# The merchant category code in a UPI QR

> mc carries a four-digit ISO 18245 merchant category code — 5411 for grocery, 5812 for restaurants — classifying what the merchant sells. It feeds transaction limits, fee policy and app features. Use the MCC your PSP assigned; codes built from a personal VPA are effectively unclassified, treated like 0000.

Source: https://useqr.app/docs/payments/upi-qr-merchant-category-code · Last reviewed 2026-08-21 · UseQR is free forever, MIT licensed, no signup.

---

## What mc is

`mc` is the optional [UPI QR parameter](/docs/payments/upi-qr-code-format) that carries a
**merchant category code**: exactly **four digits**, drawn from **ISO 18245**, the same
classification scheme the card networks have used for decades. It says what kind of business
the payee is:

```
upi://pay?pa=store@okaxis&pn=Daily%20Needs&mc=5411&cu=INR
```

The [MCC](/glossary/mcc) system predates UPI entirely — it exists so that every payment
system on earth can agree that 5411 means a grocery store without exchanging prose. UPI
adopted it rather than inventing a new taxonomy, which is also why the same MCC appears in a
[BharatQR](/docs/payments/bharatqr-explained) payload and on a card terminal receipt.

## Common codes

A few of the well-established values:

| MCC | Category |
|---|---|
| 4121 | Taxis and rideshare |
| 4900 | Utilities — electricity, gas, water |
| 5411 | Grocery stores and supermarkets |
| 5812 | Restaurants |
| 5814 | Fast food |
| 5912 | Pharmacies |
| 7230 | Salons and barbers |
| 8011 | Doctors and physicians |
| 8220 | Colleges and universities |
| 8398 | Charitable organisations |

**`0000`** is the unclassified value — what a code effectively is when it comes from a
personal VPA with no merchant onboarding behind it. P2P-style codes made by individuals
either omit `mc` or carry 0000, and the ecosystem treats them as person-to-person transfers
rather than merchant payments.

## What the MCC actually changes

The category is not decorative. Things keyed off it, directly or downstream:

- **Classification of the payment.** The MCC is a large part of how a transaction is
  treated as P2M rather than P2P, which determines which
  [limit and fee regime](/docs/payments/upi-qr-code-limits-and-charges) applies.
- **Fee policy.** UPI P2M carries zero MDR as of 2026, but fee and interchange policy has
  historically been written **per category** — when pricing rules change, they change by
  MCC. On card rails the MCC sets the interchange bracket outright.
- **Limits.** Certain categories have their own transaction caps in the NPCI framework —
  higher ceilings exist for some verified merchant categories, with the binding numbers
  living at your bank and PSP.
- **App behaviour.** Payment apps use the category for statement labelling, offers,
  cashback eligibility and features gated to merchant payments. Some UPI-Lite and offline
  flows also depend on merchant classification.

## The rule: do not choose your own

If a PSP issued your merchant VPA, it assigned your MCC during onboarding, based on your
declared business. **Use that value.** Encoding a different one in your own QR does not
reclassify you — at best it creates a mismatch between the code and the account behind it,
and misdeclared MCCs are a thing acquirers audit for, because category determines pricing.

If you are an individual with a personal VPA, the honest value is none at all: omit `mc`,
as the [small-shop setup](/docs/payments/upi-qr-for-a-small-shop) does. The parameter is
validated when present — anything other than exactly four digits is rejected by
[our generator](/upi), and you can [decode any code](/validate) to check what a standee
actually carries.

For fleets of codes — one per branch or per till — keep the MCC constant and vary `tn` or
`tr` instead, generating the set [in bulk](/bulk).

## FAQ

### What is the mc parameter in a UPI QR code?
It is the merchant category code: a four-digit ISO 18245 value classifying the payee's business, such as 5411 for grocery or 5812 for restaurants. It is optional, and PSPs assign it during merchant onboarding.

### What MCC should I use for a personal UPI QR code?
None. Omit the mc parameter. Merchant category codes belong to merchant accounts; a personal VPA without onboarding is effectively unclassified, and encoding a category you were never assigned only creates a mismatch.

### Does the MCC affect UPI charges?
Not today for most merchants — UPI P2M carries zero MDR as of 2026. But fee and limit policy is written per category, so the MCC is what determines your treatment whenever pricing rules change.

### Can I change the MCC in my QR code?
You can encode any four digits, but you cannot reclassify yourself. The category that governs your account is the one your PSP assigned; a different value in the code creates an auditable mismatch, not a new rate.

## Try it

- https://useqr.app/upi
- https://useqr.app/validate
- https://useqr.app/bulk