Discover’s New Excessive Chargeback Program

It looks like Discover is finally getting on board with the other major card brands for how they will measure merchants for the excessive chargeback program.  In the past, they have evaluated dispute dollars over net sales within a month, with the limit being over 2%.  Beginning October 13th, however, they will be monitoring chargeback transactions over net sales transactions within a month.  Similar to Visa, the maximum limit for Discover will be 1% and 100 chargebacks.

Here’s the major difference – there will be no monitoring and workout period with Discover’s excessive dispute program.  Each chargeback over the threshold will immediately incur a $25 fine.  Be sure to know where you stand with your Discover disputes!Discover Card

By | 2017-09-07T16:07:47+00:00 September 7th, 2017|Categories: Blog Post|Tags: , , , |0 Comments

Data Breach Volumes in First Half 2015

In the first half of 2015, an astonishing 245,919,393 data records were compromised, either by being stolen or lost, according to a recent report by Gemalto.  Of those, 161,577,865 were breached from either the healthcare or government industries.  A full 80% of the incidents occurred in North America.  The next largest geographical region was Europe, coming in at only 10%.

For CNP merchants, the type of breach plays a role in the ensuing processing headaches.  With 53% of the breaches resulting in identity theft, merchants can expect to see either an increase in “potential fraud” declines upon authorization, or, as identity thieves are establishing credit cards in another’s name, they will eventually see a spike in “did not authorize” chargebacks.