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!