Overturning Dodo Payments' False Misclassification as 'IPTV / Streaming'
How an AI video summarization tool overturned an automated MCC misclassification after being mistaken for an illegal video streaming provider by upstream acquiring partners.
iptv_streaming_mcc_block1. The Initial Rejection Trigger
Official Verbatim Underwriter Notification:
Notice delivered via automated email notification to account administrator without prior informal warning.
2. Underwriting Root Cause Analysis
The company's documentation frequently referenced 'video stream ingest', 'media relay API', and 'live feed transcription'. The payment gateway's automated risk classifiers matched keywords against illegal IPTV and pirated media patterns, assigning the merchant to high-risk MCC 4899 and freezing settled balances.
3. Step-by-Step Website Rectification Plan
Before submitting the formal appeal dossier, the founders completed these mandatory on-page compliance fixes:
- 1Conducted a complete terminology audit across all marketing pages and technical docs, replacing 'stream ingest' with 'asynchronous batch audio processing'.
- 2Published a detailed Architecture & Compliance Whitepaper outlining the AI transcription pipeline (Whisper/LLM summarization).
- 3Explicitly prohibited user uploads of copyrighted broadcast content in the Acceptable Use Policy.
- 4Submitted source code samples and API endpoint documentation proving data is transformed into text rather than re-broadcasted.
4. Attached Evidence Package (Dossier)
Technical Architecture Whitepaper
Data-flow diagram demonstrating user input, transcription extraction, and text summary delivery.
Source Code & API Endpoint Manifest
Documentation demonstrating that no video streaming or broadcasting protocols (HLS, RTMP, IPTV) exist in the codebase.
Acceptable Use Policy (AUP) Revisions
Published legal terms banning the processing of unauthorized copyrighted television or radio broadcasts.
Sample Processed Transcripts & Invoices
B2B client invoices and sample output reports showing business meeting and podcast transcriptions.
5. Formal Appeal Letter (Ready-to-Use Excerpt)
Dear Dodo Payments Compliance & Acquirer Operations, We are formally appealing the suspension notice classifying our platform as an "IPTV or streaming service". We wish to clarify that [Company Name] does not operate, host, or relay video streaming services. We are an AI developer API that converts spoken audio into structured text summaries: 1. Core Technology Clarification: Our infrastructure does not utilize video streaming protocols (HLS, RTSP, RTMP). As detailed in the attached Technical Architecture (Exhibit A), our API processes user-provided audio recordings through speech-to-text models to generate textual transcripts. 2. Terminology Rectification: We have updated all technical documentation to eliminate ambiguous phrases like "stream ingest". Our service is strictly classified under Software as a Service (MCC 5734 / 7372). 3. Acceptable Use Enforcement: Our updated AUP explicitly prohibits the ingestion of unauthorized broadcast media, and automated size limits prevent broadcast stream piping. We respectfully request our merchant classification be updated and our payout capabilities restored.
6. Plan B: Compliant Alternative If Upheld
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Frequently Asked Questions Regarding This Rejection
Why do AI video tools get flagged as IPTV?
Upstream acquiring banks use keyword scrapers that trigger false positives on words like 'stream', 'broadcast', or 'channel' when scanning landing pages.
What is the best MCC code for AI SaaS?
MCC 5734 (Computer Software Stores) or MCC 7372 (Computer Programming & Data Processing) are the industry standards for compliant SaaS.