3619 Aloft

Introduction

• What it is: This MCC encompasses various businesses that provide specialized telecommunications services.
• Risk level: Medium — These services can involve significant fraud exposure.
• Acceptance difficulty: Medium — Providers may face challenges securing payment processing due to risk assessments.
• Typical business models: Satellite communications; specialized internet services; telecommunications consulting; call centers.
• For merchants: Expect moderate MDR; potential for higher reserves; thorough due diligence during approvals.
• What PSPs expect: Business registration; proof of service agreements; comprehensive explanations of service offerings.

Payment Insights & Benchmarks

Merchants in this MCC should prepare for unique payment dynamics that may lead to a varied customer experience. Payment acceptance channels and security measures are critical to optimizing transaction flow and minimizing issues.

Payment methods

Cards: widely accepted but can experience higher decline rates based on issuer filtering.

• Mobile wallets: popular for convenience but may entail additional fees or limitations.
• Bank transfers: preferred for high-value transactions, although settlement can take longer.
• Buy Now Pay Later (BNPL): growing in popularity, offering flexibility but also increasing chargeback risks.

Authentication & security

Strong Customer Authentication (SCA) is frequently required to combat fraud risks.

• 3DS (Three-Domain Secure) implementations can decrease fraud but may also affect conversion rates.
• Merchants should monitor fraud patterns, particularly in high-ticket transaction scenarios.

Benchmarks (indicative, not guaranteed)

MDR: often higher than standard e-commerce rates due to additional risk factors.

• Rolling reserves: may be necessary, sometimes reaching up to 10% of transaction volume.
• Settlement cycles: could extend beyond the typical 3-5 days, impacting cash flow.
• Chargeback ratios: historically, these can exceed traditional retail rates due to unique service characteristics.
• Approval rates: can be lower compared to mainstream sectors, especially for card transactions.

Key metrics to monitor

Transaction approval rates segmented by method and time of day.

• Reasons for declines to identify patterns and adjust strategies.
• Chargeback trends by category (fraudulent vs. non-fraudulent).
• Average transaction values to assess risk management protocols.

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”), especially from customers disputing recurring charges or subscriptions.

• Bonus abuse can also be prominent, with clients exploiting promotional offers across multiple accounts.
• Common fraud-mitigation tools include device fingerprinting, velocity checks, and behavioral analytics to detect irregular patterns and automate transaction monitoring.

AML/KYC expectations

Strong customer identity verification (IDV) protocols with thorough sanctions and PEP checks to ensure compliance with anti-money laundering standards.

• Source-of-funds verification is mandatory for high-risk transactions, particularly those that are large or out of the ordinary.
• Manual review triggers often include atypical payment behaviors, significant withdrawals, or transactions originating from flagged regions or IPs.

Operational red flags

White-label arrangements without clear transparency regarding ownership can raise alarms among PSPs and acquirers.

• Heavy reliance on unverified traffic sources or affiliate programs known for high churn rates may indicate increased risk.
• Insufficient responsible gaming policies, such as unclear self-exclusion options or lack of betting limits, could lead to regulatory scrutiny.
• A lack of clear communication regarding refund and return policies can also heighten chargeback ratios and present operational risks.

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
• 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 Communications Commission (FCC) — oversight for telecom operators in the U.S., essential for compliance.

• National Telecommunications and Information Administration (NTIA) — applies to operators dealing with spectrum allocation and usage.
• Local state communications commissions — may require additional licensing for telecom services at the state level.
• In some jurisdictions, specialized licenses for particular telecommunications services (e.g., VoIP) may be required.

Geo-restrictions

Operations in countries with restrictive telecom regulations may be limited, impacting service provision.

• Certain nations may block foreign telecom providers from entering their markets.
• Transactions involving services in sanctioned countries might face additional scrutiny or be banned.

Certifications & audits

PCI DSS compliance for payment systems that handle consumer data.

• Compliance audits related to telecommunications regulations, ensuring service integrity and security.
• Regular reviews for compliance with local communications laws and standards.
• Data protection audits to comply with international standards and regulations such as GDPR.

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 generally focus on laboratory and research services, terminology such as "services related to" versus "scientific research" can influence how different types of businesses are categorized. Some networks may have specific compliance requirements based on the nature of the research being conducted. Common denial reasons for onboarding include lack of necessary certifications, insufficient documentation of services, and failure to meet local 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 that your business model aligns with the specific services of the MCC 3619. Lodging operations should be clearly defined, and misclassification can lead to payment processing issues, including account termination or withheld funds.

Best Practices for Merchants

Merchants under the MCC 3619 must prioritize operational efficiency and risk management to ensure a smooth payment experience. The following best practices are vital for optimizing acceptance and maintaining a good relationship with payment service providers (PSPs).

Classification & transparency

always use the correct MCC to avoid issues with merchant account status

• clearly outline business operations, including product offerings and restrictions, on the website
• maintain transparent billing descriptors that align with customer expectations

Fraud & chargeback reduction

implement 3DS or step-up authentication for transactions flagged as high risk

• ensure clear billing descriptors and provide immediate confirmations via SMS/email
• log all relevant transaction data and customer interactions for potential dispute resolution

Payment acceptance optimization

support multiple payment methods (credit cards, debit cards, digital wallets) to enhance customer convenience

• analyze transaction routing based on geographic location or payment method to optimize acceptance rates
• consider using separate Merchant Identification Numbers (MIDs) for various product types or services

Operational discipline

regularly track key performance indicators (KPIs) such as chargeback ratio and authentication rates

• conduct compliance audits to ensure adherence to industry best practices and internal policies
• establish a dedicated team for handling disputes, ensuring timely and effective responses

Payouts & liquidity

create liquidity buffers to accommodate rolling reserves or potential delayed payouts

• implement automated anti-money laundering (AML) checks for withdrawal transactions, particularly at higher amounts
• closely monitor payout frequencies and scrutinize any unusual withdrawal patterns for added security

Business Scope & Examples

This MCC covers businesses that primarily provide services related to aircraft and aviation. Merchants classified under this category typically engage in activities that involve the sale, maintenance, and repair of aircraft, as well as related services and products. The scope focuses on those operations that directly facilitate flight services and aircraft operation.

Models

aircraft manufacturing and sales

• aircraft rental and leasing services
• aircraft maintenance and repair services
• flight training schools
• aviation parts and equipment suppliers
• air cargo and freight services

Borderline cases

Aerial photography services — companies providing photography or videography from aircraft; may require further assessment based on business model.

• Charter services for non-aviation activities — businesses offering chartered flights for events or tours may not fully fit this MCC depending on their primary operational focus.

Signals for correct classification

business primarily operates in the aviation sector

• focuses on selling or servicing aircraft or related equipment
• generates revenue primarily through flight-related activities