Pre-arbitration: what happens after a chargeback is contested
What pre-arbitration means in a chargeback, who starts it on Visa and Mastercard, the deadlines, the arbitration fees, and how Stripe, Adyen and Braintree handle it.
By Florian
Pre-arbitration is the round that follows your first chargeback response: one side does not accept the outcome and makes a last attempt to settle the case before it goes to the card network for arbitration. On Visa, who starts it depends on the dispute type: you (through your acquirer) for fraud and authorization disputes, the issuing bank for consumer disputes and processing errors. If pre-arbitration fails, the case can go to arbitration, where the network decides and the losing side pays a fee on top of the amount.
For most subscription businesses, pre-arbitration is rare and expensive. Knowing when it happens helps you decide where to put your effort: almost always in the first response.
This guide is based on the Visa Core Rules and Visa Product and Service Rules (edition of 24 October 2026, chapter 11), Adyen’s Visa and Mastercard chargeback guidelines and its dispute notifications, Braintree’s pages on disputing chargebacks and pre-arbitrations, and Stripe’s how disputes work, all accessed on 11 November 2026. Your processor’s contract can add its own steps and fees.
Where does pre-arbitration sit in the dispute lifecycle?
Visa’s rules list the stages of a dispute in order:
| Stage | What happens |
|---|---|
| Dispute | The issuing bank disputes the transaction for the cardholder |
| Dispute response | You send evidence through your acquirer (representment) |
| Pre-arbitration attempt | One side challenges the outcome of the response |
| Pre-arbitration response | The other side accepts liability or declines |
| Arbitration | The network reviews the case and assigns liability |
Mastercard has the same shape with different names: chargeback, second presentment (your response), then a pre-arbitration and arbitration case filing process if the issuer keeps disputing. For the vocabulary of the earlier stages, see chargeback vs dispute vs retrieval request.
Who starts pre-arbitration on Visa?
Visa splits disputes into four categories, and the pre-arbitration rules differ between two groups of them. Adyen calls these the Allocation flow and the Collaboration flow; Visa’s 2026 rules describe them in separate tables.
| Fraud (10) and Authorization (11) | Processing errors (12) and Consumer disputes (13) | |
|---|---|---|
| Adyen’s name | Allocation | Collaboration |
| Who makes the pre-arbitration attempt | Your acquirer, for you | The issuing bank |
| Time limit for the attempt | 30 calendar days from the dispute processing date | 30 calendar days from your dispute response |
| Who answers | The issuer, within 30 calendar days | Your acquirer, within 30 calendar days |
| Who can file for arbitration | Your acquirer | The issuer |
| Time limit to file | 10 calendar days from the pre-arbitration response | 10 calendar days from the pre-arbitration response |
Visa’s rules note regional exceptions to these limits for some domestic transactions.
Fraud and authorization disputes
In categories 10 and 11, there is no separate “dispute response” round: your answer to the dispute is the pre-arbitration attempt. The issuer can accept liability, or decline, but Visa’s rules allow a decline only in specific cases, for example when it brings new information, or when the cardholder details in your Compelling Evidence do not match its records. If you sent Compelling Evidence and the contact details match, the issuer must certify it contacted the cardholder and explain why they still dispute.
Adyen says it automatically creates the pre-arbitration case for you in this flow, and that the case is accepted when the bank’s 30-day response time expires without an answer.
Consumer disputes and processing errors
In categories 12 and 13, you respond first. The issuer can then make a pre-arbitration attempt, and Visa lists the grounds: new documentation, a change of dispute condition based on what you sent, a certification that the cardholder still disputes, or a certification that it contacted the cardholder about your evidence and why they still disagree.
This is where most subscription disputes land. Visa’s condition 13.2 (Cancelled Recurring Transaction) gives an example: at pre-arbitration, the issuer can supply evidence that the cardholder asked the merchant to cancel, such as a cancellation email. See the 13.2 reason code page.
How does pre-arbitration work on Mastercard?
Per Adyen’s Mastercard guidelines:
- The issuer can file a pre-arbitration case within 45 days of the date your defense was uploaded.
- If you decline it and the issuer disagrees, the issuer can file an arbitration case with Mastercard.
- Pre-arbitration applies to all reason codes except 4808, 4870 and 4871, which go straight to arbitration.
The Mastercard rules themselves are in its Chargeback Guide; check your processor’s documentation for the deadlines it applies to you.
What happens at arbitration?
Visa’s rules (section 11.12) set the frame:
- The case is filed through Visa Resolve Online (VROL), and a member must not submit documents or information that were not previously submitted to the other side. New evidence is not accepted at this stage. Braintree says the same: merchants can’t submit additional evidence for arbitrations.
- The member found responsible pays the transaction amount and a review fee. Visa can reject an invalid case and keep the review fee.
