3626 Studio plus

Introduction

• What it is: This MCC represents lodging businesses that offer extended stay services.
• Risk level: Medium — Greater customization in services may lead to varied customer experiences.
• Acceptance difficulty: Medium — Payment processors may require comprehensive business documentation.
• Typical business models: extended stay hotels; furnished apartments; corporate lodging; temporary housing facilities.
• For merchants: Expect moderate MDR rates; potential reserves based on customer volume; thorough application process for approvals.
• What PSPs expect: Detailed business description; proof of occupancy standards; documentation on service agreements with clients.

Payment Insights & Benchmarks

Merchants in this MCC should plan for higher payment friction compared to standard e-commerce. Acceptance often depends on method mix, fraud controls, and PSP risk appetite.

Payment methods

Cards: commonly used but may face higher decline rates, particularly for subscriptions and services.

• E-wallets: popular for seamless transactions and instant payments, though subject to service fees.
• Recurring payment solutions: critical for subscription models, but may require additional authentication steps.
• Bank transfers: offer low-cost transactions but may have longer processing times and friction due to manual handling.

Authentication & security

Strong Customer Authentication (SCA) and 3DS implementations are frequently required.

• These methods help mitigate unauthorized transactions, yet may frustrate legitimate customers.
• Ongoing fraud assessment using behavioral analytics is crucial for managing risk effectively.

Benchmarks (indicative, not guaranteed)

MDR: typically higher than standard e-commerce due to service-oriented transactions.

• Rolling reserves: may be implemented, often ranging higher than other industries.
• Settlement periods: generally longer, ranging from 5 to 10 days.
• Chargeback rates: frequently elevated, necessitating robust dispute management practices.
• Approval rates: often lower for card payments, with better outcomes through e-wallet solutions.

Key metrics to monitor

Authorization rates segmented by payment method and geographic region.

• Chargeback volumes and reasons categorized by type (fraud, service issues).
• Customer acquisition costs in relation to transaction values.
• Recurring billing success rates and churn statistics for subscription models.

Risk & Compliance

Merchants operating under this MCC are subject to heightened scrutiny due to significant financial risks and potential reputational harm. PSPs and acquirers expect these merchants to address fraud, chargebacks, and AML/KYC compliance proactively to mitigate associated risks.

Chargebacks & fraud

Frequent occurrence of friendly fraud, such as customers disputing layers of charges for services not rendered or perceived.

• Subscription and billing disputes can lead to higher chargeback rates, particularly if cancellation policies are not clearly defined.
• Common mitigation tools include velocity checks, behavioral analytics, and tracking user sessions to identify unusual patterns in customer behavior.

AML/KYC expectations

Rigorous customer identity verification (IDV) is essential, including checks against sanctions lists and PEP (Politically Exposed Persons) lists.

• Source-of-funds documentation is expected for large transactions or at the onset of a new account, particularly if the payment method flags unusual activity.
• Manual review triggers include frequent high-value transactions, mismatches in user data, or use of disposable payment methods.

Operational red flags

Lack of transparency regarding ownership or hidden operators in the business model, leading to questions about accountability.

• Advertising campaigns targeting high-risk geographies can raise alarms among PSPs, especially if not compliant with local laws.
• Inadequate or unclear customer support channels can lead to unresolved inquiries, increasing the likelihood of chargebacks.
• Absence of clear policies on refunds and returns can create disputes and customer dissatisfaction, prompting courts to intervene.

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 studio 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 Communications Commission (FCC) — essential for broadcasting-related businesses in the U.S., ensuring compliance with communication regulations.

• Local state licenses may be required depending on the specific services offered and the state of operation.
• Telecommunications licenses in various countries, required for providers to operate legally within respective jurisdictions.
• Broadcasting licenses — necessary for any operation that transmits radio or television content.
• Some jurisdictions may impose additional permit requirements for specific technologies or services, affecting operations.

Geo-restrictions

Countries with strict telecommunication laws may limit foreign operators or impose additional licensing requirements.

