3172 Nationair

Introduction

• What it is: This MCC pertains to businesses primarily engaged in providing air transportation services.
• Risk level: Medium — This industry can be affected by variable demand and operational complexities.
• Acceptance difficulty: High — High operational risks often lead to stricter payment processing requirements.
• Typical business models: charter air services; cargo air transport; air freight services; regional airlines.
• For merchants: Expect potentially higher fees; stricter fraud prevention measures; and longer onboarding processes.
• What PSPs expect: Comprehensive business plans; detailed financial statements; and proof of aviation operating certification.

Payment Insights & Benchmarks

Merchants in this MCC should anticipate notable challenges with payment processing, including lower approval rates and a potentially higher risk of chargebacks. Understanding these insights can help merchants optimize their payment strategies and enhance their customer experience.

Payment methods

Cards: acceptance may vary significantly based on risk assessments and geolocation, leading to lower approval rates.

• E-wallets: popular for their convenience and speed, but not all customers prefer this option.
• Bank transfers: can provide lower fees but may involve longer processing times.
• Prepaid cards: useful for clients seeking privacy; however, they can also lead to regulatory complexities.

Authentication & security

Enhanced security measures like 3DS and strong customer authentication are typically expected.

• While these protocols help decrease fraud, they may also contribute to cart abandonment.
• Continuous fraud monitoring is essential to address genuine and friendly fraud effectively.

Benchmarks (indicative, not guaranteed)

MDR: generally higher than standard e-commerce due to perceived risks.

• Rolling reserves: commonly required, often set at substantial percentages.
• Settlement cycles: typically longer than 7 days due to transaction scrutiny.
• Chargeback ratios: frequently above the industry average, necessitating proactive management.
• Approval rates for card transactions: usually lower than peer industries, whereas alternative methods may see higher success rates.

Key metrics to monitor

Approval and decline rates segmented by payment method and customer type.

• Chargeback ratios categorized by reason (fraud vs. service issues).
• Average transaction value to gauge risk exposure.
• Customer retention and repeat purchase rates to track overall satisfaction and trust.

Risk & Compliance

Merchants under this MCC are closely scrutinized due to elevated financial and reputational risks. PSPs and acquirers typically apply stricter controls, expecting merchants to proactively address fraud, chargebacks, and AML/KYC compliance.

Chargebacks & fraud

High incidence of friendly fraud (“I didn’t authorize this transaction”) and bonus abuse, particularly in loyalty and travel rewards contexts.

• Common fraud patterns include unauthorized use of loyalty points and account takeovers.
• Mitigation tools include velocity checks, behavioral analytics, and real-time transaction monitoring to identify unusual spending patterns.

AML/KYC expectations

Strong customer identity verification (IDV) is a must, including checks for sanctions and politically exposed persons (PEPs).

• Source-of-funds checks should be implemented for larger transactions or unusual behaviors.
• Manual review triggers include frequent high-value transactions, accounts with minimal activity suddenly showing high usage, or VPN/proxy usage by customers.

Operational red flags

Lack of transparency regarding ownership of the business and its beneficiaries (e.g., unclear operator details).

• Traffic from high-risk regions or affiliates that are not thoroughly vetted can be alarming to PSPs.
• Absence of clear customer service processes for issues like chargebacks or disputes.
• No established policies to protect against problem gambling, such as self-exclusion features or responsible gaming practices.

Onboarding Checklist

Merchants under the MCC 3172 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) — necessary for operators within the United States that provide air transportation services.

• Canadian Transportation Agency (CTA) — oversees air transport operations in Canada and requires compliance for operators here.
• European Union Aviation Safety Agency (EASA) — plays a significant role in regulating air transportation in Europe.
• Some countries may require additional local or state-level licenses for transportation services.

Geo-restrictions

Many countries impose strict regulations on air transportation, limiting operations to certified providers.

• Certain jurisdictions may have restrictions based on airspace regulations and operational zones.
• PSPs often refuse to onboard merchants without valid licenses in the specific regions where they operate.

Certifications & audits

Certification for safety management systems in compliance with aviation safety standards.

• PCI DSS compliance is necessary for any processing of payment card data related to ticketing and services.
• Regular audits to ensure compliance with federal and international safety regulations.
• Environmental audits may be required, depending on the type of air transport services provided.

Official Definitions & Network Comparisons

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

Explanation:

While terminology varies slightly (e.g., "car rental" vs "vehicle rental"), these definitions are closely aligned. Differences in requirements often stem from risk management practices, such as needing additional documentation for certain transaction types. Common denial reasons can include insufficient paperwork, location risk, and compliance with rental 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:

Ensure your business activities align closely with your MCC. If you're primarily selling airline tickets rather than providing travel services, the correct classification is essential to avoid compliance issues and potential account actions.

Best Practices for Merchants

Merchants categorized under MCC 3172, which pertains to NATIONAIR, must adopt best practices to navigate the complexities of payment processing efficiently. By following these guidelines, merchants can enhance transaction acceptance rates, reduce the risk of chargebacks, and foster long-term relationships with payment service providers.

Classification & transparency

always use the correct MCC; incorrect classification can lead to issues with account stability

• display clear information regarding the nature of services, including any geographic restrictions on the website
• be transparent about business practices and provide clear descriptors for customer transactions

Fraud & chargeback reduction

utilize 3DS or step-up authentication for transactions flagged as high-risk, taking into account factors like transaction amount and device

• ensure billing descriptors are clear, and provide instant transaction confirmations via SMS or email
• maintain detailed logs of transaction events to aid in building evidence for dispute representments

Payment acceptance optimization

implement multiple payment methods (credit cards, digital wallets, local bank transfers) to minimize dependence on a single payment source

• strategically route transactions based on geographic factors or customer bank details, and regularly test the performance of payment service providers
• consider using separate merchant IDs (MIDs) for different products or market segments to comply with varying requirements

Operational discipline

measure key performance indicators (KPIs) such as authorization rates, chargeback ratios, and transaction values to maintain operational efficacy

• conduct regular compliance audits to ensure adherence to policies, utilizing test purchases to detect issues before they affect customers
• designate a specialized team or individual to handle disputes with defined service levels for response times

Payouts & liquidity

create liquidity buffers to accommodate rolling reserves and manage unpredictable settlement timelines

• incorporate automated checks for anti-money laundering (AML) before processing withdrawals, particularly for larger amounts
• keep an eye on payout speeds and monitor for any unusual withdrawal activities that may indicate fraud or operational inefficiency

Business Scope & Examples

This MCC covers businesses involved in the rental and leasing of aircraft, primarily focused on providing services to individuals and companies for transportation purposes. Merchants classified under this category usually facilitate transactions related to the hiring of various types of aircraft, including private jets and helicopters.

Models

private jet charter services

• helicopter rental companies
• fractional ownership programs for aircraft
• aircraft leasing firms
• flight management services

Borderline cases

Aerial tours — businesses providing scenic flights; may not always fit if flights are primarily for entertainment rather than transport.

• Aircraft sales — dealerships selling aircraft; typically classified differently as they do not involve rental or leasing.
• Drone rental services — may sometimes be confused with aircraft rentals, but usually fall under a different MCC related to technology services.

Signals for correct classification

service includes renting aircraft for personal or business travel needs

• transactions involve hourly rates or long-term leasing agreements
• customer provides specific routing or use case for flight services