Pre-arbitration is not a standard part of dealing with chargebacks, but rather a distinct procedure typically only applicable to Visa cards.  Centered on a second chargeback or second reversal of a disputed transaction, pre-arbitration is a formal procedure to clarify whose claim has standing.

Pre-arbitration can be one of the most confusing steps in the chargeback process, not least because Visa is the only card network that uses this particular terminology.

Chargeback MeaningA chargeback is a transaction reversal process initiated when a consumer requests a forced-refund from their issuing bank.

Pre-arbitration refers to the part of the process when the issuer, or their customer, disputes the merchant’s representment and sends the case to the card network for a final decision in arbitration. Only Visa calls this “pre-arbitration” in their official documentation, but it’s common shorthand in the payments industry for the formal procedure to clarify whose claim has standing on the second reversal of a disputed transaction.

Full Text:
https://www.chargebackgurus.com/blog/understanding-the-chargeback-pre-arbitration-process

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