Here's an excerpt from VISA's Card Acceptance Guidelines for Visa Merchants (PDF)

Merchant Name

The merchant name is the single most important factor in cardholder recognition of transactions. Therefore, it is critical that the merchant name, while reflecting the merchant’s “Doing Business As” (DBA) name, also be clearly identifiable to the cardholder. This can minimize copy requests resulting from unrecognizable merchant descriptors.

Merchant applications typically list the merchant name as the merchant DBA. This may differ from the legal name (which can represent the corporate owner or parent company), and may differ from the owner’s name which, for sole proprietorships, may reflect the business owner.

• Keep in mind that the purpose of the merchant name is to identify the merchant to the cardholder.
• Work with your acquirer to ensure your name is clear and discernible to cardholders when they read their statement.
• To verify that you are using the merchant name that is most recognizable to the cardholder, compare the merchant name that you want to use to: * Signage in the site photo * Advertisements or brochures, and/or * A telephone directory listing

I think that the key statement above is "Therefore, it is critical that the merchant name [...] be clearly identifiable to the cardholder." Since this merchant was not clearly identifiable to the cardholder, they are in breach of a critical point in these guidelines.

This is from VISA, but I would assume that all other major credit cards would have similar guidelines for their merchants. However keep in mind that these are "guidelines", and not (necessarily) rules.

Here's an excerpt from VISA's Card Acceptance Guidelines for Visa Merchants (PDF)

Merchant Name

The merchant name is the single most important factor in cardholder recognition of transactions. Therefore, it is critical that the merchant name, while reflecting the merchant’s “Doing Business As” (DBA) name, also be clearly identifiable to the cardholder. This can minimize copy requests resulting from unrecognizable merchant descriptors.

Merchant applications typically list the merchant name as the merchant DBA. This may differ from the legal name (which can represent the corporate owner or parent company), and may differ from the owner’s name which, for sole proprietorships, may reflect the business owner.

• Keep in mind that the purpose of the merchant name is to identify the merchant to the cardholder.
• Work with your acquirer to ensure your name is clear and discernible to cardholders when they read their statement.
• To verify that you are using the merchant name that is most recognizable to the cardholder, compare the merchant name that you want to use to: * Signage in the site photo * Advertisements or brochures, and/or * A telephone directory listing

I think that the key statement above is "Therefore, it is critical that the merchant name [...] be clearly identifiable to the cardholder." Since this merchant was not clearly identifiable to the cardholder, they are in breach of a critical point in these guidelines.

This is from VISA, but I would assume that all other major credit cards would have similar guidelines for their merchants. However keep in mind that these are "guidelines", and not (necessarily) rules.

Here's an excerpt from VISA's Card Acceptance Guidelines for Visa Merchants (PDF)

Merchant Name

The merchant name is the single most important factor in cardholder recognition of transactions. Therefore, it is critical that the merchant name, while reflecting the merchant’s “Doing Business As” (DBA) name, also be clearly identifiable to the cardholder. This can minimize copy requests resulting from unrecognizable merchant descriptors.

Merchant applications typically list the merchant name as the merchant DBA. This may differ from the legal name (which can represent the corporate owner or parent company), and may differ from the owner’s name which, for sole proprietorships, may reflect the business owner.

• Keep in mind that the purpose of the merchant name is to identify the merchant to the cardholder.
• Work with your acquirer to ensure your name is clear and discernible to cardholders when they read their statement.
• To verify that you are using the merchant name that is most recognizable to the cardholder, compare the merchant name that you want to use to: * Signage in the site photo * Advertisements or brochures, and/or * A telephone directory listing

I think that the key statement above is "Therefore, it is critical that the merchant name [...] be clearly identifiable to the cardholder." Since this merchant was not clearly identifiable to the cardholder, they are in breach of a critical point in these guidelines.

This is from VISA, but I would assume that all other major credit cards would have similar guidelines for their merchants.

Here's an excerpt from VISA's Card Acceptance Guidelines for Visa Merchants (PDF)

Merchant Name

The merchant name is the single most important factor in cardholder recognition of transactions. Therefore, it is critical that the merchant name, while reflecting the merchant’s “Doing Business As” (DBA) name, also be clearly identifiable to the cardholder. This can minimize copy requests resulting from unrecognizable merchant descriptors.

Merchant applications typically list the merchant name as the merchant DBA. This may differ from the legal name (which can represent the corporate owner or parent company), and may differ from the owner’s name which, for sole proprietorships, may reflect the business owner.

• Keep in mind that the purpose of the merchant name is to identify the merchant to the cardholder.
• Work with your acquirer to ensure your name is clear and discernible to cardholders when they read their statement.
• To verify that you are using the merchant name that is most recognizable to the cardholder, compare the merchant name that you want to use to: * Signage in the site photo * Advertisements or brochures, and/or * A telephone directory listing

I think that the key statement above is "Therefore, it is critical that the merchant name [...] be clearly identifiable to the cardholder." Since this merchant was not clearly identifiable to the cardholder, they are in breach of a critical point in these guidelines.

This is from VISA, but I would assume that all other major credit cards would have similar guidelines for their merchants. However keep in mind that these are "guidelines", and not (necessarily) rules.