MCC Codes
7523

Parking Lots and Garages

A guide for underwriters at ISOs and Acquirers onboarding MCC 7523 parking and garage operations 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 parking lot or garage operator, MCC 7523 concentrates risk around unattended pay stations, app-based mobile payments, and high counts of low-value card-not-present transactions ripe for card testing. Disputes cluster around duplicate charges and unrecognized merchant descriptors. Here's what to look for.

Key Information

This guide covers parking lots and garages, where unattended terminals, mobile parking apps, and a high volume of small-ticket transactions drive card testing and descriptor disputes.

Typical Business Types

Daily and Hourly Garages

#1
Structured garages charging by time with gated entry and exit.

Surface Lots

#2
Open lots using pay stations or attendants for short-term parking.

App-Based Parking Operators

#3
Operators billing through mobile apps tied to plate or zone.

Payment Processing Information

Transaction Types

1

Gated Entry and Exit

Ticket issued on entry and card charged at exit by duration.
2

Unattended Pay Station

Self-service kiosk charging cards without staff present.
3

Mobile App Payment

Customer pays by zone or plate through a parking app.
4

Monthly Permit Billing

Recurring charge for reserved or contract parking.
5

Validation and Discount Charges

Reduced or waived fees tied to merchant validation.

Common Payment Methods

Credit and Debit Cards - Primary method at exits and pay stations
Mobile Parking Apps - Zone or plate-based payment through smartphones
Contactless and Digital Wallets - Tap payments at gates and kiosks
Prepaid Parking Passes - Stored value for frequent or contract parkers
Cash - Still accepted at attended lots and some kiosks

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7523

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Key Risks & Concerns

Fraud Risks

  • Card Testing - Small parking charges used to validate stolen card numbers
  • Friendly Fraud - Disputes claiming the charge was not recognized
  • Duplicate Charge Disputes - Cardholders contesting repeated app or gate charges
  • Attendant Skimming - Staff capturing card data at attended booths
  • Account Takeover - Compromised app accounts used for free or fraudulent parking

Regulatory Challenges

  • Municipal Parking Ordinances - Local rules on rates, signage, and operations
  • Zoning and Land Use Rules - Permitted use of lots and structures
  • Consumer Disclosure Requirements - Clear posting of rates and fees
  • ADA Accessibility Standards - Required accessible spaces and access
  • PCI Compliance - Payment card data security

Common Fraud Signals

Bursts of Small Identical Charges

Rapid low-value transactions pointing to card testing.

High Decline-Then-Approve Rates

Repeated declines followed by approvals at kiosks.

Descriptor-Driven Disputes

Disputes citing an unrecognized parking merchant name.

Example Scenarios and Red Flags

Card Testing Activity at Kiosks

Sequences of tiny charges from unattended terminals.

Unrecognized Charge Chargebacks

Spikes in disputes over unclear billing descriptors.

App Account Compromise Reports

Customers reporting unauthorized parking sessions.

Duplicate Mobile Charges

Repeated app charges for a single parking session.

Attendant Refund Anomalies

Unusual void and refund patterns at staffed booths.

Common Underwriting Questions

UW Tips Business

  1. Verify municipal permits and zoning for lot operation
  2. Confirm lot locations, capacity, and equipment in place
  3. Review whether operations are attended, gated, or app-based

UW Tips Financial

  1. Recognize very high volumes of low-value transactions
  2. Review demand swings tied to events and business hours
  3. Assess mix of hourly, daily, monthly, and app revenue

UW Tips Risk

  1. Examine card testing exposure on unattended terminals
  2. Evaluate clarity of the billing descriptor against disputes
  3. Review attendant controls on refunds and voids

UW Questions Business

  1. How many lots and spaces do you operate and where?
  2. Are your lots attended, gated, kiosk-based, or app-based?
  3. What share of revenue is hourly versus monthly contract?

UW Questions Payments

  1. How do customers pay at unattended stations and through apps?
  2. What billing descriptor appears on cardholder statements?
  3. How do you handle monthly permit recurring billing?

UW Questions Fraud

  1. What protections guard unattended kiosks against card testing?
  2. How do you secure parking app accounts against takeover?
  3. What controls cover attendant refunds and card handling?

UW Questions Compliance

  1. Are you PCI compliant and when was your last assessment?
  2. Do you meet municipal rate posting and disclosure rules?
  3. Are your lots compliant with accessibility standards?

UW Questions Chargebacks

  1. What is your chargeback ratio and which reasons dominate?
  2. How many disputes cite unrecognized parking charges?
  3. Do you retain session and gate records for evidence?

UW Questions Infrastructure

  1. Are your gates, kiosks, and app integrated for reconciliation?
  2. How do you reconcile app sessions against settled volume?
  3. Do you have backup payment methods during kiosk outages?

Ongoing Monitoring

Transaction Monitoring

  • Watch for bursts of small charges signaling card testing
  • Track duplicate app charges per session
  • Review refund and void patterns by attendant and lot

Compliance Checks

  • Maintain municipal permits and rate disclosures
  • Keep PCI assessments current for kiosks and apps
  • Stay current on accessibility requirements

Security Updates

  • Deploy point-to-point encryption at unattended kiosks
  • Apply velocity controls to block card testing
  • Secure parking app authentication and session controls

Risk Assessment

  • Increase monitoring during events and peak demand
  • Clarify billing descriptors to cut recognition disputes
  • Evaluate unattended terminal exposure across all lots

Merchant Communication

Help the merchant make billing descriptors clear so cardholders recognize parking charges. Share velocity and decline controls that limit card testing at unattended kiosks. Support reconciliation between app sessions and settled volume.

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Useful Sources

Visa Merchant Data Standards Manual

PCI DSS Quick Reference

National Parking Association

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