How to update your business name on customers' credit card statements

Why should you update your business name on customers’ credit card statements

The Credit Card Statement Name is the name that will appear on your customer’s credit or debit card statements.

Updating your business name on customers' credit card statements could be a simple yet effective way to help improve transparency, reduce disputes, and build trust with your customers.

Type of business descriptions on consumer credit card statement

By making it clear what the charge is for and providing any necessary context or information, you can help customers feel more confident in their purchase and avoid disputes or chargebacks.

Here are some common types of business descriptions that can appear on a credit card statement:

• Business name: This involves simply listing the name of your business.
• Product or service name: If you offer a specific product or service, you might choose to include that in the business description.
• Location: If you have multiple branches or offices, you might include the location of the transaction in the business description.
• Merchant category code (MCC): The MCC is a four-digit code that identifies the type of business you operate. It's used by credit card networks to categorize transactions and can sometimes appear on the customer's statement as part of the business description.

How to update your Credit Card Statement Name (Standard or Advanced)

1. Log in to your PayPal account.
2. Click Profile at the top of the page.
3. Click Business setup.
4. Click Account setup.
5. Click Make your business name clear for customers.
6. Enter your business name, then click Confirm Business Name.

Update your Credit Card Statement Name (Pro or Virtual Terminal)

1. Log in to your PayPal account.
2. Click Profile at the top of the page.
3. Click Payment receiving preferences in the “Security and risk settings” section.
4. Enter your business name, then click Save. Don’t enter special characters such as &, #,_().

Note: If your customer paid for their purchase using a bank transfer, your business name will not appear on their bank statement. Instead, your customer will see PAYPALINST XFER. To verify the purchase your customer would need to log in to PayPal and look for the transaction in their History.

What are the best practices for updating your business name?

Ready to update your Credit Card Statement Name? Follow these best practices:

• Keep it short and clear. Your business name should be easy to recognize and understand, so customers can quickly identify the charge on their statement. Avoid using abbreviations or acronyms that might be confusing.
• Be consistent. Make sure your business name is consistent across all platforms, including your website, social media accounts, and other payment processing systems.
• Avoid using generic names. If your business name is too generic, such as "LMQ Co.", it might not provide enough information for customers to identify the charge. Consider adding a descriptive word or phrase, such as "LMQ Co. - Sporting Goods", to provide more context.
• Keep it updated. If your business name changes or you rebrand, update your Credit Card Statement Name accordingly.

Always be prepared and manage your business account

Looking for more helpful ways to improve and grow your small business? PayPal offers tools and resources to help manage cash flow, track expenses, and analyze sales data, which can help small businesses like yours make informed decisions and increase revenue.

For more ways to manage your business account, check out tips for a successful business here.