In credit card processing, there are different industry types, all of which receive different SIC & MCC codes. These different codes affect the interchange rate that each individual business pays. Some codes offer up less interchange cost, which essentially could end up saving you, the merchant, money each month. Today we’re going to talk about each one and what makes them important to you.
What is a SIC Code?
SIC stands for Standard Industrial Classification Code. A SIC code is a four-digit code set by the U.S. Government. This code categorizes every industry into different industry groups. These numbers range from 0100 to 9800. The first two numbers identify the industry as a whole. The second and third number specifies more specifically wherein that industry your business is placed. You can read and research more about SIC Codes at SICCODE.COM. SIC Codes are used by big banking institutions, merchant processors, and the IRS to file your business into a industry.
What is a MCC Code?
MCC stands for Merchant Category Code. A MCC code is also a four-digit code meant for the purpose of categorize your business into a specific industry. The difference here is that the MCC Code is set by credit card brands (VISA, MasterCard, Etc.) Each merchant account is assigned a SIC & MCC Code when it is first approved by the merchant processor. A list of all the different MCC Codes can be found here at IRS.GOV.
Why’s This Important?
Having your account setup properly, by a skilled and knowledge merchant services representative is crucial to your billing. Having a generic MCC code not specific to your business could be costing you hundreds of dollars. SoCal Merchant Services strives to save each merchant every penny possible. Knowing & applying even the smallest tricks to trade is what differentiates us from the rest. Let’s make sure you are setup on the correct codes so that we can offer you the best interchange rate possible. Contact us and we’d love to chat about how we can save you money!