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.
[1] Typically, the billing descriptor uses the business's trading name rather than its legal name to ensure easy recognition by the customer.
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.
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.