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What Is The Discover Chargeback Reason Code AW – Altered Amount?
Discover chargeback reason code AW – Altered Amount comes into play when a cardholder disputes a charge because they believe the amount they were billed is different from what they agreed to pay. This can happen due to clerical errors, unauthorized changes, or miscommunications about the final price. If you're a merchant facing this chargeback, you’ll need to review the transaction, gather and submit documentation that shows the customer agreed to the billed amount, or correct any mistkes by issuing a refund if necessary. Ensuring clear communication and accurate billing practices can help prevent these disputes.
Common Causes Of Discovers' AW – Altered Amount Chargeback
Discover chargeback reason code AW – Altered Amount is used when a cardholder disputes a charge because they believe the amount they were billed is different from what they agreed to pay. This can happen due to various reasons:
Clerical Errors: Sometimes, a simple mistake can occur where the transaction amount is entered incorrectly by the merchant.
Unauthorized Changes: The cardholder might feel that the merchant intentionally or unintentionally changed the agreed amount.
Miscommunication: There could be a misunderstanding or miscommunication about the final price, especially if additional fees or charges were added without the cardholder’s knowledge.
Example Scenario of AW – Altered Amount Chargeback
Imagine you run a catering business, and a customer hires you for an event. The initial agreement was for $500, but due to additional services requested during the event, the final bill was $600. If the customer was not informed or did not approve the additional charges, they might dispute the charge under reason code AW – Altered Amount.
To handle this, you’d review your records, gather the initial agreement, and any communication about the additional services and charges. Provide this evidence to Discover to show that the customer was informed and agreed to the final amount.
Discover chargeback reason code AW – Altered Amount is about ensuring transparency and accuracy in billing. By maintaining clear communication and accurate records, you can minimize disputes and handle them effectively if they arise.
Resolution Time Frame for Discover Chargeback Reason Code AW – Altered Amount
The resolution time frame for Discover chargeback code AW – Altered Amount typically involves several steps, each with its own timeline. Here’s a breakdown of the process:
Chargeback Filing: When a cardholder disputes a charge, claiming the amount was altered, Discover initiates the chargeback process. This usually happens within a few days of the cardholder’s complaint.
Merchant Response Time: Once the chargeback is issued, the merchant is notified and given an opportunity to respond. Discover generally allows merchants up to 30 days to gather and submit evidence to support their case. This evidence might include original transaction records, receipts, invoices, and any communication with the customer.
Review and Decision: After the merchant submits their evidence, Discover reviews the information provided. This review period can take around 30-45 days. During this time, Discover assesses the validity of the merchant’s evidence and determines whether the chargeback should be reversed or upheld.
Final Resolution: The entire process from the initial dispute to the final decision can take anywhere from 60 to 90 days. If the merchant’s evidence is sufficient to show that the amount was not altered or that the customer agreed to the changes, the chargeback may be reversed. If the charge was indeed altered without proper authorization, the chargeback stands, and the cardholder keeps the funds.
The resolution time frame for Discover chargeback code AW – Altered Amount is generally between 60 to 90 days from the initial filing to the final decision. This period allows for a thorough review and fair resolution of the dispute.
How to Avoid Chargeback Reason Code AW – Altered Amount
To avoid these chargebacks, consider these proactive measures:
Accurate Billing: Double-check transaction amounts before processing payments to ensure accuracy.
Clear Communication: Clearly communicate all costs, fees, and charges to the customer before completing the transaction. Ensure they understand the final amount they will be billed.
Detailed Invoices: Provide detailed invoices or receipts that itemize the charges and show the final amount the customer agreed to pay.
Customer Verification: Have the customer review and approve the final amount before processing the payment, especially for large or complex transactions.
How to Fix Chargeback Reason Code AW – Altered Amount
If you receive a chargeback under code AW, here’s what you should do:
Review the Transaction: Check your records to verify the original transaction amount agreed upon by the cardholder and compare it with the billed amount.
Gather Documentation: Collect all relevant documentation, including receipts, invoices, order forms, and any communication with the customer that outlines the agreed amount.
Provide Evidence: Submit the gathered documentation to Discover. Clearly explain any discrepancies and provide evidence that the cardholder agreed to the amount charged.
Refund If Necessary: If you find that an error occurred on your end, process a refund for the incorrect amount and provide proof of the refund to Discover.
