Billing Descriptor

Billing Descriptor is the concise line of information appearing on a customer’s financial statement, representing a specific transaction or purchase. Also known as a statement descriptor or billing statement, this descriptor provides clarity to the cardholder regarding the nature of the transaction. It typically includes details such as the merchant’s name, a brief description of the product or service, and may include a contact number or website for customer inquiries.

Billing descriptors can be static or dynamic:

• Static billing descriptors are predefined and are always the same for a particular merchant or service. For example, a subscription to Netflix might have a static billing descriptor of Netflix Subscription. Static billing descriptors are easy to use and understand, but they can be less effective at preventing fraud because they do not provide any information about the individual transaction.
• Dynamic billing descriptors are specific to each transaction and can include information such as the merchant name, transaction amount, and order number. This makes dynamic billing descriptors more effective at preventing fraud because they can be used to identify fraudulent transactions.

Merchants configure billing descriptors within the parameters set by card networks to ensure accuracy and transparency. Clear and recognizable billing descriptors contribute to positive customer experiences, reducing confusion and the likelihood of chargebacks.