3167 Aerocontinente

Introduction

• What it is: This MCC encompasses businesses primarily engaged in air transportation, specifically air travel through a defined carrier.
• Risk level: Medium — Travel-related businesses can be susceptible to volatile demand and economic fluctuations.
• Acceptance difficulty: Medium — Payment processors may have additional scrutiny due to potential chargeback risks in the travel sector.
• Typical business models: airlines; charter services; air taxi operators; helicopter services.
• For merchants: Expect higher merchant discount rates (MDR); potential for reserve accounts; thorough transaction approval processes.
• What PSPs expect: Required documentation includes proof of business operation; safety certifications; and compliance with aviation regulations.

Payment Insights & Benchmarks

Merchants in this MCC should plan for unique challenges related to payment acceptance and potential chargeback issues. The travel industry often experiences higher payment friction due to fluctuating consumer confidence and risk considerations.

Payment methods

Cards: frequently prefer credit cards, though acceptance might vary based on the travel booking type and consumer profile.

• E-wallets: becoming increasingly popular for instant bookings and convenience, yet could have varying acceptance across platforms.
• Bank transfers: utilized often for larger transactions but may involve longer processing times.
• Travel vouchers: useful for managing refunds and chargebacks when issued by agencies.

Authentication & security

Enhanced security measures like 3DS are standard, primarily to combat travel-related fraud.

• Strong customer authentication helps reduce chargebacks but may lead to increased cart abandonment.
• Monitoring for signs of fraud in travel booking patterns is essential, particularly for last-minute purchases.

Benchmarks (indicative, not guaranteed)

MDR: typically higher than standard e-commerce due to the risk profile of travel bookings.

• Rolling reserves: can be substantial, reflecting the higher cancellation rates typical in the travel industry.
• Settlement cycles: usually longer (up to 14 days), especially during peak seasons.
• Chargeback ratios: often higher due to non-refundable policies and customer disputes.
• Card approval rates: can be lower during high-risk periods, while E-wallets may have better acceptance.

Key metrics to monitor

Authorization rates segmented by booking type and payment method.

• Chargeback reasons categorized by customer dissatisfaction vs. fraud claims.
• Refund and cancellation rates during peak and off-peak seasons.
• Average transaction value and frequency of repeat bookings or cancellations.

Risk & Compliance

Merchants operating under the MCC 3167 (AEROCONTINENTE) face significant scrutiny due to the high-risk nature of travel and transportation services. PSPs and acquirers enforce stringent compliance measures, expecting merchants to actively manage risks related to fraud, chargebacks, and AML/KYC obligations.

Chargebacks & fraud

Common types of fraud include friendly fraud, where customers dispute legitimate charges, and unauthorized use of stolen cards for ticket purchases.

• Disputes often arise from cancellations or change policies that consumers misunderstand, leading to higher chargeback rates.
• Effective fraud-mitigation tools include device fingerprinting, chargeback alerts, and travel record validation to confirm the legitimacy of transactions.

AML/KYC expectations

Robust know-your-customer (KYC) processes are crucial, including thorough identity verification with government-issued IDs and proof of travel intent.

• Ongoing monitoring of customer transactions for patterns that suggest money laundering or fraudulent activity, particularly high-value international bookings.
• Manual review triggers include unusually frequent transactions, large ticket purchases, and discrepancies in provided identification documents.

Operational red flags

Lack of transparency in ownership or business structure may trigger concerns, particularly in white-label scenarios.

• Issues arise when travel packages are sold with unclear terms or policies, leading to customer disputes.
• Traffic originating from regions known for high fraud rates or unverified third-party affiliates can indicate higher risk.
• Absence of clear cancellation and refund policies can lead to increased chargebacks and customer dissatisfaction.

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
• 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

Federal Aviation Administration (FAA) — a key authority for U.S. aviation operations, ensuring compliance with safety and operational standards.

