In order to implement the guiding principles of the Central Financial Work Conference and facilitate overseas transactions with domestic bank cards by individuals, the State Administration of Foreign Exchange (SAFE) issued the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Updating the Merchant Category Codes for the Use of Domestic Bank Cards Outside China (Huizongfa No. 15 [2024], hereinafter referred to as the Circular) on March 22 for improving foreign exchange administration for bank cards.

The Circular includes the following main content. First, the merchant category codes (MCCs) for the use of domestic bank cards outside China are updated in adaption to the MCC changes of domestic and overseas bank card clearing institutions in recent years. Second, the mechanism for updating MCCs is optimized to realize the dynamic coverage of newly added MCCs.

Adhering to the principles of authenticity and compliance, the SAFE has always used MCCs to implement classified administration for overseas transactions with bank cards, so as to actively support and facilitate the standardized use of domestic bank cards outside China. The SAFE will follow up by further deepening reform and opening up in the foreign exchange sector and constantly improving foreign exchange administration for cross-border transactions with bank cards, so as to facilitate and guarantee the individual demand for consumption payment under the current account as well as maintain a healthy and orderly foreign exchange market.

This Circular shall become effective as of May 1, 2024.