A four digit, numerical identifier of a merchants business type as classified by Visa & MC. There are hundreds of these codes. You are not allowed to process for two different SIC codes on one merchant account.
The Standard Industrial Classification (SIC) and Merchant Category Code (MCC) are systems used to categorize businesses based on their primary line of activity.
- Standard Industrial Classification (SIC): Developed by the U.S. government in the 1930s, the SIC is a system used to classify industries by a four-digit code. It is primarily used in the United States to help analyze industry trends and statistics. Although it was officially replaced by the North American Industry Classification System (NAICS) in 1997, the SIC codes are still used by some companies and governments for specific regulatory and marketing purposes.
- Merchant Category Code (MCC): The MCC is a four-digit code used by credit card companies to classify businesses by the type of goods or services they provide. Credit card networks use MCCs to categorize, manage, and sometimes reward or restrict transactions. For example, an MCC can be used to identify transactions that qualify for rewards in a credit card rewards program or to impose restrictions on types of purchases for a corporate spending account.
Both systems serve to categorize businesses but are used in different contexts, with the SIC focusing more on industry classification for analytical purposes and the MCC being used primarily in the banking and credit card sectors to manage transactions.
