5718 Fireplace, fireplace screens and accessories stores

Introduction

• What it is: This MCC encompasses businesses that sell fireplaces, fireplace screens, and related accessories.
• Risk level: Medium — The specialized nature of these products can make inventory management challenging.
• Acceptance difficulty: Medium — While not overly complex, niche markets can lead to higher scrutiny from payment processors.
• Typical business models: fireplace showrooms; online retailers; home improvement stores; specialty accessory shops.
• For merchants: Expect moderate transaction fees; inventory management may require additional oversight; PPOs might ask for sales forecasts.
• What PSPs expect: Business registration documents; detailed product descriptions; evidence of inventory turnover rates.

Payment Insights & Benchmarks

Merchants in this MCC should prepare for specific payment dynamics that could impact sales and cash flow. The type of products sold can influence payment acceptance and consumer behavior, alongside the methods available.

Payment methods

Cards: typically accepted but may face tight filtering and varying approval rates based on the transaction type.

• E-wallets: effective for customer convenience, but adoption rates may vary across customer segments.
• Buy Now, Pay Later (BNPL): gaining traction; however, not all providers may be available for your offerings.
• Installment payments: popular for higher-ticket items but can complicate reconciliation.

Authentication & security

Strong Customer Authentication (SCA) practices are increasingly necessary, potentially impacting approval rates.

• Using 3DS is common, helping to mitigate fraud but can also lead to cart abandonment if the process is cumbersome.
• Be vigilant of card-not-present fraud, especially with higher-value items typically sold in this category.

Benchmarks (indicative, not guaranteed)

MDR: generally higher than the standard e-commerce average, reflecting niche products.

• Rolling reserves: could apply, especially for higher-risk orders or products.
• Settlement cycles: often longer than standard (5-10 days) due to product verification needs.
• Chargeback ratios: may be elevated, particularly for larger transactions or complex sales.
• Approval rates: card acceptance may drop, with alternatives like e-wallets gaining favor.

Key metrics to monitor

Track authorization rates segmented by payment method to identify friction points.

• Analyze decline rates to understand patterns and adjust acceptance strategies.
• Monitor chargeback reasons to distinguish between fraud and legitimate disputes.
• Maintain oversight of product return rates as they can affect chargebacks and refunds.
• Review average transaction values to better manage risk thresholds and payment strategies.

Risk & Compliance

Merchants under this MCC are scrutinized due to potential risks related to chargebacks and compliance. PSPs and acquirers often apply strict measures to mitigate fraud and ensure adherence to regulatory standards, making it crucial for merchants to understand and proactively address these concerns.

Chargebacks & fraud

Friendly fraud is prevalent, with customers disputing legitimate transactions claiming they did not receive items or services.

• Fraudulent purchases using stolen payment information can also occur, particularly during sales or promotional events.
• Common mitigation tools include velocity checks, chargeback alerts, and robust verification processes for high-value transactions.

AML/KYC expectations

Strong customer identity verification (IDV) is crucial, including checks for sanctions and politically exposed persons (PEPs).

• Source-of-funds verification is expected, especially for high-value purchases or unusual buying patterns.
• Manual review triggers include significant purchases exceeding typical customer behavior, atypical shipping addresses, or unusual payment methods.

Operational red flags

Lack of transparency regarding ownership or operators can raise concerns; businesses should clearly disclose this information.

• Limited customer support or unclear return/refund policies may signal operational weaknesses that PSPs watch for.
• Unverified traffic sources or marketing practices that appear deceptive can alarm acquirers and increase the likelihood of scrutiny.
• Absence of clear product descriptions or warranty information could lead to disputes and chargebacks.

Onboarding Checklist

Merchants operating under the MCC 5718 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 business activities related to fireplace products
• policies: Terms of Service, Privacy, AML/KYC, Refund Policy

Financials & risk management

recent financial statements and cashflow forecasts

• liquidity or reserve model for managing customer transactions
• description of antifraud setup and any monitoring tools in place

Product & marketing

demo access or screenshots of the live platform showcasing products

• marketing plan and traffic source overview (e.g., online ads, social media)
• geographic targeting information for product distribution
• KYC flow details, including verification processes for high-value transactions

Technical integration & security

payment architecture overview with supported payment methods

• description of security measures such as PCI DSS compliance
• data storage policies and procedures for handling customer information

Operations

customer support setup (availability, languages offered)

• SLA for handling customer inquiries and disputes
• policies regarding return and exchange processes for products
• internal processes for managing order fulfillment and tracking

Regulation & Licensing

Licensing and certification are important for merchants in the Fireplace, Fireplace Screens and Accessories Stores MCC, as they help ensure compliance with local regulations and safety standards. Recognition of licenses by PSPs depends on the merchant’s jurisdiction and the target markets they serve.

