Merchant Account for a Salon or Barber Shop
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Salons mix face-to-face payments with deposits, packages and gift cards that are paid before the service. That mix is what processors tend to look at. This page uses Visa's and the processors' own published documents and does not promise approval.
Nothing on this page is an approval or a guarantee. Each provider decides on its own whether to open an account and on what terms, and it can change its policies at any time.
What Visa calls this business
Visa assigns each merchant a four-digit category code. This is Visa’s own wording, from its Merchant Data Standards Manual (April 2026).
MCC 7230: Beauty and Barber Shops
Merchants classified with this MCC provide personal hair care services such as hair cutting, styling, and coloring, and may also perform manicures and pedicures and sell a limited selection of hair care products.
Source: PDF page 91.
MCC 7298: Health and Beauty Spas
Merchants classified with this MCC provide a variety of personal or therapeutic services such as facials, massages, mud baths, herbal wraps, tanning treatments, whirlpools, steam baths, hair and makeup styling, and instructional classes.
Source: PDF page 93.
Search all merchant category codes
Why prepayments matter
When you collect money before delivering a service, you are exposed to disputes if the appointment is cancelled or the customer is unhappy. Two processors list prepayment among the things they weigh when deciding on a reserve.
Square lists what it considers before placing a reserve: prepayment for goods or services, chargeback rates in your industry (it names home contracting and repair, professional services, travel and tourism, and custom-made products), your own chargeback rate, sporadic processing activity, and being new to Square.
Square Help: Manage payment reserves with Square· Checked 2026-10-15
PayPal says it sets reserves case by case, considering your processing history, whether your industry has more chargebacks or refunds, your claims and disputes, credit history, presold orders and long delivery times, and that it reviews reserves within every 180 days.
PayPal Business Resource Center: account reserves· Checked 2026-10-15
Cancellation and delay rules from Visa
Visa's guidance for merchants covers what to do when a service is delayed and how to disclose your cancellation and refund policy.
Visa says that if goods or services will be delayed you should tell the cardholder in writing about the delay and the new expected date, and that if an item is out of stock you should not substitute another unless the customer agrees.
Visa: Dispute Management Guidelines for Visa Merchants (June 2024)· Checked 2026-10-15
Visa says you set your own return, refund and cancellation policies, and that clear disclosure at the time of purchase (printed on the receipt for card-present sales) helps avoid disputes.
Visa: Dispute Management Guidelines for Visa Merchants (June 2024)· Checked 2026-10-15
Visa says that when a customer cancels a recurring charge you should cancel it immediately or as the customer specifies, confirm the cancellation date in writing, and not bill the card after a cancellation request.
Visa: Dispute Management Guidelines for Visa Merchants (June 2024)· Checked 2026-10-15
What a reserve is
Square says it uses rolling reserves, where a percentage of card payments is set aside and released on a rolling basis, and that the funds still belong to you and are used only if you cannot cover a chargeback.
Square Help: Manage payment reserves with Square· Checked 2026-10-15
Questions to ask a provider before you apply
These are questions, not claims about any provider. Get the answers in writing.
- Do you take deposits, packages or memberships, and how does the provider treat money collected before the service?
- Can tips be added at the terminal or through your booking software, and how are they reported?
- Is there an extra fee for keyed-in or online bookings?
- What is the dispute process and fee, and how long are funds held?
- Do you need your booking software to connect to the processor?
Frequently asked questions
Do salons get reserves?
Some processors list prepayment for services as a reason they may place a reserve. A reserve is not automatic: the providers describe weighing several factors, including your chargeback history and how long you have been processing.
What are the Visa codes for salons?
Visa lists MCC 7230 for beauty and barber shops and MCC 7298 for health and beauty spas.
How do I reduce disputes over cancellations?
Visa says to set your own policy and disclose it clearly at the time of purchase. Put the policy on your booking page and receipts, and keep a record that the customer saw it.
Sources for this page
- Square Help: Manage payment reserves with Square (Checked 2026-10-15)
- PayPal Business Resource Center: account reserves (Checked 2026-10-15)
- Visa: Dispute Management Guidelines for Visa Merchants (June 2024) (Checked 2026-10-15)
- Visa Merchant Data Standards Manual (April 2026), Section 2: Merchant Category Code Listing (Checked 2026-10-15)