Company names with credit cards

[t1grm]

Why do so many companies have a different trading name to their merchant name with the credit card companies?

I’ve just come off the phone to RBS trying to identify three transactions on my credit card statement that I didn’t recognise. We managed to track them all down in the end but the name on the statement bears no relation to the company I dealt with. For example an advert on mobile.de comes up as “Neuinserat 47” on my statement

[beano500]

I think it's the financial equivalent of wrapping the goods up in a brown

[markmullen]

My local friendly lap dancing club charges your card as something totally different (I'm not going to post it so as not to drop fellow PHers in it) and it always causes confusion on my statements.

[mcflurry]

markmullen said:

My local friendly lap dancing club charges your card as something totally different (I'm not going to post it so as not to drop fellow PHers in it) and it always causes confusion on my statements.

I'm sure more than a few blokes would be in trouble with their other half if "Naked Ladies Inc" turned up on their cards

[beano500]

mcflurry said:

markmullen said: My local friendly lap dancing club charges your card as something totally different (I'm not going to post it so as not to drop fellow PHers in it) and it always causes confusion on my statements. I'm sure more than a few blokes would be in trouble with their other half if "Naked Ladies Inc" turned up on their cards

They'd see through it straight away as "Naked Ladies Inc" being a cover for "Shiney New TVR Parts and Other Gadgets Co Ltd".......

[t1grm]

beano500 said:

I think it's the financial equivalent of wrapping the goods up in a brown

fine if it's something dodgy but why to the legit co's have to do it?

[markmullen]

I used to use a gun shop whose credit card terminal printed the receipts as a washing machine repair company, you could go and buy a shiny new rifle at huge expense and hide it from the missus as having had the household white goods mended.

[JonRB]

There are a number of reasons.

Setting up a merchant account it quiye expensive, especially if you're a small company with a small turnover.
There are a number of companies that act as payment services. PayPal is obviously a well-known one, as is WorldPay, but there are plenty of others. You could be seeing that turn up on your credit card statement.

Another is a company changing its name. Last time Ted charged my card it was "Petrolheads Ltd." as I recall rather than PistonHeads as that was the company Ted originally set up.

Finally, if you own several businesses then you can mitigate the setup costs by sharing a merchant account. You'll generally go for a fairly neutral name that kindof fits for all. My wife and I are considering this but can't find a name that will encompass www.coruscant.ltd.uk, www.shopatbettyboop.co.uk and www.allthepaws.co.uk. To be honest, I don't think we will especially as Coruscant is VAT-registered and the others aren't.