What is a Merchant Category Code (MCC)?

mer - chant cat - e - gor - y code
noun
A 4-digit code designated by a Credit Card company that lists the product, service, or line of business of a merchant.
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For more information, read "The Payments System Simplified"
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How Does a Merchant Category Code Work?

A merchant category code is first assigned by a Credit Card company, such as Visa or MasterCard, to a Merchant once it begins to accept one those companies' credit cards. If a merchant is involved in more than one type of business, than the Merchant Category Code will apply to that merchant’s primary line of business.