SECTION 4. DEFINITIONS

For purposes of this revenue procedure, the terms listed below are defined as follows:

.01 Cardholder . A cardholder is the payor for payments made to a merchant/ payee through a payment card.

.02 Merchant . A merchant is a payee that has entered into an agreement with a payment card organization, or a member or affiliate, to accept the organization’s payment card as payment for goods and services.

.03 Merchant Category Code . A Merchant Category Code (MCC) is a classification code that is assigned by a payment card organization or one of its members or affiliates to a merchant that has been accepted to participate in the payment card system as a card-accepting merchant. The payment card organization or one of its members or affiliates assigns the merchant a particular code based on the predominant business activity of the merchant.

.04 Industry Code . An Industry Code is the number that corresponds to, and identifies, a merchant in the same business as a merchant assigned a particular MCC.

.05 Payment Card . A payment card is a card (or an account) issued by a payment card organization, or one of its members or affiliates, to a cardholder/payor, which upon presentation to a merchant/payee, represents an agreement of the cardholder to pay the merchant through the payment card organization.

.06 Payment Card Organization . A payment card organization is an entity that sets the standards and provides the mechanism, either directly or indirectly through members and affiliates, for effectuating payment between a purchaser and a merchant in a payment card transaction. A payment card organization generally provides such a payment mechanism by issuing payment cards, enrolling merchants as authorized acceptors of payment cards for payment for goods or services, and ensuring the system conducts the transactions in accordance with prescribed standards.

.07 Payment Card Transactions . A payment card transaction is a transaction in which a cardholder/payor uses a payment card (as defined in section 4.05 of this revenue procedure) to purchase goods or services, and a merchant agrees to accept a payment card as a means of obtaining payment.