MCC Codes
5992

Florists

A guide for underwriters at ISOs and Acquirers onboarding MCC 5992 florist and flower retail merchants, covering risk assessment, fraud signals, and the underwriting questions that matter.
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Table of Contents
Overview
Business Types
Payment Processing Info
Key Risks & Concerns
Common Fraud Signals
Example Scenarios
Common Questions
Ongoing Monitoring
Useful Sources

Underwriting Cheat Sheet

If you're underwriting a florist, MCC 5992 concentrates risk around card-not-present phone and online orders, sharp holiday spikes around Valentine's Day and Mother's Day, and delivery disputes when flowers arrive late or not as described. Order-gathering and relay networks add reconciliation complexity. Here's what to look for.

Key Information

This guide covers florists, where card-not-present ordering, extreme holiday seasonality, and delivery-quality disputes drive fraud and chargeback exposure.

Typical Business Types

Retail Flower Shops

#1
Local florists selling and arranging flowers for walk-in and delivery.

Online Floral Retailers

#2
Web sellers fulfilling orders through local relay networks.

Event and Wedding Florists

#3
Specialists handling large-value event arrangements.

Payment Processing Information

Transaction Types

1

In-Store Card-Present Sales

Walk-in customers buying arrangements at the counter.
2

Phone and Online Orders

Card-not-present orders placed for delivery to a recipient.
3

Wire and Relay Orders

Orders sent to partner florists in other cities for fulfillment.
4

Event Deposits

Partial charges securing weddings and large events.
5

Subscription Deliveries

Recurring charges for scheduled flower deliveries.

Common Payment Methods

Credit and Debit Cards - Primary method in store, by phone, and online
Mobile Wallets - Contactless taps for walk-in purchases
Relay Network Settlement - Funds settled between partner florists
Recurring Billing - Charges for subscription delivery plans
Cash - Occasional on walk-in purchases

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Key Risks & Concerns

Fraud Risks

  • Card-Not-Present Fraud - Phone and web orders placed with stolen cards
  • Friendly Fraud - Buyers disputing after delivery to a third party
  • Delivery Quality Disputes - Claims flowers were late or not as described
  • Recipient Address Fraud - Goods sent to addresses unrelated to cardholder
  • Relay Order Fraud - Fraudulent orders pushed through wire networks

Regulatory Challenges

  • Sales Tax Collection - Correct tax on goods and delivery by state
  • Consumer Protection Rules - Accurate delivery and substitution claims
  • Recurring Billing Disclosure - Clear terms for subscription deliveries
  • Perishable Goods Representations - Honest freshness and quality claims
  • PCI Compliance - Payment card data security

Common Fraud Signals

Holiday Volume Spikes

Extreme surges around Valentine's Day and Mother's Day.

High Card-Not-Present Share

Most orders placed by phone or web for delivery.

Recipient Address Mismatch

Frequent delivery to addresses unrelated to the cardholder.

Example Scenarios and Red Flags

Post-Holiday Chargeback Surge

Disputes clustering after major floral holidays.

Multiple Orders Different Recipients

One card sending to many unrelated addresses.

Last-Minute Same-Day Orders

Rush card-not-present orders typical of fraud.

Subscription Dispute Cluster

Recurring-billing disputes claiming no authorization.

Relay Orders From New Accounts

Wire orders from unverified accounts.

Common Underwriting Questions

UW Tips Business

  1. Verify business registration, storefront, and delivery capability
  2. Confirm relay network membership and settlement flow
  3. Assess event and subscription revenue components

UW Tips Financial

  1. Recognize extreme holiday peaks and quiet stretches
  2. Review card-not-present versus card-present split
  3. Estimate subscription and event revenue share

UW Tips Risk

  1. Examine chargeback timing around floral holidays
  2. Evaluate delivery confirmation and substitution practices
  3. Review recurring-billing authorization controls

UW Questions Business

  1. What share of orders is phone and web versus walk-in?
  2. Are you part of a wire or relay network?
  3. Do you offer subscriptions or event services?

UW Questions Payments

  1. How do you screen card-not-present orders for fraud?
  2. How are relay orders settled and reconciled?
  3. How do you handle subscription recurring billing?

UW Questions Fraud

  1. How do you verify orders to third-party recipient addresses?
  2. What checks apply to last-minute same-day orders?
  3. How do you flag one card sending to many recipients?

UW Questions Compliance

  1. Are you PCI compliant and when was your last assessment?
  2. How do you disclose subscription billing terms?
  3. How do you collect sales tax on goods and delivery?

UW Questions Chargebacks

  1. What is your chargeback ratio and when do disputes peak?
  2. How do you document delivery and substitutions?
  3. Do you retain order and delivery confirmation records?

UW Questions Infrastructure

  1. Is your online ordering integrated with your POS?
  2. How do you manage relay network order systems?
  3. Do you have backup processing for holiday peaks?

Ongoing Monitoring

Transaction Monitoring

  • Track order volume against floral holiday calendar
  • Watch recipient address mismatches and multi-recipient cards
  • Monitor same-day rush order patterns

Compliance Checks

  • Maintain sales tax compliance on goods and delivery
  • Keep subscription billing disclosures clear
  • Keep PCI assessments current

Security Updates

  • Use EMV and contactless readers for walk-ins
  • Apply AVS and CVV checks on phone and web orders
  • Deploy tokenization and encryption for card data

Risk Assessment

  • Tighten screening before major floral holidays
  • Verify high-volume multi-recipient orders
  • Address delivery-quality dispute root causes

Merchant Communication

Help the merchant plan capacity and cash flow around holiday surges. Share delivery documentation practices that defend quality disputes. Support clear subscription terms to reduce recurring-billing chargebacks.

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Useful Sources

Visa Merchant Data Standards Manual

PCI DSS Quick Reference

FTC Mail, Internet, or Telephone Order Merchandise Rule

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