Monica Eaton, a globally-recognized leader in the online retail space, was asked to share her insights in a new feature for Entrepreneur.
Entrepreneur is an American magazine and website that carries news stories about entrepreneurship, small business management, and business. The magazine was first published in 1977. It is published by Entrepreneur Media Inc., headquartered in Irvine, California.
Billing descriptors are an important means by which merchants identify themselves to customers. However, as noted in the piece, one-third of cardholders said they often found these indicators confusing. “This suggests that merchants are not taking the problem of billing descriptor misidentification as seriously as they should,” Monica says in the piece. “That's a problem, as bad descriptors can directly cause chargeback.”
Using a bad billing descriptor doesn’t seem like a big deal, but it can be a crucial mistake. If cardholders are unable to recognize individual transactions, they may suspect those transactions are fraudulent and file a chargeback.
“Adjusting one's billing descriptor to denote the source of each transaction clearly could save merchants a lot of time and money in the long run,” Monica continues. “This small step can profoundly impact a merchant's chargeback ratio.”