3187 Lacsa (costa rica)

Introduction

• What it is: This MCC code covers airlines and travel services associated with LACSA in Costa Rica.
• Risk level: Medium — Travel-related businesses may face fluctuations in demand.
• Acceptance difficulty: Medium — Some issuers may have restrictions on international travel agencies.
• Typical business models: airlines; travel agencies; tour operators; ticketing services.
• For merchants: Expect competitive MDR, potential for reserves, and a streamlined approval process with major PSPs.
• What PSPs expect: Proof of business registration; compliance with travel regulations; accurate service descriptions on websites.

Payment Insights & Benchmarks

Merchants in MCC 3187 (LACSA - Costa Rica) should brace for unique payment dynamics compared to standard e-commerce operations. As this sector encompasses airline services, the payment environment can be influenced by fraud concerns, high-value transactions, and specific customer preferences.

Payment methods

Cards: primary method for ticket purchases, but approval rates may vary based on issuer and customer location.

• E-wallets: increasingly popular for ease of use and quick transactions; not universally accepted.
• Bank transfers: favored for larger transactions, but may introduce delays.
• Travel vouchers: used often for refunds and promotions; their acceptance can depend on the issuing provider.

Authentication & security

Strong Customer Authentication (SCA) is typically required for online bookings to mitigate fraud risks.

• 3D Secure (3DS) is frequently utilized but may lead to increased cart abandonment if customers are prompted excessively.
• Monitoring for unusual transaction patterns is essential, particularly around peak travel seasons.

Benchmarks (indicative, not guaranteed)

MDR: generally higher than the standard e-commerce levels due to fraud risks associated with travel bookings.

• Rolling reserves: may be implemented; often trending higher due to the nature of flight bookings.
• Settlement cycles: tend to be longer, often exceeding a week to ensure transaction validation.
• Chargeback ratios: can be elevated, particularly during busy travel periods.
• Approval rates: typically lower for card transactions, with alternative methods having higher acceptance.

Key metrics to monitor

Transaction approval and decline rates by payment method.

• Average chargeback rates compared to overall industry benchmarks.
• Customer feedback on payment experiences to identify friction points.
• Overall transaction volume during peak travel seasons for cash flow assessments.

Risk & Compliance

Merchants operating under this MCC are subject to heightened scrutiny due to the potential for financial fraud and chargeback challenges. PSPs and acquirers focus on ensuring compliance with AML/KYC regulations and mitigating risks associated with customer disputes and fraudulent activities.

Chargebacks & fraud

Frequent instances of friendly fraud, where customers dispute legitimate transactions claiming they did not authorize them.

• Bonus abuse is common, with customers exploiting promotions to gain undue advantage.
• Fraud patterns often include the use of stolen cards and multi-accounting to circumvent limits.
• Effective mitigation tools include velocity checks, automatic fraud scoring systems, and device fingerprinting to monitor transaction anomalies.

AML/KYC expectations

Merchants are expected to implement robust identity verification (IDV) processes that include sanctions and PEP checks to limit risk exposure.

• Monitoring of source-of-funds is crucial, particularly for significant or unusual transactions.
• Manual review triggers may arise from large or frequent deposits, irregular payment methods, or customers using VPNs or proxies.

Operational red flags

Lack of transparency regarding the ownership structure of the business, including any hidden operators.

• Use of traffic sources that originate from high-risk jurisdictions, which may indicate potential for fraud or compliance issues.
• Absence of responsible gaming measures, such as self-exclusion options or clear limits on betting activity.
• Unclear refund or return policy that does not provide adequate guidance to players, potentially leading to disputes.

Onboarding Checklist

Merchants under the MCC 3187 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 essential for merchants in this MCC, as payment service providers (PSPs) and acquirers require evidence of compliance to ensure a secure operating environment. Recognition of licenses varies based on the merchant’s jurisdiction and the markets targeted.

Operator licenses

Costa Rican Gaming Control Board (Junta de Protección Social) — the primary authority for gaming operations in Costa Rica, recognized by most local PSPs.

