Arbitration

Arbitration is a process that disputing parties use to seek a verdict from an independent third party. After reviewing the evidence provided, the neutral arbitrator has the authority to make a decision about the case.

When applicable, arbitration can be used to settle a payment dispute. If the desired outcome hasn’t been reached after all stages of the chargeback process have been completed in full compliance with card brand regulations, the case can be escalated to arbitration.

Rules for initiating arbitration vary depending on the type of dispute and the card brand. Some cases must be proceeded by pre-arbitration.

During arbitration, the card brand will evaluate the case and issue a verdict. The card brand’s verdict is final — there is no appeal process.

Arbitration is traditionally saved for high-dollar transaction disputes because the process itself is rather expensive. The losing party is responsible for paying all fees, which can be several hundred dollars.

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