Billing descriptor or is the way a company’s name appears on a credit card statement and is set up when the merchant account is established. It is used by the credit card customer to identify who a payment was made to on a particular transaction.
The name is typically the trading name of the business so that it can be easily recognised by the customer. The billing descriptor may also be made up of a soft or dynamic descriptor that includes the name of the service provided, this is often used by large companies that provide many services and where the brand of the service is more familiar than the company name.
Selecting a clear billing descriptor is important for a merchant to avoid chargebacks when the credit card holder does not recognise the name on the transaction.