A billing descriptor is the short (22-25 character) descriptive text that appears on a cardholder’s bank or card statement to help explain a transaction. It typically includes your business name, a short description of the charge, and sometimes a contact phone number or website.

There are two types of descriptors: static (always the same) and dynamic (customized by transaction, product, or brand). Usually, merchants use static descriptors. These main descriptors are set up when a new merchant account is created. Main descriptors can have dynamic variations that are automatically applied in certain situations. For example, a transaction with Visa might appear differently than a transaction with Mastercard. Descriptors could vary for debit and credit cards.

Billing descriptors play an important role at two points in the transaction lifecycle. First, they can help customers understand their purchases. Second, they are used to manage chargeback prevention alerts.

Billing descriptors on bank statements

Descriptors help customers recognize charges they’ve made and reduce confusion.

Using clear, recognizable billing descriptors reduces chargebacks by helping customers recognize and understand what they purchased. If a customer doesn’t recognize a transaction on their statement, they may dispute it even if it’s valid.

AltoPay can help configure accurate and compliant descriptors that align with your brand and product catalog. You should routinely check your descriptor format to ensure it reflects what customers expect to see after purchase.

Billing descriptors for prevention alerts

To enroll with a prevention alert service provider, you’ll need to supply your main billing descriptor and any variations. The alert provider (Ethoca or Verifi) will use your billing descriptors to match an alert with the business that processed the disputed transaction.

If you are interested in using prevention alerts, AltoPay can help you navigate the enrollment process with ease.