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Discover Merchant Excessive Dispute Fee Program

Oct. 12, 2017

 

Please note that Discover has changed the original effective date of their revamped Excessive Dispute Fee Program from Oct. 13 to now become effective with December 2017 sales and January 2018 chargebacks instead, as outlined below.

Merchant Excessive Dispute Fee (MEDF)

$25 per Chargeback per month on each Chargeback in excess of the Chargeback Ratio of 1 percent of number of chargebacks over number of net sales during the previous month, and after all of the following threshold levels are met by any Merchant location or outlet:

  • 100 or more Chargebacks during the month;
  • 100 or more net sales transactions during the month (where “net sales transactions” equals the number of Card Sales less the number of Returns); and
  • Number of Chargebacks exceeds 1 percent of the number of previous month’s net sales transactions

If you have any questions, please contact your eCommerce relationship or partner manager.

 

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