When onboarding merchants or managing business information in Adyen, you may encounter multiple classification systems: Industry Codes, MCC (Merchant Category Codes), and SIC (Standard Industrial Classification) Codes. Although they may appear similar, each serves a different purpose within payments, compliance, and industry classification.
This article explains how Adyen uses its own industry codes and how they relate to MCC and SIC codes.
What Are Adyen Industry Codes?
Adyen requires an industry code when creating or verifying a merchant or sub-merchant account. These codes help Adyen meet regulatory obligations, including tax, compliance, and risk assessments.
Adyen industry codes:
Describe the merchant’s line of business
Are used for regulatory and compliance reporting
Are mapped internally by Adyen to MCC codes
May reflect either the merchant’s operational activity or their registered business description
Because Adyen maps its industry codes to MCCs, selecting the correct industry category is important for proper classification and downstream processing.
What Are MCC Codes?
MCCs (Merchant Category Codes) are four-digit codes standardized by the card networks (Visa, Mastercard, Amex, etc.). These codes categorize merchants based on the goods or services they provide during a payment transaction.
MCCs are used for:
Transaction routing
Interchange and fee assessment
Risk scoring
Card-network rules and restrictions
Consumer card statements and rewards categorization
MCCs relate specifically to payment processing, not legal or regulatory industry classification.
What Are SIC Codes?
SIC (Standard Industrial Classification) codes are four-digit codes created by the U.S. government to categorize industries for statistical and regulatory purposes. They classify a business’s overall economic activity rather than their card-acceptance behavior.
SIC codes are typically used for:
Government reporting
Economic analysis
Regulatory filings
Industry research
SIC codes are not used in the payment processing lifecycle and do not influence how card transactions are categorized.
How the Three Systems Relate
Because each system serves different stakeholders and purposes, they cannot be used interchangeably.
MCC vs. SIC
MCC codes classify payment acceptance behavior.
SIC codes classify the general business activity for regulatory or statistical needs.
A company may have one SIC code, but multiple MCCs depending on how and where it accepts payments.
Adyen Industry Codes vs. MCC/SIC
Adyen industry codes function similarly to regulatory business classifications but must fit into Adyen’s internal mapping framework. These codes influence which MCC is ultimately applied to a merchant account.
This allows Adyen to:
Meet legal and compliance requirements
Assign the correct MCC for transaction processing
Ensure consistent risk and fee assessment
Why This Matters for Merchant Onboarding
When onboarding a merchant to Adyen:
You must provide the correct industry code, which reflects the merchant’s registered or operational business activity.
Adyen uses this information to select the appropriate MCC, which directly affects payment processing, fees, and compliance.
Choosing an accurate classification helps prevent issues with underwriting, transaction approvals, and reporting.
Summary
Code Type | Purpose | Who Uses It | Primary Use Case |
Adyen Industry Code | Compliance-based business classification | Adyen, regulators | Onboarding, verification, internal mapping to MCC |
MCC Code | Payment-processing classification | Card networks, processors, acquirers | Fees, routing, risk, card-network rules |
SIC Code | General industry classification | Governments, analysts, regulators | Reporting, analysis, regulatory matters |