- Either side can also be charged for each technical violation of the rules.
- An appeal decision, where one is allowed, is final.
Visa’s public rules do not state the fee amount. Processors publish what they pass on:
| Processor | Arbitration fee it states |
|---|---|
| Adyen | USD 600 filing fee for the losing party on Visa, on top of the dispute amount; up to USD 600 on Mastercard |
| Braintree | Visa currently assesses $500 per arbitration case; Mastercard $575 for lost arbitrations, plus a $100 technical violation fee |
For a $20 or $50 monthly subscription, those fees are many times the disputed amount. See chargeback fees for the costs at earlier stages.
How do Stripe, Adyen and Braintree handle it?
Stripe
Stripe says it doesn’t support the arbitration phase: you can’t escalate disputes to arbitrators through its platform. After you submit evidence, the next notification is the final decision, won or lost, and Stripe describes it as final for all parties, with rare exceptions. Stripe does not document a pre-arbitration step or status for merchants.
Adyen
Adyen sends a webhook at each stage, including:
SECOND_CHARGEBACK: the issuing bank declines the material you sent with your defense;PREARBITRATION_OPEN,PREARBITRATION_ACCEPTED,PREARBITRATION_DECLINED,PREARBITRATION_WON,PREARBITRATION_LOST;SCHEME_ARBITRATION,SCHEME_ARBITRATION_WON,SCHEME_ARBITRATION_LOST.
Adyen notes that most pre-arbitration events only fire for merchants who handle pre-arbitration themselves, which requires Adyen’s approval, and that you can no longer upload documents after a second chargeback.
Braintree
Since 27 August 2025, Braintree auto-accepts pre-arbitrations under $1,000 for flat-rate merchants in the US, so that arbitration fees are not passed on to them. Above that amount, merchants can represent, and the threshold can be changed in the Control Panel. Braintree also says a fee to process the pre-arbitration is charged whatever the outcome, and that if a case expires, it is accepted on your behalf. More in Braintree disputes.
Should you accept or fight a pre-arbitration?
A short checklist:
- Is it a fraud dispute where you hold strong evidence? On Visa, the pre-arbitration attempt is your one real answer. Send it complete, with Compelling Evidence if you qualify.
- Did the issuer bring something new? If the cardholder’s cancellation email is now in the file and your records show the request, accept: arbitration would cost more than the charge.
- Is the amount small? Compare the amount with the arbitration fee. For most subscription payments, fighting past pre-arbitration loses money even when you are right.
- Is the customer still subscribed? Check, and cancel or contact them. Charging again a card that disputed the last payment invites a new dispute.
- Learn from the case. A lost 13.2 usually points to a cancellation that did not stop billing. Fix the flow, not just the case. See refund or fight a chargeback.
Since you cannot add evidence at arbitration, the first response decides almost everything. Our chargeback evidence checklist for SaaS lists what to include from the start.
FAQ
What does pre-arbitration mean?
It is the stage after the first chargeback response, where one side challenges the outcome and the other must accept liability or decline, before the case can go to the card network for arbitration.
Who initiates pre-arbitration?
On Visa, your acquirer does for fraud and authorization disputes, and the issuing bank does for consumer disputes and processing errors. On Mastercard, the issuer files it after your second presentment.
How long does each side have?
On Visa, 30 calendar days for the attempt, 30 for the response, then 10 to file for arbitration. Adyen gives 45 days for a Mastercard issuer to file pre-arbitration after your defense.
Can I send new evidence at arbitration?
No. Visa’s rules forbid submitting documents that were not previously submitted to the other side, and Braintree says merchants can’t add evidence for arbitrations.
How much does arbitration cost?
Processors state about $500 to $600 per case for Visa (Braintree: $500, Adyen: USD 600) and $575 to $600 for Mastercard, charged to the losing side on top of the disputed amount.
Can I take a dispute to arbitration on Stripe?
No. Stripe says it doesn’t support the arbitration phase, and its decision after your evidence is final, apart from rare cases.
How NoChurn helps
NoChurn concentrates on the round that decides most cases: the first response. When a dispute opens with your payment provider, it gathers the evidence it already has for that reason code (cancel flow answers, renewal reminders and emails sent, invoices, usage you send by API, help desk conversations), drafts a reply with AI from those items only, and waits for a person to review and submit it before the deadline. It does not file or answer pre-arbitration or arbitration cases: those stay with your processor.
To prevent the disputes in the first place, cancel flows keep a one-click cancel visible, and on Stripe, early fraud warnings can be refunded in one click. NoChurn connects to Stripe in one click and works with Braintree, Chargebee, Recurly, Paddle and others, or any billing through the API, with pricing by MRR and no commission. See chargebacks.