7993 Video amusement game supplies

Introduction

• What it is: This MCC covers businesses that sell or supply video and amusement game equipment.
• Risk level: Medium — Higher risk due to potential for chargebacks and industry volatility.
• Acceptance difficulty: Medium — Payment processors may require additional verification due to the nature of the goods.
• Typical business models: game arcades; vending machine operators; suppliers for amusement parks; video game rental shops.
• For merchants: Expect moderate MDR rates; prepare for possible reserve requirements; may face longer approval times.
• What PSPs expect: Proof of business legitimacy; detailed product listings; sales history and projections.

Payment Insights & Benchmarks

Merchants in the Video Amusement Game Supplies MCC should expect a unique set of challenges related to payment acceptance and risk management. Payments in this sector may involve niche customer bases and specific regulatory considerations, influencing both transaction approvals and costs.

Payment methods

Cards: typically accepted but may face restrictions based on chargeback risks, leading to lower approval rates.

• E-wallets: often preferred by customers for their convenience, but not universally accepted.
• In-app purchases: common for digital offerings; integration can be complex.
• Prepaid cards: used for discreet transactions, however, they may incur additional fees.

Authentication & security

Strong customer authentication (SCA) measures like 3DS are commonly required, increasing friction at checkout.

• Despite increased security, merchants still need to manage internal fraud cases effectively.
• Monitoring for unusual transaction patterns is vital to mitigate risks associated with high-value purchases.

Benchmarks (indicative, not guaranteed)

MDR: generally higher compared to standard e-commerce transactions due to increased risk.

• Rolling reserves: often present to cover potential chargebacks, typically significant.
• Settlement times: longer than average, potentially exceeding 7 days.
• Chargeback ratios: likely elevated due to the nature of digital amusement and gaming purchases.
• Approval rates: typically lower for cards, with alternative methods offering better rates.

Key metrics to monitor

Transaction approval rates segmented by payment method and device.

• Chargeback ratios and reasons, particularly for scams versus legitimate disputes.
• Customer lifetime value (CLV) to assess the return on marketing investments.
• Trends in payment acceptance issues over time to preemptively address friction points.

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”), bonus abuse, and fraudulent chargebacks related to video game purchases.

• Patterns of accidental purchases or unauthorized transactions are common, leading to increased chargebacks.
• Mitigation tools include behavioral analytics, real-time transaction monitoring, and fraud detection algorithms, as well as clear purchase confirmations to minimize disputes.

AML/KYC expectations

Strong customer identity verification (IDV) is essential, including age verification and checks against sanctions lists.

• Source-of-funds checks are recommended, particularly for high-value transactions or frequent purchases.
• Manual review triggers include unusual purchasing patterns, significant account activity after lengthy inactivity, or mismatched account details.

Operational red flags

Lack of transparency regarding the ownership structure of the merchant or hidden operators behind the storefront.

• Transactions originating from known high-risk jurisdictions or unusual traffic sources can raise suspicions.
• Absence of clear usage and refund policies for game purchases may lead to consumer disputes and regulatory scrutiny.
• No evident measures for age restrictions or responsible gaming principles causing potential compliance concerns.

Onboarding Checklist

Merchants under this 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 operating video amusement game supplies
• 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 product offerings

• marketing plan and traffic source overview (affiliates, SEO, PPC)
• 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
• deposit and payout limits; self-exclusion mechanisms (if applicable)
• internal process for chargeback investigation and documentation

Regulation & Licensing

Licensing and certification are essential for merchants in the video amusement game supplies sector, as they ensure compliance with relevant regulations and secure acceptance by payment service providers (PSPs). The recognition of these licenses can vary significantly based on the merchant’s jurisdiction and the specific target markets they serve.

Operator licenses

Local gaming licenses — required in many jurisdictions to operate amusement game businesses, with recognition varying by region.

• State-level arcade licenses — necessary in certain states in the US for operating gaming machines, ensuring compliance with local regulations.
• Gaming machine supplier licenses — needed for businesses supplying machines and parts, often regulated at the state level.
• Federal licenses (if applicable) — some jurisdictions require federal approvals, especially for cross-state operations or when gaming involves significant regulatory scrutiny.

