Simple Strategies to Optimize Your Statement Descriptor
By now, you have the basics down pat. Implement them, and you’ll have more or less de-risked your statement descriptors as a potential source for chargebacks.
If you’re looking to take things to the next level, though, there are additional tips and tricks that you can learn. In this article, we share some advanced best practices that can take your statement descriptors from chargeback-resistant to fully chargeback-proof.
Statement descriptors, which range from 12-to-25 characters in length, are a common source of confusion for customers and chargeback for merchants. Understanding the difference between soft, hard, static, and dynamic descriptors can help sellers optimize their descriptors according to best practices. Rigorous testing and ongoing updates can also help merchants remain proactive about preventing cardholder confusion.
As mentioned above, optimizing billing descriptors is one of the easiest things you can do to prevent chargebacks. It’s also one of the most effective. Implementing a few billing descriptor best practices can help you improve customer satisfaction, reduce chargebacks, and minimize disputes… all in one place.
With that in mind, here are the top ten best practices for crafting more effective billing descriptors:
Use Your “DBA” Name
Ensure the name on the billing descriptor is recognizable and accurately represents your business. This helps customers identify the transaction and reduces the likelihood of disputes due to confusion.
Many businesses have a legal name that goes on their important filings and a separate name for use by customers. For example, Disney Consumer Products and Interactive Media (DCPI) is the legal name of The Disney Store. How many cardholders do you think know that, though?
Simplify Descriptors
Use simple and straightforward language to describe the transaction. Avoid using jargon or abbreviations that may be confusing to customers. You may want to include your website domain name and, if using a dynamic descriptor, a very brief description of the item purchased.
Include Product Details
Provide specific details about the product or service purchased, such as product names or subscription details. Beyond this, include a code or category indicating the type of product or service purchased, such as "Restaurant" or "Online Shopping." This can further clarify the transaction for customers and reduce the likelihood of disputes.
Own Your Trade
Use both your trade name and domain name regularly on your website, while still distinguishing the two. This will help remind customers of where the purchase originated.
You should mirror this effort on social media from time to time, too. Many customers will purchase directly from their favorite channels, rather than your website.
Don’t Display Location
For eCommerce businesses, do not include the city, state, or country where the transaction occurred. This may confuse the buyer. Instead, it’s much more effective to include the online domain. This helps customers associate the charge with a specific purchase.
Add a Phone Number
Provide a readily accessible customer service phone number or email address in the descriptor. This enables customers to reach out with any questions or concerns before initiating a chargeback.
Also, your customer service line should be visible in your billing descriptor in case customers have questions about a charge. Customer service should be accessible 24 hours a day, with live service during as much of that time as possible.
Update in Real-Time
If you're using dynamic billing descriptors, update them in real time to reflect any changes or modifications to the transaction. This ensures that customers always see the most accurate and up-to-date information.
Regularly Test Descriptors
Regularly test your billing descriptors to ensure they appear correctly on customer statements. Review the descriptors to identify any potential issues or areas for improvement.
Remember Updates
In addition to regular testing, you should also conduct new tests any time you do a major update or overhaul. If you change platforms or edit a catalog, for instance, run another series of tests. Better safe than sorry.
Monitor & Respond to Trends
Analyze chargeback data to identify trends and address any recurring issues. Use this information to refine your billing descriptors and reduce the likelihood of future chargebacks.
Your billing descriptor says a lot about your business. It’s absolutely essential to put your best foot forward. Optimizing your descriptors can help you place your business on the right track toward reducing chargebacks, improving brand recognition, and encouraging a positive shopping experience for your customers.
Once you’ve established what you sell, how you sell is the next logical step. Knowing how your business is being represented across all formats, from billing descriptors to public perception, is part of the process.
Savvy merchants understand that no area in your business is too minor to invest effort. Therefore, tightening up something as simple as your merchant descriptors should be a small challenge that will pay off repeatedly in the long run.
Have questions about your billing descriptors and where to get started? Continue below to learn more.