Operator licenses

Home Improvement License — often required for businesses selling fireplace installations and accessories, varies by state or local authority.

• Sales Tax Permit — necessary for merchants to collect sales tax on goods sold, recognized across multiple jurisdictions.
• Business License — a general requirement for all businesses to legally operate within a specified location.
• HVAC Licenses — some areas require specific licenses for selling and installing heating-related appliances.

Geo-restrictions

Certain states or municipalities may have specific regulations governing the sale of fireplaces or wood-burning stoves.

• Some regions may have restrictions based on environmental laws concerning emissions from fireplace products.
• Cross-border sales of specific fireplace products may be limited based on local safety standards.

Certifications & audits

Compliance certifications regarding gas standards, such as ANSI Z21.50 for gas fireplace appliances.

• Safety audits to ensure products meet local and national building codes.
• Regular inspections for products that involve fire safety standards to maintain compliance with regulations.

Official Definitions & Network Comparisons

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

Explanation:

Though the definitions are generally consistent, the specific terms used (e.g., “accessories” vs “related products”) can affect the classification and acceptance of merchants. Different networks may have varying requirements for product verification and compliance, which can complicate merchant onboarding. Common denial reasons might include non-compliance with brand standards, inaccurate inventory reporting, and regional product availability issues.

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 predominantly sells fireplace products and accessories, ensure you correctly use MCC 5718. Misusing other MCCs can lead to compliance issues and potential account problems. Always choose the code that represents your primary inventory.

Best Practices for Merchants

Merchants operating under the MCC 5718 must adhere to best practices to effectively manage risks associated with payment processing, customer disputes, and operational efficiencies. Implementing these strategies will enhance payment acceptance while minimizing potential issues with chargebacks and refusals.

Classification & transparency

always use the correct MCC; incorrect classifications can lead to increased scrutiny or account termination

• ensure that your website clearly displays product information, return policies, and terms of service
• maintain transparent billing descriptors to help customers recognize transactions on their statements

Fraud & chargeback reduction

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

• provide clear billing descriptors, and send instant confirmations via email or SMS to improve customer satisfaction
• keep detailed logs of transaction and customer interactions to aid in dispute resolution processes

Payment acceptance optimization

support multiple payment methods (credit/debit cards, digital wallets, etc.) to cater to different customer preferences

• optimize routing based on geographical data to ensure more successful transactions and lower costs
• regularly perform A/B testing on different payment service providers (PSPs) to identify the most efficient options for your business

Operational discipline

track key performance indicators (KPIs) such as authorization rates, chargeback ratios, and transaction trends to identify issues early

• conduct regular compliance audits and review internal processes to ensure adherence to industry standards
• designate a specific team or individual responsible for handling disputes, ensuring timely responses to merchant inquiries

Payouts & liquidity

establish sufficient liquidity buffers to accommodate potential rolling reserves or delayed payouts

• automate anti-money laundering (AML) checks for all withdrawal requests, particularly those that exceed standard thresholds
• carefully monitor payout patterns and remain vigilant for any unusual withdrawal behaviors to enhance fraud prevention efforts

Business Scope & Examples

This MCC encompasses businesses primarily involved in the retail sale of fireplaces, fireplace screens, and various accessories related to these products. Merchants classified under this category typically provide customers with a range of heating solutions and decorative items for home improvement related to fireplaces.

Models

retail stores specializing in wood, gas, or electric fireplaces

• shops offering fireplace screens and related accessories (e.g., tools, mantels)
• online retailers selling a variety of fireplace products
• home improvement stores with a dedicated fireplace section
• specialty boutiques focusing on high-end or custom fireplace designs

Borderline cases

Home decor stores — while they may sell fireplace accessories, if fireplaces are not a primary product, they may not qualify under this MCC.

• Building supply stores — similar items might be offered, but if the focus is on construction materials rather than specific fireplace products, they fall outside this MCC.

Signals for correct classification

the primary business focus is on selling fireplace products

• a significant portion of sales comes from fireplaces and their accessories
• the merchant displays a clear specialization in fireplace-related items in their marketing and inventory