The difference between a happy customer and a costly dispute can be something as simple as the description of a transaction on a bank statement.

This is known as the transaction descriptor (or billing descriptor), and is typically the name of the business. If you accept card payments, you’ll have one that is always used on your customers’ regular card statements.

This transaction descriptor can often be confusing for customers – especially if it’s the name of a parent company, legal holding or payment provider that’s unknown to them. Such confusion can easily lead to disputes and costly chargebacks.

No one likes mysterious transactions on their card statement. At best, this can confuse or unsettle customers. At worst, this can create chargebacks for your business. The result is because the customer doesn’t know what the transaction was and doesn’t believe they actually made it.

A suspicious or confused customer may call their card issuer and dispute the charge. This can result in an expensive chargeback for your business.


Customer-friendly soft descriptors


Businesses can end customer confusion and reduce chargebacks by having a more customer-friendly transaction descriptor. You should ideally be using a company or brand name that customers will expect to see on their billing statement.

This can be done with soft descriptors, which are are used by payment providers like us at IntegraPay to ensure that the merchant name on cardholder statements doesn’t cause confusion.

IntegraPay can add a clear and helpful soft descriptors to all your transactions, up to 16 characters long. This kind of transparency increases customer trust in your business. Not only does this reduce chargebacks, but it improves the customer experience, encouraging them to come back for repeat purchases in the future.