5714 Drapery, window covering, and upholstery stores

Introduction

• What it is: This MCC covers businesses that sell drapery, window coverings, and upholstery materials.
• Risk level: Medium — Limited market competition can lead to credit risk.
• Acceptance difficulty: Medium — Varied merchant profiles can impact payment acceptance.
• Typical business models: drapery shops; upholstery stores; window treatment specialists; fabric retailers.
• For merchants: Moderate MDR rates; possible reserves on accounts; clear service offerings needed for approvals.
• What PSPs expect: Proof of business operations; detailed inventory list; compliance with quality standards.

Payment Insights & Benchmarks

Merchants in this MCC should prepare for a balanced but cautious payment landscape, where approval rates can vary and chargebacks may present a notable risk. Understanding how payments typically perform is crucial to optimizing your operations and minimizing payment-related issues.

Payment methods

Cards: widely accepted but can experience varying approval rates based on customer profiles and transaction values.

• E-wallets: offer lower friction at checkout, though adoption may vary by target demographic.
• Buy Now, Pay Later (BNPL): increasingly popular with consumers, providing an alternative financing option that can boost sales.
• Traditional bank transfers: may be used for high-ticket items but can lead to longer settlement times.

Authentication & security

3D Secure (3DS) implementations are prevalent, aimed at reducing chargebacks and fraud.

• Merchants must balance security and customer experience, as excess friction can lead to cart abandonment.
• Ongoing fraud monitoring is critical, particularly for high-value transactions often seen in this industry.

Benchmarks (indicative, not guaranteed)

MDR: generally higher than the standard e-commerce rate due to higher-ticket items.

• Rolling reserves: often requestable, especially for new merchants or those with higher chargeback risks.
• Settlement timelines: typically longer (5-10 days), especially for larger transaction amounts.
• Chargeback ratios: can exceed standard industry averages, particularly during peak shopping periods.
• Approval rates: tend to be lower for card transactions compared to alternative payment methods.

Key metrics to monitor

Authorization rates segmented by payment method and transaction size.

• Chargeback rates and their reasons to identify trends in customer disputes.
• Average transaction value in relation to payment method performance.
• Customer feedback on the payment experience and subsequent cart abandonments.

Risk & Compliance

Merchants operating under MCC 5714 face particular scrutiny due to the potential for fraud and the handling of significant monetary transactions. Payment Service Providers (PSPs) and acquirers monitor these businesses closely to mitigate risks related to chargebacks, customer disputes, and compliance with anti-money laundering (AML) and know your customer (KYC) requirements.

Chargebacks & fraud

Common issues include friendly fraud, where customers claim transactions were unauthorized, and disputes arise from unsatisfactory product quality or delivery delays.

• Types of fraud may involve stolen credit cards or chargebacks stemming from customers falsely claiming non-receipt of ordered items.
• Effective mitigation tools include using device fingerprinting, implementing strict return policies, and establishing clear communication regarding delivery and product particulars.

AML/KYC expectations

Merchants must employ strong identity verification processes, including government-issued ID verification and checks against sanctions and politically exposed persons (PEPs).

• Source-of-funds verification is crucial, especially for high-ticket items, and unusual purchasing patterns should trigger deeper inquiries.
• Triggers for manual reviews typically include large transactions, frequent high-value purchases, or signs of location inconsistency such as VPN use.

Operational red flags

Lack of transparency in ownership and operational practices, particularly for online sales channels, raising concerns about hidden operators.

• High levels of cancellations or refunds compared to industry norms, which may indicate customer dissatisfaction or fraudulent behavior.
• Missing clear return and refund policies can be a significant concern for PSPs looking to assess risk levels.
• Operational practices that involve sourcing products from unclear or unverified suppliers can raise alarms about legitimacy and compliance standards.

Onboarding Checklist

Merchants operating under the Drapery, Window Covering, and Upholstery Stores 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 store or platform

• marketing plan and traffic source overview (affiliates, SEO, PPC)
• geographic targeting information of key markets
• KYC flow details, including IDV providers and thresholds

Technical integration & security

payment architecture overview with supported methods/providers

• description of security measures for online transactions and customer data
• PCI DSS compliance status and data storage policy

Operations

customer support coverage (languages, hours of operation)

• SLA for dispute handling and chargeback response
• return and refund policies; self-exclusion mechanisms if applicable
• internal process for chargeback investigation and documentation

Regulation & Licensing

Licensing and certification are vital for merchants in this MCC, as they ensure compliance with local regulations and standards. Recognition of licenses heavily depends on the merchant’s jurisdiction and target markets, especially for those engaged in manufacturing or selling potentially regulated products.

