An MCC code is a Merchant Category Code. It is used to map business industries (like computer repair, dental, and insurance agencies) to a four-digit code (like 7379, 8021, and 6300 respectively). Occasionally, a customer's issuing credit card bank will block transactions if the credit card is used at an establishment they deem inappropriate for the type of credit card. As a possible example, HSA medical cards tend to be restricted cards, and would likely receive an invalid service code (62) if used at a movie theater.
As another example, occasionally there is no MCC code that adequately describes a merchant's business type, in which case your merchant account is assigned a generic MCC code of 7299. Some issuers will block customer transactions for businesses with a generic 7299 MCC code.
If you receive an invalid service code (62), you may want to check that your MCC code on file for your merchant account is accurate for your business industry.
This type of error is rare and difficult to determine because the transaction is occasionally declined with a general error code (i.e. 05) that offers no guidance on what the actual problem is. In other words, merchants may see a general 05 decline code instead of a specific 62 restricted card decline code.
If you've received an unusual number of customer complaints about transactions declining with adequate funds, you may have a bad MCC codes assigned to your merchant account. A PayJunction support representative may assist you in correcting this problem.
How does SIC code meaning factor in? MCC codes are not the same thing as a Standard Industrial Classification Code (SIC codes). Although a large number of MCC and SIC codes overlap, there are a few that are a complete mismatch. For example, code 5995 is a retail pet store according to MCC codes; however, 5995 is an optical goods and eyewear store according to SIC codes. PayJunction will look up the appropriate MCC code for your business.
This means that the card that you processed is restricted to where it can be used. The restricted card is only allowed to be used for certain types of businesses or purchases. For example, it is possible that a corporate debit card will not allow processing through a fitness gym based on its SIC (industry code).
The customer will need to contact the phone number on the back of the card to find out why it's blocking the transaction and to release the SIC code restriction.
Ultimately, if the restricted card continues to be declined by the bank that issued this card, you will need to obtain a different card or different type of payment from the customer.