5013 Motor vehicle supplies and new parts

Introduction

• What it is: This MCC encompasses businesses that sell motor vehicle supplies and new parts for vehicles.
• Risk level: Medium — The industry can experience fluctuations based on economic conditions.
• Acceptance difficulty: Medium — While many PSPs support this sector, some may impose additional scrutiny due to inventory value.
• Typical business models: auto parts retailers; tire shops; vehicle accessory stores; engine parts dealers.
• For merchants: Expect moderate transaction fees; might require reserves during high-demand seasons; competitive pricing needed to attract customers.
• What PSPs expect: Strong business history; detailed product catalog; proof of inventory management processes.

Payment Insights & Benchmarks

Merchants in the Motor Vehicle Supplies and New Parts MCC should plan for unique payment dynamics influenced by customer behaviors and product types. Expect variations in acceptance rates and transaction costs as a result of the typical buyer profile and the nature of the goods sold.

Payment methods

Cards: primarily used for transactions, but acceptance can vary based on card type and issuer.

• E-wallets: gaining traction for online purchases, however, less common for in-store transactions.
• Buy Now, Pay Later (BNPL): popular for larger purchases, enabling customers to manage costs more effectively.
• Mobile payments: increasingly utilized, especially among tech-savvy consumers, but may face compatibility issues with older systems.

Authentication & security

Strong customer authentication (SCA) is often a requirement, helping to minimize fraud but adding friction during checkout.

• 3D Secure (3DS) implementation may increase authorization rates but can also lead to cart abandonment if not managed well.
• Continuous fraud monitoring is essential to adapt to emerging threats, as product types can attract specific fraud patterns.

Benchmarks (indicative, not guaranteed)

MDR: generally higher compared to standard retail, reflecting product risks and payment type.

• Rolling reserves: may reach higher levels to mitigate ongoing chargeback risks in high-ticket transactions.
• Settlement times: typically longer, often taking up to 7-10 business days.
• Chargeback ratios: potentially above average, especially for disputes related to product quality or delivery issues.
• Approval rates: generally lower for card transactions compared to other methods like BNPL.

Key metrics to monitor

Payment method performance, with a focus on approval rates by card type and provider.

• Chargeback rate trends with particular attention to common dispute reasons.
• Customer feedback on payment experiences for insights into potential friction points.
• Transaction size fluctuations and their impact on fraud risk.

Risk & Compliance

Merchants classified under MCC 5013 face heightened scrutiny due to the potential for financial fraud and chargeback risks associated with motor vehicle supplies and new parts. PSPs and acquirers expect robust controls and proactive measures to mitigate potential issues related to chargebacks and compliance.

Chargebacks & fraud

Common fraud types include the use of counterfeit or stolen credit cards, leading to chargebacks from consumers claiming they did not authorize purchases.

• Friendly fraud, where legitimate buyers dispute transactions after receiving the product, is a prevalent issue in this sector.
• Merchants should employ fraud-mitigation tools such as velocity checks, automated chargeback alerts, and thorough transaction monitoring.

AML/KYC expectations

Strong identity verification is required, including comprehensive checks against sanctions lists and politically exposed persons (PEPs).

• Source-of-funds investigations are necessary for high-value transactions or unusual purchasing behavior.
• Manual review triggers may include frequent or large-ticket purchases inconsistent with customer history, or transactions made from anonymizing services like VPNs.

Operational red flags

Lack of clarity regarding ownership and operational control can raise red flags for PSPs; merchants should ensure transparent business practices.

• Increased risk is associated with sourcing inventory from high-risk countries without proper documentation.
• Unusual traffic patterns, such as spikes in purchases from non-localized IP addresses, should be closely monitored.
• Absence of clear policies for returns or warranties can lead to disputes and higher chargeback rates.

Onboarding Checklist

Merchants under the Motor Vehicle Supplies and New Parts 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)
• product catalog or list of supplies and parts offered
• geographic targeting information

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
• inventory management processes and systems in place
• internal process for chargeback investigation and documentation

Regulation & Licensing

Licensing and certification are essential for merchants in the Motor Vehicle Supplies and New Parts MCC, as regulatory bodies often require proof of compliance prior to operations. Recognition of licenses varies based on the merchant's jurisdiction and the specific markets they target.