Operator licenses

Business license — a basic requirement for operating in most jurisdictions, ensuring legality of business operations.

• Sales tax permit — necessary for collecting sales tax from customers, recognized in many local and state-level jurisdictions.
• Fabric and upholstery certification — may be needed for compliance with safety standards, depending on the material sourcing and product offerings.
• State-specific retail permits — some regions require additional permits for selling furnishings and decor items.
• Eco-labeling certifications (like Oeko-Tex) — can enhance marketability and ensure compliance with sustainability standards but may vary by location.

Geo-restrictions

Some regions impose restrictions on selling certain types of materials (e.g., flammable fabrics), affecting product availability.

• International trade laws may impact the import/export of textile goods, requiring specific documentation or licensing.
• Certain states or countries may have specific consumer protection laws affecting the sale of home furnishings.

Certifications & audits

Compliance with ANSI/BIFMA safety standards for office furniture, if applicable.

• ISO certifications relevant to manufacturing practices and sustainability (e.g., ISO 9001, ISO 14001).
• Regular quality assurance audits to ensure product compliance with safety and performance standards.
• Certifications for tracking the sourcing of materials, especially those from environmentally sensitive areas.

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 used by networks shows slight variations, like “stores” versus “retail establishments,” yet this doesn’t significantly alter how merchants are classified. However, emphasis on business licenses and geographic restrictions can impact merchant onboarding practices. Additionally, some networks might require different documentation based on the merchant's sales channels or business structure, influencing approval outcomes.

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 activity is selling drapery, window coverings, or upholstery, ensure you use MCC 5714. Attempting to classify under another MCC due to related products risks compliance issues and potential processing problems.

Best Practices for Merchants

Merchants operating under the MCC 5714 must prioritize effective payment management and operational transparency to secure sustainable business practices. Adhering to best practices not only helps reduce risks but also fosters long-term relationships with payment service providers.

Classification & transparency

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

• clearly display product offerings, return policies, and customer service information on your website
• maintain transparent business models and accurately describe transactions to customers

Fraud & chargeback reduction

implement 3DS or step-up authentication for higher-risk transactions (larger amounts or unfamiliar locations)

• utilize clear billing descriptors, instant purchase confirmations via email/SMS, and effective customer support
• log transaction events to provide necessary evidence for dispute representments

Payment acceptance optimization

support multiple payment methods (credit cards, digital wallets, bank transfers) to broaden customer options

• route transactions based on geographical location or payment method while regularly testing performance with different providers
• consider using separate merchant IDs (MIDs) for various product lines to manage different payment schemes effectively

Operational discipline

track key performance indicators (KPIs) such as authorization rates, chargeback ratios, and customer lifetime value

• conduct regular compliance audits, review internal processes, and perform test purchases to identify potential issues
• establish a dedicated team for handling disputes, ensuring they meet service-level agreements (SLAs) for response times

Payouts & liquidity

maintain sufficient liquidity buffers to accommodate rolling reserves and manage extended payment settlement timelines

• institute automated anti-money laundering (AML) checks for withdrawals, particularly for larger amounts
• monitor payout patterns and be aware of any potentially suspicious withdrawal activities to minimize risks

Business Scope & Examples

This MCC includes businesses primarily focused on selling drapery, window coverings, and upholstery products. Merchants classified under this category typically provide a range of services related to interior design enhancements, helping customers improve the aesthetics and functionality of their living spaces.

Models

retail stores specializing in curtains and drapes

• shops offering custom upholstery services
• window treatment boutiques (blinds, shades, shutters)
• fabric stores providing materials for home decor
• online retailers of window coverings and upholstery supplies

Borderline cases

Interior decorating services — these may involve some window treatment consultation but are broader than just selling products; typically classified differently.

• Home improvement retailers — stores selling a wide range of building supplies and decor items; may include window coverings but aren't focused solely on this niche.

Signals for correct classification

primary revenue comes from the sale of drapes, blinds, or upholstery materials

• business offers installation or custom services specifically for window coverings
• significant inventory dedicated to window treatments and upholstery fabrics