This page covers best practices for preventing ACH returns by using effective statement descriptors and platform configuration in PCE.

Descriptor fields are limited by the fixed-width Nacha file format (94 characters total)

Nacha File Format

Statement descriptor fields adhere to the 94-character fixed-width Nacha specification.

SEC Code Rules

Must use the correct SEC code (PPD, CCD, WEB, TEL) for each debit; descriptor requirements vary by code.

GDPR & Data Privacy

Ensure any personal data in descriptions complies with data protection regulations.

Best Practices and Configuration

To minimize customer confusion and reduce unauthorized returns:

Use a Recognizable Company Name

The Company Name should be the name your customers know you by, such as your “Doing Business As” (DBA) name, even if it differs from your legal entity name.
Provide a Dynamic and Clear Description

The Company Entry Description is your best tool for providing context. Instead of a generic value like “PAYMENT,” use dynamic information that helps the customer identify the specific transaction. Examples include:
- “INVOICE #12345”
- “JUNE RENT”
- “YOGA CLASS”
Platform Configuration

A default Company Name can be configured at the customer’s PCE account level to apply to all transactions. For more granular context, pass a custom description in the payment creation API payload via:

"processingDetail": {
  "companyDescription": "YOUR_CUSTOM_DESCRIPTION"
}