Operator licenses

Department of Motor Vehicles (DMV) — required in many states in the U.S. for businesses that sell vehicle parts.

• National Highway Traffic Safety Administration (NHTSA) — oversees vehicle safety standards and may require compliance for certain products.
• Various state-level business licenses — necessary for operating within specific jurisdictions.
• Environmental Protection Agency (EPA) compliance — especially for parts related to emissions and environmental standards.
• Some markets may require specific endorsements for automotive electronic parts or safety equipment.

Geo-restrictions

Certain countries may impose bans on selling specific vehicle parts, especially those relating to safety standards.

• International shipping regulations can limit the sale of automotive parts outside local jurisdictions.
• Some regions have stringent import/export requirements that impact cross-border sales of motor vehicle supplies.

Certifications & audits

ISO 9001 certification for quality management systems relevant to manufacturing and supply processes.

• Compliance with EPA standards for emissions-related components.
• Regular audits for adherence to automotive industry standards and safety regulations.
• Certification for anti-theft devices or components that may require specific testing and validation.

Official Definitions & Network Comparisons

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

Explanation:

While all networks generally define this MCC in relation to motor vehicle supplies and parts, differences in terminology and emphasis affect the compliance landscape. For instance, some networks may require additional documentation regarding the safety and inventory of products. Common denial reasons include insufficient licensing, failure to meet safety standards, and lack of clear product traceability.

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 focuses on selling motor vehicle supplies and new parts, stick with MCC 5013. Mixing your classification with repair or unrelated retail activities can lead to compliance issues and potential financial penalties.

Best Practices for Merchants

Merchants operating under the MCC for Motor Vehicle Supplies and New Parts must prioritize compliance, risk management, and customer satisfaction to ensure sustainable business practices. Implementing the following best practices will help minimize disputes, enhance payment acceptance, and solidify relationships with payment service providers.

Classification & transparency

always use the correct MCC; misclassifying products can lead to account restrictions

• clearly display your business model and return policies on your website, ensuring customers know what to expect
• maintain transparency regarding warranties, repair policies, and product sourcing

Fraud & chargeback reduction

implement 3DS or step-up authentication to reduce fraud risk, especially for high-value purchases

• ensure billing descriptors are clear and recognizable to customers to minimize confusion and disputes
• log transaction details and customer interactions to support dispute resolution and representments

Payment acceptance optimization

support multiple payment methods, including credit/debit cards, digital wallets, and financing options to accommodate customer preferences

• analyze transaction data to route payments efficiently based on geographic region and payment method performance
• consider using separate merchant IDs for different product categories or sales channels for better tracking and management

Operational discipline

monitor key performance indicators (KPIs) such as chargeback ratio, authorization rates, and customer satisfaction scores

• conduct regular audits and compliance checks to ensure policies and procedures align with industry standards
• establish a dedicated team for managing disputes, ensuring timely and effective resolution processes

Payouts & liquidity

maintain liquidity buffers to prepare for rolling reserves and ensure smooth cash flow during settlement periods

• automate anti-money laundering (AML) checks for withdrawals, monitoring transactions above certain thresholds for suspicious activity
• analyze payout patterns and withdrawal behaviors to identify potential risks in your operations

Business Scope & Examples

This MCC covers businesses that primarily supply motor vehicle parts and accessories, as well as services associated with the sale of new automotive products. Merchants classified under this category usually engage in selling items essential for vehicle maintenance, repair, and enhancement.

Models

retail stores specializing in automotive parts and accessories

• wholesale distributors of motor vehicle supplies
• online marketplaces focused on selling automotive products
• specialized shops for performance parts and accessories
• dealerships providing new vehicle parts and replacement components

Borderline cases

Auto repair services — while they may sell parts, their primary function is providing repair; likely classified under a different MCC.

• Used parts suppliers — businesses focused on selling used or refurbished parts; this MCC typically pertains to new items.
• Vehicle accessories shops — retailers selling non-essential car enhancements (e.g., decorations) could be misclassified; focus on core supply must be clear.

Signals for correct classification

transactions primarily involve new automotive parts and supplies

• average transaction size is indicative of the sale of vehicle components
• the business has a clear focus on consumer vehicle needs rather than services or repair