Product Spotlight: Automated Merchant Code Classification

At Parcha, we're committed to continually enhancing our platform to address the evolving needs of fintech and banks. Today, we're excited to share one of our efforts to accelerate your onboarding: AI-powered Merchant Category Code (MCC) Classification.

The Problem

Manually Classifying a Merchant Correctly Takes Too Much Time

One of the most time-consuming aspects of business onboarding is accurately classifying merchants into the appropriate Merchant Category Code (MCC). Yet identifying the correct MCC from over 500 options is critical to conducting proper due diligence on a business and meeting Visa and Mastercard's compliance requirements. This process often involves manual research, cross-referencing with industry-standard lists, and potential human error.

The result? Delayed onboarding, increased operational costs, and potential compliance risks.

The Solution

AI-Powered MCC Classification

Our new Automated MCC Selection feature leverages cutting-edge AI to transform this process. Here's how it works:

1. Comprehensive Analysis: Our AI analyzes the business's self-attested information, website, and online presence.
2. In-Depth Due Diligence: The system conducts thorough online research to determine the business's primary activities, products, and services.
3. Accurate Matching: Business activities are compared against Visa and Mastercard's Merchant Category Code guidance.
4. Precise Selection: The AI accurately selects the best MCC code to match the business.

See It In Action

Here's a demo of automated merchant code categorization in action:

In this demo, you'll see our Automated MCC Classification feature in action. We'll walk through the process of inputting business information, watch the AI analyze and classify the merchant in real-time, and observe how it selects the appropriate MCC code and identifies potential high-risk merchants.

Key Benefits

1. Time Efficiency: Eliminate hours of manual research and classification.
2. Increased Accuracy: Reduce errors associated with manual MCC assignment.
3. Improved Compliance: Ensure consistent application of industry-standard MCC classifications.
4. Faster Onboarding: Accelerate the merchant onboarding process.
5. Scalability: Handle high volumes of merchant classifications without increasing operational overhead.

Customization and Integration

We understand that every fintech has unique needs. Our Automated MCC Selection feature is designed to integrate seamlessly into your existing onboarding through our robust API.

We also can identify MCCs specific to your operating procedures that are deemed high-risk or require an alternative code.

Looking Ahead

Automated MCC Selection is just one of the many ways we're working to streamline the business onboarding process. We're committed to continually innovating and providing solutions that drive real business impact for our clients.

Ready to transform your merchant onboarding process? Contact our team at founders@parcha.ai to learn how Automated MCC Selection can benefit your business.

At Parcha, we're not just building features; we're crafting solutions that accelerate your growth and enhance your operational efficiency. We can't wait to see how you'll use this to streamline your merchant onboarding process and scale your business.