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.