Billing descriptor

A billing descriptor is the text displayed on a cardholder's credit card statement to identify the merchant and the transaction. It typically includes the merchant's business name, and may incorporate a phone number, product/service category, or order reference. It helps to identify the recipient of a payment for a specific transaction, prevent confusion and reduce chargebacks resulting from unrecognized charges.
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. Dynamic descriptors are particularly valuable for merchants offering multiple services or products under different brand names where customers may recognize the specific service name rather than the parent company.

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. 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 ; 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."