Dynamic Descriptor

A dynamic descriptor is a customizable billing descriptor that provides specific details on a merchant’s billing statement, relating to individual transactions. This flexibility allows businesses to include relevant transaction information directly on the cardholder’s statement, which can significantly enhance clarity for the cardholder about what the charge is for and who the merchant is.

Dynamic descriptors are especially useful in situations where a business operates under different names, or offers a range of services and products that may not be immediately recognizable to the customer under a single static name. For example, a parent company with multiple subsidiaries might use dynamic descriptors to specify the particular branch or service that the transaction pertains to on the customer’s statement.

The availability of dynamic descriptors depends on whether the merchant's payment processor supports this feature. While often utilized for pending transactions to provide real-time clarity, they can sometimes be applied to settled transactions as well. Using dynamic descriptors can help reduce the incidence of chargebacks and disputes, as they help customers quickly identify the source and purpose of charges, improving overall transaction transparency.