Chargeback Arbitration

Chargeback arbitration is the final stage in the chargeback dispute process when the merchant and the issuing bank cannot resolve a disagreement regarding a chargeback through the standard dispute resolution channels. This process involves the intervention of the card network (such as Visa, MasterCard, American Express) to review the case and make a binding decision.

Here is how the chargeback arbitration process typically unfolds:

Strategic Considerations: Due to the high costs and potential risks associated with chargeback arbitration, merchants are advised to carefully assess the likelihood of success before proceeding to this stage. Effective chargeback management practices and clear documentation are crucial in avoiding disputes from escalating to arbitration. Merchants should also consider seeking professional advice or consulting with their payment processor to better understand the dynamics of the arbitration process.