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Networks & processors
The infrastructure behind every line: ACH, card networks, payment processors, and how names get mangled.
When a statement line reads SQ *DAILY GRIND or PAYPAL *NOVELTYSHOP, the company in the name is not the one who moved the money. Payment processors and card networks sit between you and the merchant, and their naming rules decide what you see.
This series covers the rails — ACH versus wire versus card, how a card transaction travels from tap to posted charge, why merchant names are truncated, and the processor prefixes that dominate US statements.
- why-merchant-names-get-truncated Why merchant names get cut off on your statement Why card networks cap statement descriptors at 22 characters, how merchant names get truncated, and how to decode shortened lines.
- what-is-a-billing-descriptor What is a billing descriptor? The text next to your charge What a billing descriptor is: 22-character strings of prefixes, asterisks, and merchant names. Learn how card networks construct them.
- ach-vs-wire-vs-card ACH vs. wire vs. card: how money actually moves ACH direct debit vs wire transfer vs card payments: how money moves across rails, what appears on statements, and dispute rights.
- processor-prefixes SQ*, TST*, PAYPAL*: the processor prefix explained Why statement descriptors start with processor prefixes (SQ*, TST*, PAYPAL*) and how to identify the real merchant after the asterisk.
- what-is-a-merchant-category-code What is a merchant category code (MCC)? What 4-digit Merchant Category Codes (MCC) mean: how Visa and Mastercard classify businesses, and how MCCs affect rewards and holds.
Common questions
What is a payment processor?
A company that moves card payments on behalf of merchants — Square, Toast, Stripe, PayPal, and Paddle are examples. Processors often prefix their own name to the merchant on statements, which is why SQ * appears before the seller.
Why do merchant names get cut off?
Card networks cap the merchant name field at a fixed number of characters, so banks receive names like SQ *DAILY GRIND CAFE amputated at the 22-character mark. The result looks broken but is standard.