What is a type code?

A type code—also known as a Merchant Category Code (MCC)—is an international standard four-digit code. The code is used by card issuers (e.g., VISA and Mastercard) to classify a business based on the type of goods or services they provide.

There are more than 600 different type codes, which divide the market into specific segments. Examples include 5111: Office Equipment, 7299: Pet Supplies, 5722: Household Appliances.

• Read more about Mastercard type codes
• Related: Mapping of cost types and type codes

How does Acubiz use type codes?

Acubiz utilizes this data to automate employee expense posting. The purpose is to ensure quick and accurate posting of credit card transactions with minimal manual involvement. When a transaction is imported into Acubiz, the transaction’s type code is matched with the company’s chart of accounts. If there is an expense account with a corresponding type code, the system will automatically suggest or select this account.

Example of an automated workflow:

1. An employee pays for a taxi with their company card.

2. The transaction is received in Acubiz with the type code 4121.

3. Acubiz identifies that your account for "Taxi" is linked to type code 4121.

4. The expense is automatically posted correctly, and the employee saves time on manual entry.

ℹ️ Efficiency can be further improved by using Real time transaction data to Acubiz

Important considerations for automation

Although type codes are an effective tool, there are two important factors to be aware of:

1. User selection takes precedence It is important to note that the user’s active choice in the Acubiz app always overrides automation. If an employee manually changes the cost type, this choice will form the basis for the final posting, regardless of what the type code dictates.

2. Limitations with identical type codes Not all expenses are suitable for automatic matching via type codes. This is especially true when different expense types share the same industry code.

Example: A restaurant always has the same type code. However, in your accounting, you likely distinguish between "Meals" and "Entertainment". If the type code is linked to "Meals," the system will automatically select this account every time—even when it is actually an entertainment expense.

Since employees often overlook correcting an already filled-in account, it is recommended in such cases to leave the field blank so that the employee is forced to consider the purpose of the visit.

Specify the range for the type code in the type code field on the expense account:

For this reason, type codes should be used with care, and it is not permitted to assign the same type code to two different expense accounts in Acubiz.

To identify the type code for a specific transaction, you can open the transaction and review the details as follows:

• See also Enable or disable automatic approval