Your payment processor could be the silent threat that freezes your funds for up to six months. Many med spas don’t realize the risk until it is too late.
In our latest YouTube training, Abby breaks down a critical issue that is shutting down accounts across the country. If your med spa offers semaglutide, peptides, hormone therapy, or other pharmaceutical-based treatments, this is a must-watch. The problem centers on MCC 5122, a merchant category code that directly impacts how your transactions are processed.
What Is MCC 5122?
MCC 5122 is the merchant category code used for pharmaceutical transactions. It applies to payments for:
- Prescription medications, including compounded drugs
- GLP-1 medications like semaglutide and tirzepatide
- Hormone replacement therapies
- Peptide therapies and wellness stacks
This regulation has existed for years, but enforcement intensified in mid-2025. Now Visa and Mastercard require practices to register as high-risk pharmaceutical merchants if they process payments for these treatments.
This matters because most med spa EMRs and payment processors were not designed for pharmaceutical transactions. They are built for aesthetics things like facials, filler, skincare, and memberships, not prescriptions.
Why Med Spas Are Getting Shut Down
Here’s the risk: if your EMR or processor does not support MCC 5122 and you process pharmaceutical payments anyway, your account can be flagged and shut down.
Even worse, processors have the right to freeze your funds for up to six months. That includes every dollar that flows through your account, not just semaglutide or peptides, but Botox, filler, skincare, and memberships too.
It only takes one chargeback or audit for the issue to surface. Practices across the country are now reporting frozen accounts, canceled contracts, and serious revenue disruptions.
The Merchant of Record Problem
A major point of confusion is the merchant of record. Many practices assume that since a pharmacy ships the medication, they are not conducting a pharmaceutical transaction. That’s not the case.
If the patient pays your practice directly, you are the merchant of record for that pharmaceutical transaction. That means you must have a processor that supports MCC 5122.
Popular platforms such as Stripe, Square, and PayPal do not currently support this code. If you are processing semaglutide, hormones, or peptides through them, your practice is exposed to risk.
The Hidden Cost of Non-Compliance
When your account is flagged, the fallout is immediate:
- Funds frozen for months with no access to working capital
- All transactions affected including aesthetics and memberships
- Business disruption as you scramble to find a compliant processor
- Reputation risk if patients experience billing issues
For growing med spas, a freeze like this can be devastating. It can prevent payroll, delay vendor payments, and stall marketing campaigns.
How to Protect Your Med Spa
The good news: with preparation, you can avoid these disruptions.
1. Audit Your Contracts
Review your EMR and payment processing agreements. Look for fine print that excludes medical weight loss, peptides, or pharmaceutical services.
2. Confirm Compliance with Your Processor
Call your processor directly and ask if they support MCC 5122. If they don’t, you will need to implement a compliant solution.
3. Separate Workflows
Run pharmaceutical transactions through a compliant high-risk processor while keeping aesthetics on your existing platform. This prevents your entire account from being jeopardized.
4. Build Standard Operating Procedures
Train your team to recognize and correctly route prescription-based payments. Clear SOPs reduce errors and keep your reporting accurate.
5. Keep Accurate Records
In the event of an audit, you must be able to show how transactions were processed and categorized. Proper documentation can prevent fund freezes.
6. Plan for Growth
Prescription-based wellness stacks are rapidly expanding in med spas. Building a compliant infrastructure now positions you to scale with confidence.
Download our free Compliance Checklist to assess your current setup and avoid costly mistakes.
Why This Matters for the Future of Med Spas
The wellness and aesthetics industries are converging. Patients are increasingly seeking peptide therapy, hormone balancing, and weight management solutions alongside Botox and filler. These treatments drive revenue and patient loyalty, but they also require compliant business infrastructure.
If your med spa wants to thrive in this new era, compliance is not optional. It’s just as important as sourcing medications from FDA-compliant pharmacies or following proper marketing guidelines.
How Diamond Accelerator Can Help
At Diamond Accelerator, we work with med spas across the country to build growth strategies that are profitable, compliant, and scalable.
Whether you need consulting support, targeted marketing campaigns, or operational guidance, our team will help you avoid the pitfalls that put revenue at risk.
If you are unsure whether your payment processing is compliant, book a Strategy Session. Together, we will review your systems, protect your revenue, and ensure your med spa is built to grow.
More Free Resources
- Med Spa Consulting — customized guidance for sustainable growth
- Marketing for Med Spas — proven campaigns that drive leads and revenue
- Injector Profit Playbook — maximize injector ROI
- Compliance Checklist — safeguard your practice today
Bottom line: If your med spa offers semaglutide, peptides, or hormones, you must address MCC 5122 now. Do not wait for an audit or chargeback to force action. Protect your payment processing, protect your revenue, and secure your future growth.
