What is a Descriptor?
According to the descriptor definition, it provides information about a transaction and aids the cardholder in recognizing it on their bank statement. Descriptor meaning incorporates the understanding that the chargeback might be filed if the cardholder has trouble understanding the descriptive billing and recognizing the transaction.
What is it?
What is a descriptor? A merchant account must have the so-called billing dynamic descriptor as a required feature. This message string appears in the transaction information on the card statement and comprises basic information about the merchant (his name, address, and phone number).
How does it work?
An explanation of a transaction that appears on a customer's credit card statement is given in billing descriptors. Features of it:
- The seller handle has an impact on how customers recognize transactions.
- Chargebacks will be decreased and improved customer relations will result from clear explanations.
For companies that take payments when a card is not physically present — that is, when there is no direct physical contact between the business and the customer—billing descriptions are especially crucial to learn about the transaction.
Pros and cons
With this tool, company clients identify transactions. Clear descriptions will reduce chargebacks and help maintain good customer relationships. The billing descriptor is crucial because it serves as a reminder to the consumer of the nature of the transaction and prevents irrational chargebacks. One of the disadvantages can be seen that some firms find it difficult to implement a descriptor.