• License from the Ministry of Finance — required for merchants involved in gaming or gambling activities, ensuring compliance with national regulations.
• Other regional licenses may be needed depending on the specific type of gaming offered, like online sportsbooks or virtual casinos.

Geo-restrictions

Certain countries impose gambling laws that prevent the operation of foreign gaming sites, affecting transactions involving offshore companies.

• In Latin America, regional differences in gaming legislation can complicate market entry; some countries impose strict regulations while others may be more lenient.
• PSPs often restrict transactions from jurisdictions where local laws are unclear or where the company lacks proper licensing.

Certifications & audits

PCI DSS compliance is required for any merchant handling payment card data and ensuring the security of transactions.

• Regular AML (Anti-Money Laundering) audits to verify that operations comply with financial regulations.
• Random Number Generator (RNG) audits for online gaming platforms to maintain fairness and transparency.
• Ongoing compliance checks with local gaming laws and additional certifications may be required to ensure responsible gaming practices.

Official Definitions & Network Comparisons

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

Explanation:

The definitions across networks indicate a focus on travel-related services, yet the terms vary (e.g., “travel agents” vs “tour operators”). This can affect eligibility and onboarding processes, with requirements for licenses and certifications. It's common for networks to reject applications that lack proper credentials or do not meet specific regional regulations or operational standards.

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 airline ticketing or travel bookings, you should accurately classify under MCC 3187. Misclassifying your services under unrelated MCC codes can lead to compliance issues and potential penalties. Always choose the specific code that best fits your primary business activity.

Best Practices for Merchants

Merchants under the MCC 3187 (LACSA - Costa Rica) need to navigate a unique landscape of payment processing and risk management. Implementing the following best practices can enhance transaction acceptance and minimize exposure to disputes and processing restrictions.

Classification & transparency

always use the correct MCC to avoid complications with account status and processing

• transparently display relevant license information, geographic service areas, and responsible gaming policies on your website
• provide clear and consistent billing descriptors to aid customer recognition

Fraud & chargeback reduction

implement 3DS or step-up authentication for transactions flagged with high-risk indicators (such as high transaction amounts or unusual geographic locations)

• utilize clear billing descriptors and provide immediate transaction confirmations to customers via SMS or email
• log all relevant transaction events and interactions to create a detailed report for potential dispute resolution

Payment acceptance optimization

offer multiple payment methods including credit/debit cards, local wallets, and alternative payment solutions to cater to diverse customer preferences

• optimize transaction routing based on geographic location to enhance success rates and reduce declines
• consider using separate MIDs for different product categories or regions to better manage compliance and optimize performance

Operational discipline

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

• conduct compliance audits at scheduled intervals and ensure that internal processes are kept up-to-date
• designate a specific team or individual responsible for managing disputes, equipped with clearly defined service level agreements (SLAs) for timely responses

Payouts & liquidity

create financial buffers to accommodate rolling reserves and extended payout timelines

• implement automated anti-money laundering (AML) checks to monitor withdrawal requests, particularly at higher thresholds
• track payout schedules closely and be vigilant for any irregular withdrawal patterns that may indicate potential fraud

Business Scope & Examples

This MCC covers businesses involved in the operation of local and international air services, including passenger and cargo transportation. Merchants classified under this category typically provide services where customers make payments for flight tickets and related travel arrangements. The scope focuses on airlines and air carriers that facilitate travel and logistical services within the aviation sector.

Models

commercial airlines (domestic and international passenger flights)

• cargo airlines (transport of goods and freight services)
• charter flight services (on-demand private air travel)
• travel booking agencies (selling tickets for airline travel)
• air tour operators (providing aerial sightseeing experiences)

Borderline cases

Helicopter services — while often related to air travel, specialized helicopter services for tours or urgent transports may not align with this MCC and can vary based on their business model.

• Private jet charters — offerings that include fractional ownership or membership options could be considered separate from standard airline operations.

Signals for correct classification

the business sells tickets for flights or air transport services

• services are operated by a licensed airline or certified air carrier
• primary activity includes the transportation of passengers or cargo by aircraft