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Language Foundation

arbitration

Arbitration is the state of a chargeback case in which the issuer and the merchant’s acquirer have referred the dispute to the payment card network for a final decision because they could not resolve it between themselves.

In plain English

This is the point where the two sides could not settle the chargeback directly, so they send the dispute to the card network to decide. The network becomes the final decision-maker between the issuer and the merchant's acquiring bank.

In context

Here, arbitration labels a chargeback case whose dispute has been referred to the payment card network for a final decision after the issuer and the merchant's acquirer could not resolve it themselves.

Situation
Handling verification holds, payment disputes, chargebacks, reversals, and failed refunds
What it communicates
labels a chargeback case at the arbitration stage

Meaning limits

The term by itself does not indicate which side the final decision will favour.

Examples

“When the issuer and the merchant's acquirer could not resolve the chargeback, it went to arbitration before the card network.”

Core meaning

“The chargeback remained in arbitration until the card network issued its final decision.”

In context

  • case status Broader Term

    In this sense, arbitration names a state in a dispute case.

  • arbitration as a general dispute-resolution procedure Alternate Sense

    This is a different reading from the chargeback-case status sense.