3391 Europe by car

Introduction

• What it is: This MCC covers automotive rental and transportation services throughout Europe.
• Risk level: Medium — Increased fraud potential due to cross-border transactions.
• Acceptance difficulty: Medium — While many PSPs accommodate these businesses, not all may understand the nuances of rental operations.
• Typical business models: car rental services; chauffeur services; ride-sharing platforms; leasing companies.
• For merchants: Expect moderate merchant discount rates (MDR); potential reserves during peak seasons; strict approval processes with some PSPs.
• What PSPs expect: Comprehensive business documentation; proof of insurance coverage; detailed descriptions of the fleet and services offered.

Payment Insights & Benchmarks

Merchants in this MCC should anticipate varied payment experiences rooted in travel behaviors and preferences. Understanding these dynamics can help in optimizing transaction processes and managing customer expectations effectively.

Payment methods

Cards: widely accepted but can experience high declines, particularly for international transactions.

• E-wallets: gaining popularity among travelers for their convenience and speed.
• Mobile payments: increasingly used, especially in urban areas and among younger demographics.
• Local payment methods: may offer higher approval rates and customer engagement.

Authentication & security

Strong Customer Authentication (SCA) is common, impacting the acceptance rate during checkouts.

• 3D Secure may be required, especially for cross-border transactions, which can lead to increased friction.
• Continuous monitoring for fraud is essential, given the transient nature of customers.

Benchmarks (indicative, not guaranteed)

MDR: typically higher than standard e-commerce due to international transaction fees.

• Rolling reserves: may apply to mitigate risks, usually around 5-10%.
• Settlement cycles: often longer (up to 10 days) owing to cross-border processing.
• Chargeback ratios: can be higher due to disputes arising from service expectations during travel.
• Card approval rates: generally lower for foreign-issued cards; local methods show better performance.

Key metrics to monitor

Transaction decline rates segmented by payment method and issuing country.

• Chargeback ratios categorized by reason codes.
• Customer feedback related to payment experiences and failure points.
• Conversion rates from abandoned carts due to payment issues.
• Average transaction values, especially during peak travel seasons.

Risk & Compliance

Merchants under the MCC 3391 (Europe by Car) are exposed to significant financial risks and stringent compliance expectations. Due to the nature of travel-related services, PSPs and acquirers closely monitor these transactions to mitigate potential fraud, chargebacks, and ensure adherence to AML/KYC standards.

Chargebacks & fraud

Common issues include friendly fraud (where customers claim they didn’t authorize a transaction) and disputes related to non-delivery or poor service experiences.

• Fraudulent activities often involve booking manipulation, where individuals use stolen cards to book travel services, leading to chargebacks.
• Effective fraud mitigation tools include transaction monitoring, velocity checks, and customer behavior analytics to detect anomalies in booking patterns.

AML/KYC expectations

Merchants are expected to implement robust identity verification processes, including verifying customer identities against sanctions lists and performing risk-based KYC checks.

• Source-of-funds checks are critical for high-value transactions or unusual booking patterns that could indicate money laundering.
• Manual review may be triggered by irregular booking locations, extensive modifications to reservations, or the use of multiple credit cards from different countries.

Operational red flags

Lack of transparency regarding service providers or unclear ownership can raise suspicions and lead to heightened scrutiny from PSPs and acquirers.

• Concerns may arise from the use of traffic sources that originate in high-risk jurisdictions or partnerships with unverified affiliates.
• Absence of clear cancellation and refund policies, as well as customer satisfaction guarantees, can indicate a lack of consumer protection measures.
• Inadequate onboarding procedures for suppliers or service partners may also signal compliance gaps.

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 essential for merchants in this MCC, as payment service providers (PSPs) often require documented proof of compliance to ensure lawful operations. Recognition of these licenses is largely dependent on the jurisdiction of the merchant and the specific markets they serve.

Operator licenses

National transport authority licenses — required in many countries for rental and ride-sharing services.

• EFTA (European Free Trade Association) certification — can enhance credibility for operators in member states.
• United Kingdom's Driver & Vehicle Standards Agency (DVSA) — recognized for compliance with UK transport regulations.
• Local municipality permits — often mandatory for operations in specific cities or regions.
• Compliance with environmental and safety regulations — varies greatly by country and may require additional certifications.

Geo-restrictions

Restrictions on cross-border operations within the EU can affect service availability.

• Some countries may impose specific regulations on vehicle emissions and safety that could limit rentals.
• Non-EU operators often face additional approvals for conducting business within EU member states.

Certifications & audits

ISO 9001 for quality management systems, which enhances service reliability.

• Energy efficiency certifications for vehicles, crucial for compliance in eco-conscious markets.
• Periodic safety inspections and audits as mandated by local transport authorities.
• Data protection compliance audits (e.g., GDPR) for handling customer information.

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 across networks are broadly similar, nuances such as "travel agency services" versus "travel-related services" can affect how merchants are classified. Specific policies may also entail the need for separate merchant IDs for different geographic locations or service offerings. Common reasons for rejections can include inadequate licensing documentation or inconsistencies in service descriptions.

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 primary business is renting cars or related automotive services, it should be classified under MCC 3391. Using an alternative MCC risks compliance issues and could lead to financial penalties or account disruptions.

Best Practices for Merchants

Merchants operating under the MCC 3391, focusing on travel by car in Europe, must ensure they effectively manage payment processing and risk to foster trust and compliance. Adhering to the following best practices will help minimize disputes and ensure smooth operations.

Classification & transparency

always use the correct MCC; misclassification can lead to account issues and potential closures

• provide clear information on services offered, including geographic and safety policies on your website
• maintain transparent business practices with adequate customer support and terms of service

Fraud & chargeback reduction

implement 3DS or step-up authentication for transactions identified as high-risk based on location or amount

• use clear billing descriptors, offer immediate transaction confirmations, and enhance customer support availability
• keep detailed logs of transactions and customer interactions to assist with dispute management

Payment acceptance optimization

support various payment methods (credit cards, debit cards, local payment systems) to reduce dependency on a single issuer

• optimize transaction routing based on geographic location or payment method to improve authorization rates
• consider using separate Merchant IDs (MIDs) for different service offerings or target markets to better manage risks

Operational discipline

establish and track key performance indicators (KPIs) such as chargeback ratios, transaction decline rates, and customer satisfaction levels

• conduct regular compliance audits, review payment processes, and adjust operational policies as necessary
• designate a team member to handle disputes promptly and effectively, with defined service level agreements (SLAs)

Payouts & liquidity

prepare for rolling reserves by maintaining sufficient liquidity to cover extended payout periods

• use automated systems for anti-money laundering (AML) checks on withdrawals, especially for larger transactions
• keep a close eye on payout times and patterns to identify potentially suspicious activities or anomalies

Business Scope & Examples

This MCC encompasses businesses involved in providing car rental services to customers, primarily within Europe. Merchants classified under this category usually facilitate payments for vehicle hire services and related travel accommodations, focusing on businesses that cater to leisure and business travel.

Models

traditional car rental agencies

• online car rental platforms
• peer-to-peer car-sharing services
• luxury and exotic car rental services
• airport car rental kiosks and services

Borderline cases

Ride-sharing services — platforms that match passengers with drivers; may not qualify as traditional rentals.

• Car leasing — long-term rental agreements; generally classified separately from short-term rental services.

Signals for correct classification

customer pays for short-term vehicle access, typically measured in hours or days

• transaction includes optional add-on services, such as insurance or GPS rental
• business operates primarily in geographic tourist or business hubs.