Also called: SIC, Standard Industrial Classification
What a SIC code is
SIC means Standard Industrial Classification. A SIC code is a four-digit identifier for a company's industry and business activity. The U.S. government introduced the system in 1937, and a company can have a primary code that represents its main line of business.
The digits narrow the classification from a broad industry group to a specific industry. For example, SIC 3571 identifies electronic computers, while SIC 6021 identifies national commercial banks. The full system has 11 major divisions and more than 1,000 four-digit industries.
A SIC code classifies your industry; it is not a card-processing fee or a substitute for your MCC.
Where your SIC code is used
SIC codes help organize companies by industry. Government agencies use them in some records and filings; the SEC, for example, uses SIC classifications to sort public-company filings and assign review responsibility. Businesses also use them for industry comparisons, credit applications and identifying potential customers or competitors.
The government stopped updating the SIC system in 1987, and NAICS was intended to replace it in 1997. SIC codes remain in use, including in some government contexts. You may encounter both systems when completing forms or reviewing business information.
SIC codes and card-processing costs
A SIC code is not a card fee, and it is not one of the three layers of card-processing costs: interchange, network fees and processor markup. Do not assume that changing a SIC code will lower your card rate. The available payment-processing information does not establish a direct SIC-based card fee or a standard SIC line on merchant statements.
SIC and Merchant Category Code (MCC) are different classification systems. SIC classifies businesses for industry records and analysis; the MCC is the payment-card industry category associated with card acceptance. If a processor asks about your industry, give an accurate business description, then review your MCC separately if you are checking payment classification or pricing.
What you can actually change
You cannot change the SIC system itself, but you can correct how your business is described in the records and applications you control. That helps keep industry classification consistent without treating it as a guaranteed way to change card fees.
- Confirm that your primary SIC code matches your business's main activity.
- Use the same accurate business description across relevant filings and credit applications.
- When reviewing card processing, check your MCC separately from your SIC code.
- Compare actual processing charges by their statement line items, not by assuming a SIC code sets a rate.
- Verify your classification. Compare your primary SIC code with the activity that generates most of your business.
- Separate the code systems. Keep your SIC classification distinct from the MCC used for payment-card industry classification.
- Review actual charges. Use your merchant statement's itemized fees to assess processing costs instead of inferring them from a SIC code.
Frequently asked questions
What does SIC stand for?
SIC stands for Standard Industrial Classification. The U.S. government introduced the system in 1937 to classify companies by industry, using four-digit codes such as 3571 for electronic computers.
Does my SIC code determine my credit card processing rate?
A SIC code is an industry classification, not a card-processing fee. The information available does not establish that a SIC code directly sets your processing rate. Review your MCC and the actual fee lines on your statement when checking card costs.
What is the difference between a SIC code and an MCC?
A SIC code classifies a business for industry records and analysis. An MCC is the category associated with your business in the payment-card system. They are separate codes, so do not use one as a substitute for the other.