Geo-restrictions

Countries with strict gaming regulations may block transactions or deny PSP onboarding for unlicensed operators.

• In the US, individual states govern gaming laws, and compliance must be achieved on a state-by-state basis.
• Certain jurisdictions may only approve transactions from licensed suppliers in their area, impacting cross-border sales.

Certifications & audits

Compliance with PCI DSS standards for handling payment card data is mandatory for online sales.

• Regular compliance audits for gaming machines to ensure they meet operational and safety standards.
• Licensing bodies may require specific audits to verify the ethical operation of gaming services.
• Local gaming authority inspections to ensure businesses adhere to jurisdiction-specific gaming regulations.

Official Definitions & Network Comparisons

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

Explanation:

While the definitions broadly cover the retailing of video amusement game supplies, differences in terminology and focus influence merchant classification. For instance, Visa emphasizes licensing and venue suitability, while Mastercard looks more closely at regulatory compliance. Denial reasons often stem from improper licensing, high-risk geographic areas, and ambiguities in product descriptions or business models.

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 involves providing gaming or gambling services, ensure you classify appropriately with MCC 7993. Misclassifying your activities into unrelated categories can lead to compliance issues, including potential account suspension or closure.

Best Practices for Merchants

Merchants operating under the Video Amusement Game Supplies MCC must manage their payments and operations with diligence due to the unique risks associated with this industry. The following best practices provide actionable strategies to enhance acceptance rates, minimize disputes, and foster a healthy relationship with payment service providers.

Classification & transparency

always use the correct MCC; misclassification can lead to account termination

• clearly display product information, licensing, and responsible gaming policies on your website
• ensure transparency in business models and practices to build trust with customers and PSPs

Fraud & chargeback reduction

implement 3DS or step-up authentication for transactions flagged with high risk (e.g., unusual purchase amounts or geographic locations)

• provide clear billing descriptors and immediate transaction confirmations via SMS or email
• log transaction data and gaming events thoroughly to support dispute resolution and representments

Payment acceptance optimization

offer multiple payment methods (credit cards, e-wallets, prepaid cards) to reduce reliance on a single channel

• optimize transaction routing based on geographic location or issuing bank for better success rates
• conduct regular A/B testing with different PSPs to identify the best performers and consider using separate merchant IDs (MIDs) for different product lines or regions

Operational discipline

monitor key performance indicators (KPIs) such as authorization rates, chargeback ratios, and average refund processing days

• conduct regular compliance audits and test purchase reviews to ensure operational integrity
• designate a team or individual responsible for managing disputes to ensure timely and consistent responses

Payouts & liquidity

keep adequate liquidity buffers to accommodate rolling reserves and unexpected delays in settlements

• utilize automated AML (Anti-Money Laundering) checks for all withdrawal requests, particularly those exceeding predefined thresholds
• stay vigilant about payout timing and monitor for any suspicious withdrawal patterns to mitigate risk

Business Scope & Examples

This MCC covers businesses involved in the creation, distribution, and operation of video amusement games. Merchants classified under this category typically provide services that facilitate gaming experiences through electronic means, focusing on entertainment and amusement rather than gambling. The scope is specific to establishments offering non-gambling interactive gaming options.

Models

arcade centers with coin-operated video games

• manufacturers of video game machines
• game distribution services for amusement arcades
• coin-operated kiddie rides and amusements
• providers of virtual reality gaming experiences

Borderline cases

Gambling machines — devices that require monetary bets for winnings; classified differently as they are primarily for real-money gambling.

• Skill-based gaming — interactive games involving an element of skill where players may pay to play; can fall outside this MCC if they involve money-wagering mechanics.
• Home gaming consoles — platforms for gaming without direct profit from coin-operated operations; generally not classified under this MCC.

Signals for correct classification

games are played primarily for amusement rather than money-wagering

• operates coin-operated machines in public venues
• focuses on entertainment value rather than gambling activities