All About Pre-Arbitration

Over the summer Mastercard® announced new mandates regarding pre-arbitration and arbitration case filing for chargebacks. The arbitration chargeback cycle was replaced with pre-arbitration where applicable. Pre-arbitration is now required for fraud, cardholder disputes and POI error reason codes prior to escalating as an arbitration case filing.

You might be wondering, what exactly is pre-arbitration?

Pre-arbitration is one of the many stages in the disputes process where issuing and acquiring FIs communicate to exchange the data required by law for case resolution. Pre-arbitration is the last stage before a disputed transaction is escalated and sent to the card companies (i.e. Visa, Mastercard, AMEX) for arbitration.

Disputes typically go to pre-arbitration if:

  • The issuing bank isn’t satisfied with the data presented by the merchant
  • The merchant provides sufficient data, but the cardholder provides new information
  • The cardholder presents a different reason for the chargeback

Staying compliant is complicated. Quavo’s QFD™ and ARIA™ dispute management platforms automatically keep you and your team compliant. Find out more from one of our fraud and dispute experts today.