or originate from high-risk jurisdictions may alarm PSPs and acquirers.
• Failure to implement strong transactional controls, such as transaction limits and comprehensive refund policies, can signal risky operational practices.
• Absence of customer support mechanisms for dispute resolution may indicate underlying issues in handling chargebacks and fraud effectively.

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

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

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 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

USDA (United States Department of Agriculture) — relevant for merchants handling agricultural products and ensures compliance with federal regulations.

• Canadian Food Inspection Agency (CFIA) — oversees food safety and regulations in Canada, important for merchants in the food sector.
• The European Food Safety Authority (EFSA) — responsible for reviewing and providing independent scientific advice on food safety in the EU.
• Local health department permits — necessary for merchants involved in food and beverage sales, varying by state or region.
• Some countries require additional licenses for exporting or distributing specific food products.

Geo-restrictions

Certain countries may have restrictions on the importation of specific agricultural products or food items, limiting market access.

• The EU has stringent regulations on food safety that may restrict merchants not compliant with EU standards.
• Merchants must be aware of local and regional regulations that may impact their operations, particularly in cross-border trade.

Certifications & audits

HACCP (Hazard Analysis Critical Control Point) certification to ensure food safety and proper handling processes.

• Organic certification for products claiming to be organic, often required for compliance with respective national or international standards.
• EIQ (Environmental Impact Qualification) audits to assess sustainability practices for food production.
• Regular compliance audits for local health and safety regulations to maintain operational licenses.

Official Definitions & Network Comparisons

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

Explanation:

While definitions across the networks emphasize the focus on grocery and food markets, variations in terminology can lead to differences in acceptance criteria (e.g., "food markets" vs. "supermarkets"). Some networks may impose stricter monitoring or have specific product restrictions that impact the onboarding process. Common denial reasons include failure to meet local licensing requirements, and potential scrutiny on inventory types such as alcohol or tobacco.

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:

Ensure your business aligns specifically with the services of MCC 3117. If your offerings do not involve air transportation directly, using this code can lead to compliance issues and potential account risk. Always opt for the MCC that best describes your core service.

Best Practices for Merchants

Merchants operating under the MCC 3117 (VIASA) must be diligent in managing their payment processes and customer interactions. Adhering to best practices can enhance acceptance rates, minimize disputes, and foster strong relationships with payment service providers.

Classification & transparency

always use the correct MCC for transactions involving airline services to avoid classification issues

• provide clear information on your website about services offered, cancellation policies, and customer support resources
• ensure that business models and transaction descriptors reflect the nature of services rendered to avoid confusion

Fraud & chargeback reduction

implement 3DS or step-up authentication for high-value and international bookings, where risk might be elevated

• utilize clear billing descriptors to enhance customer recognition and reduce chargeback likelihood
• maintain detailed logs of all transactions and customer interactions to support dispute resolutions

Payment acceptance optimization

offer diverse payment methods including credit cards, online wallets, and local payment solutions to meet various customer preferences

• optimize routing strategies based on geographic locations and demand patterns to enhance transaction success
• consider using separate Merchant IDs (MIDs) for different product lines or markets to better manage risk

Operational discipline

establish KPIs to monitor payment performance metrics such as authorization rates, payment failure codes, and chargeback ratios

• conduct regular compliance audits to ensure adherence to industry standards and internal policies
• designate a team or individual responsible for managing disputes and ensuring timely responses to any issues

Payouts & liquidity

prepare for fluctuations in cash flow by maintaining sufficient liquidity buffers to cover rolling reserves

• implement automated anti-money laundering (AML) checks for withdrawals to ensure compliance and mitigate risks
• stay vigilant regarding payout timings and monitor for any irregular withdrawal activities to protect funds

Business Scope & Examples

This MCC encompasses businesses involved in the manufacturing and sale of various types of packaged foods and beverages. Merchants classified under this category typically provide products that cater to retail markets, food service businesses, or directly to consumers, focusing on the production and sale of edible goods.

Models

snack food manufacturers (chips, crackers, candy)

• beverage companies (soft drinks, juices, bottled water)
• packaged meal producers (frozen dinners, meal kits)
• health food brands (supplements, organic snacks)
• gourmet food producers (artisanal products, specialty goods)

Borderline cases

Catering services — while they provide food, they often fall under a different MCC due to service-oriented business models.

• Food delivery platforms — these may involve the sale of packaged goods but typically focus on service rather than manufacturing or traditional retail.
• Food trucks or mobile vendors — they may sell packaged food but could also be categorized differently due to their service nature.

Signals for correct classification

products are sold in retail or grocery stores on a regular basis

• business focuses primarily on manufacturing or processing food items
• packaging involves labeling for consumer sales, indicating ready-to-eat or ready-to-cook goods