Tag: MCC

  • Why MCC codes do not help (much) with payment categorization

    Why MCC codes do not help (much) with payment categorization

    We decided to provide our insights into the power of strictly MCC-based categorization and its limits. Categorization is important for credit risk scoring and it is the basis for Personal Finance Management tools.
    When we analyzed our categorization with MCCs, we saw that only 53% of transactions could be easily and reliably categorized based on their MCC code. Let’s have a look at the most frequent problems we identified that make MCC usage more difficult than it may seem at the first glance.