Pre-arbitration

After a merchant responds to a chargeback with evidence, the issuer may still disagree, for example because the response did not address the claim, the cardholder sent new information, or the dispute reason changed. The issuer can then open pre-arbitration. The exact flow depends on the network: Visa’s allocation and collaboration flows handle this step differently.

The merchant can usually accept, which loses the dispute, or decline and keep defending. If neither side gives way, the case can go to arbitration, where the card network decides who bears the loss. Arbitration involves network fees, so the amount at stake matters.

Since Visa’s Compelling Evidence 3.0 rules, pre-arbitration is also where qualifying history of earlier undisputed payments can be submitted in fraud cases.