Merchant Category Code 8249 covers vocational training, trade schools, technical institutes, and career education programs providing specialized skills training for employment. This category involves program payments, placement promises, and regulatory scrutiny of outcomes.
Key Information
This guide addresses vocational education payment operations where program costs, completion rates, and employment outcomes create unique merchant challenges and regulatory attention.
Typical Business Types
Trade Skills Training
#1
Schools teaching construction trades, HVAC, electrical work, plumbing, and skilled crafts.
Technical Career Programs
#2
Institutes offering medical assisting, dental hygiene, IT certification, and technical careers.
CDL and Transportation Training
#3
Truck driving schools and programs for commercial transportation careers.
Payment Processing Information
Transaction Types
1
Program Tuition Payments
Full or partial payment for career training programs collected upfront or via payment plans.
2
Enrollment Deposits
Initial deposits securing spots in upcoming program sessions or classes.
3
Payment Plan Installments
Monthly payments spreading program costs over training duration.
4
Equipment and Materials Fees
Additional charges for tools, uniforms, textbooks, or certification exam fees.
5
Certification Testing Fees
Payments for industry certification exams and licensing test administration.
Common Payment Methods
Credit and Debit Cards - Standard payment for tuition and enrollment
Title IV Student Loans - Federal financial aid for eligible programs
Private Student Loans - Alternative education financing for career programs
Workforce Development Vouchers - Government training assistance programs
Employer Sponsorship - Companies paying for employee skill training
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A trucking school experiences chargebacks from graduates claiming advertised high placement rates and starting salaries weren't accurate or achievable.
Certification Failure Claims
Students dispute tuition claiming inadequate instruction caused them to fail industry certification exams required for employment.
Equipment Quality Complaints
Trade school students chargeback claiming training equipment was outdated or didn't reflect current industry standards.
Withdrawal Refund Policy Disputes
Students claim they weren't clearly informed about limited refund windows or substantial penalties for early program departure.
Regulatory Action Impact
Chargeback surge following government investigations or sanctions questioning school quality or marketing claims.
Common Underwriting Questions
UW Tips Business
Verify state authorization and programmatic accreditation status
Confirm Title IV program participation agreement if applicable
Review job placement rates and graduate outcome documentation
UW Tips Financial
Analyze program completion rates and revenue per student
Review refund rates and reasons for early withdrawal
Assess accounts receivable aging and payment plan collection rates
UW Tips Risk
Examine chargeback ratios focusing on outcome and quality disputes
Evaluate employment assistance services and placement tracking
Review enrollment agreement clarity regarding refunds and job placement
UW Questions Business
What vocational programs do you offer and what certifications do graduates earn?
What are your program completion and job placement rates?
How do you verify employment outcomes and graduate success?
UW Questions Payments
How do you structure program payments and what percentage use payment plans?
What is your refund schedule for students who withdraw from programs?
Do you participate in Title IV financial aid programs?
UW Questions Fraud
What procedures verify student attendance and engagement in training?
How do you prevent enrollment solely for financial aid disbursement?
What systems detect patterns of suspicious enrollment or withdrawal?
UW Questions Compliance
Are you properly licensed and authorized in all states where you operate?
How do you comply with gainful employment and outcome reporting requirements?
Do you accurately disclose placement rates and graduate outcomes in marketing?
UW Questions Chargebacks
What is your chargeback ratio and what are the primary dispute reasons?
How do you document job placement assistance and career services delivery?
What procedures handle student complaints before disputes escalate?
UW Questions Infrastructure
What student information system manages enrollment and billing?
How do you track graduate employment outcomes and placement rates?
Are your payment systems compliant with financial aid regulations?
Ongoing Monitoring
Transaction Monitoring
Monitor enrollment patterns for students withdrawing at refund cutoff dates
Track dispute rates by program type and completion rates
Review chargeback timing relative to graduation or withdrawal
Compliance Checks
Maintain current state authorizations and accreditation
Ensure accurate placement rate and outcome reporting
Stay updated on gainful employment regulations
Security Updates
Use secure payment processing with PCI compliance
Implement attendance verification systems
Deploy fraud detection for unusual enrollment patterns
Risk Assessment
Review job placement documentation and career services delivery
Assess program completion rates against industry benchmarks
Monitor regulatory compliance status and any sanctions
Merchant Communication
Emphasize importance of accurate outcome reporting and job placement documentation. Provide guidance on clear enrollment agreements and refund policies. Support schools in navigating gainful employment regulations.
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