Understanding Discover Chargeback Reason Code AW: Altered Amount

Reason Code AW flags a mismatch between the amount a cardholder approved and the amount that finally reached their statement. The dispute may stem from a simple data entry slip, an ATM error, or a cash advance disagreement. Merchants who understand the causes and respond fast can protect revenue, reduce fees, and keep customers happy.

Key Takeaways

• What it means: A different figure was billed than the sum the cardholder agreed to during authorisation.
• Causes: Manual keying errors or unapproved additional charges. Errors in counting cash.
• How to respond: Gather signed receipts, bank logs, and refund proofs. Send a clear rebuttal within the set time limit.
• How to prevent: Use clear pricing, reauthorise any change, monitor ATMs, and try out chargeback alerts.

What is a Discover Reason Code AW Chargeback?

Reason code AW occurs when a cardholder complains to Discover that a transaction amount on their statement doesn't match the amount they approved. In plain terms, the buyer says, “I never agreed to pay that figure.” The issuer retrieves the disputed funds from the merchant while they investigate the facts of the claim. There are various scenarios that can potentially result in AW chargebacks. 

These include cash advances, tips on services, or online orders where additional fees apply after checkout. For example, a carholder might query a payment to a restaurant because a server keyed in the tip amount incorrectly, increasing the amount charged. This code is also used for errors in ATM or cash machine payouts. If the machine dispenses £90 but £100 is charged to the account, the account holder can raise a claim under AW.

Primary Causes for a Code AW Chargeback

The most common cause is merchant error during processing. Staff might type the wrong digits, forget to remove pre-authorised holds, or include a tip without asking. Cash advances pose a risk too: counting notes wrongly or recording the figure in the terminal from memory. ATMs can mis-dispense cash due to mechanical faults, leaving consumers out of pocket and sparking a claim. 

Some businesses tack on small service charges after the customer leaves, thinking it will pass unnoticed. If the carholder notices the difference later, a dispute will likely follow. Friendly fraud also plays a role, with shoppers claiming they never agreed to the tip or surcharge, even though they did. Because the final amount on the statement is higher than expected, the issuer treats it as an altered amount and files AW.

Time Limit for Disputing a Discover Reason Code AW Chargeback

Timing matters for all parties. Consumers normally have up to 120 calendar days from the transaction date to lodge a complaint with their issuing bank. Once the issuer submits a ticket retrieval request to the merchant, they get an extra 30 days to escalate it into a formal chargeback if the evidence they receive does not satisfy them. 

On the other side, the acquirer forwards the dispute to the merchant, who then has 30 days to reply. A late reply almost always concedes the case, so merchants must act quickly. These windows mean a claim might appear several months after the sale, surprising teams that have weak record-keeping. Store receipts for at least six months and check the Discover dispute portal at least weekly to stay prepared.

What AW Means for Consumers & Issuers

Code AW offers protection for cardholders against unexpected charges. If the amount they expected to pay differs from the amount that their card was actually charged, they can request a reversal easily. It saves them the time and hassle of having to deal with the original merchant themselves; instead, the issuer handles the case on their behalf. 

For issuers, AW is a useful tool in maintaining high levels of consumer confidence in their services, while also helping them avoid losses. However, the burden falls on them to assess the evidence on both sides in order to guard against friendly fraud or mistaken claims. If they are too lenient, they are vulnerable to abuse. If they are overly strict, then genuine errors may go uncorrected.

What AW Means for Merchants

Code AW claims present a significant risk for merchants. Not only does the issuer freeze the transaction amount, affecting cash flow, but they also incur chargeback fees. Plus, in the event that they are unable to refute the claim, they lose both the goods (or the value of the service) and the funds. In the longer term, repeated AW disputes can see businesses added to fraud monitoring programmes and suffer reputational damage.

On the positive side, AW claims give merchants a heads-up that their processes may need reviewing. The types of error that lead to AW disputes – tip entry mistakes, poorly audited ATMs or staff adding hidden fees – can eat into their profits even without chargebacks. It's vital to keep signed receipts, time-stamped cashier logs, and CCTV of cash transfers. This way, when the facts are in their favour, merchants have the evidence to hand to secure a reversal.

How to Respond to a Code AW Chargeback

For the best chance of securing a reversal of an AW chargeback, it's important to put together a prompt and well-evidenced response. Start by checking that an error truly occurred. If so, it's usually better to accept the chargeback and move on. Fighting without sufficient evidence only wastes time and resources that could be spent tightening up internal processes. 

If the charge is legitimate, then proceed to gather as much evidence as possible to prove your case. For card sales, present the signed receipt, invoice, or digital approval page showing the agreed total. For tips, include the original pre-authorisation slip plus the final tip line signed by the cardholder. For cash advances, attach the signed cash-out slip, ATM journal log, or electronic count record.

Accompany the submitted evidence with a covering letter in which you lay out clearly and concisely why the charge was correct, and submit it within the Discover deadline. Keep copies of everything in case the case proceeds to arbitration. 

Proactive Prevention: The Ultimate Defence

Stopping AW disputes before they start is cheaper than fighting later. Train staff to read totals aloud before processing, reauthorise every change, and print updated receipts on the spot. Calibrate ATMs often and keep logs of cash loads. For tips, use terminals that let guests add the amount themselves. Store signed records for at least six months so they are ready if needed. Finally, adopt early warning tools that flag new disputes instantly. Try out chargeback alerts to see issues the moment they arise, giving you time to reach out to the customer, solve the concern, and halt the chargeback in its tracks.