Credit Card Merchant Code for Sonic Corporation

General discussions and other topics.
35 posts Page 1 of 4
by dmorrissonic » Thu Jun 22, 2017 7:47 pm
I am a Sonic customer and I love your service. I charge my monthly bill on my Chase Ink Visa card. Chase Ink gives its users 5% cash back on any charge they make from internet, cable and phone services providers.

Sonic, is obviously an Internet and phone company. For the two+ years I've had Sonic every thing was fine and I was getting my 5% back from Chase.

however, sometime in April or May 2017, Sonic accidentally(?) changed it's merchant code and category with Mastercard & Visa (and Chase) to be a "Utility and water company." Asa result, I no longer get 5% back from Chase Ink on my Sonic charges.

Can you please change your merchant code back to a "Cable/Phone/Internet" provider with Visa and Chase (and Mastercard)? After all, that what Sonic really is.

Thanks! Please let the forum know when this change is effected.
by dane » Fri Jun 23, 2017 12:01 pm
The FCC last year defined BIAS as a utility. Sorry if that change has impacted you.
Dane Jasper
Sonic
by Anonymous1624 » Sat Jun 24, 2017 4:27 pm
I'm not sure I understand: the FCC determined that broadband Internet access service is a "telecommunication service," like landline and mobile telephone services, rather than an "information service" subject to fewer regulations.

If the FCC's classification determines the Merchant Category Code used for credit-card billing, then according to the VISA Merchant Data Standards Manual, the correct code would be MCC 4814, "Telecommunication Services, including Local and Long Distance Calls, Credit Card Calls, Calls Through Use of Magnetic- Stripe-Reading Telephones, and Fax Services."

It certainly shouldn't be MCC 4900, "Utilities – Electric, Gas, Water, and Sanitary," for which VISA's own manual states, "Merchants providing telecommunication service must be classified under MCC 4814."

It's also interesting to note that Sonic's services were previously billed under MCC 4899, "Cable, Satellite and Other Pay Television/Radio/Streaming Services," rather than under MCC 4814 or MCC 4816, "Computer Network/Information Services."

Given the difference in cashback rates, one wonders if perhaps the change in MCC had more to do with the discount fees Sonic pays for accepting credit cards than with any action by the FCC. Hopefully Dane can assure us otherwise.
by aw1 » Mon Jun 26, 2017 10:36 am
I have the same problem with Sonic Billing. They probably changing the MCC to reduce interchange fee. According to Chase, they changed to Gas/Electric Utilities and that is completely wrong code to use.
by anonymous4261 » Tue Jun 27, 2017 10:47 pm
Also a sonic member, and this is unfortunate. It makes zero sense that it is now classified as something it is not. How is something like this okay as well? For those of us who need these charges to be correctly categorized for business expenses and reimbursements, can anything be done?
by anonymous282381 » Tue Jun 27, 2017 11:22 pm
Same problem here. It's unfortunate and interested as how this can be okay when sonic is clearly an internet and phone company?
by aw1 » Wed Jun 28, 2017 8:57 am
I called Mastercard to file a complain and I also spoke with Chase. Hope something will be done soon. I may call authorized.net which is the processing company or contact FCC/
by aw1 » Wed Jun 28, 2017 9:11 am
We may be able to file complain to CPUC.

https://appsssl.cpuc.ca.gov/cpucapplication/
by anonymous4261 » Thu Jul 06, 2017 1:31 am
Thanks, for the update. I placed a similar concern with Visa/Chase. Did you file a complaint with the CPUC? Wonder if that falls under their jurisdiction
by aw1 » Thu Jul 06, 2017 11:22 am
Yes, I did file with CPUC. Also contacted Chase, master card but no luck still. This is pretty annoying.
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