• Civil Aviation Authority (CAA) — the regulatory body for aviation in the UK, requiring carriers to obtain operational licenses before flights.
• Other national aviation authorities may have similar licensing requirements, but acceptance may vary by PSP based on jurisdiction.
• Some markets may require specific licenses for cargo and passenger operations separately.

Geo-restrictions

Countries with stringent aviation regulations may restrict foreign-operated flights or services.

• In the U.S., compliance with individual state regulations may impact operations and acceptance by PSPs.
• Some PSPs may refuse to process transactions from jurisdictions with unstable aviation safety records.

Certifications & audits

Compliance with FAA or CAA safety regulations, which may include regular audits.

• ISO certifications (e.g., ISO 9001 for quality management) may be beneficial for operational credibility.
• Annual safety and maintenance audits for aircraft to ensure ongoing compliance.
• Possible requirement for environmental impact assessments in various jurisdictions.

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 broadly similar, terminology differences like "transportation services" and "airline-related services" can influence categorization. Some networks impose stricter licensing and verification processes for international operations. Common rejection reasons may include failure to provide proper licensing, insufficient clarity on operational regions, and non-compliance with travel regulations.

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 directly involves scheduled air transportation or commercial airline services, use MCC 3167. Avoid substituting with other codes, as such misclassifications can lead to significant compliance issues and potential account suspension.

Best Practices for Merchants

Merchants under the MCC 3167 (Aerocontinente) face unique challenges that require diligence in managing payments and operations. Adopting the best practices below will help to ensure a successful and sustainable business model that reduces risks, enhances customer experience, and fosters positive relationships with payment service providers (PSPs).

Classification & transparency

always use the correct MCC to avoid account risk and potential closure

• provide clear information about services, geographic restrictions, and terms of service on your website
• ensure that your billing descriptors accurately reflect the nature of your services

Fraud & chargeback reduction

implement 3DS or step-up authentication for transactions that present high-risk indicators (e.g., large amounts, unusual locations)

• utilize clear billing descriptors, provide instant transaction confirmations via SMS/email, and maintain responsive customer service to handle inquiries
• log all relevant transaction and service events meticulously to support evidence collection for dispute representments

Payment acceptance optimization

enable multiple payment methods, including credit cards, online wallets, and alternative payment options, to diversify acceptance and reduce reliance on any single method

• optimize payment routing based on customer geography, bank preferences, or transaction method, and carry out regular A/B testing with different PSPs to identify the best performing options
• consider using separate Merchant IDs (MIDs) for different geographical regions or service types to comply with varying payment scheme requirements

Operational discipline

establish and monitor key performance indicators (KPIs) such as authorization rates, chargeback ratios, and average revenue per user (ARPU)

• perform regular compliance audits to ensure adherence to internal policies and industry standards, and conduct test transactions to identify potential issues
• designate a dedicated team or individual responsible for dispute management, ensuring timely responses within set service level agreements (SLAs)

Payouts & liquidity

create liquidity buffers to accommodate for rolling reserves and ensure timely payouts during extended settlement periods

• automate anti-money laundering (AML) checks for withdrawals, particularly for amounts that meet certain thresholds
• keep a close watch on payout speed and any suspicious withdrawal patterns to mitigate risk and ensure operational integrity

Business Scope & Examples

This MCC covers businesses directly engaged in air transportation services. Merchants classified under this category usually provide services or platforms where customers make payments for flights, ticketing, and related travel operations. The scope is narrow and focuses on businesses with direct involvement in the aviation sector.

Models

commercial airlines operating scheduled flights

• charter airlines providing on-demand air transport
• air cargo services for freight transportation
• travel agencies specializing in air travel bookings
• aviation service providers (e.g., aircraft repair, maintenance)

Borderline cases

Travel aggregators — platforms that compare flight prices but may not sell tickets directly; often require separate classification.

• Helicopter services — while closely related, they may be categorized differently depending on the service scope (e.g., private versus public transport).

Signals for correct classification

business facilitates the purchase of flight tickets directly from airlines

• provides a direct link to complete air travel bookings
• the primary service offered is transportation from one airport to another