5978 Typewriter stores - sales, rentals, and service

Introduction

• What it is: This MCC covers businesses involved in selling, renting, and servicing typewriters.
• Risk level: Medium — Specialized niche with varying customer bases can increase risk.
• Acceptance difficulty: Medium — Payment processors may have mixed experiences with this sector.
• Typical business models: typewriter sales shops; rental services; repair and maintenance businesses; office supply stores offering typewriters.
• For merchants: Expect moderate onboarding processes; medium MDR due to niche classification; stable demand in some locations can enhance profitability.
• What PSPs expect: Business registration; detailed service offerings; potential inventory documentation for items sold or rented.

Payment Insights & Benchmarks

Merchants in this MCC should prepare for moderate payment friction, with various acceptance challenges influenced by customer behavior and payment choice. Understanding these benchmarks and metrics will help manage expectations and enhance payment strategies.

Payment methods

Cards: widely accepted but may face declines due to high fraud risk associated with specific customer demographics.

• E-wallets: gaining popularity for their convenience and security, especially among younger consumers.
• A2A payments: a growing option that reduces transaction fees, though adoption may vary.
• Installment financing: increasingly attractive for higher ticket items, but may involve additional checks.

Authentication & security

Strong customer authentication (SCA) is often required, adding friction during checkout.

• These measures can enhance security but may also contribute to higher cart abandonment if customers encounter obstacles.
• Continuous fraud monitoring and adaptive authentication can help balance security with user experience.

Benchmarks (indicative, not guaranteed)

MDR: can be slightly higher than standard e-commerce due to perceived industry risk.

• Rolling reserves: may be implemented, particularly by newer merchants or those with limited transaction history.
• Settlement cycles: typically take longer, averaging 5-7 days, especially with card payments.
• Chargeback ratios: could be moderately elevated, requiring careful monitoring to mitigate risks.
• Approval rates: generally in line with industry averages, but may drop during high-risk conditions.

Key metrics to monitor

Transaction decline rates segmented by method of payment.

• Chargeback rates and resolution timelines to identify patterns or issues.
• Average transaction value and customer lifetime value trends.
• Checkout abandonment rates correlated with authentication steps.

Risk & Compliance

Merchants operating under this MCC face specific risks related to financial transactions and consumer protection. Given the nature of sales and rentals, PSPs and acquirers closely monitor for fraudulent activities and compliance with AML/KYC regulations.

Chargebacks & fraud

Common issues include friendly fraud (customers disputing legitimate purchases), where buyers claim they didn't authorize transactions or fail to return rented items.

• Rental transactions may lead to disputes regarding the condition of returned items, causing chargebacks.
• Mitigation tools can include clear rental agreements, identification checks, and transaction monitoring systems to identify unusual activity patterns.

AML/KYC expectations

Verification of customer identity is crucial, requiring strong customer ID verification (IDV) including government-issued IDs, especially for high-value rentals.

• Sanctions checks and monitoring for politically exposed persons (PEPs) are essential due diligence steps.
• Triggers for manual review may involve large rental transactions, inconsistencies in customer information, or patterns indicating synthetic identity use.

Operational red flags

Lack of transparency in ownership structures, particularly if the business operates under a white-label model without clear identification of the actual owner.

• Issues arise when traffic comes from unverified sources or geographic regions restricted for sales, posing compliance risks.
• Absence of clear customer return policies or dispute resolution processes can alarm PSPs, indicating a willingness to evade accountability.
• Failing to implement adequate security measures for customer data could signal negligence and heighten scrutiny from acquirers.

Onboarding Checklist

Merchants under the Typewriter Stores MCC (5978) 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 and rental service details; policies for service agreements
• internal process for chargeback investigation and documentation

Regulation & Licensing

Licensing and certification are important for merchants in this MCC, as they help establish credibility and trust with payment service providers (PSPs) and customers alike. Recognition of licenses is often influenced by the geographical location of the merchant and their target markets.

