The short answer
After representment and pre-arbitration, if a chargeback is still contested, either party can file for arbitration with the card network (Visa or Mastercard). The network reviews both sides and issues a binding decision. The loser pays the filing fee plus all case fees — $250 on Mastercard, up to $500 on Visa.
In plain English
Arbitration is rare and expensive. Representment resolves most disputes. Pre-arbitration handles the stubborn cases. Arbitration is for the last 1–2% where the issuer and merchant each believe they have a winning case and are willing to pay the filing fee to find out.
The lifecycle
- Chargeback filed — issuer debits acquirer.
- Representment — merchant submits evidence, potentially reversing the chargeback.
- Pre-arbitration — issuer comes back with new evidence; merchant accepts loss or rejects and counter-files.
- Arbitration — network adjudicates, decision is final.
What operators need to know
- File fees are non-refundable even if you win on some networks — check the current schedule.
- Only file if transaction amount >> fee — arbitrating a $90 dispute for a $500 fee is poor math unless it's principle or policy.
- Issuer writes the brief if they file; you only get to respond in writing.
- Visa uses "Visa Resolve Online" (VROL); Mastercard uses "Mastercom" — acquirers submit on your behalf.
- Deadlines are tight — typically 10 days from pre-arb rejection.
- Arbitration loss also counts the chargeback against your ratio.
Numbers to know
Fewer than 2% of chargebacks reach arbitration. Merchants who do file win roughly 40–60% of the cases they bring, because selection bias filters out weak cases. Per-case economics usually require a disputed amount of $500+ to be worth filing.
Why multi-brand operators care
Arbitration is pattern-establishing. If one brand keeps losing the same reason-code-specific pre-arb with the same issuer family, taking a strong case to arbitration and winning creates precedent inside the acquirer's dispute team — they'll argue harder on your behalf on future reps. Treat it as a strategic play, not a line-item recovery.