3675 Interhotel cedok

Introduction

• What it is: This MCC represents businesses engaged in providing lodging services primarily in hotels and similar establishments.
• Risk level: Medium — Hotels may experience fluctuations in occupancy rates, impacting revenue stability.
• Acceptance difficulty: Medium — While generally accepted, some PSPs may scrutinize business models more closely due to potential chargeback risks.
• Typical business models: hotels; motels; resorts; inns; bed and breakfasts.
• For merchants: Expect moderate merchant discount rates (MDR); possible reserve requirements based on business stability; thorough payment processing agreements.
• What PSPs expect: Valid business licenses; proof of a physical location; clear refund and cancellation policies outlined.

Payment Insights & Benchmarks

Merchants in this MCC should plan for unique payment challenges and varied acceptance rates. Understanding payment dynamics is vital for effective transaction management and customer satisfaction.

Payment methods

Cards: generally accepted, but approval rates may be impacted by customer location and booking type.

• E-wallets: popular for convenience, especially for online bookings and last-minute transactions.
• Bank transfers: often used for larger transactions, but can slow down the booking process.
• Vouchers: a frequent preference for gift purchases, allowing flexibility without credit card dependence.

Authentication & security

Strong customer authentication (3DS, SCA) is commonly implemented to secure transactions.

• Although these measures reduce fraudulent transactions, they can also lead to increased cart abandonments if mismanaged.
• Merchants should have robust fraud detection systems to address potential friendly fraud and chargebacks.

Benchmarks (indicative, not guaranteed)

MDR: typically higher than standard e-commerce due to increased transaction complexities.

• Rolling reserves: may be required, especially for higher-risk transactions, potentially in double-digit percentages.
• Settlement time: often extended compared to standard e-commerce, generally exceeding 5-7 days.
• Chargeback ratios: likely elevated, so a strong process for managing disputes is critical.
• Approval rates: may be lower than typical e-commerce due to the nature of service bookings and risk assessments.

Key metrics to monitor

Authorization rates segmented by payment type and customer demographics.

• Chargeback rates and their primary reasons, focusing on fraud vs. service issues.
• Average transaction size versus chargeback amounts for risk assessment.
• Booking cancellation rates and their impact on payment processing.

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 disputes relating to service non-fulfillment or dissatisfaction.

• Use of stolen credit cards and unauthorized chargebacks can create extensive losses.
• Mitigation tools include device fingerprinting, velocity checks, and comprehensive transaction monitoring systems.

AML/KYC expectations

Strong customer identity verification (IDV) with in-depth sanctions and PEP (Politically Exposed Persons) checks.

• Source-of-funds verification, especially for large transactions or international clients.
• Manual review triggers include high-frequency bookings, deviations from typical travel patterns, or suspicious payment methods.

Operational red flags

Lack of transparency regarding the ownership or control of the business, especially in marketing or booking processes.

• Unclear cancellation and refund policies communicated to customers.
• Traffic sourced from questionable networks or unverified referral sources.
• Absence of customer support for resolving booking issues or payment disputes could raise compliance concerns.

Onboarding Checklist

Merchants under the MCC code 3675 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

Local tourism and hospitality licenses — often required for operation within specific regions or municipalities.

• National tourism authorities — such as the Czech Tourist Authority, may provide necessary certifications for operating hotels globally.
• Health and safety certifications — relevant for maintaining compliance with hygiene and safety regulations in hospitality.
• Alcohol licenses — needed if the establishment serves alcoholic beverages, applicable based on local laws.

Geo-restrictions

Countries impose specific regulations on the hospitality industry, potentially restricting international bookings from certain geographies.

• Some jurisdictions may have stricter licensing requirements for foreign hotel operators.
• Local laws may necessitate compliance with additional zoning regulations for hotel operation.

Certifications & audits

PCI DSS compliance for any payment handling involving card transactions.

• Health and safety inspections to ensure compliance with local hospitality standards.
• Environmental certifications may be required to meet sustainability practices.
• Annual audits as part of regional regulatory compliance can be necessary to maintain operational licenses.

Official Definitions & Network Comparisons

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

Explanation:

The terminology varies slightly among networks, focusing on "accommodations" versus "lodging services." Some networks emphasize compliance with local regulations or special requirements for certain types of establishments, like vacation rentals. Common reasons for onboarding denial can include lack of proper licensing, incomplete documentation, and not meeting classification criteria set by individual networks.

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 involves providing short-term lodging, ensure you are classified accurately under MCC 3675. Avoid misclassifying as other codes related to services or amenities, as this can lead to significant compliance challenges and potential account issues.

Best Practices for Merchants

Merchants under this MCC face higher scrutiny and must actively manage payments, risk, and operations. The practices below help build sustainable acceptance and reduce exposure to disputes and PSP restrictions.

Classification & transparency

always use the correct MCC; attempts to bypass classification often lead to account closure

• clearly display licenses, geographic restrictions, and responsible policies on the website
• maintain transparent business models and descriptors

Fraud & chargeback reduction

implement 3DS or step-up authentication for high-risk signals (amount, geo, device, velocity)

• use clear billing descriptors, instant confirmations (SMS/email), and responsive customer support
• log transaction and gaming events to build evidence for dispute representments

Payment acceptance optimization

support multiple methods (cards, wallets, vouchers, local A2A) to reduce dependency

• route traffic by geography, bank, or method and test PSP performance regularly
• use separate MIDs for product types or regions to manage scheme requirements

Operational discipline

track KPIs such as auth rate, decline codes, chargeback ratio, ARPD, and LTV

• schedule compliance audits, update internal policies, and run test purchases
• assign a dedicated owner for disputes with SLA-bound responses

Payouts & liquidity

maintain liquidity buffers to cover rolling reserves and extended settlements

• automate AML checks for withdrawals, especially at threshold amounts
• monitor payout velocity and suspicious withdrawal behaviors

Business Scope & Examples

This MCC covers businesses that provide a range of hotel and lodging services, particularly those involved in the intermediation of hotel reservations and accommodations. Merchants classified under this category typically operate platforms where customers make payments for booking hotel rooms or related accommodations.

Models

online travel agencies (OTAs) for hotel booking

• hotel reservation services
• vacation rental platforms (e.g., Airbnb)
• travel package providers that include accommodations
• platforms focused on business travel lodging solutions

Borderline cases

Travel agencies — while they may offer lodging, their primary focus on broader travel arrangements (flights, tours) may change their classification.

• Event planners — businesses that book lodging as part of a larger event package may not fit strictly within this MCC if accommodations are not the primary service.

Signals for correct classification

business focuses primarily on facilitating hotel reservations

• transactions are directly for accommodation services
• platform aggregates multiple hotel options for customer selection