Arbitration is the final, network-decided stage of a dispute — and the fee is fixed, no matter how small the order. Before you escalate, run the numbers: most disputes cost more to arbitrate than they're worth.
Quick answer: chargeback arbitration is decided by the card network, and the losing party pays a fixed case fee — $600 for Visa, roughly $575–825 for Mastercard — regardless of the transaction amount. It's the step after pre-arbitration, which is your last chance to accept the chargeback cheaply (paying only the disputed amount, with no network fee).
| Stage / network (US) | Fee | Who pays |
|---|---|---|
| Visa — case filing / ruling fee | $600 | Losing party (raised from $500 on Apr 1, 2025) |
| Visa — missed pre-arbitration deadline | ~$15 | Merchant |
| Mastercard — arbitration (filing + admin) | ~$575–825 | Losing party |
| Mastercard — technical violation | ~$100 | Losing party |
| Mastercard — pre-arbitration accept / filing | $15 | Merchant |
| Mastercard — withdraw a filed case | ~$150–320 | Merchant who withdraws |
How a dispute reaches arbitration: the customer's bank files a chargeback → you respond with evidence (representment) → if the issuer stands firm, the case moves to pre-arbitration, where you can either accept (you're out the disputed amount only) or contest once more → if it's still unresolved, the network makes a binding ruling at arbitration, and the loser pays the case fee.
Acquirers pass fees through. The figures above are card-network fees; your processor or acquirer may add a handling charge on top, and exact amounts vary by contract. Always check your statement, not just this page.
US network fees verified against card-scheme fee schedules and acquirer pass-through tables, October 2026. Not legal advice.
The disputed amount is already gone once the chargeback is filed. Filing for arbitration wins it back if you win; if you lose, you pay the fixed fee on top of the amount you already lost. That asymmetry is why small disputes should never be escalated.
| Disputed amount you recover if you win | +$250 |
| Ruling fee you pay if you lose | −$600 |
| Expected value vs. accepting the chargeback | −$90 |
1. Never arbitrate below the ruling fee. If the order is worth less than ~$600 (Visa) or ~$825 (Mastercard), you're risking more than you can recover. Accept at pre-arbitration instead — it costs you only the disputed amount.
2. Weight by your real win rate. Arbitration is a coin-flip you pay for. At a typical 30–40% merchant win rate, the break-even dispute size against Visa's $600 fee is $900–$1,400. Only well-evidenced, higher-value disputes clear that bar.
3. Check your processor can even escalate. Stripe does not support the arbitration phase at all, so its merchants cannot go past representment. Shopify Payments, PayPal and most direct acquirers do, but each has its own handling fees — read your statement.
The cheaper lever is almost always prevention: an alert that stops a dispute before it becomes a chargeback costs about the same as the $15 fee. See chargeback alert pricing and chargeback insurance cost.
The fixed case fee the losing party pays when the card network rules on a dispute. Visa's is $600; Mastercard's totals roughly $575–825. It applies no matter how small the transaction is.
The loser. File and win → the issuer bears it and you recover the disputed amount. File and lose → you pay the fee on top of the amount you already lost.
$600, effective April 1, 2025 (up from $500). Missing a pre-arbitration deadline adds ~$15.
~$575–825 depending on which fees your acquirer passes through, plus ~$100 for a technical violation and ~$150–320 to withdraw a filed case.
No — Stripe doesn't support the arbitration phase, so Stripe merchants can't escalate past representment. If representment fails, the dispute is over.
Rarely, and only for large disputes with strong evidence. At a 60% win rate, break-even against a $600 fee is ~$400; at 30%, ~$1,400. Below that, accept at pre-arbitration.
Pre-arbitration is your last cheap exit — accept and you pay only the disputed amount. Arbitration is the network's binding ruling, where the fixed case fee applies to the loser. That's why accepting at pre-arbitration is usually cheaper.
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