Billing descriptor

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A billing descriptor is the text displayed on a cardholder's credit card statement to identify the merchant and the transaction. [1] It typically includes the merchant's business name, and may incorporate a phone number, product/service category, or order reference. [2] It helps to identify the recipient of a payment for a specific transaction, prevent confusion and reduce chargebacks resulting from unrecognized charges. [3] [4] [5]

Contents

Typically, the billing descriptor uses the business's trading name (or brand 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. Dynamic descriptors are particularly valuable for merchants offering multiple services or products under different brand names (such as payment processors, software-as-a-service platforms, or subscription services) where customers may recognize the specific service name rather than the parent company. [6]

Static descriptors

If the company provides a single service or product, a simple billing descriptor like "ZXC Services & Products 800-123-4567" is typical.

Dynamic descriptors

Dynamic descriptors offer the flexibility to modify the description field on the cardholder's statement, providing additional details about the transaction or specific order references. [7] 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. Billing descriptor character limits vary by payment processor and card network (typically 20–30 characters); most U.S.-based processors enforce a 25-character maximum, which must accommodate the merchant name, asterisk, descriptor text, and phone number. For example, a dynamic descriptor could be "ZXC* Site Access 800-123-4567." [8]

See also

References

  1. ↑ "Billing descriptors: How to write one, and why they matter". Stripe. 24 April 2023. Retrieved 22 December 2025.
  2. ↑ "Online Merchants Are Losing Significant Revenue With This Billing Mistake — Are You Guilty?". Entrepreneur. 10 October 2023.
  3. ↑ "How to use billing descriptors to reduce chargebacks". Checkout.com. 18 May 2023. Retrieved 22 December 2025.
  4. ↑ "Over Half of Consumers Find Billing Statement Descriptions Confusing—Costing UK Merchants Millions in Chargebacks". Fintech Finance News. 8 October 2024.
  5. ↑ "Is Your Billing Descriptor Responsible for Chargebacks?". Chargebacks911. 16 October 2025. Retrieved 22 December 2025.
  6. ↑ "Billing Descriptors 101 - Reduce Chargebacks Today". Corepay. 8 December 2025. Retrieved 22 December 2025.
  7. ↑ "Dynamic billing descriptor". eCom Charge. 14 June 2024.
  8. ↑ "Visa Merchant Data Standards Manual" (PDF). Visa Inc. Retrieved 22 December 2025.
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