Pre-Arbitration is an important stage in the credit card transaction dispute resolution process. The purpose of pre-arbitration is to attempt to resolve disputes by further evidence exchange and communication before formal arbitration.

Detailed Process of Pre-Arbitration

1. Initiate Pre-Arbitration: When merchants are dissatisfied with the results of the first chargeback, or when issuing banks do not recognize the evidence provided by merchants, merchants or issuing banks can initiate a pre-arbitration request.
2. Provide Additional Evidence: During the pre-arbitration phase, both parties can submit more evidence and information to support their respective positions.
3. Bank Evaluation: The issuing bank will review and evaluate the additional evidence provided by the merchant, deciding whether to accept the merchant's evidence and reverse the chargeback request, or continue to support the cardholder's dispute.
4. Determine Results: If the issuing bank accepts the merchant's evidence, the chargeback request will be reversed and the transaction amount will be restored to the merchant's account. If the issuing bank still supports the cardholder's dispute, the pre-arbitration request will be rejected and the transaction amount will be deducted from the merchant's account.
5. Enter Formal Arbitration: If both parties still cannot reach an agreement during the pre-arbitration phase, the dispute will proceed to the formal arbitration stage. Formal arbitration is adjudicated by credit card organizations (such as Visa or Mastercard), and the adjudication results have final binding force.

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