A billing descriptor refers to how a company's name appears on a credit card statement and is established when the merchant account is created. It is intended for credit card customers to identify the recipient of a payment for a specific transaction.
Typically, the billing descriptor uses the business's trading name rather than its legal name to ensure easy recognition by the customer. In some cases, a soft or dynamic descriptor may be used, incorporating the name of the service provided. This approach is commonly employed by large companies offering multiple services, where the service brand is more familiar to customers than the company name itself.
Choosing a clear billing descriptor is crucial for merchants to prevent chargebacks, as it helps customers recognize and associate the transaction with the intended recipient.
Static descriptors
If the company provides a single service or product, a simple billing descriptor like "ZXC Services & Products 800-123-4567" would be adequate.
Dynamic descriptors
Dynamic descriptors offer the flexibility to modify the description field on the cardholder's statement, providing additional details about the transaction. In many cases, the merchant's name is abbreviated to three letters, followed by an asterisk (*) and a brief description of the service or product provided. This field usually allows up to 25 characters, including the phone number. For example, a dynamic descriptor could be "ZXC* Site Access 800-123-4567."