• In the U.S., state regulations vary widely; some states have more stringent requirements than others, impacting service delivery.
• Licensing recognition may vary; many PSPs may not operate in regions where telecommunication licenses are not present.

Certifications & audits

PCI DSS compliance for merchants handling card transactions to ensure secure handling of payment data.

• Regular audits for telecommunications services to ensure compliance with regulations and standards.
• Vendor-related security assessments may be required to ensure privacy and data security practices are in place.
• Additional compliance checks related to data protection and federal regulations, especially for voice or messaging services.

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 highlight a focus on lodging and accommodation but differ slightly in terms of specific services provided (e.g., kitchenettes). Some networks may have stricter requirements based on the services offered, such as full kitchens or multiple rooms, influencing merchant approval and risk assessments. Common denial reasons can include non-compliance with local regulations, inadequate operational documentation, and out-of-scope services not covered by the MCC.

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 establishment primarily serves as a lodging facility similar to a hotel, ensure you classify your business under MCC 3626. Misclassification can lead to transaction declines and compliance issues, especially if your services do not align with traditional hotel offerings.

Best Practices for Merchants

Merchants under the MCC 3626 must engage in prudent operational strategies to manage payment processing effectively due to the heightened risk associated with this category. The following best practices are essential to enhance acceptance rates and build lasting relationships with payment service providers.

Classification & transparency

always utilize the correct MCC; misclassification can lead to account suspension or closure

• provide clear visibility of business practices, including licensing and responsible gaming policies on your website
• maintain concise and transparent billing descriptors to avoid customer confusion

Fraud & chargeback reduction

implement 3DS or step-up authentication for transactions that exhibit high-risk characteristics (e.g., large amounts, unusual geolocations)

• use clear billing descriptors and proactive communication (instant confirmations via SMS/email) to enhance customer trust and satisfaction
• maintain detailed logs of transactions and events related to gaming to support your case in disputes

Payment acceptance optimization

offer multiple payment methods (credit cards, digital wallets, bank transfers) to lessen reliance on any single payment type

• optimize transaction routing based on geographical data to increase transaction approval rates
• perform A/B testing on various payment service providers to determine the most effective solution and consider using separate MIDs for different product offerings

Operational discipline

monitor key performance indicators such as authorization rates, chargeback ratios, and average revenue per user (ARPU) to attain operational goals

• conduct regular compliance audits, update your operational policies, and ensure test purchases are part of your routine checks
• establish a dedicated process for handling disputes with defined service level agreements (SLAs) to ensure timely responses

Payouts & liquidity

maintain sufficient liquidity buffers to accommodate rolling reserves and longer settlement times often associated with this MCC

• utilize automated AML checks on withdrawal requests, particularly at significant amounts, to mitigate risks
• continuously monitor payout processes to identify and act upon any suspicious withdrawal activities

Business Scope & Examples

This MCC covers businesses that primarily provide services related to lodging and accommodations, particularly those that cater to both short-term and extended stays. Merchants classified under this category usually focus on offering housing options for travelers, including unique experiences tailored to longer-term visitors.

Models

Extended stay hotels (offering rooms for weeks or months)

• Serviced apartments (fully furnished rentals with hotel-like amenities)
• Vacation rentals (properties rented out for short to medium durations)
• Boutique hostels (allowing social interactions among guests in a communal setting)
• Corporate housing providers (accommodations for business travelers needing a temporary residence)

Borderline cases

Traditional hotels — establishments primarily serving overnight guests often differ in focus and duration of stay.

• Short-term rental agencies — companies facilitating vacation rentals may fall outside the MCC if they don’t provide direct lodging.
• Bed and breakfast (B&B) operations — often categorized differently based on the service model emphasizing meal provision and a home-like experience.

Signals for correct classification

accommodations are designed for guests staying longer than usual hotel durations

• amenities include kitchen facilities or services for extended stays
• pricing models favor weekly or monthly rates over a daily charge