MCC 5933 - Pawn Shops 
Merchant Category Code 5933, commonly known as Pawn Shops, is used to identify businesses whose primary purpose is to offer short-term loans secured by personal property as collateral. These businesses play a crucial role in providing financial services to individuals who may not have access to traditional banking loans. Pawn shops serve as an accessible resource for quick cash in exchange for items such as electronics, jewelry, tools, and more.
Types of Services
- Collateral-based Lending: Offering loans secured by tangible personal property; if the borrower fails to repay, the item is sold to recoup the loan.
- Retail Sales: Selling items that have been forfeited by borrowers or purchased directly from the public.
- Buyback Services: Purchasing items from customers with the option to buy them back at a later date.
Related MCCs
- MCC 5932: Antique Shops - Sales, Repairs, and Reproductions: This MCC is used for businesses dealing in rare and collectible items, often complementing pawn shops that sometimes handle antiques.
- MCC 5944: Jewelry, Watch, and Clock Shops: Covers specialized retail of jewelry and watches, differing from pawn shops which may deal in these items through pawning and retailing second-hand.
- MCC 5967: Direct Marketing - Inbound Telemarketing Merchants: Includes businesses that market and sell products directly to consumers, sometimes including items sourced from pawn shops.
FAQs
- What is the primary function of a pawn shop?
- Pawn shops provide short-term loans using personal property as collateral. They also sell forfeited items to the general public. - How do pawn shop transactions typically work?
- Customers bring items to the shop, receive a loan based on a percentage of the item’s value, and then must repay the loan to reclaim their item. If they don’t, the item is sold. - Are all pawn shops part of large chains?
- No, many pawn shops are independently owned and operated, though there are several national chains. - Can pawn shops refuse items?
- Yes, pawn shops are not obligated to accept any particular item and may refuse items that are difficult to resell or if they're in poor condition.
MCC Categories
Agricultural Services Airlines Business Services Car rent Cars and vehicles Clothing stores Contract services Entertainment services Government Services Hotels / Resorts Mail / Telephone Sales Membership оrganizations Miscellaneous Stores Not categorized Personal services Professional services Repair services Retail Outlet Services Service provider Transportation Services Utility Services Wholesale suppliers and manufacturers