Operator licenses

Retail Business License — typically required for legal operation in a specified city or state. Recognition varies based on local regulations.

• Sales Tax Permit — necessary for collecting sales tax, recognized within the merchant's jurisdiction.
• Occupational License — may be needed depending on local business laws to operate in specific areas.
• Federal Employer Identification Number (EIN) — required for tax purposes, recognized across the United States.
• Some regions may require additional specialty licenses for rental operations.

Geo-restrictions

Different states in the US have varying requirements for sales, rentals, and business operations.

• Some countries impose restrictions on the import and sale of specific goods related to typewriters.
• Merchants may face barriers when attempting to operate across international borders, depending on local laws.

Certifications & audits

Compliance with local business regulatory audits as required by state or local municipalities.

• Vulnerability assessments or security audits may be necessary if handling customer data.
• Proof of adherence to consumer protection laws and regulations relevant to retail operations.
• Compliance with product safety standards for any equipment sold or rented.

Official Definitions & Network Comparisons

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

Explanation:

Although definitions across networks are similar, minor variations in terminology and focus (e.g., “sales” vs. “retail services”) can lead to different onboarding requirements. Some networks may place more emphasis on descriptions or specific product categories. Common acceptance challenges include missing or unclear descriptions, compliance with local regulations, and adherence to return and service policies.

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 selling or servicing typewriters, ensure to use MCC 5978 exclusively. Misclassifying can lead to regulatory scrutiny and potential account issues, especially if related to more generalized retail MCCs.

Best Practices for Merchants

Merchants operating under the Typewriter Stores MCC (5978) must navigate unique challenges tied to niche product offerings. Implementing best practices helps enhance payment acceptance, reduce chargebacks, and maintain strong relationships with payment service providers (PSPs).

Classification & transparency

always use the correct MCC to avoid account restrictions and ensure appropriate payment processing

• clearly display product offerings, pricing, and rental terms on your website to promote transparency
• maintain accurate and updated descriptions of services to avoid customer disputes

Fraud & chargeback reduction

implement 3DS or step-up authentication for any high-value transactions or unusual purchasing patterns

• use clear billing descriptors that accurately reflect purchases to prevent customer confusion
• log all transactions and service events to compile evidence for dispute representments if necessary

Payment acceptance optimization

support various payment methods (credit cards, digital wallets, financing options) to accommodate different customer preferences

• analyze customer behavior and route transactions based on geographic location and transaction method to optimize acceptance
• consider using separate MIDs for different product lines or service types to manage scheme specificities effectively

Operational discipline

establish KPIs for tracking sales performance, payment success rates, and chargebacks to maintain operational oversight

• conduct regular compliance audits and customer satisfaction surveys to identify potential issues in real-time
• allocate a dedicated resource for managing disputes, ensuring timely response and resolution based on defined SLAs

Payouts & liquidity

keep sufficient liquidity reserves to manage rolling reserves and ensure smoother fund availability

• implement automated Anti-Money Laundering (AML) checks on withdrawal requests to minimize risk exposure
• monitor any irregularities in payout patterns and prepare for potential holds or delays in processing withdrawals

Business Scope & Examples

This MCC covers businesses that specialize in the sales, rentals, and service of typewriters and related equipment. Merchants classified under this category typically provide products and support that cater to customers interested in typewriters for personal, professional, or artistic use.

Models

retail sales of new typewriters

• sales of refurbished or vintage typewriters
• typewriter rental services for events or temporary needs
• repair and maintenance services for typewriters
• specialty retailers offering typewriter accessories, such as ribbons and paper

Borderline cases

Office supply stores — these may sell typewriters but are primarily focused on a broader range of office equipment and supplies, which places them under a different MCC.

• Art supply stores — stores that sell typewriters used for artistic purposes; while they might be similar, they typically focus on a wider array of art supplies and thus do not fall under this MCC.

Signals for correct classification

primary business focus is on typewriters and related services

• significant portion of revenue comes from typewriter sales or rentals
• marketing specifically highlights typewriters as the core product offering