Management, Consulting, and Public Relations Services
A guide for underwriters at ISOs and Acquirers onboarding MCC 7392 consulting and PR services merchants, covering risk assessment, fraud signals, and the underwriting questions that matter.
If you're underwriting a management, consulting, or PR firm, MCC 7392 concentrates risk around large project deposits, retainer billing, and disputes over deliverables that are hard to define. High ticket sizes and subjective outcomes make chargebacks costly. Here's what to look for.
Key Information
This guide covers management, consulting, and public relations firms, where project deposits, retainers, and subjective deliverable disputes drive high-value chargeback exposure.
Typical Business Types
Management Consultancies
#1
Firms advising on strategy, operations, and organizational change.
Public Relations Agencies
#2
Agencies managing media, communications, and reputation.
Independent Consultants
#3
Solo advisors billing project fees and retainers.
Payment Processing Information
Transaction Types
1
Project Deposit
Upfront charge to begin an engagement.
2
Monthly Retainer Billing
Recurring charge for ongoing advisory work.
3
Milestone Payment
Charge tied to a defined project phase or deliverable.
4
Hourly Fee Settlement
Billing based on tracked consulting hours.
5
Expense Pass-Through
Reimbursable costs billed to the client.
Common Payment Methods
Credit Cards - Used for deposits, retainers, and smaller engagements
ACH and Wire Transfers - Common for large project payments
Card-on-File Recurring - Stored cards for monthly retainers
Invoicing Platforms - Net-term billing for corporate clients
Digital Wallets - Occasional use for smaller fees
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Scope Disagreement Chargebacks - Disputes over work outside an unclear scope
Regulatory Challenges
Professional Services Contracts - Engagement terms and scope definition
Public Relations Disclosure Rules - Sponsored content and disclosure standards
Data Privacy Obligations - Handling of confidential client information
Consumer Protection Laws - Fair billing and refund practices
PCI Compliance - Payment card data security
Common Fraud Signals
Large Upfront Deposits
High-value charges before work begins.
High Average Ticket Sizes
Engagements with significant chargeback cost if disputed.
Vague Scope or Deliverables
Engagements lacking clear, defined outcomes.
Example Scenarios and Red Flags
High-Value Deliverable Disputes
Large chargebacks over contested project outcomes.
Retainer Cancellation Disputes
Spikes in disputes after engagements end.
Deposit Refund Conflicts
Patterns of disputes over non-refundable deposits.
Scope Disagreement Chargebacks
Disputes tied to unclear engagement boundaries.
Missing Engagement Documentation
Charges without signed scope or contract.
Common Underwriting Questions
UW Tips Business
Verify firm registration and professional standing
Confirm office location, principals, and client base
Review engagement contracts and scope definitions
UW Tips Financial
Recognize high average tickets with subjective deliverables
Review revenue mix of project, retainer, and hourly work
Assess concentration among a few large clients
UW Tips Risk
Examine chargeback ratios on high-value engagements
Evaluate scope definition and deliverable documentation
Review deposit and refund policies
UW Questions Business
What consulting or PR services do you provide?
Who are your typical clients and engagement sizes?
Are your engagements project, retainer, or hourly?
UW Questions Payments
What share of revenue is deposits and retainers?
How do you bill milestones and pass-through expenses?
How are recurring retainers charged?
UW Questions Fraud
How do you define and document deliverables and scope?
What controls cover deposit and retainer disputes?
How do you handle engagement cancellations?
UW Questions Compliance
Are you PCI compliant and when was your last assessment?
How do you protect confidential client data?
Do you meet PR disclosure standards where relevant?
UW Questions Chargebacks
What is your chargeback ratio and which reasons dominate?
How do you defend disputes over subjective deliverables?
Do you retain signed contracts and scope documents?
UW Questions Infrastructure
Are billing, time tracking, and project systems integrated?
How do you reconcile retainers against delivered work?
Do you document milestone completion?
Ongoing Monitoring
Transaction Monitoring
Watch high-value deliverable dispute volume
Track retainer cancellation patterns
Review deposit refund conflicts
Compliance Checks
Maintain professional standing and registrations
Keep PCI assessments current
Stay current on PR disclosure and data privacy rules
Security Updates
Use tokenization for stored retainer cards
Apply clear recurring billing authorization
Protect confidential client information
Risk Assessment
Tighten scope definitions to reduce deliverable disputes
Clarify deposit and refund terms
Monitor large engagements for dispute risk
Merchant Communication
Help the merchant define scope and deliverables clearly so high-value engagements can withstand disputes. Share contract and milestone documentation practices. Support retainer billing terms that reduce cancellation chargebacks.
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