Pre-Arbitration

Pre-arbitration is a critical phase in the chargeback resolution process, particularly in the context of credit card transactions. This stage occurs after a merchant has responded to a chargeback by the cardholder (also known as representment), where the merchant presents evidence to contest the chargeback. If the issuing bank upholds the chargeback despite the merchant's evidence during representment, the merchant is faced with a decision in the pre-arbitration phase.

Key Aspects of Pre-Arbitration:

Pre-arbitration serves as a last opportunity for resolution before entering the formal and more rigid arbitration process. It provides a crucial checkpoint for merchants to reassess their position and the strength of their case against the chargeback, promoting a final attempt at resolution without further escalation.