Pre-Arbitration & Arbitration

Pre-arbitration

Pre-arb happens after the initial chargeback ruling. It's usually triggered one of two ways: the issuer disagrees with your chargeback response and escalates, or — more common — you win the initial chargeback and the cardholder's bank re-disputes. The issuer generally has about two weeks after the original ruling to start pre-arb, or it loses the ability to escalate further.

⚠️ Your response window after a pre-arb is received is about 10 days. At this point you choose whether to accept the loss or push on to arbitration.

Arbitration

In arbitration, the card network makes a final, binding ruling. This is designed to be the end of the road — post-2018 network changes, neither side has a standard path to escalate further once the network rules. (Narrow exceptions tied to network compliance programs or procedural errors are handled case-by-case directly with the network, not through the normal dispute path.)

Filing fees

Arbitration carries a filing fee that varies by network:

Network

Arbitration filing fee

Visa

$600†

Mastercard

$420†

Discover

None† — Discover doesn't charge merchants to escalate

†Fees subject to change at network's discretion

The fee is charged to whichever side loses at arbitration. It's assessed on the outcome — if you win, you don't pay it.

Deciding whether to escalate

Because of the filing-fee risk, arbitration is usually only worth pursuing for higher-value transactions, or where your evidence is genuinely strong.

At arbitration, the reviewer is settling a disagreement between two banks, so the bar shifts from "here's our evidence" to "here's why the previous decision was wrong." A few things matter more here than at the initial stage:

Reinforce direct proof the cardholder was involved — matching billing/shipping, account activity — not just proof that the transaction or service happened. That's the difference between "a transaction occurred" and "this customer did it."
Add anything not submitted at the original stage. Arbitration is often your last chance to introduce documentation.
Be selective. Weigh the fee risk. Visa in particular tends to favor cardholders on service-not-provided disputes regardless of contract terms — factor that in before pushing a case this far.

ℹ️ This is general guidance, not legal advice, and network rules and fees can change over time. For help with a specific dispute, reach out to TankTrack support.