Discover Merchant Excessive Dispute Fee Program

Sept. 6, 2017


Effective Oct. 13, Discover will be revamping their Excessive Dispute Fee Program, the calculation of which will be as follows:

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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