In plain English
This means the case is still being contested even after the merchant responded to the chargeback. The issuer has sent it back to the acquirer because the disagreement continues, but it has not yet reached card-network arbitration.
In context
Here, pre-arbitration identifies the chargeback case as being in the stage where the issuer has sent the disputed case back to the acquirer after the merchant challenged the chargeback, before card-network arbitration.
- Situation
- Handling verification holds, payment disputes, chargebacks, reversals, and failed refunds
- What it communicates
- labels a chargeback case at the pre-arbitration stage
Meaning limits
By itself, this status does not say how the case will be resolved.
Examples
“After the merchant challenged the chargeback, the case went into pre-arbitration when the issuer sent it back to the acquirer instead of taking it straight to card-network arbitration.”
“The disputed case came back to the acquirer in pre-arbitration even though the merchant had already challenged the chargeback.”